Getting married? Read this guide on jewelry financing options
What's the story
In India, weddings are extravagant affairs, representing not only the union of two individuals but also a showcase of culture and economic prosperity.
Jewelry, particularly gold and diamonds, forms a significant part of this investment.
This article delves into the best financing options in India for effectively managing the expenses associated with engagement and wedding jewelry.
Gold loans
Understanding gold loans for jewelry purchase
Gold loans are a popular option in India, enabling families to utilize their gold holdings by pledging the gold in exchange for a low-interest loan.
This allows you to leverage the gold you already possess without the need to sell it.
Interest rates are significantly lower compared to personal loans.
Flexible repayment options, with tenures ranging up to several years, help manage your finances better.
Personal loans
Personal loans: A versatile option
Personal loans are the answer for those without gold assets or who'd rather not pledge their precious treasures.
In India, many banks and financial institutions offer personal loans specifically designed for wedding expenses, including jewelry.
Interest rates range from 10% to 15%, depending on the lender's policies and the borrower's creditworthiness.
Repayment tenures can be as long as five years, which means you can manage your finances pretty well post-wedding.
Jeweler financing
Jeweler financing schemes: Direct approach
Several jewelers in India have collaborated with banks and non-banking financial companies to provide equated monthly installment schemes directly at the point of purchase.
These plans typically feature zero or low processing fees and attractive interest rates.
Some jewelers even extend zero-interest options provided repayments are completed within a short timeframe after the purchase.
This eliminates the hassle of coordinating with banks separately, making it a convenient option for buyers.
Credit cards
Credit cards: Rewards and instant credit
Credit cards provide instant financing for jewelry purchases, plus perks such as reward points and cash back.
Some issuers offer EMI conversion options on big-ticket buys, letting you spread the cost over several months or even years.
Just watch out for those high interest rates once the honeymoon period of zero interest is over!
Savings schemes
Savings schemes: Planning ahead
For those planning their wedding in advance, jeweler savings schemes are beneficial. You can make monthly payments that will later be credited toward your jewelry purchases.
Some schemes provide bonuses, contributing one or more installments on your behalf after a set duration.
This encourages disciplined saving and guarantees you have the funds when required, preventing the need for last-minute loans.