Everything You Need To Know About Wedding Loans
Financial planning is crucial to sponsor the cost of a wedding. You must have a lot of dreams for this special day. Accomplishing them without money will be very hard.
A wedding is about commitment, symbolising love and new beginnings. This is the glorifying side of this celebration that will need a thorough flow of money to go on.
The preparations should begin in advance, as a lot of events have to happen. At times, you set a budget for the venue, while the available options seem to charge more money.
This is a stage where you will be in a dilemma. Getting the ideal venue might mean that you will have to wait longer. Maybe you are not ready to delay the wedding.
Then, you will have to go ahead with venues that do not fit your budget. To bridge the financial gap, you can dip into your savings or get personal loans for wedding. Compare the options to make sure which one will be best.
Not always, using saved cash is a convenient option. You have to think of emergencies you might face. A loan can help you get access to much-needed funds.
They are a perfect financial tool to spread the cost when you are unable to gather funds upfront. Find out more about wedding loans in detail by reading through this blog.
Complete insights about wedding loans for smooth decision-making
Whether or not you should get wedding loans to manage some of the unplanned expenses, you need to understand these loans completely. Some of the features might seem suitable, while some might seem restrictive.
You must analyse both pros and cons to understand if they are a perfect financial support for you or not.
What is a wedding loan?
They are a personal loan which can be used for covering wedding-related payouts. There is no need for you to pledge any collateral. These loans are obtainable in small amounts, and you can use them to tackle any trivial necessities.
Your income, affordability and credit profile will be considered by the lenders while processing your application. The various ways you can use these loans are:
1. Booking the venue and getting started with decoration
2. Making arrangements for catering and beverages
3. Purchasing the wedding outfit
4. Spending for wedding-related accessories and jewelleries
5. Hiring a photographer or a videographer
There will be no restriction on the avenues you can utilise the approved sum of loans. Usually, the loan provider does not enquire much about the purposes.
How do wedding loans work?
If you had a hard time applying with a traditional lender, in this case, your experience is going to be different. This is because of the straightforward and convenient loan application process. You can apply for these loans online.
The working procedure consists of the following steps:
Online application: Enter your details in the online form and submit it easily without any exertions.
Processing: Once your loan request reaches the lender, some checks will be conducted.
Decision: After assessing your application, the lender will let you know about approval.
Accept the offer: You will have to accept the approved loan offer by signing the loan agreement.
Receive money: The final step will be to transfer the loan money into your bank account.
How to decide the amount you can borrow?
The borrowing range might vary from lender to lender. You must not choose a random amount without calculations. The chosen amount should match your necessities and financial potential.
A few things you can keep in mind while determining the amount you should borrow.
1. Your monthly income
2. Existing expenses you have to manage
3. The status of debts and how you pay them off
4. The repayment term you want to select
Pre-approval lets you adjust a few entries to find the ideal amount to borrow. You must use the loan calculator to find out the amount of interest you have to bear for a particular loan amount.
What are the advantages of getting a loan for a wedding?
Getting the desired amount should not be the only reason to get these loans. You must explore the additional benefits you can enjoy with these loans.
Speedy access to funds
Unlike any other borrowing option, you do not have to wait longer to get access to funds. Direct lenders do not take much time to process your application. They review your application online and get back to you via the same mode as well.
No restriction on usage
The loan provider will not intervene when you are spending the loan amount. They leave everything on the borrower, who should stick to responsible use of these loans. You must not get these loans if there are no real reasons to borrow money.
Fixed monthly payments
These loans let you repay in small amounts over months. These are small portions of the overall amount you have to repay. There is no need for you to pay back in a single month, as the burden will be huge in that case.
Credit improvement opportunity
If you are facing a difficult time because of poor credit, you can improve your scores by repaying these loans on time. Repayment conditions are quite flexible. For this reason, paying back loans is not going to be difficult, but achievable for you.
What are the typical interest rates and repayment terms?
Interest rates will remain fixed throughout the term. Your credit profile and repayment term will influence the rates. Find out how interest and monthly payments change according to the repayment term.
| Repayment term | Interest rates (approx.) | Estimated monthly payments |
| 6 to 36 months | 25% to 40% | Smaller monthly payments, but the overall cost will be high |
| 12 to 48 months | 15% to 25% | Higher monthly payments with high interest |
| 12 to 60 months | 6% to 18% | Smaller monthly payments and affordable rates |
The bottom line
Is there anything to worry about wedding loans? When there are advantages, some setbacks will surely be there. You just need to take a closer look.
Late repayments will be intolerable for the lender. If you fail to repay on time, late charges will be levied on you.