Planning your dream wedding is not only about the perfect outfit or a beautiful venue but also about the details such as getting the decorations right and buying the jewellery of your choice.
However, what if you don’t have enough funds to sponsor this dream wedding?
You start digging into your savings and keep exhausting every bit of funds that you can get.
Instead of doing that, get a personal loan.
A personal loan is an easy option when you have absolutely no choice left. You can fill in the paperwork, get it approved without wasting much time, and start your wedding preparations. The hassles involved are fewer, and you will be saved from exhausting your resources completely.
Read more to know how you can utilize personal loans to plan your dream wedding.
Planning Your Dream Wedding with Personal Loan
Although we believe that taking a personal loan can be a good option to deal with wedding expenses, you should still assess if you actually require this credit from the bank. For that, sit down and evaluate all your wedding expenses. Find out an estimate and think how much can you manage without the loan. It will give you an estimate of your expenses and consequently the correct amount of loan that you must take.
The Budget: Your estimated amount (calculated above) will not necessarily be similar to your budget. The budget is simply the amount of money you are willing to spend on your wedding. Your estimate can fluctuate and often it can come out to be more than what you want to spend.
Hence, to plan your wedding, you need to set a budget and then according to this, cut down some costs from your estimate. This will enable you to acquire best personal loan offers that match your budget as well as the estimate.
How Much You Need: To understand this, it is important to note the difference between the amount of money you need and the amount of money you can get.
For instance, your bank may be ready to give you a personal loan of INR 10 lakhs. But, do you really need all this money? If you can arrange some amount and require only INR 5 lakhs above that, then your need is less than the amount being offered.
Always take the money you need, as there is no point in taking the extra money and then paying high interest on it.
The Spending Plan: Now that you have clarified your budget, estimate the amount you need as a personal loan, and start dividing the funds. The spending plan is nothing but a division the total amount so as to allocate the necessary funds to each necessity. Specify the amount and spend only that much to avoid overspending.
For example, INR 2 lakhs for jewellery, INR 1 lakh for the venue, and so on. This can be a little different from the plan but too much difference will ruin your budget.
Compare: Once you have decided all the above things, compare personal loan offers online. By comparing different loans online, you can get low-interest personal loans and the best personal loans offers. So, compare and evaluate every detail from tenure to EMIs.
Benefits of Taking a Personal Loan for Your Wedding
Here are some other benefits of taking a personal loan for a wedding.
Quick Approval: Online personal loans are approved quickly given that you have a good relationship with the bank, you have submitted the correct documents, and your credit history is excellent.
If you fulfill all these requirements, then there are high chances of your loan amount getting approved rapidly without rejection or hassles.
The flexibility of Usage: You have immense flexibility as far as usage of this loan amount is concerned. You can use this money for decorations, your outfit, venue, honeymoon, makeup, catering, or any other thing related to your wedding.
Less Risky: A personal loan is a type of unsecured loan, which means that it does not require you to keep any property as collateral. None of your assets is at stake, and you can get the loan with the help of a good credit rating and personal loan eligibility.
Flexible EMI and Tenure
Most banks and financial institutions allow you to select the EMI options and tenure of your loan. This gives you the freedom of opting for the longer or shorter repayment period according to your convenience.
Avoid Liquidating Savings
A personal loan is an option that keeps you from liquidating your savings. Most of the savings and recurring deposits can incur an extra charge if withdrawn before maturity and you can lose all the interest earned. You can avoid this by acquiring a personal loan and then repaying it once your deposits have reached maturity.
Here’s What You Should Consider before Taking a Personal Loan for Your Wedding
Acquiring a personal loan is an amazing option for people who need some extra funding for planning the perfect wedding. However, there are some things that you should consider before taking this credit.
See If Your Partner Agrees: This is a decision that you and your partner should take together. Both of you should evaluate and analyze the fact – if you want to start a new life ridden with debt. Are you both comfortable with this and are you both willing to acquire this debt to have your dream wedding? If not, then you should try cutting down your budget.
Check Your Credit History: Credit history is something that you should consider before taking a personal loan. Since personal loans don’t require something as collateral, credit history and CIBIL score play a major role in the approval of this loan. Additionally, even if you don’t have a bad credit history, having no credit history is also an issue while taking credit. How will your provider assess your repaying capabilities?
Assess Your Repayment Plan: If you are taking a personal loan for your wedding expenses no matter how big or small, develop a repayment plan. Sit with your partner and analyze the possible incurred EMI. You will have to plan your expenses for the coming months according to this amount. Hence, having prior knowledge of how you will manage to repay the loan is the safest way to avoid delaying the EMI.
Do You Need a Personal Loan For Your Dream Wedding?
We believe that taking a personal loan is a great option for fulfilling your wedding expenses. However, it is still necessary to have a clear understanding of the EMI applicable, interest rates, repayment options, the amount you can acquire, and duration of the repayment. So, evaluate and analyze the whole plan and consider your CIBIL score along with other factors before applying.