Planning a Wedding? Tips to Choose Marriage Loans - Personal Loan Blog - Tata Capital

Tips to Choosing the Best Marriage Loan

Feb 27, 2017

They say that marriages are made in heaven. But they don't tell that cost of marriages is to be borne here on earth. But jokes apart, managing the finances of a wedding in India can be a stressful task.

No matter how much one plans and prepares for the marriage, its possible that costs and expenditures will be underestimated. It's easy to say that one should save hard, prioritize expenses and stick to a plan. But in reality, it's tough to stick to budgets when it comes to the biggest day of most people's lives.

There is no fixed number that gives the cost of a perfect wedding. But speaking of averages here, weddings in India can easily cost in excess of Rs 15-20 lacs. Frankly speaking, most people are unable to save that much. It is here that one can consider taking a small loan for marriage. Simply speaking, marriage loans are personal loans taken for the purpose of funding the marriage.

But before going for a marriage loan, you need to do some homework. Make a list of all expenses and categorize them according to their importance. One way can be to categorize them as necessary, desired and irrelevant. Once you have the list, you will get a broad idea of the amount that you need to put together.

Now check the amount that you and your parents have already saved up for the wedding. This will tell you approximately how much you need to borrow. But don't just go and apply for a wedding loan after this. Give some thought about whether you can afford the repayments for the chosen amount and how long do you want to repay the loan for marriage.

Experts suggest borrowing only the amount that can be easily paid back within 3 years. One of the biggest advantages of taking a marriage loan is that you get to know in advance the future EMIs (on basis of tenure and prevailing marriage loan interest rate) and that helps in proper planning of your future expenses.

A marriage loan is a really convenient option to help you make the most of your biggest day. But make sure that you don't go overboard when applying for this loan.