How to finance an engagement ring?

Want the perfect engagement ring but worried about the cost? You’re not alone. A wedding ring can be a big purchase, but you don’t have to pay for it all at once. With flexible payment options, a simple financing plan, or even interest-free payments, you can spread out the cost and still get the ring you want. Here’s how to make buying your engagement ring easier and more affordable.

Engagement Ring Financing Options

Check out the most common options you can use to finance the purchase of your engagement ring.

1. Personal Loan

A Personal Loan helps you spread out the cost of your engagement ring purchase without touching your savings. The interest rate depends on factors such as your credit history, income, and how long you plan to repay the loan. Here are a few simple things to know about Personal Loans:

• You can choose a repayment tenure from a few months to several years.
• The lender checks your debt-to-income ratio before giving you the loan. If it is over 40%, they may charge a higher interest rate.
• You cannot get this type of financing online if you keep changing jobs and do not have sufficient work experience in your current job.

Also Read: A Step-by-step Guide to Getting Unsecured Personal Loans

2. Jewellery store financing

Many jewellery stores now offer simple plans that make it easier to get an engagement ring without paying everything at once. Leading retailers let you make a fixed monthly payment for a limited time. When the plan ends, you can use the money to buy your ring or other jewellery. One of the best parts of these plans is the discount you get on your monthly instalments, which can make your large purchase easier.

Here are a few things to consider before choosing any jewellery shop plan or store credit option:

• Make sure the gold is of good quality. These plans usually work only if the ring or jewellery is 18 carats or higher.
• Watch out for hidden costs, especially if you're financing an engagement ring from a local shop.
• Take a moment to learn how the jeweller calculates interest so you know the real cost of the engagement ring.
• Try to buy during the festival or wedding season, like Diwali, since shops often offer the best deals then.

3. Credit Card

Another easy way to finance an engagement ring is to use a credit card. You can buy the ring and enjoy interest-free billing as long as you pay your dues on time. In some cases, based on your past usage, your card issuer may even offer a special repayment period. Still, before using a credit card for your engagement ring purchase, you should be aware of a few things:

• If the amount of financing goes over 30% of your total credit limit, your credit score can drop. To avoid this, it is better to make a bigger first payment.
• If you pay late, credit card companies charge very high interest rates. Some banks charge around 3% monthly penalty interest. This means your yearly interest can reach almost 36% if you don't make your payments on time.
• Using a credit card feels simple, but it comes with many extra charges that can raise the cost of your purchase. These may include renewal fees, joining fees, taxes, and other transaction costs. So, check all these details carefully before choosing a credit card to complete your purchase.

Also Read: Personal Loan or Credit Card Which one would you go for

4. Buy Now, Pay Later (BNPL)

BNPL is becoming very popular because it lets you get an engagement ring without paying anything at the start. The lender pays for you, and you purchase over time. It works almost like a credit card. If you make your payments on time, you stay interest-free. If you miss a payment, the lender adds interest. One helpful part is that the lender usually doesn’t require good credit or look at your full credit history before giving you the money.

Here are a few simple things to know about BNPL before using it:

• BNPL can push you to buy things on impulse, which can hurt your budget and may affect your credit score if you don’t pay on time.
• Late payments cause interest to accumulate on unpaid amounts, increasing the overall cost.
• The interest rate can go up to 24% or more, depending on the type of financing you choose and how you plan to pay.

Personal Loan for Engagement Ring: Benefits & Eligibility

Eligibility Criteria

To apply for a Personal Loan for an engagement ring with Hero FinCorp, you must meet the following eligibility criteria:

Age Criteria: 21 to 58 years

Minimum income required: Rs 15,000 per month.

Citizenship: Indian Residents

Employment: Available to both salaried and self-employed individuals

Benefits of a Personal Loan

• You can apply online without any documentation requirement.
• The process is quick, and approval usually takes less than 10 minutes.
• You have to make a fixed monthly payment, so planning your budget is easier.
• You can make a large purchase without depleting your savings.
• You can check your financing amount and EMI using online tools online.
• You can compare offers, interest rates, and payment options before choosing the best one.

