Indian weddings are a grand affair with huge celebrations. Since the wedding day is the most important day for the couples, they leave no stones unturned to ensure that their wedding day becomes the most memorable moment of their lives. Right from lively parties, music, delicious food, to the stunning decoration of the wedding venue, couples take care of each and every aspect while planning their wedding. Therefore, considering the grand nature of Indian weddings, it becomes important for people to plan wedding budget wisely. Appropriate financial planning will protect the couples from any sort of financial crunch later on.
One of the finest ways to manage the wedding expenses is availing a personal loan for wedding. Since a personal loan is a multipurpose unsecured loan, it can easily be availed to cover the wedding expenses. Moreover, instant personal loans can be availed online in a hassle-free manner.
Interest on wedding loan
One important factor that you must consider while availing a personal loan for marriage is the interest rate levied on it by the financial institution. Opting for a financial institution with lower marriage loan interest rate can reduce the overall cost of repayment in the long run. Therefore, it is advisable to compare various loan schemes offered by different financial institutions. This practice will help you avail the best marriage loan for yourself.
With the help of Bajaj Finserv Marriage Loan, you can avail amount up to Rs. 25 lakh with an attractive rate of interest ranging from 11.99% to 15.50%. Moreover, a good credit score can help you avail a higher loan amount at a reduced interest rate.
Calculating interest rate of wedding loan
You can make use an EMI calculator to calculate the interest amount that you would be paying towards your wedding loan. You can follow the below-mentioned steps to calculate the interest rate-
- Divide the interest rate by the number of EMIs you will be making in a year. Since interest rates are expressed annually, your EMIs are divided by 12.
- Then multiply the result obtained by the balance of your loan. If it’s your first payment, your wedding loan balance will be your whole principal amount.
- The result is the amount of interest you’ll pay in the first month.
Let us understand the calculation with the help of an example.
Assume that you have taken a Bajaj Finserv Marriage Loan of Rs. 1,00,000, for a loan tenure of 5 years at 12% p.a. Then, the interest amount you’ll pay for 1st month would be:
(0.12÷12) × 1,00,000 = 1,000
To calculate the interest you will be paying in the following months, you need to first calculate your new balance:
Steps to calculate the new balance
- Subtract the first-month interest from the EMI amount. The rest of the amount is paid towards your principal loan amount.
- Subtract this amount from the original principal amount to get the new loan balance.
Let’s break up the interest payments for the next few months into a table using the above example. The calculations might look like this:
|Month||Starting balance (Rs.)||EMI (Rs.)||Interest paid (Rs.)||Principal paid (Rs.)||New balance (Rs.)|
The monthly EMI of Rs. 224 is determined using an EMI calculator. The formula used is:
Where E is EMI, P is the principal loan amount, r is the rate of interest calculated on a monthly basis, and n is the tenor/duration of the loan.
Before applying for a wedding loan, it is essential to check the marriage loan eligibility set by the financial institution. This will reduce the chances of reduction for your loan application. The Bajaj Finserv Marriage Loans availbale on Finserv MARKETS have simple eligibility criteria and flexible loan tenure. You can opt for a loan tenure ranging between 1 to 5 years depending upon your convenience. Low processing fee, instant approval and quick disbursal of the loan amount are some of the features that make Bajaj Finserv Marriage Loan an ideal financing option to manage your wedding expenses.
Now that you are aware of various facts about marriage loan, ensure to make the most of it while planning your wedding expenses.
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