The expression “wedding” is revered by almost every new couple, as it marks one of the most crucial points of their lives.
And, why wouldn’t they?
Marriage is all about meeting a special person and spending the rest of your life with them through thick and thin. There’s a lot to commit, we know. Nonetheless, it’s the beginning of something memorable and meaningful.
Let us congratulate you first if you have already found your better half!
However, before you get too excited and grab the champagne bottle, let’s discuss how you’re going to finance your wedding.
Well, in our opinion, you can go for two different routes – taking a wedding loan and spending from your personal savings. Initially, the latter seems like a safer option than the former, as you do not have to make any long-term commitments.
However, what should you do when you have several financial goals in mind for the future?
In that case, taking a wedding loan from SGLendela should be the way to go for you!
What Should You Consider Before Getting Wedding Loans?
Applying for a wedding loan can be a messy affair. Therefore, you need to consider a few aspects before making any decision. Here’s what you need to learn in this regard.
The Allotted Monthly Payment
After taking a wedding loan, you have to reimburse a small portion of it once every month. Hence, if the overall amount is too high, it may disrupt your budget planning massively.
Therefore, when you are applying for a loan, make sure to ask the lender about the monthly payment procedure first.
We’d also ask you to learn about the sum of money you’ve to pay for missing out on your monthly payments. This way, it will be easier for you to properly strategize the overall debt structure.
Most people that are planning their weddings take help from lending institutions that offer loans. In the near future, this can help you understand areas where you would need to save money to help repay the monthly EMIs.
Loan Term
Wedding loan lenders tend to offer both long-term and short-term periods for wedding loans. Generally, the timespan tends to stay somewhere between 1-7 years. Sometimes, some organizations like LightStream can also extend the overall duration to some extent.
Nonetheless, a long-term loan would not always come with a blessing for you. While you have to pay a small amount of monthly payment in this regard, the overall amount will increase due to the ever-changing interest rate.
Additional Fees
Charging additional fees is pretty common for a wedding loan lender. Hence, learning about them before you opt for someone becomes pretty crucial for your budget.
Here are some of the prevalent fees that you need to focus on –
- Pre-payment penalty (you have to pay it if you have paid off your loan too early)
- Origination fee (taken as a service charge for processing your loan)
- Insufficient-funds fee (this fee will be taken if your account does not have enough balance)
- Late-payment fee (you’ll be charged with this one if you are too late in paying off the monthly amounts)
In all honesty, all of these fees are pretty minor and negligible. However, if you keep neglecting them, it will be impossible for you to pay them off later.
Interest Rate
Although it’s pretty obvious, you’ll be surprised to see how many people forget about asking the interest rate while conversing with their lenders.
Usually, like the personal ones, a wedding loan follows the same simple interest rate. However, sometimes, the percentage may increase or decrease depending on the company policy or market situation.
Additionally, a lender may also provide you with a wedding loan alongside a variable rate in some cases. Hence, if you find someone as such, we’d ask you to avoid them at any cost.
APR
The annual percentage rate, or APR, usually includes the loan fees and your overall interest rate. Thus, it may increase or decrease depending on the dividend percentage your lender is asking from you.
In any case, when you are talking with the loan provider, you should ask them about the APR too. Otherwise, your overall payment amount will increase even more.
The Bottom Line
Taking a wedding loan is almost like buying a shirt from the market. Hence, you have to find different options and compare them to find the best alternative for you. Hopefully, this guide has helped you in this regard to some extent.
