7 Factors to Consider Before Availing a Wedding Loan

A spectacular wedding is a dream of every individual nowadays. Everyone wants to organize grand wedding celebrations. But with the ever-increasing inflation rate and limited finances, you often have to compromise in the planning of your wedding expenses. It is where a wedding loan plays an important role.

A wedding loan is a type of personal loan for a wedding. The interest rate on a wedding loan is like personal loan interest rates. You can check your wedding loan eligibility using loan calculators available online. Wedding loan eligibility criteria are simple, and so you can easily avail this loan. Yet, there are certain aspects that you should take care of while financing your wedding with a wedding loan. 

●Make a budget

The first step in a wedding planner is to make a budget for your wedding expenses. A budget helps you know the disparity between your predictable operating cost and actual savings. This way, you can work out the amount of loan required. You should always stick to your budget and borrow only the amount required after utilizing your savings. 

●Check your repayment capacity

You should always check your repayment capacity before taking a personal loan for a wedding. It is always better to avail of a loan that fits in your monthly financial budget. Do not take a loan that becomes a burden on you in the long run.

●Avail a short term loan

A wedding loan is a personal loan. Personal loan interest rates are high because of the unsecured nature of personal loans. You should always opt for a short term loan to avoid paying high interest for a long time. 

●Consider the lock-in period

A wedding loan comes with a lock-in period before which you can’t repay the loan even if you wish. You should also ensure to verify the lock-in period before agreeing to a loan deal.

●Compare and select the lender carefully

Research work is always important while availing of a loan. You should always check the reputation and credibility of the lender before availing a loan. Comparing the offers given by various banks and financial institutions can help you make a better decision.  

●Cost of the loan

Interest is the major component in the cost of a loan. But you should not forget to consider the processing fees and pre-payment penalty charged by different lenders. Foreclosure charges are generally very high in the case of wedding loans. You should always read the loan document carefully and enquire about all the hidden charges before accepting an offer.

●Do not over-borrow 

Do not borrow more than you need because you are getting a higher loan amount at a better interest rate and terms and conditions. You should not borrow only based on your wedding loan eligibility. Your need should be the basis of your borrowing decision.

Now that you know the factors that you should take care of while availing a personal loan, you can go ahead and avail one as per your need.

Bajaj Finserv presents pre-approved loan offers on personal loans, EMI finance, home loans and many more. Such deals help you ease off the loan formalities and make it less time-consuming. 

All that you have to do is share your basic details such as your name and mobile number to check out your pre-approved loan deals right away.