5 Points to Keep in Mind Before Availing a Loan For Your Marriage

Marriages in India tend to be lavish, expensive affairs and to host a grand celebration you may have been saving for years. Nonetheless, to meet inflated costs and give yourself some extra financial muscle, it’s a good idea to fortify your existing corpus with a wedding loan. In fact, with several lenders extending wedding loan, financing this big celebration has become extremely easy. These tailored marriage loans offer ample funds along with other beneficial features that help you tackle wedding expenses without breaking into a sweat.

However, before you apply for a marriage loan, keep these points in mind so that you have a positive borrowing experience.

Shortlist lenders wisely by noting loan USPs

While you work on your credit score, make a list of the best personal loans. This will ensure that you enjoy convenient repayment options, transparency in dealings, and a wealth of beneficial features apart from low personal loan interest rates. For instance, when you take a personal loan for a wedding from Bajaj Finserv, you get an amount of up to Rs.25 lakh, which you can repay comfortably over a tenor of up to 5 years, along with value-added features such as a flexi loan facility.

This allows you to borrow money from your sanction, multiple times, as per what you require for your wedding preparations. You needn’t make fresh applications each time and you only have to pay interest on the amount you eventually utilise. Further, you can make part-prepayments and can reduce your immediate financial burden by paying interest-only instalments for an initial part of the tenor. 

Take measures to improve your credit score 

To ensure that you get access to a large sanction that’s sufficient for all wedding expenses at a favourable rate, improve your credit score. A personal loan for marriage is an unsecured credit option and so, lenders lay emphasis on a good score. Ideally, to secure ample financing affordably, yours should be around 750. When your score is 750 or more, the risks involved with lending to you are substantially low and as a result you can enjoy better loan terms.

So, take steps to boost your credit score by paying EMIs and credit card bills on time and rectifying any errors that have crept into your credit report. Further, maintain a credit utilisation ratio of 30% or less and avoid making multiple loan applications at once. 

Find out about processing fees and other charges

Some lenders offer a low rate of interest but compensate for the same by levying high processing fees and hidden charges. Hence, it is essential that you read through the loan’s fine print and get in touch with the representative to find out about all fees and charges that are applicable. This way you can determine your total cost of borrowing and ensure that you’re prepared for repayment. Optionally, if the charges are unjustified, you can opt for another lender.

Examine the wedding loan eligibility terms

Your access to funding hinges upon the terms set by your lender. So, in order to enjoy hassle-free loan application, visit your lender’s portal and check the wedding loan eligibilty and the documents required. These two elements vary from one lender to the other. Therefore, select a financial institution that has easy-to-meet eligibility criteria and requires minimal documentation for a marriage loan. Bajaj Finserv is one such lender. Apart from easy eligibility criteria, it offers instant approval in 5 minutes and funds in your account within 24 hours of document verification.

Use an EMI calculator to pick the right loan amount and tenor

Whenever you take any loan, it’s apt to plan for repayment beforehand, as defaulting or delaying repayment can have negative consequences. To ensure that repayment is smooth and convenient, use an EMI calculator to arrive at a feasible loan structure. This tool lets you view your EMI and the total interest payable when you enter the loan amount, tenor and the interest rate applicable. If your EMI exceeds your budget, lower it by either decreasing the loan amount or increasing the tenor or both. 

Paying attention to these 5 points will help you secure the funds you seek in a cost-effective manner. In case you find yourself requiring finance urgently, you can always check your pre-approved offer from Bajaj Finserv. This way you can get instant approval for a marriage loan via a customised deal.