How a Personal Loan Can Help with Wedding Expenses?

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Marriages are important milestones in everyone's life that require careful financial planning. It's common for people to cross their wedding budgets and tide over problems like that. Wedding loans are Personal Loans that people can borrow to meet their marriage-related expenses. After determining their eligibility, they can use a Personal Loan EMI calculator to select a suitable tenure according to their capacity. Here is how a wedding loan can come to the rescue when an individual needs money for financing a marriage.


What are Wedding Loans?

Wedding loans are unsecured personal loans that help people get funding for a wedding. With this loan, borrowers can handle all their wedding-related expenses at reasonable interest rates. These loans have no end-use restrictions, allowing borrowers to use the loan amount for any purpose they want, including venue costs, invites, catering, photography, make-up, gifts, jewellery, decorations, lighting, wedding outfit, guest accommodation, etc. Many borrowers also use wedding loans for funding honeymoon expenses, home renovations, and buying a special gift for their spouse. Leading NBFCs offer high loan amounts that borrowers can repay in convenient monthly EMIs. Since Personal Loans are unsecured, lending institutions approve them based on the applicant's income, financial obligations, credit score, and repayment capacity. That way, they help borrowers plan an ideal marriage event without stressing their finances.

How Does a Wedding Loan Help Avoid Unexpected Costs?

Indian weddings involve numerous occasions and rituals that continue for multiple days, making the event considerably expensive. Instead of using up life's savings to meet wedding-related expenses, borrowing a wedding loan seems to be a prudent choice. 

Here are a few benefits one may enjoy by taking a Personal Loan to cover various costs: 

Coverage for Multiple Expenses: Wedding loans come without any end-use restrictions. That means borrowers can apply for a Personal Loan to fulfil any wedding-related expenses. Moreover, wedding loans are the best funding options to tackle emergencies and unexpected expenses during a wedding.

Hassle-Free Application: Efficient marriage expense management is quite overpowering, especially for people hosting such a big event for the first time. However, while applying for a personal loan for marriage, borrowers can complete the entire application process in no time without burdening themselves. All they need to do is apply on the website of a reliable NBFC or financial institution.  

Most technologically-advanced NBFCs support a 100% application process that one may complete from their home. They just need to visit the NBFC's website, follow their application instructions, review the terms and conditions, and get instant approval. After evaluating the loan conditions, they have to accept the loan offer to get a quick disbursal.

Quick Funding Source: Since wedding loans are personal loans, they do not require any collateral for security. Hence, loan seekers can obtain the necessary funding without risking their assets. These are instant loans with minimal formalities and a fast turnaround time, resulting in quickly getting the required amount. In general, the applicant can receive loan approval almost instantly after their document verification online. In addition, aspiring borrowers can get the desired loan amount directly into their bank account within no time.

Credit Score Improvement: A wedding loan is a perfect funding option to cover wedding expenses. Besides, it also helps build a strong credit history with regular EMI payments. For example, if an individual borrows a ₹ 5 Lakh loan and pays its EMIs consistently each month until full repayment, doing that will boost their credit score and improve their creditworthiness. Thus, they will be in a better position to avail of more loans in the future.

Covers Additional Costs: GST and other taxes are extra costs that considerably increase the overall expenses of a wedding. These costs apply to all luxury items used in a wedding ceremony, making the event quite more expensive than expected. Opting for a marriage loan helps handle these taxes more easily and efficiently.

Reduced Burden of Overtime Costs: While planning for a wedding, an individual hires caterers, venues, decorators, and other services for a certain period only. However, the celebrations may sometimes extend beyond that time limit, leading to overtime costs for the extra time requested. Such overtime costs are pretty common in Indian marriages, and a wedding loan can help beat them with ease.

Benefits of Borrowing a Marriage Loan

Here are a few upsides of funding a marriage with a Personal Loan:

- A marriage loan is a quick, convenient, and self-reliable way to finance a wedding. Many couples borrow these loans to cover their wedding expenses without depending on their parents to fund the celebrations.

- The borrower's savings remain intact, so they don't need to compromise on their wedding dreams due to a lack of funds.

- A Personal Loan provides an ample loan amount, allowing borrowers to celebrate their new relationship without any financial stress. Loan seekers can avail of a loan of up to ₹ 10 Lakh according to their income, DTI ratio, and credit score.

- Wedding loans provide better interest rates than credit cards and require minimal documentation with no collateral. 

- Paying the loan EMIs consistently helps improve the credit score for future loan applications.


Eligibility Criteria to Apply for a Personal Loan for a wedding

Following is the eligibility criterion to get a wedding loan:

- The applicant should be an Indian citizen between 12-58 years

- The applicant should be a salaried professional working in a private or public company 

- The applicant should have a minimum salary of ₹ 20,000 per month

- The applicant should have at least one year of total work experience, with six months in the current organisation

- The applicant should have an Experian credit score of 630 or above

From the above points, the purpose of taking a wedding loan must have become clear to those planning to host a marriage. However, before applying for a loan, loan seekers must read the terms and conditions to ensure they meet the eligibility criteria and get fast approval without hassle.

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