Introduction
Marriage is considered to be one of the most significant moments in a person’s life. It not only bonds two people together but also two different families. Parents save prudently throughout their lives because they want to make this event as grandiose as possible for their children.
But it’s not possible to always be prepared. Life throws curveballs at all of us. Maybe the savings aren’t enough or something happened that derailed that savings. Or maybe the wedding went over the budget. Whatever the reason may be, a personal loan for wedding can help you prevent a disaster on your big day. As with any loan, these loans have their pros and cons. So, we have prepared a list of five essential things that you should consider before you apply for a wedding loan.
- Loan amount
It’s important to determine exactly how much you need before you apply for a wedding loan. You should always request the amount you need, not the amount you could qualify for. It’s tempting to request a little extra but a higher loan amount will mean a higher interest rate and possibly a longer repayment term. You can land in deeper trouble if you aren’t able to repay it on time.
- Figure out the repayment process
Before you apply for the loan, you should take a moment to think about how you are going to repay the loan. Starting a new life together with your partner can add new bills to your month. Are your finances stable enough to support all the new expenses and the repayments? If not, do you have savings that you can use for the months you struggle to cover all the expenses? Having a plan in place will ensure you don’t miss any repayments later or get overwhelmed.
- Loan tenure
Going to the banks in between the wedding preparations isn’t ideal. People stick to online lenders for such loans. When it comes to online lenders, you have to do your research before settling on anything. One thing to keep in mind while doing your research is a long tenure would mean more interest rate while a shorter tenure would mean the repayment amount would be high. To strike a balance, research about potential lenders.
- Understanding your own needs and the eligibility criteria
Credit score, personal finance statements, and income are some of the most common things lenders look into while deciding whether they should accept a loan application or not. But besides that, different lenders will have different eligibility criteria. Some may even seem unconventional. Additionally, it would help if you analyzed your own needs before applying for a loan. Make a list that includes all the wedding-related expenses to account for every purchase, small or big. This would also make the preparation much easier.
- Interest rates
Wedding loans are usually people’s last choice, a fact that lenders know very well. You will find a lot of lenders charge high interest rates on wedding loans because most borrowers are helpless by then. Hence, never decide in a rush. It’s important to find a reliable lender who offers the best interest rate and repayment terms so you don’t end up in a bigger financial crisis.
- Understanding the fine print
Reading the fine print isn’t the most appetizing idea but you must peruse through it carefully. The lenders list out all terms and conditions related to your loan and even though you have already talked about it all, you may still find new information hidden among all that jargon. If you don’t want to get blindsided, read the whole contract before you sign anything.
Conclusion
Wedding loans aren’t something you should ever be embarrassed about. Whether a small amount or big, if they take the burden off your shoulders then why not? As long as you do your research and don’t rush through the process, you will be fine. We hope this helps you figure out how you can apply for a wedding loan.
