Should You Get a Personal Loan for Your Wedding?
‘Tis the season of weddings! The recent Viraat and Anushka’s wedding has made us believe in fairytale weddings once again and has given wedding goals to many. And then there are those who have been “dreaming about this day since I was a little girl”. Well, why shouldn’t you dream of such beautiful dreams, after all, a wedding is a once (or twice, or third time’s a charm) in a lifetime event in your life!
One thing that your dreams didn’t take into consideration is a wedding budget. Right! Despite your savings, you may face a financial crunch while planning for your dream wedding. Should that deter you from going after your dreams? Hell, no! Help is just a call away as several financial institutions offer personal loans to fulfill your dream of a perfect wedding.
A personal loan is a loan granted by banks and financial institutions to fund personal expenses. Since it is an unsecured loan, this ensures your assets are not at a risk in case you find it difficult to service the loan. Thus, it is a convenient option to cover the wedding costs. However, keep in mind that you are taking a loan for a single-day event which could take a few years to pay off. So, it’s important to do due diligence and make an informed decision. You may need to look at the following steps:
Make an estimate of realistic expenses: It is important to list all the expenses that you might incur. Yes, right from venue, food, clothes, travel, photography, gifts, music, miscellaneous.
Assess the gap between the savings and the expenses. Once the expenses are known, calculate the shortfall. This is the amount that can be borrowed as a personal loan.
Search for a suitable loan. Various institutions offer personal loans. It’s important to do a bit of research to get the best loan. Look at the personal loan interest rates, charge structure, processing fee, repayment flexibility, terms and conditions, tenure that suits your financial situation. If you have a good credit score and an excellent repayment history, you may be able to procure the loan at a lower rate of interest. This is beneficial to reduce the cost of your borrowings. Also, you can reduce the total cost of borrowing by opting for shorter repayment duration.
Work on your repayment plans. While getting a loan is easy, it is the repayment of the same that is a bit challenging. Before you borrow a huge loan, it is important to know whether you can afford the repayment schedule. To know how much you need to pay per month, you can use a personal loan EMI calculator. This tool helps you to calculate the equated monthly installments (EMIs) and helps you to plan your financial budget without facing any difficulties.
With all the planning and research done, let the wedding bells ring and make your wedding day truly special and the most memorable one!