6 Reasons to Consider a Personal Loan For a Wedding

According to a recent survey conducted on the wedding industry in India, 1% of India’s total population tie the knot each year. With the wedding ceremonies ranging from big to small, it puts the total value of the Indian wedding industry at $50 billion, second only to the US.

Now, a Big Fat Indian Wedding comes with expenses that can put a sizeable dent in your savings. You can alternatively consider availing a wedding loan, which can make covering the nuptial-related costs much easier.

Why Should You Consider a Personal Loan For Your Wedding?

A personal loan comes with several benefits. For instance:

  • There are no end usage restrictions for a personal loan. You can use it to cover any wedding-related expenses ranging from hiring a venue to paying for your guest’s accommodations. 
  • You can avail a high loan amount value of up to Rs. 25 Lakh that can help you to cover several expenses for your wedding ceremony. 
  • It is an unsecured advance, meaning that you don’t have to mortgage any asset to avail it, thus reducing your repayment liability.
  • A personal loan for wedding comes with a flexible tenor starting from 12 months and going up to 60 months.
  • Personal loans come with instant approval facilities that can help you avail the advance as soon as you require it. Also, few financial institutions offer the benefit of fast disbursal, which helps you to avail the amount in under 24 hours.
  • You can receive the advance without any documentation hassles. Thus, it makes the process of availing the advance much easier.

These are six reasons why you should consider a personal loan to cover your wedding expenses. Make sure you look through the benefits offered by the financial institution to make your loan repayment easier.

Must Read: 6 Reasons To Consider a Personal Loan For Wedding

5 Expenses That You Can Finance With Personal Loan

Personal loans come with features such as minimum documentation, zero end-use restriction, and several other borrower-friendly features. Such features make it an extremely convenient form of credit. You can finance any sudden contingency with ease because of the quick personal loan offered by top lenders.

Listed Below Are Few Expenses You Can Finance By Availing Personal Loan

  • Destination Wedding- You can avail a personal loan to finance a destination wedding. Weddings are a special occasion that demands special parties. Imagine taking your vows with the ocean and mountains providing witness. A dinner in Bali with all your close family and friends. Make it a memorable affair for the guests and yourself.
  • Medical Contingencies- You never know what medical problem may crop up and when. But as long as you know about personal loans, you are pretty much covered financially. With minimum disbursal time, it is an effective tool to finance immediate medical crises. Some lenders even approve and disburse funds in just a few hours.
  • Business Expansion- You can choose an instant personal loan to avail funds for a business expansion project. These funds are disbursed quickly and have little to no end-use restriction. 
  • Debt Consolidation- A personal loan can help you to consolidate your debts. Debt consolidation is quite an effective tool to bring down your total debt. If you have loans from different lenders and are charged at different rates of interest, it can become challenging to keep track of such expenses. Opt for a personal loan to pay a single interest rate which can bring down your interest obligations considerably.
  • Travel- Personal loans are a popular way to avail funds for traveling or vacations. You can plan a surprise trip with your friends or family and easily use a personal loan to finance its expenses. You can also go backpacking around Europe with an instant personal loan.

Personal loans come with many benefits. If you are ever in urgent need of funds, you can always avail a personal loan, provided you submit required documents.

Must Read: 5 Expenses That You Can Finance With a Personal Loan

Personal Loans: Applying Online Vs. Offline

The zero end-usage restriction of personal loans enable you to use the funds to meet all your financial objectives. You can use the funds for big-ticket purchases or invest them in your business. Personal loans are also an exceptional way to improve your CIBIL score.

Financial institutions enable you to apply for a personal loan in the following ways:

Online

You can apply for a personal loan online by visiting the lender’s official website. Then, you have to follow these steps mentioned below:

Step 1: You only have to provide a few details like your name, PAN, phone number, email, pin code, monthly income, etc. to begin with the application process.   

Step 2: In the next step, you have to provide the loan amount that you seek. 

Step 3: You have to submit the necessary documents to your lender’s representative.

These documents include photo ID proof (Aadhaar, Driving License, Passport, Voter ID, PAN), latest salary slips, and bank account statements.

You will receive the funds in your account within one working day after your loan is approved, post document verification.

