Why You Should Take a Personal Loan for Marriage?

"Should I take a loan to fund my wedding expenses?" is a popular question that brides and grooms ask themselves while finalising their budget for the wedding ceremony. Marriages in India are a lot about pomp and show, not to forget about the celebrations that get kickstarted a week before the actual marriage solemnisation ceremony.

Extravagant and sumptuous, Indian weddings are a sight to behold. Pompous celebrations amounting to lakhs of rupees can have a depleting effect on your savings. To ensure that lack of money does not take out the fun and flavour of your marriage ceremony, you may take a personal loan. Also called marriage loans, these kinds of loans are taken when you need money to pay for your wedding expenses.

Benefits of taking loans for marriage

While you contemplate the pros and cons of taking a loan to fund your wedding festivities, the following points will help you understand how the ease and flexibility of personal loans can aid your wedding celebrations.

Easy application: Personal loan applications can be done online, which means that you do not have to go through the hassle of going to branch offices and meeting them in person. Either log on to the lender’s site or open the app to fill the loan application form. Scanned copies of the listed documents need to be attached for approval. However, before applying for the loan, check the personal loan eligibility calculator to know the maximum amount that you can borrow. If you are looking for a bigger loan amount, you may visit the lender’s branch and apply for the loan in person.

Basic documentation required: The loan application process does not involve any lengthy or detailed submission of documents. Borrowers eligible to apply for loans have to simply submit their identity and address proofs along with copies of the salary slips received over the past three months. The self-employed can submit a copy of their bank statement showing the transactions made over the past three months.

Quick approval: Many banks and financial institutions advocate seamless and early disbursal of personal loans. Once you have applied for the loan, filled in the necessary details in the loan application form and submitted requisite documents, lenders take a maximum of 72 hours to credit the money into your account. The process is faster if you are seeking a pre-approved loan from a bank with which you have your savings account and deposits already.

No collateral required: Unlike many other loans like home loans or car loans taken, you do not have to offer any security for the personal loans sought. This means that the lenders do not seek any collateral or asset to secure the loan amount. Zero collateral ensures that the processing and disbursal of the loan are easier and faster.

Choice of expenses: Lenders do not inquire about the purpose for which you are seeking the loan. This means that you are free to spend on any part of the wedding ceremony including the purchase of jewellery, assembling a bridal trousseau, paying for the decorations, ordering the best catering service in town, etc. With the loan amount credited into your account, you are free to use the money in any way you like.

Online account access: The digital mode ensures that you remain updated on your loan information. Lenders allow you online access to your loan account wherein you can view the amount that has been spent, list of debits, repayment schedule and the remaining amount to be used for the purpose for which you had taken the loan.

Easy repayment: Lenders giving personal loans make way for easy repayment of the loan amount. This is because you can choose the loan repayment period over which you would like to repay the entire amount. Most loan tenures are between one and five years. To gauge the amount of interest that you would be required to pay, you can use the personal loan EMI calculator available online. Moreover, you may choose your mode of interest payment. You may either opt for the flat rate method or choose the reducing balance method depending on your choice of payment mode. Loan repayment schedules can be personalised depending on your income, regularity of cash inflow and financial goals.

Shields your savings and deposits: Imagine having to dig deep into your savings or encase your existing assets to pay for your wedding ceremonies. While marriage is an important facet of life, spending away all savings will only make you financially vulnerable in the face of sudden emergencies. Also, redeeming your fixed deposits prematurely means that you must pay penalties on the same.

The maturity amount earned will also be much lower than what you had anticipated while investing in your deposits. Taking a personal loan means that you can avail your requirement of the loan amount and repay it at your ease without having to liquidate your hard-earned savings and deposits.

I am Rahul Kumar, a professional Financial Analyst. I have done MBA in finance and worked in various finance organisations. I have five years of working experience and I am also fond of writing about personal financing.