A big fat Indian wedding is a part of Indian culture, and many do not mind spending a vast amount of money on their wedding functions. In most families, weddings are multi-day affairs and can incur substantial expenses if not planned correctly. A lot goes into planning a wedding like a hotel, travel booking months in advance. Jewelry, apparels, photography, and most importantly, catering are some of the prominent aspects of a successful and memorable wedding.
As overwhelming as it may sound, note that the wedding budgets can increase, thus denting the savings of an individual. Hence to overcome the marriage expenses and not to liquidate the savings, many individuals opt for personal loans for marriage.
Personal Loan for Wedding:
Personal loan for a wedding is one of the best financial options for those who are in quick need of funds to cover the expenses related to the wedding. Such types of loans are commonly known as personal loans for weddings.
We can know about the various pros and cons of such wedding loans in the following section:
Few advantages that work in favor of the wedding loans are:
a). Marriage loans are quicker compared to other finance options. They are called unsecured loan types by the lenders, and hence the borrower does not need to submit any collateral to avail such loans. Therefore the lending institutions will gauge the other income sources to approve funds to the borrowers. Lesser documentation & quicker turnaround time means faster disbursal of funds. Some financial institutions also provide pre-approved loans without any documentation to their existing customers.
b). The personal loan interest rates for marriage requirements are typically lesser than credit cards and go down further based on the credit rating of the borrower. If you have a CIBIL score of more than 700 based on your past repayment capabilities, you can negotiate with your lending institution to provide you with competitive interest rates.
c). A wedding loan helps you to have a comprehensive approach for the entire wedding expenses. As the costs can shoot up at any time, the funds acquired guards you against any last-minute surprises. It is great to have external cash flow so that you can take care of other wedding-related tasks.
d). Such types of quick loans also help in improving your credit score if you pay the EMI on time. If you are thinking about significant loans soon, you can use the facility to enhance your CIBIL scores.
e). One of the most significant advantages of such finance types is that the personal loan interest rates are fixed so that you are prepared for the repayment phase well in advance. You will hardly have any additional charges or interest amounts during the loan tenure. However, there will be foreclosure charges, but banks/NBFCs are getting flexible to serve their customers well.
f). You can have last-minute add ons to your marriage plan and can have fewer sources to ask for money., Having surplus cash to manage such expenses is made possible due to wedding loans.
Marriage loans carry more benefits than other types of loans, but there are few disadvantages of such kinds of loans as well.
a). Some lenders do levy pre-closure charges for payments done before the loan maturity.
b). There are significant charges for defaulters who do not repay the loan amounts on time.
c). The interest rates can be high if you have a low CIBIL score.
d). Some get apprehensive about getting a loan before the marriage.
You can easily handle the cons if you have a steady repayment plan for your existing loans. Having a standing instruction means that you do not miss the due dates for repayments, and thus your credit score can improve if you pay your EMIs on time. The savings can be leveraged for bad days, but since weddings can be exhaustive, a proper loan can help to overcome the expenses, therefore providing you with the necessary peace of mind.
The cons of wedding loans can be made easily negligible with a solid plan. When planning for your big day, you do not want the financial dependency as a hiccup for your well-planned efforts, and hence wedding loans are best for your requirements.