Wedding Bells or Debt Spiral? Should you take a personal loan to manage your wedding expenses?

livemint.com:

personal loans as a means to fund these joyous occasions. As you eagerly anticipate your significant day and aspire to make it memorable, the question arises: Is it reasonable to accumulate debt for the occasion? While some may perceive a personal loan as merely another means to finance the wedding, it’s crucial to recognize that it’s a loan requiring repayment with interest in the future. The final amount to be repaid is contingent upon the loan’s interest rate and tenure, akin to any other loan sought.

Before you line up to apply for a personal loan or prepare to put your signature on the loan agreement, reconsider. Above all, it’s crucial to understand what a personal loan is and the details it involves. A personal loan is a form of lending that doesn’t necessitate collateral or security.

This implies that the borrower isn’t obliged to pledge any assets to secure the loan. This characteristic renders personal loans more attainable compared to other loan types, like mortgages or auto loans, where borrowers are typically required to use their home or car as collateral. Personal loans serve a myriad of purposes, ranging from debt consolidation and home repairs to covering medical expenses or funding vacations.

The specific loan amount and interest rate are contingent upon the borrower’s creditworthiness and the policies of the lending institution. Personal loans are typically repaid through monthly installments spanning from a few months to several years. Timely payments are essential for borrowers to steer clear of late fees and other associated penalties.