Planning a wedding involves considerable costs ranging from venue and food to decorations, outfits, and photographers. Still, it is a joyous moment everyone wants to make the most of, enough for a lifetime. Some plan a destination wedding, while others want an international vacation after finishing the rituals at home. Whether you want to stick to a casual affair or plan an extravagant celebration, the first thing to figure out is how to pay for the expenses.
A Personal Loan for marriage, also known as a marriage or wedding loan, would be an excellent funding option for those who don’t have enough savings to cover the costs of a wedding. However, before taking the loan, weigh the features and benefits and determine if it is the right financing option for your wedding. Here’s some essential information about wedding loans and when they make the most sense.
What are Wedding Loans?
Wedding loans are Personal Loans taken by people to pay for various expenses, such as catering, venue, photography, outfits, matching jewellery, decorations, invites, and gifts. These loans are quick and easy to apply for as many NBFCs, and lending institutions approve them online instantly.
The interest rates vary based on the loan amount, repayment term, the applicant’s salary, debt-to-income ratio, and credit score. Generally, they are less than credit card interest rates, making them an attractive funding option for wedding hosts. Moreover, wedding loans come without end-use restrictions, making them feasible for all wedding-related costs.
When Does a Wedding Loan Make Sense?
Many people get carried away while planning a wedding due to social media influence and celebrity wedding photographs. However, taking out a wedding loan is ideal for fulfilling any unexpected requirement before, during and even after the ceremony; taking a higher amount than required just because you are eligible for it can become a burden during repayment. While deciding whether to take a Personal Loan for wedding costs, consider how much extra funding would serve the purpose.
Borrowing money to cover the wedding costs is not something you can do on a whim. Taking a wedding loan makes the most sense under the following circumstances.
- Upfront Cash Needs. Many wedding venues ask for a percentage of the total cost as an advance payment to book the wedding date. Without paying this advance, the hosts may lose their desired spot. Likewise, photographers, caterers, makeup artists, and other vendors might also require an advance payment. A wedding loan makes funds available for these payments, making wedding plans easier to budget.
- Last-Minute Wedding Expenses: No matter how meticulously you plan for the wedding, some unexpected expenses may come flying under the radar around the big day. They can be anything from last-minute guests and additional decor to transportation costs and vendor cancellations. Since last-minute wedding expenses can throw you off financially and mentally, a Personal Loan for marriage can help cover them without burning a hole in your pocket.
- Fulfil Wedding Desires: Everyone has wedding dreams they want to see fulfilled on their big day. A lack of funds should not prevent the bride or the groom from making their wedding dreams come true. Whether you wish for that solitaire ring or want to get married at the most expensive venue in town, a wedding loan can provide the funds to fulfil all your wedding dreams.
Pros of Funding a Wedding with a Personal Loan
Exhausting savings to cover the wedding costs affect your overall financial health. So, don’t let financial burden keep you down. Instead, take a Personal Loan for marriage to cover the expenses immediately and pay them off in EMIs over time. Here are some pros of funding a wedding with a loan.
No Collateral Requirement: A wedding loan is collateral-free, making it an ideal funding option for young Indian borrowers without assets.
Quick Approval and Disbursement: With a digitised method of loan processing, technologically-advanced NBFCs like Clix Capital approve and disburse loans quickly after applications are submitted. So, people get the funds they need to fulfil their marriage plans quickly in their accounts.
Flexible Repayment: Borrowers can select their repayment tenure (usually 12-48 months) with EMIs affordable in their monthly budget. Take a short-term loan with bigger EMIs to pay off the loan quickly, or choose a longer repayment term to reduce the EMI amount and repay conveniently.
Ample Loan Amount: A Personal Loan makes funds of up to 10 lakhs available instantly, helping cover high-end expenses without end-use restrictions.
Minimal Paperwork: Many NBFCs offer wedding loans online against income proof and KYC documents. Simply enter a few necessary details and provide your phone number. After verifying the KYC details and other documents, the lending institution will approve the loan and send you an offer. The entire process does not require any paperwork or branch visits.
Quick Loan Processing: Personal Loans for weddings are popular among youth as they match the fast speed of today’s generation. Known for their quick processing, approvals, and disbursals, Personal Loans assure funds availability instantly.
Cheaper Interest Rates: Many people use their credit cards for last-minute wedding expenses. However, their interest rates are quite high, and their repayment burdens the borrower’s finances. On the contrary, Personal Loans have competitive interest rates with repayment required in easy EMIs.
How to Apply for a Wedding Loan?
Follow these steps to apply for a Personal Loan for marriage:
- Check Your Credit Score: Checking the credit score helps determine your credit handling behaviour. Most NBFCs require a minimum Experian credit score of 630 or above to consider your Personal Loan application. Those with lower credit scores must improve their scores by paying their outstanding bills or EMIs before applying.
- Check Key Loan Terms: Before applying for the wedding loan, check out the loan’s interest rates; repayment terms; and charges & fees, including processing fees, late fees, prepayment charges, etc.
- Check Eligibility Requirements: Every lending institution has an eligibility criterion that aspiring borrowers must fulfil to obtain a loan. These include age, minimum salary, credit score, etc. So, check the NBFC’s eligibility conditions and documentation requirements to qualify for a loan without impacting the credit score.
- Accept the Loan Offer: Closely study the loan offer you receive, including its loan amount, interest rate, repayment terms, additional charges, etc. Accept the offer if it provides the required funds at favourable terms and conditions.
With the average cost of weddings always rising, financing your big day out of your own pocket in one go is no longer necessary. Wedding loans have become more widely available due to their high demand and lower interest rates compared to other financing options. But before applying for a Personal Loan for marriage, estimate your requirement and check your eligibility to get the loan at the best interest rate on the best repayment terms with minimal documentation online.