A wedding is a joyful occasion, but it can be expensive too. A good, grand wedding could cost you a few lakhs. While you may have saved towards it, you may want to consider not burning through all of it. Instead, you can avail a wedding loan.
But there are a few things you may want to consider before availing a personal loan for wedding.
1) Loan Eligibility: One of the first things you need to be sure of is whether you qualify for a marriage loan. A few common eligibility parameters are:
- Between 21 and 60 years of age
- Have a fixed income
- Residing citizen of India
2) Know Your Monthly Budget: Before you narrow down on your interest rates and tenor, consider your monthly budget. Jotting down all your previous financial commitments may help in this. This will tell you how much residual income you have left after all your expenses. Based on this information, you can decide what interest rates and tenor would work best for you.
3) Consider Existing Liabilities: If you have other financial commitments, considering them will help you choose an appropriate tenor for your marriage loan. Pending credit card payments, house rent, other loans, etc., are some common financial commitments you should keep in mind. Choose a tenor that balances all your obligations without much hassle.
4) Credit Score: Before you apply for your loan, check your credit score. It will help you know your loan prospects being sanctioned. More importantly, it will remind you of any remaining debt you need to clear as soon as possible. Loan repayments reflect in your credit history when a loan is being processed. A high credit score and good credit history give you the option to bargain for better deals on your loan.
5) Interest Rate: Since personal loans can be availed without the need for any collateral, these usually come with higher interest rates. To get the best deal look at different lenders and compare their interest rates, charges and fees. You may also want to look at the benefits of fixed and variable interest rates. Check Fullerton India Personal loan benefit to know more.
6) Tenor: The tenor of your loan determines the amount of your repayment and the interest amount you pay over the life of the loan. A longer repayment tenor could mean a lower EMI. But a longer tenor would also mean having to pay more interest. Most wedding loan tenors range from one to 5 years.
7) Assess Your Future Financial Prospects: If you are salaried and expecting a hike in the near future, there may be room for you to accommodate a higher EMI every month. This will ensure you not only pay off the loan early but also reduce the overall interest paid. It may seem like a burden at the start but it could work to your benefit in the near future.
8) Penalty Charges: Before finalizing on your loan for marriage, identify any penalty charges that may be levied if you are unable to repay the loan on time. You may want to ensure the affordability factor of the loan right from the beginning and know all the charges related to your loan.
9) Use a loan EMI calculator: A emi calculator for personal loan is an easy-to-access tool that gives you an all-round view of your finances and an estimate of your monthly EMI. This can help you in making critical decisions regarding your wedding loan including your tenor. The EMI calculator is an intuitive tool that can help you calculate your EMI amount.
By considering the above pointers, you can now arm yourself with the necessary information you need to make the right financial decision for your wedding loan. With it, you can be confident of being on the right path to achieving all your financial dreams.