The recession-proof Indian wedding market is expected to experience exponential growth of about 20-25% annually, owing to the nation’s booming economy, celebrity endorsements, etc. Subsequently, the cost of arranging for the same is also on the rise, individuals spend up to one-third of their savings on an average in arranging for weddings.
Following this increased cost of arranging marriages, there has been a simultaneous growth in the demand to avail a wedding loan that comes with a high-value credit amount. Such advances from reputed lenders come with no end-usage restrictions and thus help borrowers meet their diverse wedding expenses. These expenditures include arranging for décor, catering, and purchasing bridal makeup packages.
Now, considering that availing loans is a crucial financial decision, individuals should consider the options available in the market and settle for the one that is tailor-made for their financial needs. Following are a few tips that one should consider before availing a personal loan for wedding expenses –
Tip 1: Compute Out Your Required Loan Amount
One amongst the many reasons to take a loan for your wedding is that availing unsecured loans help one to have convenient access to a high credit amount without pledging any assets. However, it is essential to compute the required fund to prevent further inconvenience at repayment tenor. So, make sure to calculate your approximate required amount before approaching a financial institution.
Also, approaching such lenders can help avail funding of up to Rs. 25 Lakh, which is adequate to meet the big-ticket expenses incurred in a marriage.
Tip 2: Go For a Lender Who Offers The Least Personal Loan Interest Rate
Rate of interest on advances has a crucial role to play during amortization of EMI and hence, in calculating the cost of the loan. Approaching a lender that offers a competitive rate of interest ensures pocket-friendly EMIs and a convenient repayment process.
Additionally, avail the EMI calculator of your preferred lender and compute the monthly installments by providing a few essential details like your loan amount, chosen tenor, and rate of interest. Following this, you can weigh in your current monthly financial obligations before availing a wedding loan. It ensures that the repayments do not put unnecessary stress on your budget.
Tip 3: Investigate Your CIBIL Score
Considering that personal loan for the wedding is an unsecured advance, lenders lack the reassurance of repayment via liquidation of a mortgaged asset. Thus, they are stringent about the credit score of the potential borrowers since it reflects his/her creditworthiness and is, therefore, important for personal lending.
Thus, borrowers need to maintain a healthy credit score of 750 and above before approaching a lender to avail these advances. Doing so can help gain better terms and conditions on the loan from the lender. In case your CIBIL score is lower than the optimum requirement, make sure to increase it by closing existing dues, paying credit card bills before the due date, etc.
Tip 4: Settle For the Credit That Comes With Multiple Lucrative Features
Considering that numerous financial institutions offer personal loans to fund diverse wedding expenses, borrowers need to approach ones that specifically cater to their financial requirements. Under such circumstances, approaching lenders like Bajaj Finserv and availing a personal loan for weddings that come with a host of lucrative features –
- Instant approval of the credit amount
- A flexible repayment tenor ranging from 12 to 60 months
- Zero collateral required
- Quick disbursal of the sanctioned amount
- Complete transparency in cases of loan processing
- Convenient access of the loan account via a customer portal
They also bring you pre-approved offer on several financial products that include both unsecured advances like personal loans and business loans and secured credits like home loans. These offers ease the application process to avail such financial assistance. You can take a look at your pre-approved offer by providing a couple of details like your name and contact number.
Tip 5: Opt For an NBFC That Requires The Least Eligibility Criteria and Documentation
Potential borrowers can easily access the aforementioned borrower-friendly features by meeting a few eligibility criteria –
- Individuals must be within the age bracket of 23 and 55 years
- He/she must be an Indian citizen
- One must be a salaried employee in an MNC, or private or public sector
Keeping in mind the convenience of the prospective borrowers, reputed NBFCs require the furnishing of minimum documentation –
- KYC documents that include driving license, Aadhaar card, and voter ID
- Salary slip of the previous 2 months
- Employee ID Card
- Bank account statement of last 3 months
Apart from the easy-to-meet eligibility criteria and the nominal furnishing of documents, lenders also streamline the application process to avail a wedding loan. Availing the best credits in the market can help you arrange for adequate funds to arrange a marriage without breaking into your savings.