Weddings are the most important days in the lives of the bride and groom and their families. Indian weddings are typically three to four-day events. It’s no secret that a lot of money goes into a Big Fat Indian Wedding – as they are famously called. Some want a lavish wedding, while many just want an intimate one. It is said that an average Indian spends one-fifth of their accumulated lifetime wealth on marriage.
These days young brides and grooms want a memorable wedding and take charge of wedding preparations so that everything is according to their taste. So most festivities are customised, from wedding invitations to the theme and decor. Some even want to save the burden of running around, so they hire wedding planners who come with an additional cost. Destination weddings have become the latest trend, which further adds to the expenses.
From funding their start-ups to their weddings, the new generation is an independent one.
How to raise money for your wedding?
A personal loan for a wedding is a viable option to finance all wedding expenses. Earlier, when parents used to fall short of funds, they would borrow money from lenders or family members to ensure their children had the lavish wedding of their dreams.
However, now, individuals can take a personal loan, which answers how to raise money for a wedding. Securing a personal loan for wedding will not require any collateral, and one can take a loan amount that suits their liking based on their repayment ability.
With this loan, one can easily fund the wedding without making monetary sacrifices. They can choose a suitable venue, pamper the guests with good hospitality, and have a lavish buffet with different cuisines. Most importantly, they can enjoy all the festivities just as they had always dreamed of.
Easy Ways To Get A Personal Loan For A Wedding
Opt for an online loan
This would mean applicants can save time by avoiding running around to get the loan approved and complete the documentation. The time could instead be utilised in wedding preparations. One can also compare different lenders and opt for the one that best suits their financial plans, like less interest, longer tenure, etc. Online loans get approved instantly, and the loan amount gets deposited in the applicant’s account.
Go for an unsecured loan
Some still follow the primitive way of borrowing money from a private lender by offering collateral. Gone are those days as now banks and financial institutions offer personal loans for marriage with very little documentation. So there is no need to risk personal assets and focus more on the wedding.
Pre-approved loan
One needs to have a good credit score and a good track record with credits or repayment of loans. No documentation is required for a pre-approved loan and the amount can reach the applicant’s account with just one click.
Eligibility and loan amount
Try to find a lender with simple terms for eligibility and be willing to sanction a loan amount that matches your expectations. Sometimes the loan may be rejected if eligibility criteria are not met. You should have a good credit score for a loan to fund your wedding.
Other factors determining the eligibility are the age of the applicant should be between 21 to 58 years. Such a person should have a salary of Rs 15,000 and above.
Advantages of a wedding loan
The biggest advantage of a marriage loan is its flexibility. This means you can pay more when you can afford it. The initial EMI can be lower, keeping in mind that a lot of expenditure must have happened during a wedding.
The entire loan process requires a minimum amount of paperwork. A better way would be to apply online. This will save time, and the process will be speedy and convenient. This way, more time can be spent planning the wedding rather than worrying about how to raise money for your wedding.
In some financial institutions like Tata Capital, repayment can be made at no additional cost. The wedding can be planned without any budget constraints.
No security (collateral) is asked for a marriage loan, and the interest rate is also not high. This will again depend on your credit record, and a good relationship with a bank or financial institution might help.
There is no need to sell assets or exit investments.
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 personal 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 interest rates, repayment options and tenures, and find the best option for your needs.
Borrow from family and friends:
You may seek funds from your close friends and your family to finance your wedding expenses. You may then repay the amount to them over time. There is a possibility that your social circle may not expect any interest on the amount borrowed, and hence you may save a significant amount of money. However, borrowing from friends and family may result in strained relationships as conflicts may arise. A more suitable option instead would be to borrow a marriage loan from a bank or a Non-Banking Financial Company (NBFC).
Conclusion
A personal loan from Tata Capital for a wedding is a good idea, but before availing it, one should understand its benefits and implications. Weddings are an auspicious and significant event in a person’s life. It should be enjoyed rather than worrying about how to raise money for your wedding.
A personal loan for marriage can be applied online through Tata Capital at attractive interest rates and with a hassle-free experience. Get in touch today!
05 February 2024
6 mins read
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