Offline

You have to visit the nearest branch of a lender to apply for personal loans offline. Next, you have to follow these steps:

Step 1: Meet a loan officer at the branch.

Step 2: Fill the application form by providing all the necessary details.

Step 3: Submit this application form along with the documents mentioned above.

The branch officer will verify all your documents and approve your loan. Do note that you may have to make multiple visits to the branch during this process.

Hence, applying for a personal loan online is less time-consuming and hassle-free than the offline process. You can receive approval in 5 minutes and get the funds in your account within 24 hours.

Must Read: Personal Loans: Apply Online Vs Offline?

5 Ways To Ensure You Get Low Personal Loan Interest Rates

Personal loans are one of the easily accessible loans thanks to their quick processing which brings down their approval time to 24 hours. The tenors of these loans range from 12 to 60 months, keeping your EMIs affordable.

You also have to provide minimal documents and satisfy a few eligibility criteria when applying for these loans.

Personal loan interest rates are considerably higher than that of secured loans owing to its unsecured and short-term nature. However, following these ways can ensure you avail lower interest rate on personal loans:

  • High Credit Score

Having a credit score of 750 or more enables you to enjoy the best personal loan rate of interest. A higher CIBIL score assures the lender of your positive repayment history and thus may offer better interest rates.

  • High Income

A financial institution may offer you a low personal loan interest rate if you have a high income.

  • Reputation With The Lender

Your lender can also provide a  lower rate of interest if you are an existing customer and have maintained a cordial relation with them.

  • Opting For Shorter Tenors

One of the ways to avail reduced interest rates is to opt for shorter tenors. Short tenors lead to expensive EMIs but decrease the total interest that you pay on the loan, thereby lowering your cost of loan.

  • Low Debt-To-Income Ratio

Some financial institutions check your debt-to-income ratio or Fixed Obligation to Income Ratio (FOIR) when you apply. Keeping this ratio lower than 50% can enable you to receive lower rate of interest on a personal loan.

Consider the above points before you make an application. An NBFC can offer you a lucrative personal loan interest rate if you hold more than one criterion.

Must Read: Six Ways to Ensure a Good Deal on Personal Loan Interest Rate

NBFCs Offer Special Personal Loan Interest Rates To Government Employees

NBFCs played a significant role in popularising personal loans in India via customized borrower-friendly features. Now, individuals employed with any state or central government organization or department, PSUs, etc. and between the ages of 23 and 55 years can avail a personal loan for government employees.

Benefits Of a Personal Loan For Government Employees

  • Attractive Interest Rates  

One of the prime benefits of these loans is the competitive rate of interest that government employees can avail. The interest rate may differ between lenders and as per the department you function in.

  • High Financing Option

Government employees can avail up to Rs. 25 Lakh and use it without any restrictions. They can renovate their house, consolidate debt, arrange a wedding, cover medical expenses, etc.

  • Simplistic Documentation Procedure

Applicants only have to provide their employee ID card, KYC documents (PAN, Driving License, Voter ID, Aadhaar, Passport, etc.), bank account statements of the last 3 months, and salary slips of the previous 2 months.

  • Quick Approval and Disbursal

Financial institutions can approve a loan application within 5 minutes and disburse you the funds under 24 hours provided you meet their documentation and eligibility criteria.

  • Convenient Repayment Tenors

Tenor options of a personal loan for government employees offered by top lenders range from 12 to 60 months. Choosing a longer tenor comes with the benefit of affordable EMIs. On the other hand, shorter tenor reduces your total payable interest.

Using a personal loan EMI calculator can help you to determine the right tenor and calculate your EMIs. Refer to the best lenders to ensure the easiest possible repayment.

  • Part-Prepayment and Foreclosure Facility  

Customers, when having excess funds, can opt for a part-prepayment or foreclosure facility. Part-prepaying a portion of your loan either lowers the EMIs or reduces the tenor. On the other hand, foreclosing your loan before the tenor ends helps you save on interest.

Financial institutions charge a nominal fee to provide this facility. The charges are a flat rate along with applicable taxes.

These features, along with the affordable rate of interest, make a personal loan for government employees exceptionally beneficial. 

Must Read: Banks & NBFCs offer special personal loan rates to government employees