Marriage is more than just a social contract in a country like India. It is an idea bought into reality and a celebration of the togetherness of the members of the couple’s families. It holds a special place in the hearts of many and is celebrated with great pomp and vigour. However, it is not cheap. Marriages can drain your pockets, and you would not realise it at times. It is where; a marriage loan can be your knight in shining armour to help you and your pocket in a better way.
A marriage loan is designed in a way to let you enjoy your celebration of the union without worrying about anything else. It is an unsecured personal loan, which means no restriction on what you spend the funds on, no asset of yours will be pledged as collateral, and the tenure will be upto a period of 5 years. Moreover, you can avail an amount upto Rs. 10 lakhs, and the interest rates are also flexible. These are some of the reasons why applying for a marriage loan is a wise idea.
However, here are some key points that you need to keep in mind while availing a marriage loan:
- Tally your expenses: An important step while availing of a marriage loan is to set your budget. A marriage loan helps you supplement your budget; however, keeping a close eye on what you are spending on will help you make better choices.
- Apart from preparing and monitoring the budget-related expenses, you must work on ensuring that you are extracting the most value from this event. Marriages are a one-time experience; you would not enjoy missing an experience like this. So, make sure to extract the best value out of this marriage loan.
- The best way to protect your finances when availing of a marriage loan could be to set a budget, monitor it, and determine your routine budget for day-day expenses that will be taking place. You need to ensure that your routine expenses are not strained if you are availing of a marriage loan, as it can cause you to dwindle your financial position.
- You also need to know that most lenders levy a foreclosure penalty. A foreclosure happens when borrowers like you repay their loans way before the maturity date. Therefore, you need to consider this and adhere to the repayment terms while repaying your marriage loan.
- You can improve your credit score when availing a marriage loan. A credit score is determined based on your spending habits, repaying and taking credits. It is a score that helps determine your creditworthiness to the lenders. Most lenders in India check CIBIL scores. A CIBIL score of over 750 points is considered to be an ideal candidate to score good deals on loans that they avail.
Awareness about the product that you will be opting for, in this case, a marriage loan, is a must. With awareness comes the power to make informed and well-thought-out decisions. Avail marriage loans after pondering upon the key points.