Due to how things are in the country now, the majority of people have lost funds and businesses are not moving as usual. A lot of people have a better plan for their wedding but the lost out of the way because of finance.
A Senegalese wedding is a joyful occasion, but it is very expensive as all recently married couples know. As such a lot of loved-up couples need wedding loans in Senegal to cover the cost of their nuptials.
But, do you think it is advisable to get a wedding loan? A low-interest personal loan is one of the easiest and most convenient ways to fund your big day. But is it the right way for you? Here is a quick guide to the pros and cons of using a loan to pay for a wedding, as well as some tips on finding the best deal and a few alternative suggestions.
Before taking such a bold step you need to know the advantages and disadvantages of getting a wedding loan. Don’t worry; you will be guided with that appropriately.
The most important day of your life isn’t always cheap. From the dress and the venue to the catering and the wedding car, your special day can cost you upwards of 5Million CFA. If you don’t have that money saved, you may need to turn to other ways to finance your wedding.
How Can I Finance My Wedding?
While there aren’t many lenders that specifically offer loans for weddings, there are plenty that allows you to use your funds toward any expense including weddings. The option you choose should depend on your current financial circumstances, how much you need to borrow, your outstanding debts, and your active credit accounts.
Before then, you need to know what a wedding loan is all about, the advantages and disadvantages.
What Is A Wedding Loan?
Wedding loans are usually unsecured personal loans that enable you to borrow a sum of money over a fixed period of time, usually paying a fixed rate of interest throughout?
If you apply for a loan online from a price comparison site, you’ll be asked what you want to use the money for. That’s because some lenders take the purpose of the loan into consideration when deciding whether to offer it to you or not.
However, the mechanics of the loan itself the way it works, and how you need to repay it – are the same whatever you spend the money on.
With a wedding loan, you can usually borrow between CFA 1M and CFA 5M, although this can be as high as CFA 10M (10M CFA) with certain lenders, and you can choose to repay the debt over one to five years.
Some lenders offer seven-year terms, but remember that, the longer the term, the more interest you’ll pay in total.
Note that this type of loan is described as ‘unsecured’ because it is not secured against an asset such as your home. With a secured loan, your lender has the right to repossess your property if you are unable to keep up with repayments.
What Are The Advantages?
There are a number of benefits to taking out a wedding loan, including:
- Competitive interest rates relative to other forms of debt (such as a credit card or overdraft), particularly if you’re borrowing CFA 1M or more
- You can choose how long you need to repay the amount borrowed
- Monthly payments are fixed so you’ll know how much you need to set aside
- Borrowing amounts are typically larger than with a credit card or overdraft
- Once you’ve been accepted for a loan, you’ll usually receive the funds in your account within a matter of days.
What Are The Disadvantages?
Of course, there are also several drawbacks to watch out for:
- If you have a poor credit score, you won’t qualify for the most competitive loan rates, or your application could be turned down altogether
- Interest rates are higher for smaller loan amounts, so a wedding loan may not be suitable if you only need to borrow CFA 1M or more.
- Missing monthly payments will negatively affect your credit score. You may also find it harder to get access to financial products at a later date
- There may be an early repayment charge if you want to pay off your loan before the end of the term. This is often the equivalent of one to two months’ interest.
Is A Wedding Loan Right For You?
Before taking out a wedding loan, consider exactly how much you need to borrow and whether you would be able to afford to pay the loan back within the set term.
If you choose a longer loan term, your monthly repayments will be lower, but this will also increase the amount of interest you pay overall.
Remember that the best loan rates will only be offered to those with a high score. However, if yours isn’t as healthy as you’d like it to be, you can take steps to improve it such as:
- Checking you’re registered on the electoral roll
- Spacing out credit applications by at least three months
- Paying bills on time
- Correcting any errors in your credit report.