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  • Why You Should Take a Personal Loan for Wedding Expenses

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  • Indian weddings are known to be expensive. Regardless of what your budget may be for your upcoming wedding, you can reduce the financial burden by opting for a personal loan. In India, there are a number of banks and financial institutions that offer personal loans, which can be availed to cover wedding-related expenses. These loans are offered at reasonable interest rates. Listed below are a few reasons why you should consider taking a personal loan to cover your wedding expenses:

    • No Restrictions on Usage: In the case of certain loans like car loans and home loans, the loan is availed for a specific purpose. You cannot use the loan amount that is disbursed for any other purpose than for what it was availed. In comparison, when you avail a personal loan, the lender seldom imposes any restrictions on how the disbursed loan amount can be used, thus making it ideal for wedding-related expenses. You can use your loan amount to pay for the wedding venue, fund your honeymoon, renovate your house in preparation for the wedding, etc.
    • Multiple Application Channels: You can apply for a personal loan through online or offline channels. Many banks and financial institutions allow prospective borrowers to apply for a personal loan through their official websites. Individuals who are looking to avail a personal loan but are unsure of which lender to opt for can compare and apply for a suitable personal loan through third-party financial services websites like BankBazaar.com. Those who are not comfortable applying for a personal loan online can opt to directly visit the lender’s branch to apply for a loan.
    • Minimum Documentation: The process that has to be followed to apply for a personal loan is fairly simple and convenient. Prospective borrowers are required to submit only minimal documentation when applying for a personal loan. If one chooses to apply for a loan online, the application process and document submission process is even more hassle-free, since all the required documents can be uploaded online, thus eliminating the need for paperwork and making the transaction 100% paperless.
    • Flexible Repayment Tenure: For personal loans, most banks and non-banking financial companies offer a loan repayment tenure between 1 year and 5 years. You can, thus, take your repayment capacity into consideration and opt for a loan repayment tenure that is suitable for you.
    • No Collateral Required: The primary benefit of personal loans is that borrowers are not required to submit any security or collateral to the lender. Borrowers also need not have a guarantor to apply for the loan. Thus, these loans are easier to avail, in comparison to other types of loans.
    • Assets Need Not be Liquidated: Given how expensive a wedding can be, many people liquidate their assets like fixed deposits, investments, recurring deposits, etc., to avail additional funds. You can avoid doing this by taking a personal loan. A personal loan will give you the necessary funds to finance your wedding expenses, while also helping you keep your assets, savings, and investments intact.
    • Reasonable EMIs: Lenders approve the loan amount only after taking the borrowers debt-to-income ratio and monthly income into account. Given that these factors are taken into consideration, your monthly payable EMI is likely to be quite affordable. Thus, although you may have borrowed a large sum of money, the repayment can be made in small amounts that are convenient to pay.

    If you are in need of funds to pay for an upcoming wedding or if you are falling short on funds, you can always avail a personal loan from a lender. Before applying for a loan, you should keep the following points in mind:

    • Interest Rate: The interest rate that is charged for a wedding can range from anywhere between 10% p.a. and 24% p.a. If you are offered a low interest rate, the overall cost of your loan will be less, and vice versa. Thus, make sure to compare the loans offered by different lenders in the Indian market and opt for a loan with an affordable interest rate.
    • Payable EMI: Before you apply for a personal loan, it is advisable to calculate your payable EMI using an EMI calculator. You can find this tool on the websites of lenders and on third-party aggregator websites like BankBazaar.com. Ensure that the payable EMI is well within your budget to avoid any repayment hassles during the loan tenure.
    • Loan Amount: It is important to carefully assess your financial requirements and opt for a suitable loan amount. It is advisable to avoid opting for a high-value loan, for which you will have to pay hefty EMIs.
    • Loan Tenure: Although lenders offer a flexible repayment tenure for personal loans, it is in your best interest to opt for a loan tenure that is neither too long nor too short. If you opt for a loan tenure that is extremely short, you may have to pay higher EMIs. In comparison, if you opt for a loan tenure that is too long, you may have to spend more since the total interest paid over the course of the term of the loan will be more.
    • Reliability of the Lender: It is important to assess the reliability of the lender before submitting your personal loan application. Thus, you should make sure to check the online reviews for the lender, the customer care channels that are available, the promptness of the lender when replying to your queries, etc.

    If your wedding is coming up, it is recommended that you start researching the various personal loan options that are available. You should compare the loan amount offered, the interest rate charged, other penalties or fees charged, etc., before zeroing in on a loan from a particular lender. Also, make sure to check your credit score and either improve it or maintain it to avail a loan at a good interest rate.

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