How to borrow smart: Low-interest personal loans for wedding

How to borrow a marriage loan at the lowest interest rate?
 

Weddings are a grand affair and a significant moment in one’s life. Despite your best efforts to limit costs, jewellery, outfits, venue, catering, and decoration can suck up your savings. A wedding loan makes managing these expenses easier. It lets you enjoy your big day without the financial strain. But not any loan would do. You want to get a loan offer with the lowest interest rate to reduce the repayment burden. Read ahead to learn how.

Why wedding loans are popular?
 

Days of relying on savings or borrowing from relatives for funding a wedding are long gone. Savings often fall short given the rising inflation. Borrowing from friends and family leads to being in an awkward position. Another alternative is breaking FDs and other interest-earning investments that affect long-term financial goals. These reasons make a personal loan for a wedding a sought-after option.

With a wedding loan, you can borrow based on your financial credibility and repay on known terms like scheduled EMIs and tenure. The process of getting the loan is also simplified with digitised applications and quick processing. Most lenders offer the loan at competitive rates based on your income stability and credit score.

Factors affecting the marriage loan interest rate
 

Lenders determine the wedding loan interest rate based on your eligibility. They investigate your past repayment behaviour, creditworthiness, and financial standing to understand the risk you pose as a borrower. The following factors are considered for such evaluation:

· Your income

A steady income is directly tied to your potential to repay the loan amount. Hence, this is one of the primary factors lenders consider. The higher and regular the income, the better, as it comfortably supports the EMI. It presents you as a low-risk borrower.  

· Employment stability

Your employment stability goes hand in hand with your income. Consistent employment with a reputable company indicates your financial stability. This makes getting a wedding loan at a low interest rate easier. The opposite holds true for frequent job switches or major gaps in employment.

· Your credit score

A credit score is a three-digit number that signifies your past repayment behaviour. A score above 750 is considered good and attracts the lowest marriage loan interest rate. On the other hand, a lower score, below 700, leads to costlier offers.

· Existing loan obligations

Debt-to-loan ratio is another factor affecting your wedding loan interest rate, as it reflects your repayment capacity. If your current obligations, such as EMIs and credit card dues, exceed your earnings, you attract a higher interest rate and vice versa.

· Loan amount and tenure

Higher loan amounts may seem practical to fund wedding expenses comfortably. But borrowing more than you need results in a higher interest rate. Similarly, opting for longer tenures makes repayment easier but adds to the interest cost.

Tips to get the lowest wedding loan interest rate?
 

Wedding loan interest rates in India generally range between 9.99% to over 20% p.a. depending on the lender and your credit profile. You can get the lowest marriage loan interest rate with a bit of preparation before applying. Borrow responsibly and enhance your eligibility. Here are effective tips to guide you:

· Maintain a healthy credit score

Loan providers often reserve the lowest wedding loan interest rates for applicants with a high credit score. Hence, if you have a low credit score, bump it up by clearing your dues on time and checking for discrepancies in your credit report before applying.

· Borrow as per your affordability

When you borrow more than necessary, the amount becomes larger and so does the lender’s risk. In response, they offer a higher interest rate to protect their side. You can avoid this by borrowing responsibly. Use an EMI calculator to decide on the right amount.

· Shorten your loan tenure if possible

Longer tenures mean comfortable repayments. However, if your budget allows, shorten the loan term. It may lead to slightly higher EMIs but will reduce the overall interest outgo. As you repay the loan quickly, lenders tend to reward you with a lower interest rate.

· Shop for loan offers

Lenders offer attractive interest rates on wedding loans based on their policies and marketing propositions. It helps to spend a bit of time researching and comparing such offers to get the lowest possible interest rate.

· Lower your credit utilisation before applying

Higher credit utilisation indicates overdependency on loans and credit cards. This is not a good sign when you apply for a new loan. Try to reduce your credit card limit and pay off outstanding dues before applying. This will improve your credit profile and attract a better wedding loan interest rate.

How to apply for a personal loan for a wedding?
 

Applying for a personal loan for marriage involves a simple process. Most lenders like IDFC FIRST Bank offer the convenience of a 100% digital application. Find the easy-to-follow steps to apply below:

1. Check your eligibility

Every lender has basic criteria around age, credit score, income and employment status. Checking how you fare under these parameters is the first step. Only apply when you meet the requirements to avoid rejections and a negative impact on your credit score.

2. Fill in the loan application

Enter basic details such as your name, income information, employment type, etc. Most online applications will process with such minimal inputs, while the offline application may require additional information.

3. Choose your loan preferences

Select your preferred loan amount and the EMI tenure. You have complete flexibility in making this decision. For a better repayment schedule, you can finalise these terms with an EMI calculator.

4. Complete documentation

The next step is submitting documents that support your eligibility. Digital-first personal loan for marriage options like FIRSTmoney, will only require your PAN and Aadhaar number for application and your original PAN card for video KYC.

5. Receive funds in your account

Upon successful verification of your details the lender will approve your loan application. You then receive the funds directly in your bank account within minutes.

Benefits of IDFC FIRST Bank loan for marriage
 

Once you’ve enhanced your financial profile, you open yourself to the best loan offers. One such attractive option is IDFC FIRST Bank’s FIRSTmoney smart personal loan for a wedding. It combines the following benefits to make your borrowing experience worthwhile:

· Lowest marriage loan interest rate

The interest rate on IDFC FIRST Bank's wedding loan starts at 9.99% p.a. If you meet the eligibility parameters, you can manage your EMIs easily with such a low interest rate.

· High limit on loan amount

You can borrow up to  ₹10 lakhs with a FIRSTmoney personal loan by IDFC FIRST Bank. This helps meet a wide range of hefty wedding expenses, negating the need for additional funding.  

· Zero foreclosure charges

Repaying your loan early is always a good practice to save on interest costs. But some lenders impose a foreclosure penalty. On the contrary, IDFC FIRST Bank allows early closure of personal loan for marriage with zero foreclosure charges.

· Instant disbursal

IDFC FIRST Bank understands your need for urgent funds to proceed with wedding preparations without delay. Hence, you can expect swift disbursal of funds into your account within 30 minutes with a FIRSTmoney smart personal loan.

· Multiple on-demand loans

Wedding costs seldom go as planned. This is why FIRSTmoney by IDFC FIRST Bank gives you access to multiple on-demand withdrawals with the wedding loan. This helps you meet unexpected additional expenses without reapplying each time.

· Flexible repayment option

You have complete control over your EMI tenure. You can flexibly choose a repayment tenure anywhere between 9 months and 60 months based on your budget and convenience.

Final words
 

A wedding loan, when availed of responsibly, can take the financial pressure off your big day. A good place to start is strengthening your financial and credit profile to get the lowest marriage loan interest rate. Also, borrow an amount matching your needs and plan your repayments ahead of the loan application. This will give you more clarity and depict you as a responsible borrower.

Besides a low interest rate, you can also enjoy ease of application with digital-first lenders like IDFC FIRST Bank. So, make sure to prepare and apply for the best deals.