A dream wedding, in todayâ€™s times, has become a concept involving large sums of money. Every couple has their own qualms about a wedding, be it a small one or a lavish one.
Multiple financial institutions offer multiple financial solutions to help couples fulfil their dream. However, not all of these solutions are viable, and hence it is important to consider both the merits and demerits of personal loans or wedding loans, whichever is best suitable for your needs.
A perfect wedding demands a perfect location, perfect food, perfect decor and perfect costumes. For most people, weddings are a way to express their personal style and taste in a wild array of things, ranging from food to the colour of the lehenga of the bride.
Wedding Loans are Essentially Personal Loans
Firstly, the concept of â€śwedding loansâ€ť does not exist. An individual cannot walk into a bank asking for a wedding loan. It is primarily a personal loan that you take in order to fund your big day. Financial advisors in India are usually sceptical about such loans and consider them to be a last-ditch effort. However, these loans act as a boon for more than a thousand couples every year.
Why are Personal Loans a Preferable Choice for Weddings?
- When you decide to fund your wedding by applying for a personal loan, you can use the online personal loan EMI calculator to find out the cost of your loan and hence are well aware of your budget. You know how much to spend and what you will be left with after the spending.
- Depending on your financial situation you are free to opt for a tenure that is best suitable to your needs. Make sure you do not find it difficult to pay back the borrowed amount.
- The right personal loan offer is one that has an affordable interest rate and a flexible repayment option so that you are free to reduce the borrowing cost by choosing a shorter duration for repayment.
- As is the case with most unsecured loans, you do not have to worry about offering collaterals while applying for a personal loan. This, in turn, will ensure that your assets are free of risks in case it gets difficult for you to service the loan.
- If your credit score is brilliant and you have an excellent history of repayment, you can opt for a low-interest rate personal loan. This is extremely helpful because it ultimately reduces the cost of your borrowings.
Assured Way of Acquiring a Personal Loan for your Wedding
- A good credit history - If you have made up your mind to obtain a personal loan for your wedding, then a good credit history is sure to back you up. Anything above 750 is considered a good credit score and thus helps in an easy accession of loans. A low credit score will still get you a loan but at a higher rate of interest.
- Organised financial documents - Besides the credit score, the other important element that banks mostly look at while giving personal loans is an organised set of documents. These include your income proof, bank statements, mortgages, any other loans you might have and so on. Online wedding loans are relatively more hassle-free since you do not need to be physically present to acquire one.
Sometimes cutting down on expenses might not be the solution to a lavish wedding. One might need another component to fall back on. In comparison to a home loan, a personal loan is more well-equipped to serve greater purposes. Not only for a wedding, but a personal loan can also be used to fund someoneâ€™s education, or take that much-awaited trip to Bahamas or Bali, check more in bankbazaar.com.
Budgeting for weddings can turn out to be an arduous task and there are certain things out there that is just too good to not include. However, if you plan early and smart, you might be able to save yourself some out-of-pocket expenses altogether.
While considering other loans such as a home loan or a car loan, one can easily decipher which one would be best suitable for a particular situation. However, a personal loan holds a wider scope where expenditure is taken into consideration. For your dream wedding, plan smart and choose the best financial instrument to make your day the happiest one.
This article has been produced by TNM Marquee in association with Bankbazaar.