Weddings are expensive affairs, and you may require as much as Rs.20 lakh to finance a moderately lavish wedding. This is especially true in countries like India, where weddings are celebrated with a lot of extravagance and pomp. Friends, family, neighbours all get together to celebrate weddings, and it falls on the couple and their family to finance the stay (for a destination wedding), food, and entertainment for all the guests until the end of the celebrations.
However, you have several options to finance your dream wedding, wedding loans being one of them.
What Are Wedding Loans?
Wedding loans are essentially personal loans that you avail to finance your wedding. You can avail these unsecured wedding loans to meet any wedding-related costs, from booking a venue, to purchasing wedding clothes, to hiring caterers, and more.
Many banks and NBFCs offer Personal Loan for weddings that come with many features, making them easy to apply for and repay. Bajaj Finserv for example offers weddings loans that come with features and benefit like a flexi loan facility, quick approval and disbursal, flexible repayment tenors that range from 24 to 60 months, minimum documentation, pre-approved offers, etc.
Just remember that when you avail them, it may take a while to repay. So, talk to your (would be) spouse before you take such a decision. Additionally, compare personal loan interest rate, and be sure to check your eligibility criteria before you apply for them online.
How To Avail Wedding Loans?
The first step towards availing a wedding loan is to create a budget for your dream wedding. Consider everything that you’ll need, from destination to food to decoration to wedding attire, and make a budget keeping all of it in mind.
The next thing to do is to research the various wedding loan options available. Different lenders will have different interest rates, and it is important to compare their rates before choosing a loan. This will ensure that you choose the wedding loan with the lowest interest rates. Be sure to check the APR of the loan as well, and the lower this is, the better.
Along with looking at the interest rates, you also need to carefully consider the lender and their reputation. Since personal loans are unsecured, getting approval may be hard, especially if you have a poor credit score and history. Most large banks have a slightly stricter approval procedure and don’t negotiate easily about their interest rate, making loans from them inaccessible, unless you have a really good credit score.
On the other hand, NBFCs (and even a few smaller banks) offer wedding loans that are a lot more accessible, even with a poor credit score. This is because NBFCs are more flexible about their eligibility procedure and criteria. Additionally, if you approach a lender with whom you have a previous/ existing relationship, your chances of getting approved increase quite significantly.
Once you have shortlisted your loan options and chosen the wedding loan for you, you can fill out the application form and select the loan amount you require, if you’re applying online. Then submit the required documents along with your application form, and a representative will get in touch with you for confirmation. After this, you will receive the money in your bank account within 24 hours.