People can now choose the type of loan they need based on their circumstances because of the expansion of credit alternatives, financial inclusion, and technological advancements in financial sector over the last decade.
In contrast to the past, when customers could only obtain a personal loan to meet their diverse needs, customers today have access to a variety of loans. Even under the heading of personal loans, there are numerous distinct loan types available, including vacation loan, marriage or wedding loan.
And it’s a no-brainer that India celebrates marriage in a grander manner than most countries. And despite the fact that each marriage has its own unique set of costs, most wedding budgets end up being higher than anticipated, going from lakhs to even crores. In this case, the concept of marriage loans can be considered.
A personal loan from the majority of financial institutions could be utilized to pay for a wedding. However, while requesting the needed loan amount and keeping track of the IDFC first bank loan status of your personal loan application for wedding loan, there are some parameters to factor in.
Here are some considerations to make while choosing a wedding loan.
Only borrow what you actually need
It is not a good idea to obtain the maximum personal loan amount permitted for a marriage loan; only borrow what you absolutely need. To determine your precise financial needs and become aware of your spending, the wedding budget should be carefully analysed. Never take on more debt than you can afford to pay back because doing so could damage your finances and trap you in an endless cycle of EMI payments. Use the personal loan eligibility calculator to determine your loan eligibility and the maximum amount you may borrow. You can successfully plan your funding as a result. Consider paying off earlier debts or adding a family member with good credit and a reliable source of income as one co-applicant if you need a larger amount.
And even when waiting for lender to respond with approval/rejection, do not forget to use IDFC first bank loan status checker tool to remain up to date.
Choose a comfortable EMI
You should carefully analyse your wedding budget before choosing a personal loan provider to decide how much of a loan you will need. A borrower should also keep to his budget and only take out loans that are absolutely necessary. Depending on your anticipated loan requirement and ability to repay it over time, you should adjust the personal loan’s size (EMIs).
Understanding how to compute personal loan interest rates: Banks consider the borrower’s monthly income along with the interest rate and term of the loan when determining whether or not to issue a loan. An unsecured personal loan’s EMI is frequently set at 35 to 40 percent of the borrower’s gross monthly income, including all previous EMIs. Experts recommend paying off any past-due EMIs before applying for a new loan.
Consider your monthly income when deciding how many EMIs you can afford to pay off. Your monthly income as well as your present savings should be considered. Taking up too many EMIs is not a good idea. Having total monthly debts that are more than 40% of one’s net income is discouraged by experts in the area.
Dont ignore the penalties for foreclosing on a loan
The time frame for wedding loans is one to six years. You might be able to settle the loan earlier, though. Find out if your lender allows early repayment of your personal loan even though many banks and NBFCs impose penalties or charge foreclosure fees. Verify that you are able to make early loan installments. You should be aware of these additional expenses if you take out a wedding loan as the borrower.
Make sure you are qualified for personal loans by confirming your eligibility
Each lender uses a different set of criteria to assess loan requests. Review each of them on the relevant page before submitting your application. Simply keeping an eye on the progress of your personal loan application could help you save time and improve your chances of getting approved for a wedding loan. Also, it provides you additional negotiating power when negotiating personal loan interest rates.
Make sure your credit score is strong
For an unsecured personal loan, a CIBIL score of 750 or more is ideal. An evaluation of your credit history yields a score that ranges from 300 to 900. Focus on raising your credit score before checking the IDFC first bank loan status of your personal loan application. If your credit score is high, you’ll have a better chance of getting a loan fast and at a reasonable personal loan interest rate.
Try to have a low DTI
You’ll be better able to handle your current and future debt if your DTI (debt to income proportion/ratio) is low. Prior to requesting a marriage loan, you might try to lower the EMI to income proportion by making debt-related payments sooner (prepayment).
When you apply for loan, the lender will assess your loan application and provide you a loan amount based on your eligibility and accompanying documents, post which it will be decided whether to say yes or no to your loan application.
Remember that you can check the IDFC first bank loan status of your personal loan application to see if you will automatically qualify for a greater marriage loan amount when you meet.
You can get a marriage loan to pay the marriage expenses such as the decor, the food, the entertainment, and the accommodations, instead of blowing all of your cash or making unwise investments. Wedding loans, the most common type of wedding loans, typically don’t demand collateral. As there are no limitations or caps, you are free to use these personal loans for marriage to cover all of your wedding-related costs. Just compare the interest rates provided by various lenders to find the best deal on a personal loan, then submit your application online for optimum convenience.