With the great Indian wedding season back, we look all set for another few weeks of seeing our social media flooded with people getting married left, right and center. And while pictures and videos may indicate that weddings are all about love, romance, and celebrations, but, in reality, it is money that turns your wedding dreams into reality.
Money management and budgets can severely affect one’s wedding plans and although Indian weddings are known for their grandeur, even the most minimalist ones can cost a bomb. Broadly speaking, based on the amount spent per day, a wedding can be the biggest expenditure of one’s life. The pressure of saving money for a wedding and utilising it well can be a significant source of stress. Couples and their families who do not have enough funds or are looking for extra cash generally turn to their family or friends to borrow.
However, there are several ways to fund your wedding without having to borrow money from your close ones. Personal loans are gaining popularity for being simple, hassle-free and instant and many young professionals are applying for them to fund their dream weddings. Having said that, is it really worth the interest, or should you look at other routes to pay for your wedding expenses? Let’s find the answer to these questions and begin by looking at smart ways to fund your wedding.
5 Smart Ways In Which People Fund Their Weddings
Whether a couple chooses to go for an intimate wedding or a grand one, it involves many expenses. From venue and outfits to hiring a photographer and arranging for food, you need to shell out money at each step, big and small. If one is not careful with the budget and expenses, it is very easy to spend more than one can afford. There are, however, some ways in which people try to manage the expenses of their weddings:
- Set up a passive income
To have the elegant wedding you always dreamt of, sign-up for short-term side hustles along with your regular job. Freelancing gigs in your area of expertise is an excellent way to open new doors for income to come in. Similarly, you could start tutoring students, or participating in events as paid assistants to save up money. If you have some vacant space, you could consider leasing it out on rent as well.
- Reduce wedding expenses
Once you have fixed a budget for your wedding, make sure you stick to it. Better still, reduce the budget by 20-25% before you begin shopping. Along with cutting back on big purchases, look out for smaller expenses too and see how much money you end up saving. For instance, do you really need the most expensive flowers to adorn the venue? Or do you really need five types of cuisines on every day?
- Avail Personal loans for weddings
Many times, wedding dates get fixed in a hurry, leaving very little time to plan things and take the financially-best decisions. During such times, it is best if you have access to a high amount of funds. If you do not have the required funds, you can consider taking a personal loan for your wedding. Banks and other lenders might not be able to sanction a personal loan quickly, especially if you are on a deadline, so you can explore instant online personal loans. With PaySense, for instance, you can take loans up to Rs. 5, 00, 000 and repay it over the next few months in manageable EMIs.
- Dig into saving and investment
Individuals who have responsibilities of their kids’ weddings or those who intend to pay for their wedding must invest in high-return saving plans. Systematic Investment Plans (SIPs), Fixed Deposits, Public Provident Funds (PPFs) and Gold Exchange-Traded Funds (ETFs) are some of the best investment plans that can help fund a wedding.
Personal Loans For Wedding
Everyone desires to throw a grand wedding party, but when it comes to making decisions regarding the food, decor, and celebrations, budget limitations usually hold them back. While many resorts to maxing out their credit cards or turning to their close friends and family for loans, there is yet another way to finance the wedding of your dreams.
Many people are availing personal loans for weddings to take care of all expenses big and small. Since personal loans are unsecured and can be used for any purpose, you can use it to pay for anything from the wedding outfits to caterers and honeymoon. Personal loans for weddings let you organise the wedding of your dreams and create great memories without stressing you about money. A personal loan is an unsecured loan, which means you do not have to risk your car, home or any other valuable item to get it. If you are left with spare money after the wedding, you can use it as per your preferences, unlike other loans. The rate of interest in personal loans usually remains stable, and you have the option of making early payment by paying a foreclosure charge.
Most lenders allow customers to avail of personal loans online as well. At PaySense, for instance, you can apply for a loan, upload KYC documents, sign the loan agreement and track your loan application and repayment status – all using the PaySense mobile app. Additionally, PaySense customers get the liberty to choose their own EMI amount and repayment schedule using the PaySense EMI calculator. Finally, the best part is that you don’t need to have a high credit score in order to get a personal loan from PaySense. As long as you have a stable source of income and the required documents, you can apply for a loan without any hassle.
Pros And Cons of Taking A Personal Loan For Wedding Expenses
Before you apply for a loan, keep the following things in mind:
- Fast and easy cash availability
You might need cash anytime during the planning and shopping phase of the wedding. Online personal loans for weddings get quick approval, and you receive your money quickly as well.
