The chiming of wedding bells often announces the commencement of happy times, the inseparable bond of marriage, and a heavy monetary affair. With multiple events and ceremonies to arrange during a wedding in India, it is essential to design a financial plan beforehand. By applying for a wedding loan, you and your loved ones can enjoy your dream wedding without any worries.
With this being said, there are a few factors that one must be considered before applying for a loan. One such element that cannot be overlooked is the interest rate you will be paying on the debt. Because you will be applying for a loan on salary, the following are some suggestions to get lower interest rates, thus reducing the burden on your monthly income.
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1) Punctual Repayments
It goes unsaid that timely repayments of your debt will always work out favourably for you. Lenders are always suspicious and averse of applicants who have a record of late payments and low credit scores. By inculcating the habit of being prompt with your EMIs, you can not only avoid late charges, but also put forth the image of a mindful and responsible borrower who knows how to handle credits and loans. This will in turn help you receive the best interest rate on personal loans.
2) Decent Credit Score
A credit score is a three-digit number that ranges from 300 to 900 and exhibits your creditworthiness to the lender. A credit score is calculated on the basis of your credit history, i.e., repayment patterns, credit utilisation ratio, and types of credit accounts. The higher the credit score, the better are your chances of securing a personal loan. If you wish to acquire a wedding loan, it is advisable to have a credit score nearing above 750 to get the lowest interest rates. Having a good credit score improves your chances of securing a lower interest rate and favourable loan terms.
3) Conducting Thorough Research
Before locking on a deal with a particular lender, it is advisable to study and compare the interest rates offered by different banks and NBFCs (non-banking financial companies). While some lenders may be willing to offer lower interest figures, you must be aware of all the terms and conditions, along with the personal loan schemes offered by other creditors.
4) Avoiding Multiple Applications
While you may be eager to be approved for a wedding loan as soon as possible, it is wise to refrain from putting loan applications at multiple financial institutions. Sending out applications at too many places can make you seem desperate to get loans and you may get perceived as a risky borrower. This may give rise to suspicions in the minds of lenders, ultimately leading to the rejection of your loan or being offered higher interest rates.
5) Minimal Borrowing
As you will be repaying your debt long after the wedding celebrations are over, it is necessary to be prudent with your loan amount. As a precaution, you should calculate your estimated expenses and apply for a figure that is only slightly more than what you actually need. Taking out a loan on salary implies an indirect deduction in your monthly income, and in turn savings. Thus, ask for only what you truly need, and calculate the EMI accordingly.
6) Personal Loan EMI Calculator
One of the best aspects of applying online for a personal loan is the personal loan EMI calculator. By inserting figures such as capital amount, interest rate, and tenure, you can instantly determine your monthly instalments. To opt for the most convenient EMI, you can adjust the tenure of your loan, and then pre-empt your EMI on an EMI calculator available on various digital finance platforms.
7) Favouring The Bank with Your Pre-existing Account
It is indeed beneficial to request for a loan at a bank where you are already a customer. The bank will have all the relevant information regarding your financial standing and credit history. This will not only fast track the application process, but also increase your chances of obtaining a loan at affordable interest rates.
Everyone deserves to experience a lavish and bump-free wedding. After all, it is the beginning of a long, sacred journey. With EarlySalary’s instant personal loans for weddings, you can fund your wedding with ease and let go of any financial anxieties you may have. We offer quick loans through a secure, digital process at affordable interest rates. Be it invitation cards, catering, marriage hall, or jewellery, by availing EarlySalary’s marriage loan scheme, you won’t have to think twice before splurging for the most memorable days of your life.