Using Credit Cards to Finance an Engagement Ring

Using a credit card to finance an engagement ring can be helpful if your card offers an interest-free period. It lets you spread the cost of the engagement ring with smaller payments instead of paying everything upfront. But there are risks. If you miss to make payments on time, the high interest can make your expensive ring harder to manage and may affect your credit score. Using a card wisely keeps your monthly payment under control.

Pros and Cons of Engagement Ring Financing Options

Choosing how to pay for your ring can feel confusing, so here’s a simple look at the strengths and drawbacks of each option.

• Personal Loan This is usually the strongest choice because it gives you flexible payment options, a larger financing amount, and a clear, fixed monthly payment. It helps you spread the cost without stress. The only drawback is that you'll need a good credit history, as lenders will check your profile before approval.
• Credit Card A credit card works well for a large purchase, but it becomes risky if you miss making payments on time, since high interest can build up fast and may affect your credit score.
• Store Financing Jewellers often offer simple plans that make an engagement ring purchase easier. You might even get discounts. The downside is that choices can be limited, and there may be hidden charges you don’t see right away.
• Buy Now, Pay Later (BNPL) This option is quick and doesn’t require a long credit history. No-cost EMIs can make payments light. But it can push you into impulse buying, and late payments lead to high interest, raising the overall cost.
• Retail Financing This helps you complete your purchase through affordable and manageable instalments. Just be aware that, depending on the type of financing, there may be additional charges, such as prepayment penalties, which can make it more expensive.

Tips for Financing Your Engagement Ring Responsibly

Financing an engagement ring can be helpful if you handle it carefully. However, it's essential to keep a few key tips in mind.

1. Set a realistic budget Know how much you want to spend on an engagement ring so you don't overspend.
2. Compare your options Look at different payment options, including Personal Loans, retail financing, or credit cards, and choose the type of financing that fits your income and plan to pay.
3. Check your credit A good credit score can help you get better rates and create a suitable financing plan.
4. Look for interest-free offers Some jewellers offer deals or fixed-payment plans that can make the ring more affordable and manageable.

These steps help you handle your engagement ring purchase wisely while keeping your budget steady.

How Hero FinCorp Can Help You Finance Your Engagement Ring

Hero FinCorp can make your engagement ring purchase easier with simple payment options that are affordable and manageable. You can spread the cost through a fixed monthly Personal Loan plan that fits your budget. With quick approval and clear terms, you can complete a large purchase without stress. You can get a Personal Loan of up to Rs 5 lakh at a starting interest rate of 1.58% per month and a repayment tenure of up to 36 months.

Conclusion

Every financing solution for an engagement ring purchase has its own benefits, but a Personal Loan is often the strongest choice. It gives you flexible payment options, a fixed payment plan, and a repayment tenure that helps you spread the cost with ease. You can also get a larger financing amount to cover wedding expenses like catering or décor. With a clear payment plan and a steady monthly payment, everything stays affordable and manageable.

Frequently Asked Questions

Can you finance an engagement ring with a Personal Loan?

Yes, a Personal Loan lets you spread payments over time, making the cost of the engagement ring easier to manage without touching your savings.

What are the best Personal Loan options for engagement rings?

The best options offer fixed monthly payments, low interest rates, quick approval, and clear terms based on your income and credit profile.

How does financing affect my credit score?

Financing can help improve your credit score if payments are made on time, but missed or late payments can lower it quickly.

Is jewellery store financing a good idea for engagement rings?

Store financing can be helpful for discounts, but watch out for hidden fees, limits, and higher costs.

Can I use buy now, pay later for an engagement ring?

Yes, you can use buy now, pay later to finance your ring but do check the terms and conditions.

What is the typical interest rate for loans used to finance engagement rings?

At Hero FinCorp, the interest rate starts from 1.58% per month, but it may vary depending on your eligibility and credit profile.

Are there zero-interest financing options for engagement rings?

Yes, some credit cards and jewellers offer interest-free periods for larger purchases like engagement rings.

What happens if I miss payments on my engagement ring loan?

If you miss payments on your loan, you may face late fees, higher interest, and a drop in your credit score, making future borrowing harder.

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