Youngsters these days want to have a lavish wedding and for this, they are willing to spend lakhs of rupees. In case they do not have enough savings or if they do not have much financial backing from their parents then they are even ready to opt for a wedding loan.
If you are also planning to take a loan for your wedding then there are some important factors that one needs to keep in mind. Check out what are these important points that you need to remember.
Pointers to remember for availing loan for your marriage:
- Keep in mind that a wedding loan is a personal loan:
- A wedding loan comes under the category of personal loan and if the financial institution from which you plan to take the loan does not have an option as a wedding loan then you can simply take a personal loan and mention the reason as a wedding loan.
- A wedding loan is an unsecured personal loan for which you do not have to give any collateral and you can use this loan for different types of expenses of the wedding like decoration, venue booking, catering, etc.
- Immediately after the wedding, you need to start paying the interest component and some of you may find this a burden once the celebrations are over.
- Are you aware of the prepayment penalty?
- When one takes a personal loan for a wedding most of the time the financial institution has a lock-in period which can be in the range of 6 months to 1 year.
- Remember that you can make pre-payment of the wedding loan only after the lock-in period is complete and if you try to make the prepayment before the lock-in period is complete then you shall be charged a hefty prepayment penalty.
- So, keep in mind that due to any reason the wedding gets canceled and you plan to pay off the outstanding amount then you have to be ready to bear the prepayment penalty.
- However, some financial institutions do not charge the prepayment penalty and so before you take the wedding loan ensure that you check the details of the prepayment penalty that may be levied by the financial institution.
- It is best to avoid taking joint loans for weddings:
- If you and your partner are thinking of taking a joint wedding loan then think again. Because though in the joint wedding loan you get a higher loan amount it can put both of you in trouble in the future.
- First of all both of you have to repay heavy installments post the wedding which can put a financial burden on you and your partner.
- In case you and your partner are not able to pay the installments in time then the credit score of both the individuals gets impacted adversely and as result, both of you may not be able to get any other loan with ease shortly.
Do this before you apply for the wedding loan:
- First of all, check your monthly income and also check the savings that you have and after that check the Equated Monthly Installments or EMI that you have to pay in case you take a personal loan for your wedding.
- Compare the interest rate, lock-in period, tenure, prepayment penalty charges, loan processing charges of the different financial institutions, and then choose one that gives you the best benefits.
- It is always better to avoid taking a loan for your wedding but if you have no other option and you have to apply for a personal loan for a wedding then make sure that you compare all the pros and cons and only then apply for the wedding loan.
Is there an alternative to taking a wedding loan?
- It is always better to cut down on the wedding cost and if you have to have a lavish wedding then make sure that you save enough so that you do not have to take a huge personal loan for the wedding.
- Invest smartly so that you have enough savings by the time you are ready to have a grand wedding. For this, you can always check with financial planning experts who can give you the right advice.
Do you need a personal loan for your wedding? Then get in touch with Money View!
- If you have to take a personal loan for your wedding then you must choose a reputed financial institution and Money View is one such financial institution that can give you a personal loan for your wedding.
- If you want to take a personal loan for your wedding from Money View then you have to first check your eligibility on its official website or app.
- If you are eligible for the wedding loan from Money View then you have to submit the application form and all the other required documents online on its website or app.
- To get a personal loan for a wedding from Money View you have to submit photo id proof, address proof, and proof of income.
- The loan application is checked by the officials of Money View and if everything is as per the requirement and if the candidate is eligible then the loan application is approved and the contract details are sent to the applicant.
- Once the applicant accepts the terms and conditions for the personal loan for the wedding from Money View then the loan is disbursed and the money is credited to the bank account of the applicant in the next few hours.
When it comes to spending for your wedding it is always better to spend depending on the savings that you have. But since the wedding is a once in a lifetime event some of you might be keen to have that big fat Indian wedding and for this, you may have to apply for a wedding loan which is a type of personal loan. If you want to take a personal loan for your wedding then connect with the leading financial institution Money View.
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