Many folks who have a superior wedding plan cannot carry it out due to financial constraints. If you are interested in getting a wedding loan in Nigeria, this article will show you exactly how it worked. Most people have lost money because of the current state of affairs in the country, and businesses are not operating as usual, this affected their wedding plans.
A Nigerian wedding (Owanbe) is a joyous occasion, but as any newlywed couple knows, it is also highly expensive. As a result, many happy couples in Nigeria require wedding loans.
But, do you think getting a wedding loan is a good idea? One of the simplest and most convenient methods to financing your wedding day is with a low-interest personal loan. Is it, however, the best path for you? Here’s a quick rundown of the benefits and drawbacks of taking out a loan to pay for a wedding, as well as some advice on how to get the best deal and some alternatives.
Before taking such a risky action, you should know the benefits and drawbacks of obtaining a wedding loan. Don’t worry; you’ll be directed in the right direction.
It is not always inexpensive to plan the most significant day of your life. Your wedding day can cost upwards of 5 million Naira, including everything from the dress to the location to the cuisine and the wedding car. If you don’t have that money set up, you may have to borrow it.
What options do I have for funding my wedding?
While there aren’t many lenders who specialize in wedding loans, there are many who will let you spend your money for any purpose, including weddings. Your decision should be based on your present financial situation, the amount you need to borrow, your existing bills, and your active credit accounts.
What is a wedding loan and how does it work?
Wedding loans are often unsecured personal loans that allow you to borrow a specific amount of money for a specific amount of time while paying a fixed rate of interest?
When you apply for a loan through a price comparison site, you will be asked what you plan to do with the funds. This is because some lenders examine the purpose of the loan when choosing whether to offer it to you.
However, the mechanics of the loan, such as how it operates and how you must repay it, remain the same regardless of how you spend the money.
Maximum loan amounts wedding loans in Nigeria
You can normally borrow between N 1M and N 5M with a wedding loan, though some lenders will give up to N 10M (10 Million Naira), and you can repay the amount over one to five years.
Some lenders offer seven-year durations, but keep in mind that the longer the term, the higher the total interest you’ll pay.
It’s important to note that this form of loan is referred to as unsecured because it’s not secured by a valuable asset like your home. If you default on a secured loan, your lender has the power to take your property if you don’t make payments.
What are the benefits of wedding loans in Nigeria?
Taking out a wedding loan has a lot of advantages, including:
- Competitive interest rates as compared to other types of loan (such as a credit card or overdraft), especially if you borrow N 1 million or more.
- You have the option of deciding how long you need to repay the loan.
- Because the monthly installments are fixed, you’ll know exactly how much money you’ll need to set away.
Are you a good candidate for a wedding loan?
Consider how much you need to borrow and whether you can afford to repay the loan within the specified time frame before taking out a wedding loan.
Your monthly repayments will be cheaper if you choose a longer loan term, but the total amount of interest you pay will be higher.
Keep in mind that the greatest loan rates are only available to individuals who have a good credit score. If yours isn’t as healthy as you’d like it to be, you can improve it by doing things like:
- Checking to see if you’re on the voter’s list
- Credit applications should be spaced out by at least three months.
- On-time bill payment
- Identifying and correcting any discrepancies in your credit report.