With the advent of technology and choices, one has an option to choose what type of loan they want depending on their needs. This is so unlike earlier times when there was the only type of loan-personal loan which was available for consumers to cater to their needs. Now times have changed, and there are different types of loans available one such loan is the wedding or marriage loan.
Marriage in India is celebrated like nowhere else in the world. However, individual marriage expenses vary from person to person; most of the time budget set for the wedding overshoot the planned budget. This is where the idea behind marriage loans steps in.
Most financial institutions offer a personal loan which can be utilized to meet one’s wedding expenses. For example, banks like HDFC offer HDFC personal loan offline and online both. By considering your CIBIL score, and monthly salary, you can apply for a request loan amount and check HDFC personal loan application status on their application.
Factors To Keep in Mind Before you opt for a wedding loan.
Limit your borrowing to what is necessary: Although you can avail of the maximum personal loan limit available for a marriage loan, doing so is not recommended. To determine your exact financing requirement and to understand your spending, you should carefully review the wedding budget. Never borrow more than is necessary because doing so could damage your finances and keep you in a long cycle of EMI payments. To ascertain your loan eligibility and the maximum amount you may borrow, use the personal loan eligibility calculator. This will enable you to properly arrange your financing. If you require a larger sum, consider paying off existing debts or adding a family with good credit and a steady source of income as a co-applicant.
Find out how much loan amount you need: Before choosing an HDFC personal loan or any other loan you want, one should carefully calculate their wedding budget and determine how much one will need as a loan. Additionally, a borrower should stick to his spending plan and only take out what is necessary. Adjust the HDFC personal loan amount in accordance with your expected loan requirement and the loan EMIs you can afford to pay off.
Understand how the interest rate is calculated: When determining a borrower’s eligibility for a loan, banks take into account their monthly income in addition to the loan’s interest rate and term. The EMI on an unsecured personal loan is often capped at 35 to 40% of one’s gross monthly income, all other EMIs included. Before applying for a new loan, experts advise clearing up any existing EMI obligations.
Assess your monthly income: To determine the number of EMIs that one can comfortably pay off, one should assess their current savings and monthly income. With EMIs, one shouldn’t overextend themselves. According to industry experts, a person’s total monthly loan payments shouldn’t be more than 40% of their net income.
Foreclosure Charges: Wedding loans can have terms of one to six years. However, it’s possible that you could pay off the loan earlier. Find out if your lender permits early HDFC Personal loan repayment because many banks and NBFCs charge a penalty or foreclosure fee. Choose a loan that allows you the freedom to make early repayments. There are other charges associated with wedding loans that, as a borrower, you should be aware of too.
Check your eligibility for a personal loan and make sure you meet it: Loan requests are approved by each and every lender based on certain conditions. Before you apply, look over these on their website and meet them all. This saves you time and increases your likelihood of receiving a wedding loan by simply checking the HDFC personal loan application status. Additionally, it gives you more negotiating leverage over personal loan interest rates.
Ensure that your CIBIL score is high: An optimal CIBIL score for an unsecured personal loan is 750 or above. This score, which varies from 300 to 900, is determined by a thorough study and in-depth review of your credit history. Before you check the HDFC personal loan application status, you should focus on improving your CIBIL score. You have a better chance of obtaining a loan with a reasonable interest rate and more quickly if you have a high CIBIL score.
Keep your debt-to-income ratio modest: A low DTI ratio suggests that you are more capable of handling both new and existing debt. This raises your qualification for a personal loan. Maintaining a low DTI ratio also makes it easier for you to obtain emergency finance quickly. So make sure to control your spending by sticking to a budget and not overusing credit. You might attempt to lower this figure by eliminating debt or lowering debt before you apply for a wedding loan and check your HDFC personal loan application status.
Utilize a pre-approval offer: The lender will review your loan application and approve a loan amount for you based on your eligibility and supporting documentation. When you meet, your chances of receiving a larger marriage loan amount increase automatically, which you can check on your HDFC personal loan application status.
The typical cost of an Indian wedding ranges from Rs 18 lakh to Rs 5 crore, taking into account the location, the décor, the cuisine, the entertainment, and the lodging for the several rituals that make up the main event. Instead of using up your savings or ruining your investments, you can use a wedding loan to pay for the event. Wedding loans usually come without collateral requirements and are the most popular kind of wedding loan. You have the freedom to pay for all of your wedding-related expenses without any restrictions or caps, thanks to these personal loans for weddings. To find the best and most inexpensive option, all you need to do is evaluate the interest rates charged by different lenders and apply them online for maximum convenience.