The Budding Custom of Taking Loans to Fund Weddings

Just picturise an Indian wedding ceremony—well-dressed bride and groom, women in colourful attire, the scent of flowers and incense, a hall full of friends and relatives, loud music in the background, mouth-watering food carefully picked from different cuisines, and much more. Many of us attend wedding ceremonies mostly for the sake of the tasty feast, agree? Now, that’s not all an Indian wedding is. 

Lately, there are a lot more things that fit within this frame. For example, the couple’s pre-wedding photoshoot in unbelievable poses in spectacular destinations that can make the attendees drop their jaws in awe! In addition to photoshoot, destination weddings are another trend you can’t ignore. I have seen people who travel to cities such as Mumbai and Kancheepuram to get the designer lehenga, sherwani, bridal silk saree. 

Such a grand wedding frame obviously comes with an expensive price tag. Traditionally, parents would save up during the whole of their adulthood for their daughter’s wedding. However, times have changed now. Millennials prefer being financially independent and take care of their wedding expenses themselves. Also, wedding expenses are no more the sole responsibility of the bride’s family. Millennials are looking at the expenses from a different perspective where both the bride and groom voluntarily share them. How cool is that!

Also Read: How Month-End Financial Stress is Affecting Millennials in India

Millennials are choosing to take loans to fund their own weddings. According to a report, the number of personal loan applications to fund weddings has increased by 30% in 2019-2020 as compared to the number of applications in 2018-2019. A majority of millennials, these days, don’t prefer resorting to their parents’ savings. Instead, personal loans are being looked upon as an ideal way to fund their own wedding expenses. 

Why go for a personal loan to fund a wedding? Many Indian banks have contemplated the requirement and have designed wedding loans for millennials. One such wedding loan is the Corp Shubha Vivah scheme offered by the Corporation Bank. Sounds interesting, isn’t it?  

Jumping into finer details of the loan, they come with an interest rate ranging from 11%-14%. However, the interest rate varies from bank to bank. When it comes to the loan amount that is generally sought after, the patterns show a range starting from Rs.5 lakh up to 25 lakh. In addition to that, getting these kinds of personal loans is easy. The documentation process is comparatively simpler.  

However, just because we are funded, it is always advisable to be a little thoughtful while planning your finances when it comes to weddings. Though you can have a blast on the wedding day, paying the EMIs thereafter may turn out to be a nightmare. Don’t you think it is absolutely necessary to be a bit more mindful while planning the expenses and figuring out the required loan amount so you can actually enjoy the ceremony?

For any clarifications/feedback on the topic, please contact the writer at apoorva.n@cleartax.in