Smart ways to finance a wedding as a salaried professional

Indian weddings not just bring excitement & nervousness, but also a lot of expenses. There are a lot of things to focus on at a wedding. You are going to tread a new aisle in your life, and during this time, no financial burden should create friction in your journey. Thus, it is always a good idea to get financially prepared before the big day. It helps you get enough time to save and figure out different financing options. In this article, we will explore the various financial options available to finance a wedding, either your own or your family members'.

Common Ways of Managing Finances in a Wedding:

Before planning a wedding, you must be aware of all the relevant financing options available today. There are different features of these financing options that you can compare, i.e. their benefits and downsides. Here are some of the common financing models:

1. Savings and Investments:

The first financing option that comes to mind is utilizing your savings and investments. These can include recurring deposits, fixed deposits, mutual funds, and other investments. Though they are the safest bets, you should also consider whether the return on these financial assets is comparable to the interest that you have to pay if you take a loan.

2. Personal Loan:

A personal loan can be the best option for managing the finances of your marriage or wedding. It helps you spread the amount into flexible EMIs. If you have a good CIBIL score, then you can easily get a personal loan. The personal loan for a wedding is easy to apply for and offers quick disbursements. Furthermore, you don’t need to pledge any collateral for a personal loan for a wedding. 

You can choose the repayment tenure as per your suitability and income. 

3. Family-backed funding:

There is emotional value attached to a wedding. Thus, most Indian families, including parents and close relatives, will financially support the wedding.

Why Salaried Professionals Prefer Personal Loans for a Wedding?

There are multiple reasons why salaried professionals prefer Personal loans for weddings:

1. Maintain Long-Term Savings:

Most salaried professionals have been building a corpus for purposes such as buying a home, emergency funds, and retirement. Thus, they invest in SIPs, FDs, Stocks, etc. These investments grow with time. Thus, they don’t prefer to liquidate their investments and opt for personal loan installments.

Their “safety net” remains intact while they also manage wedding expenses through monthly cash flow.

2. Convenience of Online Personal Loans:

In today’s time, you don’t need to visit banks or other financial institutions multiple times to get a personal loan. With online apps like Rupee112, you can easily get funds in your bank account. They offer “pre-approved” personal loans that you can get in a few minutes.

The process is completely paperless. You just have to share essential details on the app, salary records, and KYC. The process is completely digital, requiring zero physical visits.

3. No Collateral Required:

Unlike any other loan type, you don’t need to pledge collateral for a personal loan, as it is an unsecured loan. Thus, it is a viable way to borrow a large sum of money for wedding expenses.

4. All Purpose Flexibility:

Personal lona gives you high flexibility over the usage. You can use funds for anything like a venue deposit, jewellery, a honeymoon, or a post-wedding home setup. 

Things to keep in mind while applying for a Wedding Loan:

There are multiple factors that you must consider before applying for a personal loan for a wedding:

1. Comparison of Rates and Costs:

You must check the different interest rates and borrowing costs offered by different lenders.

2. Repayment Planning:

Decide the tenure of repayment in such a way that the EMIs are in your monthly budget. If the tenure is short, the EMI amount will be higher, and if you take a longer period, you will have to pay much higher interest.

3. Plan the Borrowing Amount:

You must borrow only the amount that you actually require. Borrowing more than the required amount wouldn’t be a smart move.

4. Check the Fine Print:

Before finalizing the loan, understand all the associated charges.

Key Takeaways:

As you move towards your wedding day, you will realize that adequate funds will also play an important role, and these funds shouldn’t disrupt the balance of emotions and expectations. A dream wedding doesn’t need to be stressful to fund. Whether you use your savings, take out a personal loan, or borrow from your family, the key is to plan early and borrow smartly.

At Rupee112, we provide you with personal loans for weddings without any friction or hiccups. You don’t need to pledge any collateral, and you can get instant funds in your accounts. We provide funds from the comfort of your home, and you don’t need to make a physical visit. Just a few taps on the screen, and the amount is in your account.