No matter which state you belong to, the dream of a big fat Indian wedding is common to all of us. Each and every one of us, regardless of our choices, wants to have a grand splash on our special day. However, one reason which holds us back more than anyone else is how to fund such a gala event without burning a hole in our pockets.
If you have been planning to get married for some time now but are confused about how to fund it, this article is for you, as we will be discussing in detail how you can easily fund the marriage of dreams with a simple personal loan.
What is a Personal Loan?
In simple terms, a personal loan can be understood as a financial lending instrument through which you can borrow a certain amount of money and use it to fund your urgent expenses.
While the concept of a personal loan is not particularly new to India, it has been gaining a significant amount of attention in the past few years, mainly due to the features it offers. Starting all the way from offering a competitive rate of interest to a flexible repayment tenure, most personal loans in India arrive with features that are often missing in standard lending instruments such as traditional loans.
Marriage Loans vs Personal Loans
Now that you know the basic meaning of a personal loan, let us draw a comparison between the features of a marriage loan (that is, a traditional loan) and a personal loan.
- Rate of Interest
When you think of taking a loan, naturally, the first thing that comes to your mind is the rate of interest that will be charged on the loan.
If you take a look at the most popular marriage loans in the market, they have a rate of interest in the range of 14% to 24% per annum. While this number might not look significant at first glance, an interest rate as high as this will surely burn a hole in your pocket.
Along with this, since most traditional loans are disbursed by a few lending institutions, the lack of competition and innovation in the industry allows them to charge such high interest rates and get away with it.
On the other hand, since the personal loan space in India is still at its nascent stage, there are many lenders who specialize in rendering this service. And naturally, with the onset of new vendors, there is increased competition, thus allowing you to choose between lenders who offer the lowest rates of interest. For instance, Money View, which is a leading lender based out of Bangalore, offers personal loans starting from a 1.13% interest rate per month.
- Application Process
Next to the rate of interest being charged, the second most common concern among borrowers is the application process that needs to be followed in order to get these loans.
If you have ever applied for a traditional loan, you are well versed with the fact that you need to wait in long queues, fill out physical forms, and submit hard copies of all your documents by visiting the lender’s office or their representatives in order to get your application approved. And in our busy day-to-day lives, where we can hardly find time for the things that matter to us, filling out the application for a traditional loan is too much of a demand.
On the other hand, most personal loans these days arrive with a completely online application process meaning that you can fill them outright from the comfort of your home. Along with this, you can submit all your relevant documents electronically to the lender, thus making sure that you can apply for the loan without needing to step out from your house.
- Disbursement Time
Oftentimes when we are applying for a loan, time is of crucial concern. In lieu of the earlier point, since most traditional lenders depend on legacy systems more often than not, they have extended timelines when it comes to the disbursement of loans. Generally, traditional lenders in India take anywhere between 1 business week to 4 business weeks to first process your loan application and then proceed with the disbursement. While it is true that in some instances, we can wait for the process to complete, in terms of getting the loan amount, an extended timeline can mean missing an opportunity.
On the other hand, since most personal loans make use of advanced fintech technology, they can leverage their power to not only instantly process your loan request but also disburse the amount to your bank account within a guaranteed 24 to 36 hours. All this is made possible because of the online application process as well as their sincerity in making sure that you get the money when you need it the most.
Along with this, an instant disbursement not only guarantees peace of mind but also ensures that you seize the opportunity in front of you by getting the loan amount when you need it the most.
- Tenure and Repayment
Last but not least is the tenure and repayment schedule of a loan.
In most traditional loans across India, the lender pre-defines both the EMI amount you are required to pay and the date of debit as soon as you apply for the loan, thus equipping you with close to no flexibility to manage your personal finances.
On the other hand, in most personal loans, the lender gives you the option of fine-tuning the repayment schedule according to your requirements. By allowing you to modify both the EMI amount you are supposed to pay and the date of debit, you can take better control of your finances and thus save money and get more peace of mind in the long run.
Availing the features of a personal loan from a lender of your choice not only ensures that you get the money to finance the marriage of your dreams but also makes sure that you do not burn a hole in your pocket in the process.
Now that you have a clear idea of a personal loan and its comparison to a marriage loan go ahead and apply for one today.