For newly married couples, managing personal finances after the wedding can be a challenging task. Especially during the ongoing festive season, with Diwali lined up in the coming weeks.
To deal with such a situation, a well-planned personal loan can be an excellent option. It can provide couples with flexibility, a sense of security, and a direction towards building their new life comfortably.
Still, one should also exercise proper due diligence when considering personal loans by comparing interest rates, applicable processing fees, and the long-term ramifications of borrowing before proceeding. Keeping the above factors in mind, here are five benefits of a personal loan for newlyweds:
I. Flexible funds for multiple needs
One of the most lucrative advantages of a personal loan is its multipurpose nature. Couples can utilise the funds of a personal loan to meet day-to-day expenses, such as purchasing a house, renovating, decorating, buying gold, as gold prices are already on the rise, and even honeymoon travel.
Unlike car loans or home loans, personal loans do not restrict or place any limitations on the type of usage. This provides the borrower with immense freedom to make the best decision for themselves and their families. This way, diverse expenses can be tackled suitably.
II. No collateral requirement
On a fundamental level, personal loans generally do not require any collateral. They are generally unsecured in nature, which is why they typically come with higher interest rates compared to secured loans. This feature makes these loans ideal for new couples, as young couples typically do not yet own significant assets.
This further means that couples can borrow funds without risking valuable property, gold, silver, or any other similar assets. This powerful feature of personal loans simplifies the borrowing process and reduces stress significantly.
III. Quick approval and disbursal
With rapid advancement in technology and artificial intelligence, disbursing personal loans is now much easier. Basically, these loans can be disbursed within 24 to 48 hours, subject to the submission of the required documents and meeting the basic eligibility criteria.
This rapid and seamless disbursal of personal loans can go a long way to help couples in planning for their first Diwali, along with gifting near and dear ones to make the occasion even more memorable. Not only this, but urgent, unplanned expenses can also be met quickly and hassle-free with a sensibly planned personal loan.
IV. Flexible repayment terms
Personal loans come with flexible repayment tenures. The entire repayment experience can become even more pleasant if the applicant has a high credit score, specifically one above 750 with a clean credit profile. Personal loan tenures typically range from 12 to 60 months, allowing couples to plan affordable EMIs based on their income and goals while maintaining financial stability after the wedding.
V. Avoid liquidating investments
There have been instances where the families of couples entering into a marriage face serious financial hardships due to overspending on weddings and a lack of proper financial planning. Many such cases are resolved by liquidating investments.
Liquidating savings or fixed deposits to cover wedding expenses can lead to penalties and lost interest. Instead, opting for a well-planned personal loan after consulting a financial advisor helps couples preserve investments and maintain long-term financial stability.
In summary, personal loans give newlyweds quick, collateral-free funds, manageable EMIs, and the ability to cover expenses without dipping into savings.
However, personal loans come with risks, including high interest rates, the possibility of debt accumulation, fees, and penalties, and can even damage one’s credit score if the loan is not managed efficiently.
That is why, before applying for any new loan, one should sit down and consult with a certified financial advisor and only then submit their personal loan applications.
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