Weddings are grand affairs requiring a huge sum of money to finance the various components of a ceremony, which generally extends over days or weeks. Preparations for Indian weddings often start months ahead with every minute detail meticulously planned in advance for a flawless and memorable event.
Expenditures during such events run high and include the costs of the venue of the wedding, clothes and accessories, jewelry, and hosting of the invitees to the ceremony.
Parents often take responsibility for most of the expenses during the event, for the funding of which, money from savings is generally used. However, planning a grand wedding requires more than just savings.
If you have decided to have the wedding of your dreams, it is most likely that you will require the assistance of a wedding loan. To relieve yourself from financial concerns and focus on enjoying the most auspicious event of your life, a Personal Loan for your wedding is an ideal solution.
Understanding Wedding Loans
Personal Loans offered by NBFCs as well as banks for the purpose of funding expenditures towards a wedding qualifies as a wedding loan. A certain interest rate will be charged on the sum borrowed.
Interest rates vary and so does the tenor of the wedding loan depending on the financial institution you have borrowed the loan amount from. E.g. A Bajaj Finserv Personal Wedding Loan allows you to avail an amount of Rs.25 Lakh and with flexi loan facility you can pay up to 45% lower EMIs. You can apply for the loan with minimum documentation and have quick approval and disbursal of your loan.
Another advantage of the Personal Wedding Loan from NBFCs is the flexi loan facility. With this facility, you can borrow money when you need and pre-pay it when you have a surplus. Additionally, you can choose from tenors between 24 to 60 months to repay your loan.
Things to do Before Applying for a Personal Wedding Loan
Here is a checklist of a few important things to remember before applying for your wedding loan:
1. Prepare a Budget
Making an estimate of the total cost your wedding will entail will be helpful in determining the amount of loan you need to avail. If you do not make a prior estimate, there could be a shortage of funds at the last moment when it will be too late to mitigate the situation. Deciding on a fixed budget also helps understand how much of the wedding expenses can be financed by your savings. In case you find that your expenses are overshooting your budget, you can cut back on unnecessary costs and reduce your overall expenditure.
2. Compare your Options Online
You can meet a range of lenders online and compare their offerings. You can also choose either a bank or NBFC to avail a personal wedding loan. Depending on your own unique needs, you can choose the perfect option that involves the highest privileges with a low-interest rate, a high loan amount, and flexible tenor among others.
Additional Reading: How to Arrange Finance for a Royal Wedding?
Crucial Factors for the Approval of a Personal Wedding Loan
Here are a few factors that will decide whether your financial institution will approve your wedding loan or not:
- In order to be eligible for a wedding loan, you need to be at least 21 years of age or above
- You should be employed with a specified minimum salary drawn per month
- Your total current income will be reviewed by your concerned financial institution before granting you the loan
- Your present debt-to-income ratio will determine the amount of loan granted to you
- In general, a credit score of 700 ensures quick approval of loans
If you are planning a gala wedding, a personal wedding loan will surely save the day and help you make many memories to cherish over the years to come. Remembering to timely repay the loan and calculating your budget accordingly to fulfill the repayment needs is crucial. It is also essential to read the fine print carefully before signing on the dotted lines.
In the end, a wedding is an important event in life and every effort should be made to make the occasion as memorable as possible.