Everything you need to know about taking a loan for your wedding

Our wedding is one of the most important occasions of our lives. From food to the décor and the outfits, everything needs to be just right. A wedding, however usually involves various expenses like booking venues and hiring the services of professionals like photographers, beauticians, caterers, etc. This is also the time to make expensive purchases such as jewellery, clothes,and, in some cases,revamping your house or buying a new car. Paying for each and every component of the wedding is only possible when you have sufficient funds. Sometimes, even after intensive planning, it isn’t possible to predict the exact amount so you may want to get funds that offer more flexibility. In other cases, you may find that you don’t want to use your savings to pay for the expenses. In either case, you can use a marriage loan to pay for the wedding. Before you apply for one, make sure you keep in mind these factors.

Ensure that you can get access to a high loan amount easily

Swiping credit cards may seem like an easy solution, but they may not offer you a high loan amount and charge you a higher interest rate. This can make your debt difficult to manage. Instead, pick a loan that offers a substantial loan amount at comparatively lower interest rates such as a loan against property. A secured loan such as this one will give you access to a large corpus of funds that you can use to fund your wedding from start to finish.

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Look for flexibility with regards to the usage of funds

Before you know how to apply for the loan, ensure that you have flexibility with regards to how you can use the funds. A Flexi Loan facility can be of great use here. For example, your designer asks you to pay an advance of Rs. 10,000. On delivery, you have to pay the balance Rs. 50,000. Simultaneously, you may have to pay Rs. 15,000 to book the photographer. In such a case a Flexi Loan will allow you to borrow funds as and when the need arises. With a Flexi Loan, you have access to a higher loan amount but have to pay interest only on the amount you use, and you will also have the choice to repay in the form of interest-only EMIs. You will be able to withdraw, repay, and redraw funds as many times as you need to and even make prepayments to reduce your liability. You can also re-avail prepaid funds should you need them without any penalty. So, you can fulfil unpredictable wedding needs with a Flexi Loan facility.

Ensure that you can repay the loan on convenient terms

After the wedding, you will want to relive the beautiful memories in addition to recovering from all the preparation and planning. Relieve yourself from the burden of repaying the loan with hefty EMIs. Since you’re borrowing against property, most lenders will give you a chance to repay using affordable EMIs over a long tenor of up to 15 years.

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Check the loan’s affordability

Pledging a property means that you get a secured loan, which brings down the mortgage interest rate. So, check offers from a few lenders, compare them based on the interest rates, and then settle for the best offer. Also, look for other charges like statement charges, part prepayment charges, foreclosure charges and processing fees in order to arrive at the best offer.

You can cover all the wedding expenses comfortably as long as you pick the right loan. By easing the financial burden, you can concentrate on enjoying the wedding instead of focusing on finances.