Spring, the time of ceremonies. According to the data, in fact, the first part of the year is the one that records a greater concession of personal loans intended for the celebration of the most important events in a person’s life, among which marriages stand out.
Organizing a wedding requires, in fact, a good deal of patience, planning and above all a budget appropriate to their aspirations.
Calculating the total cost of a marriage is not easy, also because there are so many items to be considered ‘ dress for the bride, which for her remains one of the expenses on which to place the greatest attention to the ceremony.
The age range between 26 and 35 is the most used for a loan, in the first three months of 2012, 33.3% of the total disbursements for this purpose went to 26 -35 years, while in the same period of 2011 the share was 27.8%. Again with regard to age groups, a good level of loan disbursement is also maintained for those over 55, with a 19.6% share of the total (in the first quarter of 2010 the share was 19, 3%), in most cases they are loans granted to parents or relatives of the spouses who take on the expenses of the ceremony.
When applying for a loan?
When dealing with a personal loan application (wedding loan), it is good to take several factors into consideration. You must carefully evaluate all available offers, without stopping at the first one we meet, and the contractual conditions. Both the interest rates and the extra costs can, in fact, vary a lot from one institution to another, and if you do not want to have bad surprises it is better to take a little more time to sift through all the options.
Because the purpose is generic and according to the donor institution it could go to pay debts related to other credit positions open to other financial institutions. For this reason, banks, feeling exposed to a higher risk, tend to apply much higher interest. Once the applicant’s credentials have been verified, a loan is also granted for 48 hours.
The Wedding Loan
The loan for the wedding allows you to serenely organize an important moment, perhaps the most remembered, in the life of a couple. The expenses to be incurred for the organization of a wedding (the purchase of clothes, of the wedding rings, of the lunch offered to the guests, of the photo album, of the honeymoon, etc.) can greatly increase the necessary budget. The couple that has to face this expense can be supported by two forms of financing: the finalized loan and the personal loan.
The personal loan for the wedding can be a valid opportunity, as it allows combining different expenses into a single debt, minimizing the costs of the preliminary investigation. On the other hand, it offers a rate that is usually higher than the finalized loan. Getting a wedding loan can be an opportunity to make an unforgettable day.
In general, the granting of a wedding loan is not subject to the presence of collateral. In order to limit the risk of insolvency, the lending institutions submit to the applicant a contract that provides for the payment of installments, or a single bill, able to guarantee a part or the entire amount paid. The most widespread form of guarantee is the signature of a co-obligor or of a third guarantor, who guarantees the successful completion of the operation. This is a rather common request, in the presence of particular conditions.
The law establishes that a wedding loan contract must contain the following elements
• The interest rate charged.
• Any other price and condition charged, including higher charges in case of default.
• The amount and terms of the loan.
• The number, amounts, and maturity of the individual installments.
• The annual percentage rate (APR).
• The details of the analytical conditions according to which the APR may be modified, if necessary.
• The amount and the reason for the charges that are excluded from the calculation of the APR.
• Any guarantees are required.
• Any insurance coverage requested and not included in the calculation of the APR.
The finalized loan is offered directly by the retailer who has entered into a collaboration agreement with a bank or a credit institution and is exclusively linked to a specific product sold (e.g. honeymoon, or wedding favors). The amount of the finalized loan is paid directly to the seller, while the user must pay the loan installments according to the amortization plan. In fact, a personal loan specifically for marriage or a salary-backed transfer can be coupled to the finalized loan. The finalized loan can also be replaced entirely by a single personal loan by marriage, or by a single transfer of the fifth.
Conclusion
Each Institute applies its own risk policy in assessing requests; based on the statistical data it has (credit-scoring). These data constitute the instrument that allows the Institute to keep insolvencies below a certain level. The acceptance of requests is normally also subject to the assessment of the income level of the applicant and to the relationship between the latter and any repayment installments. The creditworthiness of the applicant is of great importance.
It is important to underline that this evaluation has no “moral” meaning. The Institutes limit themselves to estimating the level of risk associated with each request, also on the basis of the credit reports provided by the Central Risks. If the credit history of the applicant has some “flaws” (delays in repayments of previous loans, unpaid, etc.) the probability that the request will be accepted is obviously lower.
