A wedding is a happy event, one of those major life milestones. It’s only natural for you to want it to be flawless. There might be numerous items on your wedding wish list, ranging from aerial photos to celebrations with a unique theme. Most of these items on the list may come with a big price tag. The good news is that if you begin looking for a loan to cover wedding costs, you will come across loans referred to as “marriage loans” or “wedding loans” from financial institutions, Non-Banking Financial Companies (NBFCs) and private lenders. With a wedding loan, you can have complete financial peace of mind for your special day.
Here are the seven reasons why you should consider getting a personal loan for your wedding:
1. Quick application
In India, planning a marriage can be a stressful process for the person doing so. So, it’s a good thing the process of applying for a personal loan for your wedding won’t add to the stress. Simply go to the website of your preferred lending institution, review the eligibility requirements, upload your supporting documentation, and apply for a personal loan online.
2. No collateral
No collateral is required when applying for a personal loan to pay for a wedding. This is an unsecured loan since the lender will not ask you to pledge assets such as real estate, gold, or business or residential property. The only requirements for the borrowers are a solid credit history and a high credit score. Because of this, applying for a personal loan for a wedding is an easy, hassle-free, and quick process.
3. Flexible repayments
Planning the ideal wedding might take weeks or even months. Planning a wedding that appears to be from a movie, with everything being perfect, is no less than an art. Naturally, planning and funding for such a wedding cannot be done in a single day.
A wedding loan can be quite beneficial in this situation. Depending on your financial health and stability, you can repay the loan Equated Monthly Instalments (EMIs) over a long period with a flexible repayment option. Using a personal loan EMI calculator, you can determine an appropriate repayment period.
4. Reasonable EMI
Lenders authorise the loan only after considering your monthly income and debt-to-income ratio. Considering these elements, your monthly personal loan EMI payment will often be reasonable. As a result, even though you borrowed a big sum, the payback can be performed in manageable, modest sums.
5. No usage restriction
There are loans available for specific purposes and the loan amount disbursed cannot be used for anything other than what was initially intended. But when you apply for personal loan, there are no limitations on how the money can be used, making it the perfect choice for wedding-related spending. Your loan money can be used for various things, like paying for the wedding venue, your honeymoon, home renovations, etc.
6. Lender’s credibility
Before making your personal loan application, evaluating the lender’s credibility is crucial. You should look up the lender’s internet reviews, customer service options, how quickly the lender responds to your inquiries, etc.
7. Good interest rates
The lender will probably provide you with a competitive interest rate for the wedding loan if you have a strong credit history. The interest rate for a wedding loan can be anywhere between 11% to 24% per annum. The total cost of the loan will be lower if you are provided with a low interest rate and vice versa.
Conclusion
A personal loan can help you fund all your wedding plans. Before choosing a loan from a specific lender, you should compare the interest rate charged, the loan amount offered, any fees charged or penalties applicable, etc. Check your credit score and work to raise or maintain it to be eligible for a low personal loan interest rate.
