5 key reasons for raising personal loan to organise a wedding | Mint

Weddings are an important occasion in everyone’s life. A typical Indian wedding is usually a grand affair wherein not only you take the relationship to another level but also spend a lot of money on it.

What if you do not have sufficient money at your disposal? From where can you raise the money to organise the function? You can raise a personal loan.

Although this is not the best option to go for, it is certainly one of the options. Yes, you can borrow a small loan from a bank or a non banking financial company (NBFC) and repay it later. These are some of the reasons for which raising a personal loan for organising a wedding is not disingenuous.

Key reasons to hold a wedding with the loan money

1. It’s the time that matters: Sometimes it is important to raise the money immediately because it is an urgency of sorts. You, obviously, can not afford to postpone the wedding. The marriage has to take place on a particular day only.

The other alternative of having to save money over a period of time so that you can pay at a later stage does not exist for you. Therefore, it is convenient to raise the personal loan now.

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2. To ease the large burden: Typically, a marriage requires a lot of money. This could be as large as ₹20-30 lakh or even large. When you raise a loan, you can repay in smaller doses while you need the money in lumpsum. So, this will make good financial sense for you to raise a loan now, so that you can easily repay in smaller tranches.

3. Unavailability of other options: Although you could use your fixed deposit, raise short term credit from a friend or even sell some gold jewellery if you have. but what if you do not have any other option as of now. For instance, either you have exhausted your fixed deposit receipt or you didn’t have one.

Additionally, you are not comfortable asking a friend for a loan. So, in this case too – you could rely on a personal loan.

4. Healthy credit mix: When you are a credit card user, and use it heavily for buying merchandise, you could use a personal loan for a healthy credit mix. This is considered good for your credit score.

5. To meet the shortfall: There could be another situation wherein you have managed to organise the wedding on your own but are falling short of money by ₹one lakh or two.  So, instead of cutting the corners, you could raise a personal loan and organise a nice wedding function.

(Note: Raising a loan comes with its own risks. So, due caution is advised)