Marriage loan: Marriage is a memorable moment, but it also costs a lot. When the savings are low and expenses are on the head, many people choose to take personal loans. They give immediate relief for events like personal loan, especially marriage. But, it is necessary to take careful steps for this relief if this relief does not become a problem of future.
Although personal loan is available without any security and processing is also easy, but the interest rate on them is quite high. In such a situation, if you are thinking of taking a personal loan for marriage, then you should consider 5 things seriously.
1. How much loan should be taken for marriage?
First of all be honest about your wedding budget. You should question yourself whether everything is necessary? Can some expenses be avoided or reduced? Make a chart of wedding expenses and see which parts can be covered with savings, and for whom the loan is necessary. Remember that taking a loan is easy, but it can also be difficult to repay it.
2. Taking a loan from which bank or NBFC is right?
Every bank and non-banking finance company (NBFC) gives loans with their respective rules and interest rates. Someone’s interest is floating, some fixed. Also, there are many hidden charges like processing fees, prepament charge and late payment penalty. So do not take a decision only by looking at EMI. Use online loan compare tools and shortlisted the best offer.
3. Understand the price of the entire loan, not EMI
Many times we only think how low EMI is coming. But the truth is that you may have to pay more interest in long tenure loans. Processing fees, stamp duty, foreclose charge- add all these. After marriage, a round of new expenses begins, so more debt can become a burden.
4. EMI should fit your income
EMI should be so much that it does not exceed 30-40% of your salary or income. New life begins after marriage. Needs like new house, travel, furniture, medical emergency also come together. In such a situation, a large EMI can spoil your monthly budget and affect the necessary savings.
5. Credit score determines the terms of the loan
If your credit score is above 700, then you are more likely to get a loan at a low interest rate. But if the score is low, it may be difficult to get a loan or interest will be very high. In such a situation, it is better that you try to improve the score before the loan. Use the credit card correctly, repay the old loan on time and do not take any new loan.
Take care of these things too
Offers like ‘instant loan’ or ‘no document loan’ often have a lot of interest rates. These can look easy in short term, but can prove to be quite expensive in long term. If your family or relatives are willing to help, then taking help from without interest or minimum terms can be a sensible option.
Remember that marriage is not just a day’s event, it is a new beginning of two lives. And keeping that beginning away from financial stress can be the biggest gift. While taking a loan, work wisely so that there is no regrets in the coming tomorrow.
Also read: Problem in retirement planning? Use 4% rule and keep these things in mind