Are Personal Loans a Good Way to Cover Wedding Costs?

Your wedding day is one of the most awaited days in the lives of most people. The day marks a paradigm shift for both the partners as life shifts from carefree phase to one of mutual care. There is also an endeavour to make it the best day of one’s life. Apart from this, marriages are a great reason for us to meet the near and dear ones and celebrate with them. Additionally, weddings in India are a big affair and costly too.

It is a general tendency that people spend lavishly on their weddings often overshooting their wedding budget and savings. However, in order to not have long-term debt, it is crucial to be wise while planning a wedding budget.

personal loan wedding

Planning for Wedding

It helps to start saving for your marriage as soon as you start earning. As they say, “tiny drops of water make an ocean”, similarly small but consistent savings help you create a decent corpus for your dream wedding. In case of parents, start with saving for your child’s wedding from a young age. This will ensure that the power of compounding gives amplified returns in the later years and builds you a substantial corpus.

What if one has already missed saving?

Let us also discuss in case someone misses saving for wedding. While it may seem like a lost opportunity, such situations can still be handled by careful and judicious financial planning. One can take a personal loan to finance the wedding, however, the key is in deciding how much loan one must take.  The loan amount must not be so high that you end up in large debt for years. There is no end to the amount of money required but spending according to one’s means can help you stay sorted in your financial life.

While deciding about the quantum of loan to be taken, do consider your monthly inflows (in the form of regular salaries/ incomes etc.), your monthly expenses (also factor in higher expenses after marriage) and your regular loan commitments (in the form of EMIs) etc. It will be judicious to have only that much additional monthly commitment for the repayment of the loan as much as your existing income allows.

Utility of Personal Loans

Personal loans come in handy when you are planning your wedding. Since personal loans are unsecured in nature, banks are cautious in sanctioning such loans. For them, the primary criterion is your monthly income. They also consider your track record with your existing loans, your monthly commitments and also your outstanding loan amounts. They also take into account your repayment record, for which they get the necessary information through your credit report and credit score.

Sometimes the Personal loan offered is at higher interest rate as it is not against any collateral. Personal Loans definitely are a good way to help you out with wedding expenses that you had not accounted for. Personal loans are quicker and easier to get compared to other conventional loans and help those who have no collateral to offer.

You can opt for a personal loan, depending upon your need and current salary. If you have a good monthly income, you can even ask for larger installments. This helps you repay the loan quicker. Alternatively, you can even choose smaller EMIs and a longer loan term.

MoneyView App offers quick and easy personal loans

MoneyView App now offers its users collateral-free personal loans within hours. A user can apply for a loan of an amount ranging from Rs. 25,000 to Rs. 2,00,000 and get it within 2 business hours of loan approval. It benefits the user in terms of being transparent, quick, personalization of the loan and staying paperless. Check out how to get Personal loan on MoneyView App.

It always helps to be prudent with your finances and also staying within budgets. Even when you consider taking a personal loan to cover the wedding costs, make sure you don’t overstep the fence in lure of easy money. It is indeed a loan after all. Stay financially fit with these financial mantras.

Meghana Suresh

In an ideal world, Meghana would spend all her days curled up with a novel. But she found the next best thing and is enjoying her stint as a content writer at moneyview trying to help others understand the nuances of all things finance.

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