‘Marriages are made in heaven’. However, the expenses have to be borne here on earth. Today, a decent wedding costs up to 10 lakhs, with sky being the limit. Parents continue to bear the wedding expenses with the help of their savings made over the years. So, if you have been working for a while and planning to get married shortly, then you might explore the idea of getting a wedding loan, if you need funds. However, before making the decision of taking a wedding loan, consider these pros, cons and details of this financial tool.How do wedding loans generally work?
Basically, a wedding loan is a personal loan for marriage that you take out to cover the cost of your ceremony. These loans are consumer instalment loans, which require you to make the scheduled payments of the interest and principle throughout the term of the loan. Besides, before deciding to get a personal loan, always consider how much you can actually afford to pay every month for the next few years. Before heading to the bank, you must cut extra costs out of the wedding. Therefore, through this way you have a good chance of borrowing only what you can afford. While taking your credit score and income into account, banks underwrite such loans. You would be able to get a personal loan at an attractive interest rate, if you have a very good credit. Hence, before signing any loan paperwork, you must shop around and meet personal bankers. Different banks offer a wide range of fees and rates and thus, you must do your homework before choosing a loan provider.
Is it worth to take marriage loans?
Well, to cover the cost of wedding, it can be convenient to get a personal loan. Although, keep this in mind that you are paying for a single-day function with loan that can take years to pay off. If you have a payoff plan which only lasts for a few months, then you will be carrying an extra debt for a while. This debt will prevent you from opening other lines for credit and will balance your budget. So if you don’t have a great credit, you might be looking at a higher-than-average interest rate, because banks will consider you a high-risk consumer.
In order to know whether a marriage loan is right for you, you first need to understand the terms and conditions of this kind of financial plan and how to weigh the pros and cons.
How to get a wedding loan?
So, if you have finally decided to pursue a marriage loan, you can either set up an appointment with a personal banker or start with an online application for personal loan. Then you need to follow these following steps:
On the whole, these above-mentioned points will guide you on how to take out a personal loan for your marriage.
Basically, a wedding loan is a personal loan for marriage that you take out to cover the cost of your ceremony. These loans are consumer instalment loans, which require you to make the scheduled payments of the interest and principle throughout the term of the loan. Besides, before deciding to get a personal loan, always consider how much you can actually afford to pay every month for the next few years. Before heading to the bank, you must cut extra costs out of the wedding. Therefore, through this way you have a good chance of borrowing only what you can afford. While taking your credit score and income into account, banks underwrite such loans. You would be able to get a personal loan at an attractive interest rate, if you have a very good credit. Hence, before signing any loan paperwork, you must shop around and meet personal bankers. Different banks offer a wide range of fees and rates and thus, you must do your homework before choosing a loan provider.
Is it worth to take marriage loans?
Well, to cover the cost of wedding, it can be convenient to get a personal loan. Although, keep this in mind that you are paying for a single-day function with loan that can take years to pay off. If you have a payoff plan which only lasts for a few months, then you will be carrying an extra debt for a while. This debt will prevent you from opening other lines for credit and will balance your budget. So if you don’t have a great credit, you might be looking at a higher-than-average interest rate, because banks will consider you a high-risk consumer.
In order to know whether a marriage loan is right for you, you first need to understand the terms and conditions of this kind of financial plan and how to weigh the pros and cons.
- Pros of wedding loans: These loans offer a number of benefits, such as attractive interest rates, and payment plans.
- Attractive interest rates: Those who have a good credit are most likely offered with low interest rates.
- No-fuss payments: To set up a convenient monthly payment plan for marriage loans is easy.
- Easily obtainable: So, if you have a credit score of 700 or above, you will find it quite easy to get approved for a personal loan which can be used for wedding-related expenses.
- Cons of wedding loans: However, marriage loans are effective features, they also come with some negative aspects:
- High interest rates: You might pay a higher interest rate than you expected. You are likely to get a higher interest rate on a wedding loan, if you have a low credit score.
- Credit score impact: Applying for the loan can actually impact your credit card score. Sometimes, your lender needs to do a credit check, which is considered to be a high inquiry on your credit report.
How to get a wedding loan?
So, if you have finally decided to pursue a marriage loan, you can either set up an appointment with a personal banker or start with an online application for personal loan. Then you need to follow these following steps:
- Firstly, submit a formal application
- Find out the interest rate for which you are eligible.
- Get your loan approved
- Sign on the dotted line.
On the whole, these above-mentioned points will guide you on how to take out a personal loan for your marriage.