In India, a wedding is not only a personal milestone but also a luxurious occasion involving sizable expenditure. Depending on the culture, a traditional Indian wedding in Ahmedabad can include multiple ceremonies and rituals that can extend up to weeks. Therefore, it can be a significantly expensive affair for individuals. As per a recent survey, during the financial year of 2018-19, 20% of the total loan facility availed by young individuals were taken to meet their wedding expenditures.
When raising funds for marriage, individuals can consider getting a personal loan in Ahmedabad as it offers a sizable amount and collateral-free facility. Moreover, the sanctioned amount carries no end-use constraints. Thus, borrowers can allocate it for different wedding expenses as per their needs. Here are some facts that individuals should know while obtaining a personal loan for a wedding in Ahmedabad.
Things to remember before applying for the loan
- Existing debts
When applying for a personal loan in Ahmedabad, borrowers must be cautious if they have any existing credit. Another loan means an additional repayment responsibility. Thus, they must evaluate their fixed obligation to income ratio to make sure that their repayment capacity is sufficient to accommodate a new EMI payment.
- Interest rate and other charges
Along with interest rate, there are other fees such as foreclosure charges, processing fees, late payment charges, etc. can be present in the terms and conditions. So, borrowers need to pay attention throughout these key requirements to look for the most affordable deal.
- Loan amount
While deciding the principal amount on their personal loan, individuals must be sure about its repayment at first. As in the case of a default in payment, their credit profile can be severely damaged.
Advantages of personal loans for wedding expenses
Here is everything that borrowers need to know about a personal loan for a wedding.
- Substantial funding
A wedding celebration involves various types of expenses such as catering, decoration, venue bookings, bridal expenses, etc. that require a substantial amount of funds. Individuals can, therefore, secure an advance amount of up to Rs.25 lakh through a wedding loan in India. So, it can be easy for individuals to manage all their wedding costs efficiently without compromising their plans.
- Competitive interest rates
Depending on the lender, personal loans for a wedding are available at attractive interest rates that help to reduce the total cost of the loan. Thus, applicants need to methodically analyse loan options with a comprehensive comparison of interest applicability to find out the best lending rate available for them.
- Flexible repayment tenor
Moreover, wedding loans also offer flexible repayment tenors of up to 60 months. Thus, borrowers can assess their financial capacity and select a tenor that keeps their EMIs affordable. To find a suitable EMI amount, individuals can also find online loan calculators that can compute different instalment amounts within seconds for quick comparison.
However, when deciding the loan tenor, customers should remember that a long term may go easy on the monthly payouts but can lead to high interest accrual.
- No restriction to the purpose of use
A personal loan in Ahmedabad also allows individuals to assign the approved amount to any expenses required without any restriction. For example, if borrowers find it important to renovate or extend a part of their home for the betterment of this ceremony, they can use the loan amount without any further permission.
- Minimum eligibility criteria
Furthermore, wedding loan approval requires basic eligibility parameters. Any Indian resident between 23-55 years of age with a stable salary can apply for it. Nonetheless, individuals need to hold a healthy CIBIL score of 750 or above to avail this financing option at favourable terms.
- Easy documentation
Also, the documentation processes of a marriage loan are considerably simple and straightforward. Lenders ask for a few minimal documents such as KYC proof, account statements, employment proof like ID, salary slips, etc. to confirm their eligibility.
Due to this easy documentation, the disbursal process becomes faster too, and borrowers can obtain an instant loan in Ahmedabad to spend on wedding celebrations.
Individuals can also look for NBFCs like Bajaj Finserv that present pre-approved offers for a faster and convenient process of financing. Customers can find these offers on several financial products like personal loans and business loans. They can check their pre-approved offer by providing their name and contact number.
In conclusion, individuals also need to be careful about their credit records when considering a personal loan in Ahmedabad. If their credit profile is not strong enough and reliable, they must take the required measures to improve repayment history for better approval chances and lower interest rates. It can help individuals to be aware of the ways a personal loan can be helpful for a wedding.