All of a sudden it seems like it is raining marriages everywhere with Instagram and Facebook statuses flooding with pictures of friends and family members getting hitched. Each wedding seems like a modern fairytale with lavish decorations, food and music at behest to celebrate the most anticipated and biggest day in a couple’s life. But as we all know weddings, especially Indian weddings are not a cheap and simple affair giving rise to the common term, ‘The Big Fat Indian Wedding’. Right from the invites to the venue for marriage, the average cost of Indian weddings cost a bomb and require thorough financial planning and assistance. This is why most people take a personal or gold loan for marriage
Credit assistance is easily available to people these days for the purpose of weddings through marriage loans in banks. A marriage loan is essentially a personal loan taken to cover either your or your loved ones wedding expenses. Many government and private banks as well as NBFCs offer personal loans for marriage.
Why take a loan for marriage?
A wedding day is something every person would have dreamed of ever since their childhood. You tend to take inspiration from all the movies watched, bridal catalogues, weddings of friends and family you would have attended and always envisioned the perfect wedding with all your near and dear ones celebrating your milestone. Though the average cost of Indian weddings cannot always be ascertained accurately due to inflation, even a low budget Indian wedding can cost anywhere from 10- 15 lakhs. This is a huge amount to save up for lower middle class and middle class families. But nevertheless, everyone deserves to have their dream wedding even if it involves borrowing a little money for marriage. This can be in the form of either personal loan for marriage or gold loan for marriage. Deciding which one to choose can be a bit tricky. In this blog we dissect the features of both personal and gold loan for marriage and help you pick the best one.
Are personal loans for marriage affordable?
Though you plan out the wedding expenses and fix a budget, sometimes you tend to exceed them and that is when you can approach for a marriage loan in banks. There are several personal loan benefits that makes it a viable option in situations of unforeseen extra wedding expenses, listed below are some of them
Loans are sanctioned easily - Personal loans require only minimal documentation like PAN card, ration card, voters ID, birth certificate, bank statements etc and hence they are sanctioned and disbursed within a few working days.
No collateral is required - Unlike a gold loan for marriage, personal loans require no collateral to be pledged as they are unsecured loans. Proof of income and your credit history is relied upon by lenders to sanction the loan
No need to liquidate any asset - Immediate methods in times of financial crisis is to sell the land, jewels, vehicles or even dig into your savings and fixed deposits before maturity. Since personal loans don't require collateral you need not forego your hard earned assets by liquidating them. This is one of the best personal loan benefits.
Is a gold loan for marriage better than a personal loan?
All loans have their own pros and cons. In the case of a personal loan, though absence of collateral looks like an advantage at the outset, the downside to it is the formidable interest rates. Since lenders have no surety as a fallback they tend to disburse loans at a higher rate of interest. Some of the benefits of taking a gold loan for marriage are:
Low interest rates - Since gold is pledged as collateral, the interest rates are low and starts at 9.90% compared to personal loans’ interest rates that start at 10.25% .
Ease of access to gold - There will be no dearth of gold jewellery especially if a wedding is approaching. There is loss in pledging a single necklace or bangles for some emergency cash needs. Moreover you will retrieve the jewellery in the same new condition once you repay the loan.
Anyone can avail a gold loan - Unlike a personal loan that is given to only salaried professionals and self employed people, gold loan can be availed by anyone irrespective of their occupation, as long as they can procure gold to be pledged.
Credit history is not scrutinised - Since personal loans are unsecured lenders rely heavily on an applicant’s credit history to sanction loans. Any late payments or loan defaults will affect your chances of availing a personal loan. However, a gold loan lender is not too strict with credit history as they hold your gold as insurance, increasing your chance of getting instant cash.
Now that we have assessed the features of both types of loans it solely depends on an individual's financial position and needs to choose the right loan. A beneficial option for loan seekers to consider is to take a gold loan at Rupeek, one of the best gold loan companies in India. With their loans ranging from Rs. 5,000 to Rs. 2 crore, combined with flexible repayment tenures, you can easily afford these loans according to your wedding expense needs. Some of the best features of a gold loan at Rupeek are:
- Highest per gram rate for your gold
- India’s first doorstep gold loan solution
- Fast, simple and easy online application
- Gold loan calculator for estimated EMI
- Cash disbursal within 30 minutes of loan sanction
The gold loan calculator is an excellent tool for users to assess their potential EMIs for the loan amount needed with the gold available. Using the above information you can make an informed decision on which type of loan is best to get money for marriage expenses. Be it a low budget Indian wedding or a fancy destination wedding, never compromise on your fantasy turning into reality due to cash crunch!