Marriage loan, also known as a wedding loan is simply a personal loan taken to fund a wedding. The interest rate generally starts from 10.99% and this loan can be easily repaid in convenient EMIs spread across a flexible repayment tenure.
Personal loans taken for weddings have a substantially lower interest rate than what you’d pay by charging your wedding expenses on a credit card.
A personal line of credit for a wedding is an unsecured line of credit that comes handy when you need immediate cash to meet a wedding expense.
For example, you’ve budgeted all the elements of the wedding. Later, you realise that you need extra ₹ 15,000 for an expense you’ve not accounted for in the wedding budget. Getting a personal loan would mean getting access to a large amount when what you need is just a bit. It would also mean paying interest on the full amount when your requirement was of only ₹ 15,000.
In the example mentioned above, a personal line of credit works incredibly well. You can easily withdraw ₹ 15,000 from your approved credit line and pay interest only on the borrowed amount. It is the best type of loan to cover miscellaneous or ad hoc costs as and when they arrive.
It is best to keep a ready line of credit handy for wedding emergencies. MoneyTap offers a personal line of credit of up to ₹ 5 Lakh. From your approved credit amount, you can withdraw what you need and pay interest on only what you’ve used and not on the entire credit limit. If you don’t use anything, you won’t incur any interest.
Listed below are some of the other budget wedding finance options:
- Using a Part of Your Investments: If you’ve made certain investments to build your savings to earn a better lifestyle you can use a part of that investment, especially the ones that are maturing in the near future to fund your wedding expenses.
- Fixed Deposits and Loan Against Fixed Deposit: Without breaking your FD, you can take a loan against your fixed deposit.
- PPF: You can withdraw the employee's share of contribution for the marriage expenses.
- Loan Against Property: You can take a loan from a bank by pledging your residential or commercial property at its prevailing market value.
- Asking Friends and Family: If you have tried all the above options in vain and still running short, ask your family or friends. It could be a sticky topic. Drop hints. If they don’t get the hints, just be bold and ask.