Over the last few years, the way weddings are celebrated have undergone a transformation! It’s no longer about the 2-3 day rituals, but a celebration, an occasion that spreads across days and even months! Events such as pre-wedding photoshoots, bachelor parties, and destination holidays have taken a center stage. The social media conscious generation is also keen to make their wedding affair, a unique experience for themselves, and an event for rest of their friends and family to remember.
There are couples who take their vows at an exotic beach while some prefer an intimate affair. Some push the boundaries to have a vegan wedding while animal lovers plan pet-friendly weddings. The desire to be distinctive is the driving force in the current times and why shouldn’t they be? After all, it’s just once in a lifetime affair!
Having said that, planning such a wedding is exciting but an equally expensive affair. Whether it’s an intimate or an elaborate affair, weddings today usually cost RS 10 lakh upwards and there’s no limit to what it can extend to. Earlier, parents sponsored the entire wedding costs but the situation is quite different now. Today’s generation is taking ownership of their dreams as well as accountability of their share of wedding expenses too! While savings may not take care of all expenses, couple are looking for other options and thankfully, there are quite a few of them available.
While there are plenty of options to choose from, here are three of the most common ones -
# Opt for a personal loan: A personal loan is an unsecured loan that is provided by a lender, based on your credit history, available assets and ability to repay the loan. You can easily apply for a personal loan at any financial institution (FI) of your choice. A good exercise is to first understand the schemes and interest rates of each FI, see if there are any special offers and assess the complete package before deciding which bank to opt for.
Banks and financial institutions typically charge anywhere between 11% - 33% interest on personal loans, depending upon the risk profile of the borrower. Personal loans are easily accessible; all you need is a good credit score, last six months’ bank statement and last three months’ salary slips along with duly filled loan application form!
# Take a specialised wedding loan: Digital lending platforms are offering specialised wedding loans, which are within the reach of every salaried millennial. These unique loans offer interest only payment for the first 4-6 months, allowing you to take it easy to enjoy the new phase of your married life and recover from the overall expenses of wedding and honeymoon! Further, there’s a minimal requirement to be eligible for these kind of loans; all you need to be, is a salaried employee earning at least Rs 30,000 per month. These loan amounts range between Rs 1 – 10 lakhs with repayment tenures ranging from 12 – 24 months.
# Credit Card : Credit Cards generally charge an interest rate of 3-4% per month. Also, they come with limits which may lead to use of multiple cards. It is advisable not to go overboard on credit card because of their convenience. Credit cards can easily lead you to a financial situation called debt trap.
Finally, whichever loan you decide to take, it’s first advisable to make a fair estimate of how much you intend to spend; have a budget in your mind, then list out everything you and your partner wish to have in your wedding, look up for suitable vendors to get an approximate pricing and then work backwards. For instance, if you love a certain videographer who is currently out of your budget, think if you both can club your bachelor vacations to bring down costs or send digital invites instead of physical copies and gifts. Once an estimate is set, the next best thing to do is to take stock of existing savings and future income to understand how easily you and your partner can pay the loan off. If there are any further adjustments to be made, they can be made at this stage. After this entire exercise, the final loan you would opt for will actually be more reasonable than anticipated, allowing you and your partner to enjoy the festivities. Take a financial aid that helps build discipline as well as makes you responsible. Now, That’s what we call the beginning of a good marriage!