Is Personal Loan the Solution to Your Wedding Expenses?
When it’s time to walk into a new chapter of your life, the last thing you want is a financial burden on your shoulders. Many couples in today’s age face a hefty bill to cover their wedding expenses. If you are fortunate, you may have some savings up your sleeve to cover these expenses. If not, you may find yourself at crossroads: Is taking on debt the solution to your dream wedding, or is cutting back with a smaller celebration the solution?
A personal loan in Dubai for your wedding is viable only if you can manage to pay back the loan within a reasonable period of time. Nobody wants to be stuck with a high-interest debt in the initial years of their marriage.
If you want a solution to finance your wedding, below mentioned is some helpful information regarding taking on a personal loan in Dubai. Some couples do raise finance to cover the expenditure of their wedding; however, there are some downsides to this.
Personal Loan in Dubai for Wedding Expenses
You can take on a personal loan in Dubai to pay for anything you want to spend money on, including your dream wedding. You do not have to put any collateral against obtaining a personal loan in Dubai. The approval of such loans depends heavily on your credit score and your credit history. If you have a good credit score, you can avail a personal loan at attractive interest rates.
Before opting for such a loan, you should practically consider how much you can actually afford to pay as monthly repayments for the next few years. If you can cut down on any wedding expenses, you should do so before applying for a personal loan, so that you can borrow only what you can afford.
Advantages of a Personal Loan in Dubai for Wedding Expenses
The pros of taking up a personal loan for your wedding are:
Fixed Repayment Schedule
A major advantage of a personal loan is that it is an installment loan. Such a loan allows you to borrow a fixed amount of money which can be paid back over a fixed period of time decided between you and your lender.
If you manage to make your payments on time, you can get a fair idea of when you would be able to pay off your entire debt.
Personal loans are offered by many different financial institutions. You have a number of options to compare across and get the best possible rate available. It is best to compare the interest rate, fees and loan terms across the different lenders.
You should also look at the personal loan that does not charge any prepayment penalty so that you have an option to pay your personal loan in Dubai early at no extra charges.
Flexibility in the Borrowing Amount
While applying for a personal loan, you have a certain degree of flexibility in how much money you can borrow. The loan amount varies across the different lenders, however, the loan amount you can qualify for depends on your credit score.
Potentially Attractive Interest Rates
Depending on your creditworthiness, you might qualify for a lower personal loan interest rate. If you have a good credit score, you can qualify for attractive interest rates.
Disadvantages of a Personal Loan in Dubai for Wedding Expenses
The cons of taking up a personal loan for your wedding are:
Extra Monthly Expense
Before you go forward with applying for a personal loan to cover your wedding expenses, you should use a calculator to get a rough estimate of the monthly payments you will be required to make. You should be clear that you can afford the monthly payments before getting a loan.
Potentially High Interest
If you do not have good creditworthiness, you might find yourself paying a higher interest rate, which in turn increases the cost of borrowing money to cover your wedding expenses.
Alternative Methods to Finance Your Wedding
A personal loan in Dubai is not your only option to fund your dream wedding, you can take some steps into your new life without risking your future with financial stress.
Prepare a Budget and Save
Unless your big day is next month, you have some time to plan out a budget and set some money aside. You have enough time to start saving little by little, that can contribute quite a lot when your big day arrives.
You should always aim at paying the majority of the expenses out of your pocket. You do not have to take on a personal loan in Dubai to cover the entire event’s expenses.
Ask Your Family or Friends
Some people find it mortifying to ask their friends or family to help out with the expenses for their wedding. However, if this doesn’t horrify you, you can crowdfund your wedding by asking your close ones for some help.
Lease Out the Jobs
Some of your friends and family members might be ready to offer their skills and time. In this case, you do not have to pay for every aspect of your wedding. It is possible, someone close to you might have a beautiful property for your ceremony, or someone might have a chef that’s available for your event, or someone might even be a good enough photographer to cover your entire event.
There is also an option to hold back expenditure on things that can be upgraded during your time together, such as a ring. You can start off with a ring that fits your budget, and upgrade it in the future when your financial budget and situation allows you to.
There are a few difficult decisions about your wedding event, such as if you can invite fewer people, or make your event modest in any way. These decisions help in scaling down the event and cutting back on the expenditure.
Summing it Up!
You should always ask yourself your lifetime priority before applying for a personal loan in Dubai to cover your wedding expenses. This is because this kind of financing is not free money. It requires you to pay back the funds with additional interest expense.