Weddings are one of the most important events in the lives of most couples. No wonder people go the extra mile to make it memorable. The idea of a perfect wedding and how much it should cost vary from one individual to the other. Notwithstanding, planning requires money. 

That said, couples are likely not to have the necessary resources to fund the wedding of their choice hence the need for a loan. The good news is that there are several organizations that are willing to offer wedding loans to couples irrespective of the amount provided they are able to meet the lenders requirements.

What is a Wedding Loan?

In the simplest terms, a wedding loan is a personal loan that can be used to cover the cost of a wedding. Even more, it allows you to borrow money at a particular interest rate and repayment period. 

If you are thinking of how to get loan for your wedding, here are a few things to consider to ensure a stress free loan process.

Credit score

Your credit score is the record of all your financial dealings which is often analysed by lenders when evaluating your I am application. 

It is important to note that although having a poor credit score might limit the amount you can access, it might not stop you from getting a loan.

Serviceability

This is your ability to pay your monthly remission after deducting all your monthly expenses. Serviceability is important because the lender needs to know if you will be able to repay your loan within the stipulated period from your current income. That said, severability may differ from lender to lender and some make it negotiable to suit the borrower. 

Loan terms

Your loan terms determine your monthly payment. The longer your repayment period, the lesser you will pay monthly and vice versa. However, the longer the repayment period the higher the interest rate and you will be indebted for a longer time.

Interest rates

This is the amount that the lender charges you for giving you a loan. Interest rates can be categorized into fixed and variable. While the fixed rate does not change in the course of the loan, the variable rate can increase or decrease depending on prevailing market rates. 

Extra Charges and Fees 

Generally, lenders charge extra fees for late repayments and defaulting in your monthly payments. You should consider such fees and charges before signing your loan contract. 

Supporting Documents

Lenders often ask for certain documents to assist them in assessing your eligibility for a loan. Such documents could be means of identification, proof of employment, proof of income or even your bank statement. It is necessary to prepare such documents before approaching a lender for a loan. 

Benefits of a Wedding Loan

• Fast access to money

A wedding loan serves as one of the fastest ways to access funds for your wedding. It allows you to start planning for your wedding even without having money at hand. 

• Flexibility

With wedding loans, you can decide how much money you want to borrow and how you want to repay the loan. 

• Low Interest Rate

A wedding loan comes with lower interest rates if you choose a shorter repayment period. On the other hand, a longer repayment period will mean you will pay a higher interest rate. However, your monthly remission will be small.

• Build your credit Score

A wedding loan can also help to improve your credit history and credit score if you make timely repayment. So if you are looking for a way to boost your credit score, then you should consider taking a wedding loan.