If you got engaged then now you must be planning for a grand wedding celebration. But you are scared too. Because to organize a grand wedding function you have to spend heavily. According to a study the national average of wedding costs about 22,000. Most of the couples are geared to pay for their own wedding. An April 2004 survey shows 75% of people paying for their own wedding. But you have an option; you may go for wedding loan. Now you dont need to be scared. A wedding loan is a specialized loan service that aims to cater to the borrowers who need finance for organizing weddings or meeting payments of a wedding already held. A wedding loan can help you explore every wedding fantasy in case money is short. Infact, recently, Wedding loans are gaining popularity in both rural as well as urban areas. Such a loan can also be availed under the personal loans category.

Cost of Loan and amount which can be borrowed

The rate of interest is based on the current market rate. Other factors such as your credit history, collateral, amount, payment duration etc also affect the rate of interest charged on wedding loan provided to you. If the borrower has a bad credit record, he will have to pay a higher interest rate. Similarly, if a borrower is offering his home as security, he will have to pay comparatively lower interest rate. To avoid uncertainty, borrowers normally prefer fixed rate of interest.

Again, loan amount varies from borrower to borrower, which is based on various factors such as collateral, credit record, source of income, income level, age, level of income & repaying capacity. Repayment is done through equated monthly installments (E.M.I.).

Application for Wedding Loan
Anyone having a source of income can apply for a wedding loan by filing the relevant form. Lenders usually charge a fixed amount as processing fee. In addition, lenders want documents to verify the credibility and income level as given below,
Proof of Identity
Residence Proof
Bank Statements to check borrowers income and expense pattern (latest 6 months bank statement /passbook)
Lenders also ask for salary certificate from the present employer.

Searching Wedding Loans

Once you decide to avail wedding loan, the search for wedding loan starts. Internet serves an important tool in conducting the search. Search engines like Google, Yahoo etc. provide links to thousands of loan providers who are offering wedding loans in the UK. Borrowers can easily appraise loan providers with the information given about them on their website, compare wedding loan deals through a loan calculator, and request wedding loan quotes from lenders who appear lucrative.

After screening lenders through a number of stages, you fix a lender for offering UK wedding loans. Since the requirements of borrowers differ, customized rather than standardized wedding loan deals should be asked for.

Borrowers must not take decisions without knowing in full about its present and future repercussions. As needs be, borrowers can consult the experts or independent financial advisors for a more detailed explanation of the term or any feature of wedding loans.

A word of Caution
Proper attention must be given to plan the budget of the wedding. The planning process may be fun, but the results obviously are unprecedented. Those associated with wedding plans should sit together and decide the various costs that may be incurred. In addition, a priority table is prepared so that a less important expenditure can be postponed or omitted altogether.