There are no cutting corners when it comes to hosting a big fat Indian wedding. It has everything from music to buffet, from event planners to fashion designers and decorators. But that also means an Indian wedding also costs a lot, and not many can afford to pay for these expenses on their own. That is why most people in the country prefer taking loans for wedding purposes.
Whether it is a marriage loan for a daughter or son, it allows families to host the grand occasion without worrying about wedding finances. You get immediate funds to spend on your wedding, which you can repay in small monthly instalments over time.
A marriage loan makes it easier to fund your wedding expenses. But first, it is crucial to understand the obligations a loan brings and how it affects your finances. So, discuss these questions with your family before taking out a loan for a wedding:
1. When to take a wedding loan?
If you live in a traditional joint Indian family or even a nuclear family, parents and family members are always willing covers most of the wedding finance. So, whether you need to take a loan for marriage purposes depends on your and your family member’s financial situation and the expenses they are willing to handle.
In case the wedding is entirely your and your partner’s responsibility, it is vital to assess your collective financial situation. Divide the expenses both of you will cover, evaluate your finances and take the wedding loan.
2. How much loan amount do you need?
The loan amount you need depends entirely on the type of wedding you plan to have. Taking a wedding loan will save you from exhausting your finances if you have always dreamt of a lavish wedding at a grand venue with regal decorations, photography, music, buffet, etc.
So, list all the expenses – your dress, jewellery, etc. For a better idea, make a list of events you plan to have and guests you plan to host. Once you have the wedding budget, it should be clear whether you need a loan or not.
Another factor to consider when deciding on loan amount is marriage loan eligibility. It is the amount you can borrow depending on your income, expenses, and loan duration and varies from lender to lender.
3. What are your other financial goals, and how a wedding loan will affect them?
A wedding loan will surely help you have a grand wedding, but it is essential not to lose sight of your other financial goals, whether a new car or travel. Your obligation to repay the wedding loan should not prevent you from fulfilling your other dreams.
Not to mention that marriage is your first step towards having a family. So post-marriage, personal goals are not your only concern. You must also consider your goals as a couple, like a new home, childcare and education, retirement, etc.
4. Who will be responsible for paying back the marriage loan?
With the budget clear and expenses shared, the next discussion with your family is who all will pay back the loan. In addition to the principal amount, you must settle interest payments depending on your marriage loan interest rates. So, it is also essential to discuss with your family and in-laws the distribution of loan repayment obligations.
The best way to do so is to distribute repayment responsibility among the couple and the two families. Indian weddings have some common expenses for both groom’s and bride’s families. The families may decide to repay a part of the loan, and the couple can repay the rest.
5. How long should be the repayment tenure?
When you take a wedding loan, you pledge to pay it back with interest within the stipulated time. Now, depending on your financial capacity, most lenders will give you a fixed loan amount with a few repayment tenure options.
The shorter repayment period allows you to pay back in less time, but EMIs cost more. On the contrary, longer tenure will reduce the EMI amount, but you will pay more interest over time. Therefore, opting for a lender with the lowest marriage loan interest rates and flexible tenure options is essential.
These are some questions you must ask before taking out a loan for a wedding. These questions are essential to ensure everyone is on the same page, whether it is sharing wedding expenses or sharing the obligation to repay the wedding loan. Are you looking for a lender with the lowest marriage loan interest rates and easy marriage loan eligibility? Check out Tata Capital’s range of customized personal loans. Tata Capital offers marriage loans of up to Rs 35 lakhs at attractive interest rates without collateral. The application process is entirely online and requires minimal paperwork and processing takes less than two hours. Visit the Tata Capital website to know more.