- Lower interest rate than credit cards
Many people use their credit cards extensively to take care of their wedding expenses, but they usually end up accruing a high burden of debt due to exorbitant interest rates. Personal loans charge a lower rate of interest than credit cards, making debt repayment easier.
- Flexibility of usage
Personal loans for weddings give you the flexibility to use the amount as and when you like it. This means you can use this money to pay off wedding vendors, as well as use it for other purposes, like paying the priest, shopping, arranging transportation, etc. If by the end of the wedding you’re left with spare cash, you are free to use it for other personal uses too.
- No collateral requirement
Personal loans are unsecured loans; hence, you do not have to provide the papers to your car or property to get the money. Knowing that you’re not risking a big asset to get a loan can be quite reassuring. It is also beneficial for individuals who do not have any personal assets to get loan approval.
- Helps build a credit score
Finally, as an added advantage, taking a personal loan for a wedding and paying it back on time could help you improve your credit score. With a personal loan, you could take a big amount of cash and then pay it back one EMI at a time. This loan will be shown in your credit report, increasing your score.
- The temptation to spend more
Not sticking to a budget, overspending or losing track of your transactions are common things when it comes to weddings. Since personal loan gives you access to extra money and lets you use the funds without restrictions, you might go overboard and get tempted to splurge, even when you do not have the capacity to do so.
- Long repayment period
Based on how much loan you take and your current repayment abilities, the loan could take years to repay. This will not be a financial burden but affect your long-term savings and financial health too.
- Higher rate of interest than secured loans
Being an unsecured loan, a wedding loan, or a personal loan for a wedding comes with a higher rate of interest than banks and other financial institutions. A high loan amount coupled with a high rate of interest could prove to be a huge financial burden in the long run.
- Heavy penalties
In addition to a high rate of interest on unsecured loans, most lenders also have high penalties and fines for late EMIs. So, every time you make a late payment or skip it, you end up with a penalty. This will not only require you to pay extra from your current income but also affect your credit score.
6 Easy Ways To Cut Back On Wedding Expenses
The best way to take care of your wedding expenses is to make wise decisions that help you cut costs and save money. Whether you choose to take a loan to fund your wedding or not, you should focus on cutting back unnecessary expenses and spending every penny wisely. Here are six ways in which you can reduce the expenses incurred at your wedding:
- Downsize your invitations
Invitation cards, as well as guests, come with their own set of costs. If you are low on budget, you could cut down on your guest list. One rule of thumb that wedding experts suggest is not inviting people whom you have not met in the past two years.
- Avoid splurging on outfits
Brides and grooms are often guilty of overspending on their wedding attire in an attempt to look perfect on their big day. Wedding outfits are special but expensive too and if you have a limited budget, do your research before making a purchase. It’s wiser to shop from upcoming designers instead of famous ones or to shop from local markets instead of malls to save on your wedding clothes.
- Go for combos and packages
Photographers, caterers, makeup artists, and even venues offer significant discounts and create special packages on request. Before finalizing your deals, always negotiate and ensure you get the best services for the best possible prices. If you have a large number of guests, it becomes easier to negotiate as well.
- Book an off-season date and venue
Getting married during the peak wedding season might sound exciting, but it is not good for your pocket. If possible, try and shift your dates to a non-seasonal wedding date. This way, all vendors will be ready to give you a higher than usual discount. Similarly, by picking your venue smartly, you can save money as well. The smartest way to save big on the venue is by choosing an off-season date to get the best discounts. You can also plan your main ceremony in a park or at a community centre that is offered at a nominal fee.
- Buffet-style dinner
Food often incurs the highest bill at a wedding. These days most venues offer PPP (pay-per-plate) scheme where they charge you according to the number of plates taken by people. You should look for places that let you pick a caterer and opt for a buffet-style dinner instead.
- Delay your honeymoon
Sure, flying off to an exotic destination the very next day after your wedding sounds romantic, but delaying it could be more beneficial for your finances. If you have splurged on your wedding, you could take some time to save some money for your honeymoon and then enjoy it guilt-free.
Thus, by making smarter decisions, you can save back on some expenses without having to compromise on your dream wedding. However, if the wedding date is around the corner and you have no time to take such decisions, a personal loan for your wedding might just be what you need. Remember to read the loan agreement, the terms, and the repayment schedule carefully before taking the loan. To know more about how to get personal loans for weddings, please get in touch with us at [email protected]
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