Taking a loan is an efficient way to organise the wedding of your dreams without making compromises along the way. Whether it’s importing flowers, hiring the country’s best musicians and entertainers or serving world cuisine, a wedding loan makes it easy for you to celebrate without cutting corners.

That said, all wedding loans don’t come with the same set of benefits. While most financial institutions offer a personal loan for a wedding, it is in your best interest to pay attention to these 5 factors before you pick one to ensure a fruitful borrowing experience.

Calculate the amount you need

Start by determining how much you need to borrow. Creating a detailed financial plan will give you this information as you’ll have a clearer picture of the number of functions and the scale of each function. Then, look for wedding loan that offer this amount to you via single sanction. This is important as it makes the borrowing process simple and easy to manage. Additionally, by understanding your requirements beforehand, you can ensure that you don’t under- or over-borrow. This, in turn, keeps your cost of borrowing as low as it can be.

Check your debt-to-income ratio

Ideally, a maximum of 30-40% of your income should go towards servicing EMIs. If you’re spending more than 40% of your salary on one or multiple EMIs, you won’t have enough for everyday expenses. This can not only cause financial stress, it also increases your risk of defaulting, making you a less creditworthy candidate from a lender’s point of view. So, if you’re tackling multiple EMIs right now, it’s best to clear a few and then apply for a wedding loan.

Pay attention to the interest rate

A loan is as expensive or as affordable as the interest rate that it comes with. Therefore, before you zero in on a loan, make it a point to compare various wedding loans and pick one that has a low interest rate. Bajaj Finserv Personal Loan for Wedding, for instance, not only offers finance up to Rs.25 lakh, but it also keeps your cost of borrowing low with affordable wedding loan interest rates. Additionally, it levies no hidden charges.

Calculate your EMIs beforehand

To ensure a pleasant borrowing experience, it’s important that you pick the loan tenor smartly. A tenor that’s too short will leave you with high EMI payments, whereas one that’s too long will increase your interest outgo. Bajaj Finserv assists you with picking the right tenor by offering you a wedding loan EMI calculator. You can enter the loan amount and tenor to view what your EMIs will be. This way, not only can you adjust the principal and tenor to arrive at a low EMI, but you can also determine the ideal tenor such that the loan doesn’t cause any financial stress, but at the same time keeps your total expenditure to a minimum.

Look for extra features

When you’re scouting for a personal loan for wedding, take a look at the value-added features. A feature-rich loan will enhance your borrowing experience and make the loan an ally when it comes to wedding planning. The Bajaj Finserv Flexi Loan facility is an example of this. You can borrow from your sanction in parts, as and when a wedding need crops up, and pay interest only on what you use. Moreover, you can pay interest-only EMIs through the tenor to prevent a financial blow and pay the principal at the end of the tenor. This allows you to plan extravagant wedding celebrations, without worrying about how you’ll repay the loan.

Apart from these 5 factors, take into account your income and current financial responsibilities when you’re considering a personal loan for a wedding. Should you choose to apply with Bajaj Finserv, make it a point to check your pre-approved offer. This is especially beneficial, as by entering just your name and mobile number, you can secure financing faster through a customised deal.