Indian weddings have been known for their pomp and ceremony worldwide for ages. It is the dream of every other Indian parent to make the wedding day of their children one of the best days of their lives. Weddings in India are all about at least a week packed with lots of food, beverages, adorning, dancing, and feasting again. Everyone at some point in their life looks forward to turning to this page of their lives and start a new milestone, a new chapter with their partner. All this opulence and grandeur come out expensive in today’s age and requires preplanning and savings. Many prudent households prepare for these expenses by creating a reserve fund or making investments to pay for these. However, there are hundreds of people who lack any such instruments. All such individuals can avail of marriage loans for the occasion.
There are certain points that a prospective loan holder needs to always keep in mind while exploring this financial instrument. Here are the most important 7 things they need to know while availing a marriage loan.
- Savings should be your first go-to: It is recommended that the prospective loan taker prioritizes using his savings for the occasion instead of completely relying on the wedding loan amount. Creating a plan with a proper mix of both these tools can save individuals from the unnecessary burden of EMIs and hefty interest rates. Therefore it is important to choose your past savings before you jump into this debt cycle
- Planning and Budgeting: It is most important to create a strict budget for the grand occasion. Often it turns out that people end up spending more than they could afford while making preparations for such big events. Individuals realize that they have spent more than their budget when it is too late. Therefore, it is advisable to always have a strict budget and make it a hard and fast rule to abide by it
- Smart Shopping: Indian weddings are significantly about dressings up and gifting. There is a lot of jewelry and other expensive purchases involved in the preparations. Individuals should not take these loans as a gift, instead they should strive to make the best use of it. This can be done by starting with their shopping spree well before time and looking for suitable deals and discount sales and finding the best price for the commodities
- Cash Loan: If an individual seeks the utmost privacy while applying for a loan, cash loans are the best bet. Several quick loan applications can provide quick cash access with minimal paperwork and documentation. Individuals can get the loan amount sanctioned without having to move out of their home. The cash amount of such loans range between INR 10,000 to INR 2 lakh and the duration for such loans start from 15, 30, 90, and 180 days. These loans come with low-interest rates thus making them a dirt cheap option for urgent situations. Another benefit is that the repayment option is flexible and can be again done from the comfort of your couch
- Choosing the right lending partner: Today there are multiple players in the market offering easy and affordable loans. Every day you must be getting random calls from various agencies for an instant cash loan. This variety of agencies and offers makes it a rather difficult task to choose the right lending partner. One should carry out detailed research to ascertain the pros and cons of each of the agencies. All the salaried individuals can easily get loans from the quick cash apps. It is no herculean task to get a loan fro any individual who is in the age rank of 23 years to 58 years and has the necessary documents. Therefore one must choose wisely
- Beware of pre-payment penalty: Generally, the financial institutions provide marriage loans with a lock0in period of at least 6 months. Individuals can make a prepayment of their loan after this lock-in period is over. Banks and other institutions charge a hefty penalty if an individual makes an early prepayment. In case the wedding gets canceled or the borrower gets funds from elsewhere at less interest rate, he might be tempted to repay the marriage loan amount early. This would lead him to pay the penalty
- Evaluate wisely before availing joint loans: Several institutions check the eligibility of both husband and wife for issuing a loan for weddings. Many households where both the husband and wife are salaried, individuals tend to take a joint marriage loan as this helps them get a huge amount of loan. However, following this, leads them into borrowing more than what they can afford to pay in the future. Another reason why think wisely before considering this option is that in case the individuals fail to repay the monthly installments, the credit score of both the family members gets affected. This, in turn, makes it difficult for them to avail of another loan in the future
Thus it is crucial to be a thoughtful parent while setting the ground for the big day in your and your child’s life. Proper preplanning and thorough research can not only help you save bucks but also make the special day worth remembering for life.