By: Shiv Nanda
Ideally, taking on debt to cover your wedding expenses is not recommended; however, there may be situations where taking a wedding loan may be inevitable. If you are smart about planning your finances and stick to your budget, taking a wedding loan makes better sense because of the following reasons.
1. It can conveniently fund a wedding that you have missed saving for.
The reasons for not saving for your wedding could be many. It could be your immediate decision to get married that leaves you no time left for planning wedding finances, or you may have simply not saved for your wedding. Whatever your reason is, you can handle the situation with the help of a personal loan for a wedding, also called a wedding loan or a marriage loan. The first step to approach a wedding loan is to figure out how much you need. Apply for a wedding loan for an amount that you can comfortably commit to repaying every month over the length of the tenure.
2. It is a convenient and quick way to get money.
You can apply for you a wedding loan online in a matter of minutes. Your potential lender will review your application and intimate your approval status within a few minutes. If you’re approved, the loan will be disbursed in a couple of days. Some lenders disburse wedding loans within 24 hours.
3. It offers a better interest rate than credit cards.
If you are afraid of the interest rate and other charges associated with using credit cards, a wedding loan is a safer option to avoid spiraling into credit card debt. The interest rate for wedding loans is lower compared to the credit cards.
4. It offers flexible repayment options.
You can choose the repayment tenure and repayment amount according to your financial capability. If you can afford larger repayments, you can go for a shorter loan tenure. If your financial condition restricts you to smaller repayments, go for a longer loan tenure.
5. Most wedding loans don’t charge prepayments.
If you plan to prepay your wedding loan with the cash gifts you receivedfrom your friends and family, some loan providers will allow it without charging any prepayment fees. Check the prepayment policy of your lender before you take the wedding loan.
6. It improves your credit score.
If you want to build or improve your credit score, timely and consistent wedding loan repayments can help. A high credit score will make it easier for you to getfuture loans at attractive interest rates. So, ensure that you don’t miss even a single payment or be late on your payments.
Final Thoughts
Keep a note to yourself: You can have an amazing wedding on any budget. The key is to save, set priorities, and stick to your budget. If you have not saved or not saved enough, a wedding loan can fund your wedding. But, be sure to borrow only what you need, and make regular payments to avoid falling into debt.