The wedding in your family is one of the most critical occasions even in your life. You probably invite everyone you know and you’ve grown with at the wedding. It is a time when your long family flew in from all parts of the country and even the world.
All come not just to attend the wedding but to meet each other and rejoice in their togetherness. And thus, every ceremony in the wedding becomes a memory forever.
However, weddings are expensive. As per an estimate, an average Indian spends one-fifth of her entire wealth accumulated in a lifetime on a wedding. As a parent, you might be going through a difficult situation thinking about managing your finances for such a significant event in your life.
From where can you fund the wedding
To arrange for the funds required for the wedding, you can shell out some money from your savings made over the years. But, that could hurt your future financial planning. Another option is taking a cash advance on your credit card. But, it comes with a high risk, as if not repaid within the stipulated time, you are charged with a huge fee that may include an interest of as high as 40%. Given such challenges in repayment, getting funds using a credit card is not advisable.
Why take a marriage loan
Below are some of the features that make a marriage loan the best choice to fund your child’s wedding:
- A marriage loan is a loan explicitly devised to pay for wedding preparations. Marriage loans are basically personal loans, and like any other personal loan, you are qualified for a marriage loan based on your creditworthiness
- Lenders use names like marriage loans, wedding loans, bridal loans, and engagement loans to attract grooms, brides, and family members. But any personal loan can be taken to pay for a wedding
- Marriage loans can be used to pay for a wedding and are available from many different sources
- When you begin to search for marriage loan products, you would see various lenders dedicated to offering marriage loan products. Banks, NBFCs, and online lenders offer personal loans to finance wedding-related costs. Many online lenders like PaySense offer marriage loans as short term loans.
Pros of taking a marriage loan
Below are some of the advantages of taking a marriage loan:
- One of the biggest advantages of taking a marriage loan is their flexibility. Also, most financial institutions offering such credit make it easily accessible. Many loan providers take online loan applications where you get instant approval for a marriage loan from your home
- It is a misconception that interest rates for personal loans such as marriage loans are very high. The interest charged on marriage loans is dependent on many factors. You can even negotiate a reasonable rate if you know how to leverage things like a good credit score and fewer ongoing debts
- Mostly, marriage loans are available at a lower interest than credit card debts. If you have good credit, you can get a loan with an even low fixed interest rate.
- The amount and tenure of a marriage loan are flexible. So, you can plan your dream wedding without any budget constraints
- Wedding loans let you pay for almost everything related to your wedding event with a single kind of loan
- Availing of a marriage loan means you can avoid borrowing money from family members. An online lender like PaySense provides you with the funds for the wedding without any emotional strings attached. This is an excellent option for you if you prefer to avoid borrowing from family members
- A marriage loan lets you keep your savings intact for other expenses and plans like retirement or a vacation
Cons of taking a marriage loan
- The loan comes with interest charges that can be higher for you if you have a low credit score
- Taking a marriage loan means every invoice will cost more than the actual numbers going down the road. If your credit score is low, the interest rate you’d be charged can be as high as 24%
- It will require a monthly repayment for years. And adding another cost to your monthly budget can be a burden
- A marriage loan doesn’t offer payment protection. So, once you get a loan, you have to pay off the debt regardless of what happens on the day of your wedding
- Marriage loans may encourage overspending. Lenders may offer you a loan of an amount more than you had planned to spend, which might make you increase your wedding budget
So, marriage loans are good as long as you weigh all the pros and cons and decide based upon it. You can start with finding an excellent financial partner like PaySense instant loan app to take a short-term marriage loan.
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs