Make a guess of how much an Indian wedding costs. Now, let this sink in: A “normal” wedding in India has an average expense of 25 lakhs. Booking the venue, accommodation of guests, planning the reception, jewelry, gifts are some of the expenditures that one has to chalk out a plan for before they make a budget. Exhausting one’s savings for these things is not recommended as you can pay these expenses over time in small chunks with the help of a personal loan. Let’s see what are the advantages of using a personal loan for a wedding-
Your parents have spent literally half their life taking care of you. Since the day you were born till today, they worry about your well being more than anything in this world. A wedding should not be a burden on their heads. Since it is your wedding, it is only justified that you bear the incurred expenses of your wedding. Bonus: If you take a personal loan for a wedding, you get to plan it yourself. And in doing so, you can make it as small or large an affair as you want! *wink*
Weddings are supposed to be a happy occasion. But many times, wedding expenses make it very hard for the people involved in spending to be very unhappy. If you take a personal loan and stick to the budget, you know exactly how much you will be spending on the wedding. You shall know exactly how long you will be bearing the costs and you shall not be surprised by the notes you spend at the end of the day.
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Personal loans have become more affordable over time. A few years ago, the interest rates on personal loans were comparatively higher since it is an unsecured loan and lenders were not so sure about it. But now since there is a tough competition in the lending business, lenders are offering attractive interest rates to capture a large part of the market.
You can choose a small personal loan for a wedding if you feel you only need little help or finance the entire wedding through a loan. You can repay it in 6 months or 5 years as per your desire. The liberty to choose lies entirely in your hands. Online portals like IndiaLends let your design your repayment plan and compare the best possible offers that lenders in the industry have to offer.
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The rate of interest is one the most important things to consider when you are looking to fund your wedding through a personal loan. This determines how much the loan is actually going to cost you over time. The rate of interest offered to you depends entirely on your credit score. A good credit score is bound to get you the best offers. Make sure you compare multiple offers before settling on one. Applying personal loan for a wedding online would be your best bet to avail the best options from the comfort of your home.
EMIs or Equated Monthly Instalments are what determines whether you will be able to bear the expenditure for your wedding. An affordable EMI will be one which does not impact your day to day expenses and also does not feel heavy on your existing budget. Both spouses are recommended that they sit and talk about how the repayment of these EMIs will be carried out and how they will make sure that you do not miss on any payments. Our two cents would be to automate these payments from one of your accounts.
The wedding might last for a day but the personal loan for a wedding would be repaid over a longer tenure. Although, a personal loan has a shorter tenure than most other loans. Consider choosing a tenure that would suit both the partners. Also, keep in mind that you might not be able to make other lavish expenses in the early period of your marriage if the amount you borrow is high and your financial situation is not very good.
Finances do not have a very good reputation when it comes to relations. So it is better that you start a new life with your partner with a clear picture of your finances. Align your interest and money goals, in the beginning itself, to make sure you have a financially sound married life. So are you planning your wedding? Many congratulations to you. We would love to hear any questions that you have regarding couple finance or personal finance in general. Until next time!
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