Last Updated on May 20, 2021 by MoneyVisual
While the wedding market in India is predicted to grow at an annual rate of 20-25% over the next year, this industry is presently valued at $50 billion. This recession-proof market continues to cater to about 10 million weddings each year and contributes substantially to the country’s GDP. Owing to the growing extravagant spending in such marriage ceremonies, individuals often need to break into their savings to bear such expenses.
To avoid such expenditure from one’s life’s savings, individuals now avail a wedding loan that meets their customised financial requirements. Also, lenders offer these advances at a competitive rate of interest, which makes repaying the loan amount more convenient. They can repay in easy EMIs without any unnecessary stress on their financial budget post their wedding expenses.
Although such advances come with numerous financial advantages, one should keep in mind that availing such loans are a considerable financial responsibility. Subsequently, one must avail it only after a careful comparison of the available options in the financial market. Opting for the best wedding loan assists one to adequately cover the financial requirement of his/her wedding.
Following this, one must keep in mind a few essential things while planning their wedding. Preparing for a marriage requires strategic planning for both its financial and non-financial aspects. While the non-financial aspects depend on individual choices, the financial part can be conveniently planned with the following tips –
Tip 1: Calculate the Approximate Expenditure Involved
According to recent surveys, individuals end up spending about 33.33% of their savings to arrange for wedding funds. It is because of the substantial expenses involved in weddings that include catering, décor, gold jewellery, bridal make-up packages, and booking venues. Listing such diverse expenditures helps one get a structured idea about the involved overheads.
Following this detailed idea about the involved expense, you can now compute the total possible expenditure and approach a lender that offers you that loan amount. However, considering that several NBFCs are offering personal loan for wedding, prospective borrowers need to weigh in the numerous benefits provided by the same before settling for one.
Tip 2: Look Out for a Financial Aid that Caters to Your Monetary Requirements
The best go-to option to arrange for finances for a wedding is by approaching a lender and availing their advances that come with no end-usage restrictions. Such credits assist borrowers in meeting their diverse wedding expenses. However, they must consider a few factors before finalising upon a wedding loan –
- The Loan Amount Offered – Post calculation of the required credit amount, individuals can now look out for lenders that provide the sum at an affordable rate of interest. It ensures a convenient repayment process without additional stress on their budget.
- Repayment Tenor – Reputed lenders like Bajaj Finserv offer personal loans for weddings with multiple lucrative features that include a flexible repayment tenor between 12 and 60 months. Such advances come with instant approval of sanctioned sum and quick disbursal within 24 hours.
They also bring you a pre-approved offer on several financial products that includes both unsecured credits like personal loans and business loans and secured advances like home loans. These offers ease the application process to avail financial assistance. You can take a look at your pre-approved offer by providing a couple of essential details like your name and contact number.
- Required Eligibility Criteria – Approaching lenders that provide personal loans for wedding against easy-to-meet eligibility criteria and minimum documentation ensures a streamlined and speedy approval of the loan process. Leading financial institutions and NBFCs that require their borrowers to be:
- Within the age bracket of 23 to 55
- Indian citizens residing in the country
- A salaried employee working in a private or public sector, or in an MNC
Tip 3: Avail a Loan As Per Your Repayment Capability
Although in cases of unsecured advances, lenders are willing to provide up to Rs.25 lakh to eligible applicants; it is advised to borrow as per one’s repayment capability. Hence, one needs to –
Step 1: Find out the rate of interest offered by an NBFC since it determines the monthly installments and therefore, the total cost of a loan. Taking into consideration these personal loan interest rates, applicants can calculate the monthly payments using an EMI calculator by providing the loan amount, tenor, and rate of interest.
Step 2: Check their debt to income ratio and calculate their current financial obligation before availing a personal loan to fund a wedding. It will help in convenient and timely repayment of the credit amount with unnecessary stress on a budget of individuals. Such financial tips will help finance your wedding in an easy way. Also, with strategic and timely repayments of your EMIs help boost the CIBIL score, which can streamline the availing of advances in the future.