A Detailed Discussion on Marriage Loan: Is it a Good Financial Decision?

Indians worldwide are known for big, fat weddings, which are a one-time occasion. One needs to have a plan for their marriage and, therefore, take care of the finances for organizing one.

Marriage is an event where not only the bride and groom come together and take a vow to stay together, but it’s also about getting the guests on that occasion and giving everyone a party to cherish and enjoy.

However, several factors need to be considered when calculating the cost of a marriage in financial terms. Most people make wrong financial decisions on these occasions, and the cost of marriage ends up consuming more than 50% of a person’s net worth.

In this blog, we will consider the facts about marriage loans and determine whether it is a good financial decision for an individual to opt for this big event.

Marriage Loan: An Option to Look For

A marriage loan is an option that is used for big fat weddings, and people must consider this before spending half of their savings on a single event. First of all the best solution is to lower the budget for the wedding and for that one needs to consider the fact that it’s important to spend as per the income.

However, suppose someone wants to follow the way of extravaganza. In that case, marriage loans are the best option, which allows an individual to cover the cost of the marriage and then follow the repayment process, which will be flexible.

Here, one might consult with a DSA partner who can find the right lender for the person and they can help the individual to get the required amount and complete the event of marriage successfully.

Things One Needs to Consider Before Taking a Marriage Loan

When it comes to marriage loans, then there are a few criteria that one needs to follow when getting the loan approved.

The first condition is one must be an Indian citizen, and along with that, they must be employed in a government or a private sector job. It allows the lender to get an idea about the borrower and find out whether they can finance this huge loan amount.

A person who is living in a Tier 1 city or Tier 2 has a better chance to take the loan amount as they are involved in some form of organized workforce of the country and thus can take on the loan and complete the marriage ceremony.

Interest Variations in Marriage Loan

There are interest variations which are there in a marriage loan, and one must find a suited lender that meets the criteria of the borrower. Typically, the loan ranges between 16% to 28% loan interest, and depending on the borrower’s profile, one needs to find a lender who can offer a loan at a lower interest rate.

How the EMI Options Will Affect Finances

The next factor is the monthly EMIs and how that can affect the overall finances of the individual. A person who needs to keep up with the expenses needs to be cautious in this phase, as the EMIs can be high, and they might need another income source.

Typically, the EMI must be covered within 10% of the monthly salary. Therefore, if the loan amount can give that flexibility to the borrower, then it will be a good financial decision for a person to go for a marriage loan without diluting the finances.

There are certain apps for DSA where one can get a loan agent, and they can calculate all these aspects to help a person get the required amount without diluting the savings.

Benefits to Take From Marriage Loan

There are certain benefits of choosing a marriage loan when it comes to making it a big event.