With an increased choice in borrowing - from different types of loans with different tenures, etc, experts say, one should choose what suits one the best.
A wedding involves a lot of extensive planning and expenses, from choosing a location and venue to buying gifts and making arrangements for photography, lighting, decoration, catering, planning the honeymoon, and so on. One also needs to shop for various expensive items such as the wedding dress and jewellery, clothes and household items. Taking a loan for the wedding not only reduces financial stress for the family and the couple, but it also allows one to meet all the upcoming expenses.
Having said that, with an increased choice in borrowing – from different types of loans with different tenures, etc, experts say, one should choose what suits one the best.
Gaurav Jalan, CEO and Founder, mPokket, says, “A wedding is not merely a few days of celebration. With two families coming together to build a new life, there are several expenses one has to cover while planning a marriage, and a personal loan could be the perfect choice especially with no restrictions on how one can utilize the loan amount.”
Therefore, unlike other loans, there are no restrictions on how one can use this loan amount, helping cover all the miscellaneous wedding expenses. Hence, experts say, taking a personal loan for a wedding is a wise option.
According to a study conducted by IndiaLends, a digital lending platform, during the second wave of the covid-19 pandemic, demand for wedding loans was the highest among all categories – 33 per cent as compared to 22 per cent during the first wave from the people aged between 20-35 years.
Jalan says, “A personal loan can be availed online at competitive interest rates and are often easy to apply, with quick approval and disbursal, saving time that can be utilized more productively in planning the wedding.”
Moreover, the eligibility criteria for such loans are often not that high. Besides, these loans only need a few essential documents, such as identity proof, address proof and income proof, restricting the documentation work to a minimum and making the loan application process simple.
“What’s more, personal loans come with flexible EMI and tenure options,” adds Jalan. Borrowers can customise the repayment schedule according to their monthly income, financial needs and cash flow. Furthermore, based on one’s credit score, the interest rate on these loans are often competitive.
Therefore, applicants can easily procure a personal loan of up to Rs 25 lakhs with a tenor of 12-60 months, depending on their credit score. “This can easily help defray most of the expenses, no matter how intimate or lavish a wedding one might be planning,” says Jalan.