Are you Getting married in upcoming months and have already applied for a wedding loan from your bank, but they’re being so difficult because you don’t know How to finance a wedding?
You are not alone!
Nowadays getting married has become an expensive business. People have to spend a lot of their savings into this scheme. It is estimated that an average wedding costs around $16,000 in the United States. So things have become difficult, isn’t it! However, there are other alternatives to finance your wedding: wedding loans. Moreover, getting a loan for a wedding has become easier.
What is a wedding loan?
Wedding loans come under personal loans. This is a way to finance your wedding. You can take the loan amount and pay it using EMIs for a fixed period. If you are going to use price comparison websites to compare different types of loans then they would ask you to state the purpose of the loan. Some lenders consider this before deciding whether to give you a loan or not.
how to get a wedding loan?
There are many online loan companies that offers wedding loans. So you are thinking about “How to get a wedding loan?” The rules and eligibility for this loan are almost the same in every bank. There are only minute differences in some banks. However, one important consideration is your credit score. Your credit score is very important for any loan. If you have a poor credit score, you should talk to your financial advisor about wedding loans for people with bad credit. If you have a good credit score you can easily get a loan for a wedding. Ask your financial advisor about How to get a wedding loan with bad credit?
One disadvantage of marriage loans is that they have very high interest rates.
What are the loan limits?
Getting a loan for a wedding is a smart solution for wedding finance. However, it is good to know about the limits before you go for these loans. Every lender would be able to lend you $1000 to 15,000 dollars for a marriage loan. It is up to you to decide how much you want to spend on your wedding. If you are a trusted customer with some good banks then this amount can go as high as $25,000.
However, you would also have to repay the debt. Most banks have a period of one to five years. Some banks can stretch things to as many as seven years. However, more time means more interest. So choose wisely.
Moreover, this is an unsecured loan. With this type of loan, you will not have to lose your assets even if you are unable to repay the loan amount.
What are the benefits of a loan for a wedding?
- Personal loan for a wedding is a great way of financing a wedding. There are several advantages of this smart choice.
These loans have very competitive interest rates as compared to other loans. Moreover, if you are borrowing anything more than $7,500 then you get many additional benefits.
- Loan for a wedding helps you to meet all your wedding finance needs without having to waste your savings.
- You get enough time to repay the loan. As already stated, some banks allow as many as seven years to repay the loan amount.
- Your loan amount will be divided into monthly payments. This way you already know how much money you need to set aside for this.
What are the disadvantages of a loan for a wedding?
Not everything is good with a personal loan for a wedding. There are some disadvantages as well.
- Marriage loans are not for someone with a poor credit score. The minimum banks need is a good credit score. If you are bad with credit scores you should talk to your financial advisor about wedding loans with poor credit.
- If your loan amount is smaller you will have to deal with high interest rates. Remember that you will not only have to repay the principal amount but the interest as well. So choose only those banks that have reasonable interest rates.
- You will have to set aside some fixed amount per month for repaying loans for weddings. This can cause a problem for people with only one source of income.
- Some banks have early repayment charges. In this case, if you want to pay off the entire marriage loan amount before the due period you will have to pay some penalty. This penalty differs from banks to banks.
What are the eligibility criteria for getting a loan for a wedding?
Not everyone is provided with a loan for a wedding. Certain things need to be taken care of. Only people who meet all the below-mentioned criteria can go for these loans.
- Age: The age of the borrower should be a minimum of 21 years and a maximum of 55 years.
- Income: To get a debt consolidation loan the minimum monthly income of the borrower should be $1000.
- Bank default: Banks hate defaulters. You must not have any record of default payment after January 2012.
- Employment type: This loan is only for salaried individuals.
To sum up
So now you know how to get a loan for a wedding. It is one of the best ways to finance a wedding for bad credit without having to waste your savings.