Suresh was planning to tie the knot within a few months. He had already booked a flat in Bangalore, where he lived. He had also just finished paying off his education loan. So, his finances were a bit low. But that did not stop him from having a gala wedding. And it was all possible because he applied for a personal loan.
Most lenders in India approve personal loans for weddings without a hassle. Some even offer specific wedding loans. Let us take a closer look at these.
Personal Loan for Weddings
An Indian wedding is an expensive affair. It often involves a lot of expensive jewellery and clothes. You have to cater for food and beverages for hundreds of people, not to mention booking a picturesque venue that can accommodate everyone. So, a wedding can drill a deep hole in your pocket. Some people save for years for a wedding, but there are many that opt for a loan instead. This is because a loan offers a comprehensive solution to all your financial issues.
Points to Remember when you take a Personal Loan for a Wedding
So, are you planning to take a personal loan for your wedding? Keep the following points in mind:
- Do the Math: Before you apply for a loan, get your calculator out. Figure out the overall estimate for the wedding. Check what funds you may already have in the form of savings, gifts, money-back insurance plans, and the like. If your parents or siblings are helping you out financially, consider that as well. This will give you a fair idea of how much you have and how much you will need.
- Borrow Only as much as You Need: You may be eligible for a wedding loan of Rs. 10 lakh, and your bank may even approve the amount. But do you really need that much of money to fund your wedding? Remember that you are standing on the threshold of a new life. You have new responsibilities and different financial needs. So borrow only as much as you need. Do not burden yourself with unnecessarily high debt during this time.
- Make a Plan: You may decide to spend Rs. 2 lakhs on jewellery, and Rs. 4 lakhs on food. Put these expenses down in the financial plan you make. It can help you assign the funds properly and in the right places, without overspending. Without a plan, you could end up overspending, which could result in your loan amount vanishing quickly and on unnecessary things.
- Shop Around: Personal loans for weddings are available from many lenders. But the rates and loan terms could differ from one lender to the next. So, before taking the loan, do a comparison of the different kinds available. Evaluate the different personal loan interest rates, repayment options and tenures, and find the best option for your needs.
Should I take a Wedding Loan?
A personal loan is a great financial product, but it can also be expensive. So, assess your situation, capabilities, and needs before you opt for this loan. Try to keep your wedding costs within your means to ensure it does not put any pressure on your financial health later. Ask yourself these questions: Do you feel confident enough to repay the loan? Are you financially well off? If your answer is ‘yes’, there is no reason for you to not take a personal loan. After all, everyone wants a dream wedding!