Indian weddings generally cost around ₹25 -30 lakh and over 50% of couples believe that the final ceremony might even exceed the initial budget. To pay for expenditures of the wedding ceremony, individuals start saving long before to cover major expenses on their own.
However, instead of dipping into your savings or investments, you can apply for an online personal loan and meet your wedding expenses. Using a credit card for big expenses like a wedding isn’t feasible due to several reasons such as low credit limits and higher APRs. Read on to know whether a personal loan or a credit card is better to cover your wedding expenses.
Why apply for a loan for weddings?
Wedding ceremonies are a lifetime event and people invest their life savings to make them memorable. The reason why you should consider applying for an online instant loan for your wedding is their affordability and convenient access.
By applying for a personal loan for a wedding, you and your parents are not required to worry about arranging finances for a special occasion. Here are some reasons why you should consider applying for a personal loan instead of your credit card for your wedding:
- Personal loans have affordable interest rates
Unlike the interest rate on a credit card, personal loan interest rates are lower and make wedding loans more affordable. Moreover, in case you have a bright credit history (meaning you paid off your debts and credit card bills), loan-providing financial institutions might also offer you competitive loan interest rates.
The lower the rate of interest, the sooner can you be debt-free. For instance, IDFC FIRST Bank’s wedding loan comes with attractive interest rates to make your loans affordable. Credit cards, on the other hand, have no term limit and the interest goes on rising in case there is a delay in repayments.
- You can get your loan amount quickly
The arrangements for a wedding ceremony are quite hectic and, you need a quick and reliable funding source that doesn’t require much of your effort. When you apply for a personal loan, you can receive funds without any hassles directly into your bank account. That’s because the loan amount is credited within a few hours after the documents are verified by the loan provider and it is approved.
- It is very easy to apply for these loans
Thanks to the accessibility of the internet, it is possible to apply for a wedding loan remotely from the comfort of your home. However, before proceeding, check your personal loan eligibility for a wedding loan to have a hassle-free experience. Using the online banking app, you can apply for a personal loan for wedding. All that’s required is for you to provide personal details and ID proof such as the PAN card, salary slips, and Aadhar card.
- Wedding loans do not need a collateral
While applying for various loans, you also need to provide collateral to secure the loan amount. However, a loan to fund your wedding does not need any collateral so they are also referred to as unsecured loans. While applying for an unsecured loan, you just need to satisfy the loan eligibility criteria, have a decent credit score, and furnish the required documents.
If you are planning for a wedding ceremony, this type of personal loan has you covered. Moreover, these wedding loans have a fixed interest rate to add to their affordability. This means that while formulating the budget for your wedding ceremony, you don’t need to worry about fluctuating equated monthly instalments (EMI).