Close

Delete Collection?

Are you sure you want to delete this collection permanently?

Close

Delete Collection?

Are you sure you want to delete this collection permanently?

Everyone has a Story to Tell and an Experience to Share!

Let’s Start Writing
4e37d78c-299a-4ab6-9bd7-cbb008485168

Why Couples Are Taking Out Loans To Pay For Their Weddings

Most of the couples remain so excited thinking about their D-day. But when it comes to expenses they might get stressed due to the insufficient number of funds in their hands to pay for their wedding expenses and the things related to this.

Most of the couples have an idea of their dream wedding and marriage is a costly affair as we all know. And, sometimes we fall short of funds to meet wedding expenses. In such a case, most of the individuals who are planning to get married soon may apply for a wedding loan to cover all their marriage expenses in a hassle-free manner. However, wedding loans, which are nothing but only a kind of an unsecured personal loan is generally a good idea when it comes to meet your D-day expenses which help couples to pay for their marriage ceremony outright.

Let’s have a look at what wedding loans are and how do they offer benefit to us:

What Is a Wedding Loan

Awedding loan is nothing but an unsecured personal loan. They can be used wisely to meet all your wedding-related expenses. And even after that in arranging your trip abroad or your honeymoon plans with your partner. To avail a wedding loan, you do not require any collateral or security to get loan approval from your lender which makes this loan quite convenient to opt for when you do not have enough amounts of funds to meet your wedding expenses. In general, you can borrow up to Rs. 50,000 to Rs. 50 Lakhs through a personal loan.

How to Get a Wedding Loan

You can get a wedding loan from a bank, credit union or an online loan aggregator who offers this facility. You may apply for a wedding loan in an easy and hassle-free manner through the increased digitisation process and minimum requirement of documents. When you apply for a wedding loan, lenders will look at your credit history as well as your debt-to-income ratio to approve your loan successfully. Generally speaking, lenders prefer borrowers with credit scores of 750 and above.

Factors to take into consideration when applying for a marriage loan

You need to keep the following factors in mind while applying for a marriage loan

1) Make a rough estimate of how much loan amount do you really require to cover all your wedding-related expenses after taking into account your wedding budget which you should plan well in advance

2) Compare and contrast different offers and rates offered by multiple lenders on wedding loan. Doing this exercise will help you save a lot on the interest rate part. Make sure that you should also know well in advance about all the charges associated with your wedding personal loan

3) One needs to be very careful, as applying for a wedding personal loan might charge you a higher rate of interest. So remember to stick to a careful approach and keep things within budget so that you do not leave yourself in a stressful situation at the time when you do not have sufficient funds to meet your wedding expenses

Also Read: Why Wedding Loan is Best Way to Manage Your Wedding Expenses

Benefits of taking a Wedding Loan

1) Wedding personal loans are a fast and easier way to avail quick funds to manage your wedding-related expenses

2) You can apply for these wedding loans even online in a hassle-free manner without the requirement of any paperwork

3) You can get instant funds in as little as one business day, depending upon the lender with which you apply for your wedding loan

4) The interest rate on wedding loans are quite lesser as compared to those of credit cards

5) They can help improve your credit history if you pay them back on time


Related Articles

SEBI found that more than 95% of Indian households preferred investing in fixed deposits (FDs) back in 2017. Few reasons behind the popularity of FDs are their high rate of interest, variable tenors, and availability from the majority of financial institutions.

There are two types of fixed deposit: cumulative and non-cumulative, offering different interest pay-out frequencies.

Cumulative Fixed Deposits

Cumulative FDs provide returns after maturity. Meaning, you receive your investment along with interest after the completion of its tenor, which can range from 12 to 60 months.

You can invest in a cumulative fixed deposit if you have long-term plans and a higher rate of interest.

When to opt for a Cumulative FD?

Cumulative FDs are exceptional when you seek to expand your savings. These can also be helpful if you have a big-ticket expense lined up. For example, invest your savings for 5 years if you are planning a wedding at that time.

Non-Cumulative Fixed Deposits

Another type of FD is a non-cumulative fixed deposit which provides interest returns on a monthly, quarterly, half-yearly, and annual basis. The principal amount remains invested throughout the tenor, and you only receive the interest depending on the chosen frequency.

The interest rate on non-cumulative FDs depends on the interest payout frequency. Annual pay-outs will provide a higher rate of interest than monthly ones.

When to opt for a Non-Cumulative FD?

Non-cumulative fixed deposits are superb if you want regular income. These FDs can help you to manage your recurring short-term expenses and monthly obligations.

Benefits of Cumulative and Non-Cumulative FDs

Lucrative Rates of Interest

Bajaj Finance offers Fixed Deposits with the rate of interests that can go up to 8.75%. Senior citizens also receive an additional 0.35% interest. You can also opt for a special 15-month fixed deposit that offers 0.25% more interest.

Guaranteed and Assured Returns

Returns on fixed deposits are guaranteed and assured as these are not market–linked, unlike mutual funds.

Comes with Stable Ratings

Both these types of fixed deposit hold FAAA rating from CRISIL and MAAA rating from ICRA guaranteeing their safety and stability.

Income Tax Benefits

Investing in tax-saver fixed deposits with a lock-in period of 5 years can help you avail tax benefits. You can claim tax benefits of up to Rs. 1.5 Lakh in a year under Section 80C of the Income Tax Act.

Offers Flexibility

Some financial institutions even offer the option to withdraw funds from your fixed deposits anytime against a minimal penalty charge.

Loans Against Fixed Deposits

You can avail Loans Against Fixed Deposit from Bajaj Finserv. While their cumulative FDs offer up to 75% of the sum available as loan amount, non-cumulative FDs provide up to 60%. You also don’t have to go through a lengthy documentation process or pay charges when foreclosing or part pre-paying the loan.

Make sure to calculate your returns before you invest in any of these types of fixed deposit. An FD interest calculator can help you out precisely to do so.

Reference Image
Close