Previously considered recession-proof, the wedding industry in India was appraised at $50 billion in 2017 by KPMG, as per a report published in Livemint.
Weddings in India are nothing short of a festival. The celebrations branch out for days and are massive, both in terms of scale and fanfare. As a result, the expenses associated with a wedding can also become insurmountable, if borne out of one’s savings.
But, does that mean you will have to cut back on your wedding costs and settle for a humble affair for your special day?
Of course not!
With lending institutions in India making finance for weddings readily available, you can easily apply for one to make this special event worth remembering, with no expenses spared!
For instance, most individuals choose to opt for a personal loan from any of the leading financial institutions to fund their wedding expenses.
But is it the best option available?
To help you decide, following is a handy guide on availing a personal loan for your wedding, and alternative options to look out for to reap the maximum benefits!
Merits of Personal Loan as a Comprehensive Option to Fund Weddings –
There are several factors that constitute the costs incurred at a wedding. These include the venue, number of guests, food and beverages, and of course expenses on apparel, jewellery, and other such miscellaneous aspects.
Factoring in all the above costs, an average Indian wedding can cost somewhere between Rs.10 lakh and Rs.15 lakh. These expenses can even go up to Rs.1 crore depending on the extravagance with which the different rituals in a wedding are planned and celebrated.
Now, when it comes to availing finance for wedding, personal loans make for one of the most popular options, given the plethora of benefits they offer. These include –
- These are unsecured, big-ticket funding options, which can make it easy to finance diverse needs with ease.
- They are available against an affordable rate of interest, which helps to ease the repayment burden on borrowers.
- The tenure for such loans can extend up to 5 years, offering borrowers ample time to repay their advance conveniently.
However, availing a personal loan can present a few hassles as well. For instance,
- Since it is an unsecured loan, lenders take a close look at the borrower’s credit history before deeming them eligible to avail the advance.
- Before approving a personal loan as finance for marriage, lenders gauge the applicant’s ability to repay the borrowed amount. It can involve a lengthy documentation process, wherein you might have to submit your income proof and other such requisite documents.
As a result, even though personal loans can be handy for financing a wedding, they come attached with several conditions, which can limit their accessibility, utilisation and management.
Alternatively, you can opt to avail a gold loan as suitable finance for wedding, and optimise your benefits from it.
Why Should You Consider a Gold Loan for Financing a Wedding?
Over the last few years, gold loans have gained popularity as a suitable solution for availing funds. With the emergence of online lending platforms like Rupeek Fintech Pvt. Ltd., the process to avail the loan has only been streamlined.
With several features, a gold loan can effectively help you raise a substantial amount to fund a wedding.
Following are a few benefits that you can enjoy if you avail a gold loan that can help meet wedding expenses with ease.
- Avail the highest loan to value
Loan to value or LTV signifies the percentage of your asset’s total value that you can avail as a loan at maximum. For instance, the value against gold is calculated by –
Value of gold = Net Weight X Per Gram Rate X Purity
LTV is a percentage of this total value of the gold you pledge that a lender can provide as loan. With this lending organisation, you can get the highest LTV, at the most competitive interest rates, to help you finance a wedding easily.
- No end-use restrictions
The loan amount you avail against your gold does not impose any restrictions regarding its utilisation. You can use the amount to book a venue, arrange catering and decorations, and fund any other requirements as deemed fit.
- Doorstep availability of the loan
With Rupeek, you can avail the loan without leaving the comfort of your home. You will simply need to make an online application through the lender’s app or website. Next, a loan manager will be appointed to visit your house and complete formalities like gold valuation and KYC registration. Thereafter, if everything is in order, the loan will be approved and disbursed.
- Fastest disbursal
Require funding in times of an emergency?
Well, you can avail this gold loan instantly, with gold valuation up to disbursal completed in less than 30 minutes!
After your loan is approved, the amount will be disbursed to your account instantly, allowing you to avail the funds without delay. Furthermore, the loan manager appointed to your house will only leave with your gold after you receive the amount in your bank account.
- No stringent eligibility criteria
You do not need to worry about the marriage loan eligibility criteria, as a gold loan does not require you to have a high credit score, neither does it mandate a complicated documentation process. Instead, you can make your asset (gold ornaments or jewellery) work for you to raise necessary finance without any erosion in their equity.
- Security of your asset
With Rupeek, you do not need to worry about your pledged gold’s safety because the measures adopted by them can guarantee complete security of your assets. These measures include –
- After the loan is disbursed, your jewellery is collected in a GPS-trackable bag for transportation.
- It is then deposited in the nearest partner bank’s safety vault located within 3 km until complete repayment.
- In the meantime, the gold remains insured, without you having to bear any additional cost for it.
- Convenient repayment
Repaying this advance is simple, as because it requires you to pay only the interest amount each month, instead of a regular EMI. The principal amount availed is repaid through bullet payment at the end of the loan tenure. Or, the entire repayment liability can also be deferred until the tenure ends, and be paid at once.With such benefits, a gold loan is the most suitable option to avail finance for wedding. Nonetheless, it is crucial to set a budget for your wedding beforehand, to make sure that you avail only as much amount as you require, without overspending. It will also make for efficient financial management.