How Should You Plan a Personal Loan for Weddings in India?


  • Have savings but feel that won’t be enough for the wedding? Think of a personal loan too!
  • Read here the plan using the combo of loan & savings for a memorable wedding experience!

A wedding is not only the unison of two souls but also the unison of two different families with different cultures and set up. What makes weddings memorable is how they are carried out before a packed banquet hall with numerous guests from both the bride and bridegroom sides. All that costs, isn’t it? An average Indian wedding can come with a cost of around INR 12-20 lakh.

Yes, we all save to ensure we celebrate D-Day with elan. But the constantly increasing expenses of daily life make all those savings inept to handle the tall wedding amount. This is where personal loans come to your rescue! Banks offer attractive interest rates on your loan to make wedding costs come easy to your monthly loan obligations.

Apply Personal Loan @ 10.75%* Rate

So, how should you go about it – which bank shall you consider, the amount of loan you look for, and much more. Read this post entailing all critical information in this regard.

How Should You Go About Selecting the Best Bank to Get a Personal Loan for Weddings in India?

You first need to check the savings you have accumulated so far. The savings will greatly dictate the loan you will be asking for. Next up is the interest rate which should be low enough to curtail the monthly obligations i.e. Equated Monthly Installment (EMI). The one-time, non-refundable processing fee has to be much lower so that the net loan disbursement is on the higher side, allowing you to spend more. You need to evaluate all these aspects across different lenders before choosing the one that offers you the best deal.

Best Banks/NBFCs to Avail a Wedding Loan from

BanksInterest Rate (In Per Annum)Processing FeeMaximum Loan EligibilityMaximum Loan TenurePrepayment Charges
State Bank of India (SBI)11.00% - 14.00%NIL-1% of the loan amount plus GSTUpto 10 LakhUpto 6 YearsNIL
HDFC Bank10.75% - 14.50%NIL-2.50% of the loan amount plus GSTDepends on your credit score, repayment potential, income, etc.Upto 5 YearsNIL-4% of the outstanding balance plus GST
ICICI Bank10.75% - 19.00%999-2.25% of the loan amount plus GSTUpto 40 lakhUpto 5 Years5% of the principal outstanding plus GST
Bajaj Finserv11.00% OnwardsUpto 3% of the loan amount plus applicable GSTUpto 25 LakhUpto 5 YearsUpto 4% of the outstanding loan plus GST
Tata Capital10.50% - 24.00%999-2.50% of the loan amount plus applicable GSTUpto 25 LakhUpto 6 YearsUpto 4% of the outstanding loan plus GST
Axis Bank10.49% - 21.00%1.50%-2.00% of the loan amount plus applicable GSTUpto 30 LakhUpto 5 YearsNIL
Kotak Mahindra Bank10.99% Onwards0.99%-2.50% of the loan amount plus applicable GSTUpto 20 LakhUpto 5 YearsUpto 6% of the principal outstanding plus GST
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Note – The Goods and Services Tax (GST) currently stands at 18%.

How Much of an Impact Interest Rate Will Have on Your Wedding Cost?

With the loan amount and savings, you can get the wedding done the way you want. But the interest rate on the loan will have a bearing on the EMI you will pay for the time you choose to service the debt. It is, therefore, important to choose the lender that offers you the best deal in terms of the interest rate. Not only that, you also need to change your budget accordingly to ensure you don’t find yourself amongst the list of defaulters. Changing your budget will require weeding out the unnecessary expenses and adhering to the same even as you may get tempted.

Shall You Ascertain the Personal Loan EMI in Advance?

You should, without a semblance of doubt. The installments are ascertained using the Personal Loan EMI Calculator. You just need to enter three values – loan amount, tenure and interest rate – in the calculator. Knowing the repayment estimates in advance gives you that extra bit of time to rejig your budget.

The Bigger Question is, How Much Loan Do You Need or How Much Should You Go for It?

The answer to the first part of the question lies with your savings and the overall spending you’re likely to have on guest accommodation, rituals, jewellery, accessories, etc. The second part seems like you have some choices to make. So, if you have adequate savings, you can request a loan amount lesser than what you are eligible for. All this only will help you feel good while repaying the loan every month.

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Documents You Need to Submit to Get Personal Loans for Wedding

You must submit the following documents to get wedding funds.

Identity Proof – Any one from PAN Card, Voter ID, Driving License, Passport, Aadhaar Card

Residence Proof – Any one from Voter ID, Driving License, Passport, Aadhaar Card, Electricity Bill, Telephone Bill

Income Proof – Salary Slips for the Last 3 Months, Last 6 Months Bank Statement

Duly Filled & Signed Application Form & latest passport size photographs

How Can You Apply for a Personal Loan Online?

You can do so on the website of the lender you wish to, or even on Wishfin, a premier fintech company that has helped many get personal loans to meet their needs. The process is simple. After logging on to the official website of Wishfin, you need to do the following –

  • Go to ‘Loans’
  • Select ‘Personal Loan’
  • Place in the details of Desired Loan Amount, Employment Status (Salaried or Self-employed), Monthly Income, City
  • After submitting all these details, click on ‘Quotes’
  • Based on the details, you will get to see various quotes on your screen.
  • Choose the quote that you see meeting your purpose the best way

Submit the documents shown above to supplement your loan application. The lender will check the details carefully before approving the loan deal.

Employees Provident Fund is an Interest-free Option for Wedding, But Is It Really Useful?

The money you withdraw from your Employees’ Provident Fund (EPF) balance can come with zero interest liability. But given the formalities, you may have to wait for the fund to get disbursed to your bank account. And if there’s not much time left for the wedding, using this option can only create chaos for you. At the same time, you can withdraw only upto 50% of your share along with interest from your EPF reserves. Additionally, you must have a membership with the Employees’ Provident Fund Organisation (EPFO) for at least 7 years to be able to withdraw..

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Not only that the EPF advance comes with its own set of restrictions, but it also has a certain purpose i.e. creating the funds to help you live your retirement life with comfort. The money withdrawn from the EPF balance will make it tougher for you to build enough corpus.

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  • Personal Loan Interest Rates October 2023
    Fullerton India12.00% - 24.00%
    HDFC Bank10.75% - 14.50%
    ICICI Bank10.75% - 19.00%
    IndusInd Bank10.25% - 26.00%
    Kotak Bank10.99%
    RBL14.00% - 23.00%
    Standard Chartered Bank11.49%
    Tata Capital10.50% - 24.00%
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