It's about time for the millennials to tie the knot. They have been part of the workforce for couple of years now, and the time is ripe to settle down. Many are eagerly waiting for their big day, planning every single bit of it in advance. Moving into a new phase of life is gratifying but then it also evokes an added sense of responsibility to fulfill all the vows they are about to take.
Given the fact that the cost of living is constantly rising and salaries hardly catch up to spending, it needs some meticulous planning to fulfill all the desires they have from married life. So ideally, financial planning must begin few years before they actually get into the nuptial bond. Data suggests that millennials do understand this equation.
Comparatively smarter in handling their responsibilities, millennials do plan their expenses in advance and like to see themselves settled down in their careers before taking the vow. They also like to share the responsibilities with their partner and believe in building a healthy saving to be able to afford things they would need once they are married.
A home, a hatchback and a life insurance plan are some of the things which generally figure at the top of their wish list. But thanks to the easy availability of multi-purpose loans from banks and financial organizations, these wishes are much more accessible now more than ever. Obviously, it requires much less preparedness on the part of the millennials when they need to fund their purchases. Today, all private and public sector banks offer loans to buy what you always wished for at much affordable rates and with favorable repayment options.
Build Your Own Nest
The first thought that comes to a couple's mind before they move ahead to tie the knot is a home that they can call their own. Buying a home involves a lot of research and planning. First, deciding on the locality, the type of house, and finally, the budget.
However, to every buyer's dismay, the housing prices have skyrocketed in the last couple of years. Buying a house from savings alone has become unimaginable. The newly introduced Goods and Services Tax (GST) has further soared up the housing prices and Home loan is the most viable option to be able to afford a house now. With housing loan options galore, couples dreaming of a home need not wait any longer. In fact, they can opt for a joint home loan to increase their eligibility for a higher loan amount.
Though home loans are easily accessible nowadays, it is advisable that buyers follow some financial prudence before they apply for a loan to get a favorable term. The first and foremost is maintaining a healthy credit score. A higher credit score ensures quicker loan approval and sets up for higher loan eligibility. Keeping a check on your expenses and paying bills on time boosts the credit score, which normally ranges from 300 to 850. At times, it's helpful to use a credit score calculator to keep a check on money outflow.
Maintaining a healthy credit score moves you a step closer to your dream home. It should be noted that a healthy credit score builds over a period of time, with you being diligent about paying your bills on time and avoiding defaults on your other debt obligations. If it's a joint home loan application, both the buyers must keep a track of their credit scores over a period of time to ensure a hassle-free loan approval process. Apart from that, the applicants should gather all the required documents needed to apply for a home loan. With little planning on your part, the loan approval can prove to be a straightforward and smooth process.
The First Steering Wheel
Though owning a home remains the most desirous in married life, in today's fast paced life, owning a car has also become a much cherished wish to add to the happiness of the lives of the newly married couples. Again, with little planning for a down payment, and opting for a four-wheeler loan, the wish for a new car can be easily fulfilled. There are plethora of options when choosing a car loan and a buyer can apply for one depending on his needs. The process is generally smooth and fast. Finally, a handful of documents along with a good credit score is all it takes to own your dream car.
Buying a car makes it mandatory to buy a car insurance policy to go with. Depending on the type of the car you own and the extent of coverage you seek, the insurance premium will vary. There are several car insurance companies in the market, and the buyer must compare all available options to figure out the premium. The car insurance can be applied online or offline. When you buy a car, the dealer helps you with their registered insurance company. The buyer also has the option to choose his preferred insurer and policy terms, if he doesn't want to go with the options available with the car dealer. That's not all. If the couple has budget constraints, they can also opt for a motorbike and avail a two-wheeler loan offered by most of the banks. Similarly, they can choose their desired insurer and buy the policy online.
Apart from owning a house and a car, couples tying the knot should also plan for long-term security of their future. They must be prepared for any untoward situation, displaying their maturity and love for each other. In order to support the family in the absence of one, they must go for a life insurance policy. Life insurance companies offer myriad investment-cum-insurance plans to cover the policyholders during distress.
Depending on the yearly premium they can afford, newly-wed couples must take a life insurance policy to secure their future. Based on the policy terms, the buyer can expect to pay premium till he retires and at the same time, build a healthy corpus for his retirement savings.
All for the Big day
Funding a big fat Indian wedding needs more than just savings. Exclusive pre-wedding photo shoots, mehendi ceremony, antique lehengas, Sangeet with the DJs, open-air wedding, gifts for all the guest and an exotic honeymoon-all burn a big hole in one's pocket. But then, these are the occasions to cherish for a lifetime, and the lack of funding should be the last thing to get in your way. Applying for a personal loan makes sense if you are running short of money. A couple tying the knot can ideally opt for a personal loan for wedding depending on the amount they need and their existing debt burden. The trend of marriage ceremonies in India is fast-changing, and there is no reason why you should be left behind on the most important occasion of your life.
Astute financial planning combined with a good credit score makes it easy for a newly-married couples to get settled sooner. Much of the wedding expenses and initial purchases after marriage can be met with a combination of personal savings and bank loans. When it comes to preparing for married life, funding is no longer an issue with the number of options available in the market today.