Finance your Wedding through a Wedding Loan: Make that Special Day Memorable
Weddings can be expensive affairs, but are necessary to mark the beginning of a new phase in your life. Find out how a wedding loan can help ease the strain.
Whether you are planning a big fat Indian wedding or a simple ceremony with just a few special guests, most marriages still involve lakhs of rupees in expenses. Financial organisations have started offering ‘wedding loans’ to help finance the celebrations, letting families focus on the joy of the occasion.
The Strain on the Bride’s Family
Traditionally, the bride’s family is expected to bear a huge part of the marriage expenses. Parents start saving for jewelry and other expenses right from the birth of the female child. Today, with more young women joining the workforce—and earning good salaries—bridal families are now less daunted by prospective wedding expenses.
The need to save and plan for marriages still exists, though, and the financial strain only increases with the increase in the general cost of living. The savings set aside by young brides may not be enough to cover all the expenses, and families still need to dig into their savings and deposits to put up a good marriage function.
Millennials have their own ideas of sharing marriage expenses; most couples today choose to share the cost of the wedding celebrations, easing the financial burden on their parents. This has led to a number of banks and NBFCs offering marriage loans to prospective brides and grooms.
These loans can fully, or at least partially, cover the wedding ceremony costs and leave the young couple to focus happily on the ceremonies and celebration instead of financial worries.
What is a Wedding Loan?
A marriage loan is simply a specialized type of Personal Loan. This is an unsecured loan, and therefore involves higher interest rates. However, processing is faster, and you get quick access to funds. Since there is no need for a collateral, even young people who haven’t invested in sizeable assets can still apply for these loans.
Why Apply for One?
Marriages in India have always been elaborate affairs, some even lasting for up to five days. Parents always dream of putting on the most extravagant celebration they can afford for this special event.
However, the expenses involved in a wedding do not begin (or stop) at the wedding celebrations. Expenses begin with the engagement party. After the wedding—with its own expenses—comes the honeymoon and the setting up of a house for the young couple. When you factor in these costs, you may find that you have not put aside enough, even considering the financial aid from your parents.
Marriage loans from banks can help reduce this burden. You can get any amount, from Rs. 3 lakh to Rs.30 lakh and more, depending on your budget and your lender’s loan eligibility criteria.
How to Decide on the Amount?
Plan the occasion, split up the expenses into individual components, and see if you can cut down on any of the celebrations or arrangements. Plan costs to fit your budget. Take a loan to cover extra costs, or to cover the entire ceremony and after-marriage requirements like the honeymoon and the establishment of a new home.
You can apply for a joint loan with your prospective spouse or your parents. This can help increase your loan eligibility, securing better loan terms; you can even choose to share the repayment schedule with your co-borrower. You and your future spouse can also apply for separate marriage loans, and then divide the wedding costs between yourselves.
Keeping it Affordable
Explore loan offers from different banks and NBFCs. Other lenders might offer better terms than your regular bank. Many financial market websites list financial organisations that offer marriage loans and the terms they offer. Go through the loan features and terms, and carry out a feature comparison to select the bank that offers the best terms for your budget and needs.
The EMIs on the loan will be a big part of your monthly expense. Use the EMI interest calculator in the lender’s or third party websites to determine the amount and loan tenure that results in the optimal EMI that you can spare each month.
Focus on the Planning
Sit down with your families and discuss the costs involved in various facets of the ceremonies. Try to eliminate components of the celebration that aren’t necessary. Plan your budget for unexpected expenses, factoring in the costs involved in starting your new life together.
You, your future spouse, and your respective families may have different ideas about how to conduct the celebrations. Try to arrive at a solution that satisfies everyone and then apply for the loan.
Wedding Loans – Eligibility and Documentation
To apply for a wedding loan, you need to fulfil certain basic requirements. Your age needs to be at least 21 to 23 years, for one. If you are a parent applying for a loan for the marriage of your child, you age needs to be 58 years or less (for salaried employees), or 65 years or less (for the self-employed).
You should have been earning an income for at least 2 years before your loan application. Your net monthly income minimum requirement can range between Rs.15,000 to Rs.25,000. A CIBIL score of 700 is the generally accepted credit score for loan approval.
You also need to submit various documents to the bank. These include the duly filled loan application form, ID proof, address proof, age proof, and income proof. Keeping these ready, you can get your loan application processed quickly.
The Wedding Loan Market
Banks and other financial organizations are exploring new and innovative ways to attract customers. They offer various types of specialized loans as part of this effort. Wedding loans are a new trend, but the prospective market for this type of loan in Mumbai alone is expected to cross Rs.500 crore in the near future.
Many banks offer specialised loans like Kanya Vivah scheme, or gold buying schemes. These are focused on the brides who earn a regular income and want to contribute towards their own marriage, helping their parents finance the ceremony.
You can choose loan for marriage from Bajaj Finserv and it help finance the marriage ceremony of your dreams. Take advantage of these wedding loans and focus more on the happy celebration rather than on the financial worries during this special, joyous occasion.