How Personal Loan Helps in Destination Wedding

How Personal Loan Helps in Destination Wedding | Unity Bank

Personal

5 min read | 5 months ago

An Indian destination wedding can be a significant financial investment, with costs ranging anywhere from ₹20 lakhs to several crores. The wide variation in expenses is largely dependent on the specific preferences and budget of each family. The expenses can rise even further if you love extravagance. Whether it is months of meticulously planning every detail or years of dreaming for that one perfect day, you don’t want to compromise on anything. It may not be wise to lose all your liquidity right before entering a new phase of life. Moreover, you wouldn’t want to liquidate all your investments or savings, since you will need financial security to start planning for the future. This is where a personal loan can come to the rescue. Read on to learn how.

Cost Considerations for a Destination Wedding

A wedding is more of a cultural affair in for Indians. It involves a plethora of expenses, and you have additional the responsibility of keeping everyone happy. And when it is a destination wedding, there is added pressure to not miss out on anything and even plan for emergencies. For example, here’s all that you’ll need to take care of for a destination wedding and how much it could cost you:

Stays: upwards of ₹5,000 per room

Venue and decorations: Approximately ₹5 lakhs per function

Dresses: Minimum of ₹1.5 lakhs (that’s only 3 functions)

Food: ₹2,500 per person per day

Makeup: Starts at about ₹30,000 for the bride and ₹10,000 for guests

Activities: ₹10,000 per day (after all, the guests will need to be entertained even while no function is going on)

Wedding Favours: Minimum of ₹1,500 per gift

Videography: ₹1,000,00 per event Travel (to and from the destination): Depends on the location

Honeymoon: Depends on location and number of days

The expenses could go on and on, such as jewellery, footwear, etc. Anticipating all expenses can be daunting and the bills can easily surpass expectations.

How a Personal Loan Can Help

Taking a personal loan for the wedding and/or honeymoon offers several advantages, such as:

Manage Cash Flow

You do not have to take cash out of your savings, get an extended loan from your place of work, or empty your investments. A personal loan gives access to credit immediately, which you can repay according to your financial planning for the future.

Restriction-Free End Use

You can use the money for anything you need. Whether it is paying for the “band, baja, baraat” or getting that wedding look on point. You can use it for catering, decorations, jewellery, and even the honeymoon, if you like. With cash in hand and a clear upper limit, planning becomes easier.

Hassle-Free Application and Quick Disbursal

Getting a personal loan is hassle-free. You only need to submit your identity proof, along with the address and income proofs. Leading banks disburse loans instantly if you apply online. Many even have personal loan offers for special occasions that can help you save on interest payments.

Boosts Your CIBIL Score

Even if you do not need a personal loan to fund your wedding, paying EMIs on time can boost your CIBIL score (the credit rating followed in India). This can be of help in the future when you decide to take larger credit for a family car or a house. A good CIBIL score positions you well to make the most of personal loan offers in the future too.

Conclusion

According to IBS Intelligence, 11 lakh personal loans were applied for in India to meet wedding expenses in 2021 alone. While a big fat Indian wedding is not always the dream, young couples increasingly feel that they should not drain their parents of their lifetime savings for a wedding. Therefore, they need a personal loan that the couple can plan to repay together after marriage through strategic financial planning. A fixed capital also helps you stick to a budget.

Personal loans are easy to apply for and quick to be approved. Moreover, since a wedding is not an emergency, you have time to wait for the best offers on personal loans. A great way is to plan for EMIs is to consider all your living expenses after marriage before finalising the loan amount. This way you do not have to worry after the wedding either. Also, consider whether the interest rate is floating or fixed, and whether foreclosure is possible, since these can help you plan better. All these will depend on your lender, as the specifics vary from big national banks to small finance banks. If you don’t spend the entire loan amount, which can be difficult, the first few EMIs might be covered effortlessly through this saving. As with all types of financial agreements, carefully understanding the terms and conditions of the loan is the best way to avoid any confusion or surprises at a later stage.

FAQs

1. Should I take a personal loan for marriage?

While it is your decision, you must assess your current savings and financial standing to ensure that you do not lose on your emergency funds while spending on the wedding. A personal loan is a great way to protect your savings for the future.

2. Why do people take loans for marriage?

People who like to plan their finances can take personal loans for anything they need since there is no restriction on the end use. Indian weddings are expensive. Personal loans can help here since you do not have to pledge any assets as collateral. Moreover, they offer flexible EMIs and payment tenures.

3. What is the meaning of a wedding loan?

A wedding loan is a type of personal loan that you can use to meet marriagerelated expenses. It is a financial product to help individuals manage wedding and honeymoon costs. Anyone, including the bride, groom, or their families, may take a personal loan for a wedding.

4. Is there any benefit to taking a marriage loan?

You need a personal loan for marriage if you do not want to lose all your savedup capital and liquidity in one go. Relaxed eligibility criteria, effortless application, and quick disbursal make them an easy choice.

About Unity Small Finance Bank

Unity Small Finance Bank is committed to making banking simpler and more accessible for everyone. Our services include Savings Account, NRI account, Current Account, Fixed Deposits, and Personal Loans offering flexible tenures and attractive interest rates. We also offer financing options like MSME Loans and Microfinance to support businesses and underserved communities. Learn more about Unity Small Finance Bank here.