A beautiful wedding is something we all dream of. But funding that wedding can be a headache, especially if you don’t have all the cash you need on hand. Thankfully, this isn’t the case anymore with personal loans becoming more and more popular for organizing weddings.
If you’re strapped for cash when you’re planning a wedding, you might want to consider taking out a personal loan to finance whatever you cannot.
But before you go ahead and approach your bank for a personal loan for your wedding, there are some things you need to know.
This Will Count as a Personal Loan by Definition
As a personal loan, it will be an unsecured loan. The good news is that as a personal loan, you won’t have to produce a collateral in order to get your application approved.
On the other hand, personal loan interest rate is generally higher than other secured loans such as home loans and mortgages.
If you’re looking to apply for a personal loan to fund your wedding, then be prepared for a higher rate of interest.
Another thing to note when you’re applying for a personal loan is that the amount that will be sanctioned is generally lower than other secured loans. You can’t expect a huge amount for the without some kind of collateral to help them trust you.
How to Apply for a Personal Loan for Your Wedding
When you’re applying for a personal loan, here are a list of the personal loan documents that you will need in order to get it sanctioned.
- Completed application form for the loan (from the bank of your choice)
- Recent photographs of yourself in passport form
- A cheque for the processing fee
- Identity proof – Driver’s License, Passport, Ration Card, PAN Card, etc.
- Address proof – Copy of passport, electricity bill, Rental agreement, ration card
- Proof of income – Salary statement for the last 3-6 months, bank statements for the last 3-6 months
- Income tax return or tax slip
Also, before you go ahead with the application, check your CIBIL score to see if your credit rating is good or not. A decent rating can get you lower interest rates, which can be beneficial in the long run, especially if you’re paying off a large amount over an extended period of time. You can save a lot of money that would otherwise be paid as interest.
If you want to check how much you will be paying for your personal loan as EMI every month, just go online and search for personal loan EMI calculator. Enter the necessary details and the calculation will tell you how much you will pay each month through interest.
With the advent of technology today, you can also apply for your personal loan online. Just go to the website of the bank of your choice, and fill out the online application.
Once you have completed that, you will receive a call which will confirm when an agent from the bank can visit your house to collect the necessary documents. After the documents have been collected and confirmed, the time to approve and transfer the loan amount is usually very quick.
Weddings are a big deal, and that holds true even more so in India, when it’s a time for family to come together and celebrate the union of two loved ones. With that in mind, weddings are generally made to be lavish events.
If you’re looking for a way to fund your grand wedding, then take a look at wedding loans to ease your burden.