Getting married soon? Consider a Personal Loan For Those ‘Extra Expenses’
Nowadays, we have a loan for every need. There is a home renovation loan that one can take when redoing their home. One can take advantage of a car loan when one wants to buy a car. Bottom, there are various types of loans out there that one can make use of according to their need. Similarly, if you are getting married soon or someone in your home is getting married, you may benefit from a personal loan to cover those extra spaces that always crop out unexpectedly amidst the wedding functions.
For the unversed, a marriage loan is essentially a personal loan that you can avail of to meet all of your wedding-related expenses. To help you plan, you can take advantage of the best personal loan apps to calculate the monthly outgo you would be required to pay every month. However, before you take a marriage loan for your expenses, here are the pros and cons of doing so so that at the end of the function, you are confident of your financial decision:
Pros of choosing a Personal loan for your wedding expenses
Doesn’t come with restricted end-usage: As we all know, in an Indian wedding, expenses usually supersede the expected budget, and at that time, a personal loan can help you fund those unexpected expenses that you didn’t account for while making a budget. A personal loan is usually disbursed within two days, enabling you to pay for all the last-minute expenses such as gifting, jewelry, catering, etc.
Comes with a hassle-free application: Everybody is aware of the exhausting and taxing nature of Indian weddings, and you don’t need another set of papers to go through while getting a personal loan. A personal loan is anything but exhausting. Nowadays, banks have gone digital, and hence, one can easily apply for a mpokket personal loan or any other personal loan directly from the official website of a bank. You can do so even while you are out shopping for your dress. All it requires from your side is keeping your documents with you on the phone. To submit your loan application online, you need to keep basic details by your side. After checking the eligibility criteria and providing you fulfill them, a lender will sanction you the loan.
The loan amount is quickly disbursed: One of the best things about a personal loan is the fact that a mpokket personal loan is quickly disbursed, ensuring you can fulfill the particular need for which you need a credit within 24-48 hours after approval of your loan application. The same benefit is also available with a credit card; however, if an emergency can wait, it is suggested you wait for the personal loan application to get approved. It is because the interest rate charged on a credit card is higher than on a personal loan.
Can improve your CIBIL score: The best personal loan amount for you would be the one that could help you build your credit score. In case you have a low CIBIL score, a wedding loan or personal loan is a great way to build your payment history, which can further boost your CIBIL score. If you are able to pay off your wedding loan taken from mpokket personal loan or from any other lender, your low credit score will instantly get a boost and put you in a good place to avail different kinds of loans in the future.
Just like everything in life, a wedding loan also comes with its share of cons that one needs to know beforehand. Here are the top pointers you need to know about personal loans for your wedding:
Higher interest rate: You should know wedding loan is an unsecured loan. That is, you won’t be asked for any collateral to keep with the bank. Due to the unsecured nature of the loan, even the best personal loan for your wedding comes at a higher interest rate. Thus, you should only resort to a pocket personal loan if you have the paying capacity to repay the loan or if there is no other resort left to get the credit. It is also suggested to read the fine print carefully, or else you will be slapped with exorbitant fees or other hidden charges at the time of paying your EMIs.
May affect your monthly budget: One is suggested not to take a wedding loan or mpokket personal loan on a whim due to the interest rate it comes with. Before taking a loan, analyze how your monthly budget will be after getting married to your partner. Do you think your monthly obligations after marriage will be able to accommodate your EMI, or will it affect you? With an EMI, your financial freedom won’t be the same as it used to be before you took the loan or till you repay the amount.
Hence, you may have narrowed down the best personal loan to fulfill your emergency wedding needs but consider these scenarios before you actually apply for the loan.
Can anybody be eligible for a wedding loan?
Wedding loans also have some eligibility criteria that one needs to fulfill; only then the bank will clear your application. Here are the top 3 factors that affect your eligibility for a wedding loan:
First has to be the CIBIL score: The bank will analyze your credit card bill repayment, loan repayment history, and credit utilization score to determine your credit score. If your CIBIL score is above 750, your personal loan for wedding expenses will likely be approved instantly.
Your debt-to-income ratio: Every bank will check your monthly income to gauge whether you will be able to repay the loan or not. While doing so, they will also check whether you have other liabilities in your name, such as study loans, home loans, and so on, to calculate your debt-to-income ratio.
Your job profile: To see whether you will be able to repay the amount, the bank will check your job profile, work experience, and your current age. The bank can also check the employer’s profile to assess your loan eligibility.
All these steps are being followed by every financial institution to see if the applicant will be able to repay the loan on time or not without defaulting.
Before you get married, you may wonder whether you want to start your wedding life with debt, but if debt can help you ease your financial burden, then a personal loan might be a good option. If you look from a prescriptive perspective, a wedding loan is not necessarily a bad thing as it is made out to be. It is disbursed quickly, and you don’t need to depend on your relatives and friends, thus saving embarrassment and involving minimal documentation and hassle. However, like with all kinds of loans, check your repaying capacity to see whether you will be able to pay it back. As a safe option, you should borrow what you can return.