Marriage in India is a grand event. Expenses quickly pile up from venue bookings to outfits, jewellery, food, gifts, and travel arrangements. While many families save up for years, unexpected costs often arise. In such cases, a personal loan can help manage wedding expenses without breaking long-term savings or investments.
But before you apply for a loan, it’s essential to understand how it works and what you should keep in mind to avoid future financial stress. Personal loans may look simple, but certain conditions need brilliant handling. Here’s a complete guide for anyone considering a wedding loan in 2025.
Personal Loans Are Easy but Costly
Most banks and NBFCs (Non-Banking Financial Companies) offer personal loans for weddings. These loans are unsecured, meaning you don’t need to give any security or collateral. You can borrow anywhere between Rs. 50,000 to Rs. 30 lakh, depending on your income and credit score. Some lenders may even offer more.
Since no security is involved, interest rates are higher than home or gold loans. The interest rate usually ranges from 10% to 15% annually, but it may go even higher based on your credit profile.
1. Always Compare Interest Rates Before Applying
Never take a loan in a hurry. Interest rates vary from one bank to another. Some NBFCs may offer loans with quick approval but charge higher interest. Before applying, check and compare interest rates on various bank websites or loan aggregator platforms. Even a 1% lower rate can save you thousands in the long run.
2. Borrow Only What You Need
Let’s say you’re eligible for a Rs. 20 lakh loan, but your actual wedding expenses are Rs. 6 lakh. Don’t fall into the trap of taking more than required. Extra money means extra EMI and more interest. Always make a budget and borrow just enough to cover the gap between your savings and your total expenses.
3. EMI Should Fit Your Monthly Budget
Once the wedding ends, your expenses will continue—new home, furniture, family travel, and daily costs. That’s why keeping your EMI within 30% of your monthly income is essential.
If your monthly salary is Rs. 60,000, your EMI should ideally not go beyond Rs. 18,000. Stretching beyond this limit may affect your savings and create problems in emergencies.
4. Try to Repay the Loan Early
Personal loans are costly due to high interest. So, if you get a bonus, incentive, or cash gift, use it to pay your loan partially. Many banks allow prepayment or part payment without penalties after 6 or 12 EMIs.
Early payment helps reduce the principal and the interest, which means your loan gets closed faster, and you save a good amount of money.
5. Never Miss Your EMI Payment
Loan repayment discipline is essential. Even one missed EMI can impact your CIBIL score, which is your credit record. A bad score will reduce your chances of getting any loan or even a credit card in the future.
Banks report your loan behaviour to credit bureaus every month. Timely payments help build a strong credit profile, which allows you to get bigger loans at better rates.
Tip: Use auto-debit or set reminders for EMI due dates to never miss a payment.
Final Advice for Couples Planning to Take a Wedding Loan
- Always calculate the total cost of the loan, including interest, processing fee, and other charges.
- Ensure your job or business income is stable for 2–3 years before taking a big loan.
- Keep a backup fund for at least 3 EMIs in case of emergencies.
- Read all loan documents carefully, especially clauses on prepayment and late payment.
- Take help from a financial advisor if you’re unsure about your EMI planning.
A wedding is once a lifetime, but a loan stays for years. Make your celebration joyful without putting your future under pressure.
Source: Navbharat Times
