Say 'I do' to affordable weddings with smart loans
What's the story
In India, weddings aren't just events—they're full-blown festivals of extravagance. Think of the lavish arrangement that could buy a small car.
But behind the glitz and glamour lurks a harsh reality: skyrocketing costs that can drain family savings. That's where wedding loans come in. Offering quick, collateral-free cash with flexible payback options, they're the modern-day saviours for budget-conscious families.
So, whether it's a dream destination wedding or a hometown celebration, wedding loans are rewriting the script of Indian nuptials.
Basics
Understanding wedding loans
Wedding loans in India are essentially unsecured personal loans that are advertised specifically for the purpose of funding wedding expenses.
As unsecured loans, they do not require borrowers to pledge any collateral.
Financial institutions offer loan amounts ranging from ₹50,000 to ₹25 lakh, and repayment tenures can be up to five years.
Interest rates differ significantly among lenders, typically ranging from 10% to 20% based on the borrower's creditworthiness.
Criteria
Eligibility and documentation
In order to be eligible for a wedding loan in India, applicants need to fulfill specific requirements stipulated by lenders.
These typically involve being within the age bracket of 21 to 60 years and possessing a steady income stream, either through employment or business ventures.
Necessary documents usually include identity proof, address proof, income proof (like salary slips or income tax returns), and bank statements.
Options
Comparing lenders
If you are planning to take a wedding loan in India, it is important to compare different lenders before making a decision.
Consider factors like interest rates, processing fees (typically 1% to 3% of the loan amount), prepayment charges, and customer service.
Some lenders may offer special benefits like flexible repayment options or lower rates for existing customers.
Planning
Financial planning tips
Borrowing responsibly for a wedding requires thoughtful financial planning.
Couples should establish a clear budget for their wedding costs before seeking a loan to prevent borrowing more than needed.
It's also wise to start saving for the wedding well in advance and only borrow what can be comfortably repaid without burdening their future finances.