Your dream wedding can be reality: Here is how to fund your marriage
Generally, weddings cost at least Rs 5 lakh to Rs 10 lakh.
The modern day weddings bring a lot of expenses with them. Apart from the traditional expenses like catering and clothes, families these days have to spend on pre-wedding photoshoots, bachelor parties, and destination holidays. This adds a lot of financial burden on families. A modern day wedding could easily cost between Rs 5 lakh to Rs 10 lakh. But, to turn your dream wedding into reality, there are a number of loans available in the market. Here are three most common types, as per LoanTap -
Opt for a personal loan:
A personal loan is an unsecured loan that is provided by a lender, based on your credit history, available assets and ability to repay the loan. You can easily apply for a personal loan at any financial institution (FI) of your choice. A good exercise is to first understand the schemes and interest rates of each FI, see if there are any special offers and assess the complete package before deciding which bank to opt for.
Banks and financial institutions typically charge anywhere from 11% - 33% interest on personal loans, depending upon the risk profile of the borrower. Personal loans are easily accessible; all you need is a good credit score, last six months’ bank statement, and last three months’ salary slips along with duly filled loan application form!
Take a specialised wedding loan:
Digital lending platforms are offering specialised wedding loans, which are within the reach of every salaried millennial. These unique loans offer interest only payment for the first 4-6 months, allowing you to take it easy to enjoy the new phase of your married life and recover from the overall expenses of wedding and honeymoon!
Further, there’s a minimal requirement to be eligible for these kind of loans; all you need to be, is a salaried employee earning at least INR 30,000 per month. These loan amounts range between INR 1 – 10 lakhs with repayment tenures ranging from 12 – 24 months.
Credit Cards generally charge an interest rate of 3-4% per month. Also, they come with limits which may lead to use of multiple cards. It is advisable not to go overboard on credit card because of their convenience. Credit cards can easily lead you to a financial situation called debt trap.
Finally, according to LoanTap, whichever loan you decide to take, it’s first advisable to make a fair estimate of how much you intend to spend; have a budget in your mind, then list out everything you and your partner wish to have in your wedding, look up for suitable vendors to get an approximate pricing and then work backwards. For instance, if you love a certain videographer who is currently out of your budget, think if you both can club your bachelor vacations to bring down costs or send digital invites instead of physical copies and gifts.
Once an estimate is set, the next best thing to do is to take stock of existing savings and future income to understand how easily you and your partner can pay the loan off. If there are any further adjustments to be made, they can be made at this stage.
After this entire exercise, the final loan you would opt for will actually be more reasonable than anticipated, allowing you and your partner to enjoy the festivities.