Introduction:
Planning the perfect wedding is a dream for many, and now, more than ever, couples are taking the reins of their special day’s finances. The rise of ‘Marry Now, Pay Later (MNPL)’ schemes and wedding loans among millennials is catching on, showcasing financial independence and thoughtful decision-making. However, before diving into the world of wedding financing, it’s crucial to understand the ins and outs of these arrangements.
The Trend and Choices:
A significant shift is observed with millennials steering away from traditional ways of funding weddings. India Lends Wedding Spends Report 2.0 reveals that 41% of couples planning to self-fund will use savings, 26% are open to personal loans, and 33% are undecided. For those considering borrowing, 68% aim for amounts ranging from Rs 1 lakh to Rs 5 lakh.
Critical Considerations:
Before embarking on the ‘Marry Now, Pay Later’ journey, it’s imperative to grasp essential terms such as interest rates, loan amounts, and repayment schedules. Borrowing should ideally cover necessary expenses, steering clear of unnecessary financial stress caused by funding extravagant celebration elements.
Gaurav Chopra, CEO of IndiaLends, emphasizes the significance of this trend, noting, “The trend of self-funding weddings highlights a sense of financial independence and conscious decision-making. Moreover, 26% of these individuals choose the option of loans, challenging the long-standing taboo associated with wedding financing.”
MNPL Schemes:
Apart from traditional wedding loans, MNPL schemes like the one launched by SanKash are gaining popularity. Partnering with hotels, these schemes offer a ‘pay later’ option for services like food, venue, decoration, and trousseau. The response has been overwhelming, with queries worth Rs 8 crore pouring in within a week of launch in Delhi’s National Capital Region (NCR).
Loan Options:
Financial institutions like SMFG India Credit and SBI are providing personal loans tailored for weddings, with interest rates starting from 11.99% and 10.55% p.a., respectively. It’s crucial to understand the factors influencing interest rates, such as credit scores, employment nature, and existing relationships with the lender.
While the concept of ‘Marry Now, Pay Later’ reflects changing attitudes toward wedding financing and financial independence, a word of caution is essential. Understanding the terms and borrowing responsibly will help avoid unnecessary debt. Balancing the joy of celebrating special moments with wise financial management is the key to making your big day truly magical without compromising on your financial well-being. Happy planning!
Link for Opening a Free Account in FundzBazar
Disclaimer:
The content provided in this article, blog, or post (hereinafter referred to as “post”) reflects the personal views and interpretations of the author regarding the relevant laws and statutes. The author does not assume any responsibility or liability for any loss, damage, or consequences arising from the use of this information, nor for any actions taken based on the content presented.
Furthermore, FinanceBox.co.in and its members expressly disclaim any liability, obligation, or responsibility for the opinions, interpretations, or conclusions expressed by the author in this post. Users are advised to consult with qualified professionals or experts before making any decisions based on the information provided herein. The content is intended for informational purposes only and should not be considered as legal, financial, or professional advice.