How Indians pay for weddings: Common funding sources

\Weddings in India are driven by emotions and extravagance. Many households, whether poor or wealthy, have a bloated budget for the celebrations. This is evident in a study by WedMeGood where the average wedding budget for 2024 in India spiked to ₹36.5 lakhs. What makes Indians capable of handling such massive costs for weddings, and how do Indians get wedding money? Let’s decode in this blog.

How Indians get wedding money: Traditional vs modern funding
 

Indian families have prioritised weddings as part of many other milestones. Hence, funding for a wedding in India begins long before the actual event.

There’s a shift in how older generations planned and how newer generation are creating a budget. Based on this evolution, here’s a look at the traditional vs modern methods explaining how Indians get wedding money:

Traditional funding methods
 

· Lifetime savings

Parents save for the wedding of their children. They set up a dedicated fixed deposit, buy gold, etc., for it.

· Family contributions

All the elders in the family contribute in their own way. Even the extended relatives pitch owing to the cultural belief that a wedding is a collective responsibility.

· Leveraging assets

If the savings are inefficient, parents may also sell or pledge assets like gold and property to make up for the gap. This is often the last resort.  

Modern funding methods
 

· Personal savings

There is a growing trend of couples taking the initiative to fund their weddings. They use their investments and bonus income for the same.

· Wedding loan

Applying for a wedding loan is another convenient method to finance the overwhelming marriage expenses.

· Cost-sharing between partners

Modern couples have adopted the concept of splitting wedding expenses as opposed to the bride’s family bearing most of the cost.

Borrowing trends are shaping up funding for weddings in India
 

As the expectations around how Indians get wedding money change, structured borrowing is gaining attention. Here’s a look at some emerging trends on this front:

· Rise of marriage loans

There is an increased preference for financing via wedding loans as they allow breathing room without dissolving existing investments.

· A sign of financial independence

Young couples want to avoid putting pressure on their parents. Instead of relying on family support, they are choosing to independently fund their wedding.

· Preference for transparent & flexible credit

Due to the various lenders competing in the market, opting for credit offers flexibility. Hence, couples prefer the convenience of flexible repayments over upfront cost.

· Borrowing for cash flow management

Besides managing the big-ticket wedding expenses, couples also prefer borrowing to manage small recurring expenses for a smooth wedding management.

· Combining multiple sources

Due to the availability of various credit options, mixing small personal loans and credit lines is also a prevailing practice.

Wedding loan vs gold vs savings
 

Given the multiple options available to fund weddings in India, it makes sense to compare the benefits and trade-offs for effective wedding budget planning.

Here’s a quick comparison of the most popular modes to fund a wedding in recent times:

Hacks to save while funding for a wedding in India
 

While getting a wedding loan eases your financial pressure, it is also critical that you limit your borrowing to save on the repayment cost. You can follow these practical hacks to lower your overall wedding budget:

· Focus on priorities

You can go all out on your wedding, or you can smartly budget for the things that matter. This slight difference in judgement leads to maximum savings.

· Book services early

Venue renters, décor teams, photographers, and other service providers increase prices closer to the wedding season. Hence, early booking is a good idea to secure lower rates.

· Keep the guest list practical

Limiting your guest list to loved ones and close friends significantly reduces the cost of catering services and invitations.

· Explore off-season weddings

If you have no specific preference for the wedding time, plan it for off-peak dates. The venue and vendor prices during this time are considerably lower than during the wedding season.

· Mix DIY with professional help

Wedding planners and decorators are great, but simple additions like custom wedding boards, hampers, and DIY décor elements lead to great savings.

Final words
 

Weddings in India have always been grand. But the emergence of credit options and the evolution of customs and new-age thinking have changed how Indians get wedding money. You can also take note of such evolving practices and make smarter choices.

Funding for a wedding in India is especially easier with a marriage loan. Consider your credit history, income, and existing debt to understand your readiness. You can then compare offers and get the best deal to repay the borrowed amount comfortably. This way, you can ease the pressure of wedding costs and wholeheartedly enjoy the celebrations.

Consider FIRSTmoney personal loan for marriage by IDFC FIRST Bank, a smart choice for couples planning their big day in India. Here’s how it stands out:

✅ Keep your EMIs affordable with low interest rates starting at just 9.99% p.a.

✅ Close your loan anytime without any foreclosure charges.

✅ Quick approval & 30-minute disbursal. Perfect for last-minute wedding expenses.

✅ 100% digital process, no paperwork. Apply from anywhere, hassle-free.

✅ Multiple on-demand loans for the flexibility to manage extra wedding costs easily.