Cost
of Loan and amount which can be borrowed
The rate of interest is based on the current market
rate. Other factors such as your credit history, collateral,
amount, payment duration etc also affect the rate of
interest charged on wedding loan provided to you. If
the borrower has a bad credit record, he will have to
pay a higher interest rate. Similarly, if a borrower
is offering his home as security, he will have to pay
comparatively lower interest rate. To avoid uncertainty,
borrowers normally prefer fixed rate of interest.
Again, loan amount varies from borrower to borrower,
which is based on various factors such as collateral,
credit record, source of income, income level, age,
level of income & repaying capacity. Repayment is
done through equated monthly installments (E.M.I.).
Application for Wedding Loan
Anyone having a source of income can apply for a wedding
loan by filing the relevant form. Lenders usually charge
a fixed amount as processing fee. In addition, lenders
want documents to verify the credibility and income
level as given below,
Proof of Identity
Residence Proof
Bank Statements to check borrowers’ income and
expense pattern (latest 6 months bank statement /passbook)
Lenders’ also ask for salary certificate from
the present employer.
Searching Wedding Loans
Once you decide to avail wedding loan, the
search for wedding loan starts. Internet serves
an important tool in conducting the search. Search engines
like Google, Yahoo etc. provide links to thousands of
loan providers who are offering wedding loans in the
UK. Borrowers can easily appraise loan providers with
the information given about them on their website, compare
wedding loan deals through a loan calculator, and request
wedding loan quotes from lenders who appear lucrative.
After screening lenders through a number of stages,
you fix a lender for offering UK wedding loans. Since
the requirements of borrowers differ, customized rather
than standardized wedding loan deals should be asked
for.
Borrowers must not take decisions without knowing
in full about its present and future repercussions.
As needs be, borrowers can consult the experts or independent
financial advisors for a more detailed explanation of
the term or any feature of wedding loans.
A word of Caution
Proper attention must be given to plan the budget
of the wedding. The planning process may be fun, but
the results obviously are unprecedented. Those associated
with wedding plans should sit together and decide the
various costs that may be incurred. In addition, a priority
table is prepared so that a less important expenditure
can be postponed or omitted altogether.
With the changing times, the couple themselves finances
the wedding. Nevertheless, it will be prudent to consult
the elderly for a proper understanding of the expenses
that are commonly incurred on such occasions. A proper
planning for wedding budget must have in built flexibilities
to provide for contingencies as and when they crop up.
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