4 things to know before you finance your dream wedding with a wedding loan

Published on Dec 28, 2021 12:52 PM IST

To ensure that you can have the special day of your dreams, take a look at the 4 things to know before you take a personal loan for marriage.

Whether you’re looking to host a grand yet traditional ceremony or plan a destination wedding at an exotic location, these loans are your best choice.
Whether you’re looking to host a grand yet traditional ceremony or plan a destination wedding at an exotic location, these loans are your best choice.
ByHT Brand Studio

There are many ways to finance your dream wedding, but one of the best options is the wedding loan. It reduces the burden on your savings and grants you ample sanction to work with. Better yet, new-age lenders offer a suite of features and perks to make the experience quick and easy. So, whether you’re looking to host a grand yet traditional ceremony or plan a destination wedding at an exotic location, these loans are your best choice.

To ensure that you can have the special day of your dreams, take a look at the 4 things to know before you take a personal loan for marriage.

1. Wedding loan eligibility criteria

To finance your dream wedding with a wedding loan, you first need to qualify for it. Lenders that offer such specialised provisions usually have criteria in place that you need to meet. These aren’t always simple, and because this is an unsecured loan, lenders will adhere to the terms strictly. So, before you apply or make any plans to make deposits or book vendors, check these criteria first.

Typically, lenders will assess your application based on the following criteria.

- Age

- Income

- Employment type

- CIBIL score

- Citizenship

Do note that the income criterion for a personal loan for marriage is one you should pay close attention to. It usually varies with the lender and is based on the city you reside in.

2. Maximum available loan sanction

When shopping for a wedding loan, you may shortlist instruments based on the maximum loan amount offered. This is a smart approach as it allows you to find loans that can match your wedding budget. But you must note that the sanction you get won’t always be the maximum amount on offer. Lenders will assess your credit profile and financial standing before finalising a figure. So, even if the wedding loan offer is Rs. 25 lakh, you may not get the full amount.

Use a digital tool known as the loan eligibility calculator to know exactly how much you can get. These are available on certain loan web pages and require you to enter basic information to calculate rough estimates. The results should give you an idea of the sanction you can get, and accordingly, you can pick a suitable lender.

3. The total cost of borrowing, including the fees and charges

Availing of a wedding loan to finance your dream wedding should never turn into a hassle as you begin a new chapter in life. A good way to ensure that this does not happen is to calculate the total cost of borrowing before you apply. Check the wedding loan interest rates, average them out, and use this rate to do your calculations. An EMI calculator is the best tool at your disposal at this time, as it ensures quick and accurate results. Check the interest payable, EMI amount, and the total payable amount for various sanctions and tenors.

Doing so gives you options, and accordingly, you and your partner can decide what will best suit your capabilities for the coming years. Besides these 3 components, you should enquire about the fees and charges that apply. Loan processing fees, among other administrative charges, can amount to quite a large sum. Be sure to know exactly how much and negotiate for lower charges if possible.

4. Repayment options

Much like the cost of borrowing, knowing that you can handle your wedding loan comfortably after the special day is essential. You can assess this capability easily by simply knowing the tenor options available on the wedding loan you choose. Once you know the tenor, use the EMI calculator for personal loan to compute the EMIs for different tenors. These are your repayment options for a given sanction, and you should choose the one that strikes a perfect balance between interest outgo and EMI affordability.

Keep all these things in mind when you finance your dream wedding with a loan. Another thing you shouldn’t overlook is the availability of special loan features and perks. For instance, with a Bajaj Finserv Personal Loan for Marriage, you get access to the Flexi Loan facility. Here, you can borrow from your approved sanction as many times as needed, without restrictions. Such a perk is perfect for wedding expenses, as you can’t always know when you will need cash.

Besides this, you can get a sanction of up to Rs. 25 lakh, over a tenor that lasts up to 60 months, all at a competitive rate. Bajaj Finserv also has lenient criteria, making it easy for you to get approval. All you have to do is check your pre-approved offer and get hassle-free funding in a matter of hours.

Disclaimer: This content is distributed by Bajaj Finserv. No HT journalist is involved in creation of this content. 

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