Reasons why one’s opt to apply for wedding loan
Weddings are the dream events in life and should be cherished for the remainder of life. One should ensure that no expense is spared when it comes to weddings. Whether splurging on exotic destinations or arranging for a 7-star menu, weddings provide an avenue for couples to showcase their status and ensure that the wedding event is discussed for generations.
It is common traditional wisdom that loans should not be taken for weddings. But that is a thing of the past. The times are changing, and we should ensure we do not become an impediment to the frolic of youngsters. When the time comes to fulfil the cherished dreams of your daughter, taking a wedding loan becomes inevitable.
Thanks to the myriad options available, there need not be any budgetary considerations for the dream wedding.
Top 6 Reasons to Apply for a Wedding Loan
The top six reasons why taking a wedding loan is the best choice in modern life are listed below.
1. Wedding loans are a wonderful option in the absence of savings.
Life is full of unexpected events. The expenses across your life may affect your savings and diminish the funds available to conduct a destination wedding. Worry not! Banks and private financial institutions are enhancing their credit portfolios and giving loans for destination weddings even in the absence of collateral.
When the wedding day arrives and your bank accounts are unable to meet the demands of your dream wedding, wedding loans will come to your rescue, removing any obstacles and ensuring that the path to the wedding is paved with roses. One pivotal point before applying for a wedding loan is to ensure that you have a correct idea regarding the quantum of the loan.
One should do an incisive financial analysis, and only that loan amount should be borrowed for which comfortable, convenient, and stress-free instalments or EMIs can be made.
2. Swift disbursal of wedding loans in a convenient fashion.
Imagine applying for a wedding loan and getting through the process in minutes. Too good to be true? However, this is the reality when it comes to satisfying your lifelong quest to participate in and arrange a destination wedding. The approval status of the wedding loan is conveyed to the applicant in a matter of minutes, and the loan amount will be reflected in the bank account in 2 working days.
Depending on the borrower’s credit rating and the interpersonal relationship between the applicant and the bank, some banks go the extra step for elite customers and make sure that the total wedding loan amount is disbursed in 24 hours.
3. Forget about credit cards, as wedding loans demolish them in terms of interest rate.
Everyone knows how credit cards become agents of financial ruin when large expenses are incurred. Credit card holders may find it attractive to charge their cards for wedding expenses. Say no to this and go for a wedding loan instead. Why? It’s simply a huge money saver in terms of total interest paid.
Wedding loans fall under the ambit of personal loans. For this category, the applied interest rate is lower when compared to the gargantuan interest rates charged by credit card companies. Weddings are moments of great joy and hope. Never make the mistake of turning such a joyful occasion into a bad memory by spiralling into unrecoverable debt.
4. Wedding loans entail attractive repayment options.
Forget the hassles of timely repayment of wedding loans. Thanks to the guidelines of RBI, banks are mandated to offer easy and flexible repayment options to the borrowers of wedding loans. However, it is entirely up to the borrowers to determine the repayment structure.
If the applicant has a comfortable financial position, they can go for a shorter loan tenure. But it is advised to go for a longer loan tenure because of the extra expenses that may be incidental after a few months to a year after the wedding.
5. Forget about prepayment penalties.
Weddings are the source of great collections of funds. Wedding gifts in India constitute a great portion of cash as favours are accumulated over the years through give and take. An Indian wedding may result in the collection of huge cash deposits. The same amount can be used to repay the loan in full and avoid the incidence of interest. This is a win-win situation for both the bank and the applicant.
The banks enjoy these cash flows as collateral, and the applicant can remove the financial obligation by clearing the loan quickly. As a matter of abundant precaution, the applicants are strongly advised to go through the contract of the wedding loan to ensure that there are no prepayment penalties.
6. Enjoy the fruits of an enhanced credit score.
The young couple will need future finances to build their dream home or go on a destination honeymoon. What better way to build their credit score than by promptly making EMI payments and ensuring their credit score is green?
The financial aspects of a good credit score are decreased interest rates and enhanced loan terms, all of which can be a boon in disguise for the couple’s stability after the wedding. Therefore, it is advised not to make a single late payment on your wedding loan.
Final Thoughts
Say goodbye to budget limitations or a dearth of funds for your dream wedding. Wedding loans are the best thing that happened on the Indian wedding scene, as we Indians give much importance to this special event.
Savings or no savings, a wedding loan can act as your best friend when meeting various expenses. Make sure to follow financial discipline after availing of the loan and make sure the repayments are made promptly.
To read more such blogs, visit Piramal Finance and explore their products and services.