Should You Take a Personal Loan for Wedding?

Personal Loans

Celebration brings with it, the joy of being together with the loved ones and we always want the moments to be the most cherished ones. Looking at the practical aspect of the situation, a celebration of any kind, whether a wedding or any grand occasion, brings along with it, a heavy financial expenditure too! So why not plan things in such a way that you rejoice and relish each moment of your special days, instead of being worried about the arrangement of the finances.

Ideally, one should have such a sound financial planning for the occasion, which keeps intact one’s pre-planned budget, so that no borrowings are needed at all. However, all things don’t happen according to one’s wish and planning, and there are some unexpected expenditures which arise and so one should be aware of some handy options which can help to manage things in a better way.

Let us go through some of these:

Personal Loan: One can easily apply for this loan at any bank after comparing the quotes with the other lenders. This personal loan is an unsecured loan which is given by banks depending on many factors such as the credit history of the borrower, the assets that he possesses and his ability to repay the loan. Usually, a good credit score, the income tax return, and last three months’ salary slip are sufficient to avail this loan. The interest ranges from 11%-33% which again depends on the risk profile of the loan seeker.

Secured loan:

In case, one is not able to get a personal loan due to a low credit score, there is another option of giving security to the bank, by putting up fixed deposits, post office savings certificate or life insurance policies. This helps one to avail a loan which has a lower rate of interest (12%-15%) solely because of the reason that lenders can retrieve their money through the security deposited by the borrower. This, apparently gives a fair deal to the lender as well as the borrower and also doesn’t need much paperwork as in the case of unsecured loans.

Marriage loan: If one is not able to avail a personal or secured loan from a bank, he can opt for a marriage loan which is offered by non-banking financial institutions, though their interest ranges from 11%-31%. But the benefit here is that these loans can be prepaid before the due date, relieving the borrower from the high rates of interest.

Create a crowd-funding page:

The last resort that one can go for, is collect funds through a crowd-funding page, online, where you can ask for help from your community, friends or relatives. There are a few websites which raise funds by this method mostly for a cause which is mentioned along with the target amount needed. Here, you should be able to specifically state the significance of the occasion (wedding) for which you are seeking help. The more genuine and personal your content is, the better it is for you.

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