Weddings in the family are a great occasion of joy and celebration. However, when it comes to your daughter’s wedding the list of wedding expenses can be extravagantly long. Though you may have saved all your life for this day, there might be some expenses that surpass your budget. In such situations, it can be very stressful to manage your finances. But with a personal loan, you can easily accommodate all your planned and unplanned wedding expenses.
You can now avail an instant personal loan of up Rs. 1.5 lakh through an online loan app.For larger loan amounts, you can approach a traditional lender like a reputed bank or NBFC. They may offer you a wedding loan ranging from Rs. 50000 to 25 Lakhs.
However, before applying for a personal loan for your daughter’s wedding you must know the other options, the pros and cons of a wedding loan and the tips to avail a wedding loan at the lowest interest rate.
Using your savings for your daughter’s marriage
This is the most common approach that Indians follow to bear the expenses of their daughter’s wedding. People start saving for their daughter’s wedding right from the day she is born, some even before that. There are also many long-term investment schemes in the market that are specially tailored to meet the expenses of daughter’s wedding.
However, with the changing financial landscape of India, using your lifetime of savings for your daughter’s wedding may not be the best idea. Firstly, it may not be enough to cover all of your expenses. Secondly, using your lifetime of savings can leave you vulnerable against future emergencies. In addition to that, there are many investment schemes that offer very high returns.
However, because there is no repayment burden associated with using your savings, this is still the most preferred way of managing the expenses related to wedding.
Taking a personal loan for your daughter’s marriage
The concept of taking a loan has recently gained a lot of popularity. With the emergence of online loan app, it is now possible for you to take a loan in a very short span of time, with minimum effort and at the very attractive interest rates. Today taking a personal loan to finance your daughter’s wedding has become both a feasible and an acceptable option.
Taking a loan to finance a marriage brings on a number of key advantages. First and foremost, it allows you to keep your savings and investments intact without compromising on the wedding.
Using a loan app means that you can have the money in your hand in a matter of minutes. A loan allows you complete freedom on how, when and where you want to use the money. The only concern with a personal loan is that it does create a long tail of repayment though you can payoff the same in a year or two. Plus, you can pay off the loan by the interest income coming from your savings and investments.
Liquidating your investments to fund your daughter’s wedding
Liquidating investments was the go-to way to finance a wedding in the past. People used to sell their properties at the nick of time to afford a grand ceremony. However, this often resulted in big losses as the value of property and other investment tools increases with time.
Be it real estate, precious metals, stocks, bonds, term deposits or other savings instruments, these tools tend to grow overtime. Liquidating your investments is advantageous only when you have specially earmarked your investments for your child’s wedding.
One advantage of using your investments over a loan is that this there is no repayment burden. However, this also comes with a number of limitations. First, liquidating your investments takes time and planning. If you do not have enough time or do not plan well, you might end up liquidating investments in a loss. For some people, using investments to finance the child’s wedding comes with the risk of completely wiping out the retirement corpus.
Deciding which is the best way to fund your daughter’s wedding.
Coming now to the fact about taking the actual decision, for most people, it is best to work out a combination of using your savings, taking a loan from and liquidating your investments. Relying on only one way to fund the wedding will in most cases, neither be enough and will also put you in a position that you have to bear the full impact of the limitations of that specific source of funds.
Using a mix of these ways to fund your children’s wedding can help you accommodate your expenses with the minimum impact on your savings. This will also keep your repayment burden low.
However, before applying for a personal loan for your daughter’s wedding, you must make sure to do the necessary research. You might need to work on your credit score to improve your borrower’s profile.Choose a lender who offers you the best loan terms at the lowest interest rate and loan fees. In addition to that, have a proper repayment plan in place before availing the loan.