Tuesday, November 20, 2018

How to Utilise your Savings and Marriage Loan to Fund your Dream Wedding


An Indian wedding is a week full of festivities that usually begins with a sangeet, a mehendi ceremony, a possible cocktail party and ends with the actual wedding day; which could also be a two-part celebration, involving a ceremony and a reception party.
Each of these celebrations calls for expenses ranging from venue costs, caterers, décor, clothes, jewellery and a lot more. Even if you skip a day or two out of this festivity mix, you’ll still need a well-planned budget to fund the whole affair.
Planning for a wedding
Marriage is a big part of a typical Indian family’s saving plan. Parents often start saving for their children’s wedding much earlier in life. Pulling off a grand wedding is a matter of prestige and reputation for a family.
In addition to your parents’ plan, having your own savings will help budget your wedding better. No wonder, most of us are advised to start thinking about a wedding savings plan as soon as we start earning.
Saving and investing early ensures that the power of compounding will amplify the returns later and build a substantial corpus for the big day budget.
Despite all this, weddings end up costing more than you would have anticipated at the beginning. There could be a bunch of additional costs that could come your way. These could include an extended guest list, last minute wedding favours and more.
You can accommodate all those extra expenses that go beyond your savings by taking a marriage loan.
Utility of a marriage loan
A Marriage Loan is a type of personal loan offered specifically to meet your marriage expenses. Instead of resorting to borrowing money from friends and family at the last minute, you can count on a personal loan for marriage.
Here are a few good reasons to consider a marriage loan
         The application procedure is simple and needs very little documentation.
         Anyone can apply for it
         Your loan could get sanctioned fast to fund your emergency wedding expenses.
         A personal loan for marriage is an unsecured loan. You do not have to pledge any assets as collateral.
         You can use the wedding loan to fund any aspect of the marriage, from the actual wedding to the honeymoon.
Things to keep in mind when taking a marriage loan
Interest rate: The interest rate is the most important factor when taking any kind of loan. A high interest rate will affect your total wedding budget. Don’t just opt for the first personal loan you come across for the ease of money.
Tenor: The tenor you pick affects your finances too. Higher the tenor, lower will be your monthly EMIs, which means you’ll be paying more interest for each additional month. However, lower the tenor, means your monthly EMI will be high but you can pay off your loan faster without paying the extra interest that comes with each subsequent month. Use a personal loan EMI calculator to find out which EMI plan suits your monthly budget better and then pick your tenor.
Loan Amount: A personal loan gives you quick finances but don’t go overboard with it when applying for a loan amount. Budget your expenses and only apply for the amount you’ll need. Remember, you’ll be repaying the loan and the interest after the wedding and this could further burden your post marriage finances.  
Hence, smart investments and savings are a good way to raise money for dream wedding with marriage loan. In addition to that, a personal loan can be used to cope with additional wedding expenses you had not accounted for. They are quicker and easier to obtain, compared to other conventional loans.

Author: verified_user