Wedding costs in India: Common funding sources & the role of personal loans 

Weddings in India are a deep-rooted, emotional and cultural milestone, where families come together to celebrate with joy. These celebrations not just mark new beginnings; they also bring in expenses.

Weddings in India require careful financial planning. Costs can range from modest to extremely high depending on location, number of guests, scale and expectations. Indian families rely on a mix of traditional and modern ways to fund the wedding. In this article, we will discuss how Indians fund weddings, what options are most common, including a loan for marriage.

The traditional sources of wedding money
 

Typically, Indians fund weddings by tapping into their savings, gold and family contributions. Let us look at some popular options in-depth:

1. Family savings: Traditionally, in Indian households, parents and older relatives have savings specifically accumulated over decades to fund the wedding of their children. People are known to set a wedding corpus to cover the majority of expenses.

2. Gold & jewellery: It is rumoured, Indian households own more gold than the entire world’s reserve. Gold is the ultimate saving and investment for most Indians for centuries. Families are known to accumulate gold and gold jewellery to either sell or pledge at the time of weddings to cover expenses. People are now opting for Gold Loans as well to manage wedding expenses.

Lenders like IDFC First Bank are offering 100% digital and paperless personal loans at competitive rates that can be used for all kinds of wedding expenses.

3. Extended-family contributions: In many regions, weddings are a family affair, where communities chip in too. Extended family members like aunts, uncles, and grandparents might sponsor specific events like mehndi, sangeet, etc., or may contribute with cash and gifts.

Modern sources of funding for weddings in India
 

How Indians fund weddings is now getting modern, with couples contributing to the expense, alongside their family. Multiple-income households are now becoming financially prudent and pooling resources to share the financial burden. Let us look at some modern ways in which weddings are now being funded:

1. Couple’s own savings: There is an upward trend with dual income households are paying for their own celebrations. Couples are now maintaining a dedicated wedding fund by investing money quarterly or saving bonuses and increments specifically for their wedding. This reduces financial dependence on parents. It also encourages thoughtful budgeting and responsible financial management.

2. Credit cards: Credit cards are commonly used for small and short-term transactions. Outfits, travel tickets, hotel bookings, and makeup expenses are typically made by credit cards. When planned carefully and used responsibly, cards help with convenience and accumulating reward points.

3. Borrowing from friends and family: More people are now opting to take loans from friends and family. These loans are typically taken at no interest and with flexible, lump-sum repayments.

The rise of personal loans as a wedding funding solution
 

Personal loans are gaining popularity to cover additional wedding expenses due to rising costs each year, and sometimes savings may fall short. A loan for marriage allows families to access a lump sum for key expenses such as venue booking, catering, decor, jewellery, photography and travel, while repaying through fixed EMIs that align perfectly with their long-term budgets.

Couples choose personal loans because it protects emergency savings, avoids the need to sell assets and offers quick liquidity when vendors ask for advance payments. Banks like IDFC FIRST Bank provide this choice by offering fast digital processing, 30-minutes disbursal, transparent terms and predictable repayment and zero foreclosure charges, making personal loans a practical solution for managing wedding costs without financial burden.

Marriage loans for funding weddings in India
 

Couples and families looking to supplement their wedding expenses or cover the entire cost through a loan can now consider getting a marriage loan.

Lenders like IDFC First Bank are offering wedding loans via their FIRSTmoney offering that get approved in minutes.

Key features of IDFC First Bank marriage loans are:

• 100% digital processing
• Instant approvals
• Disbursal within 30 minutes
• Flexible tenures
• Zero foreclosure charges
• Multiple on-demand loans

This reduces stress during wedding celebrations. Couples who want convenience without any paperwork can opt for this way of lending.

Personal loans vs. gold loans
 

Families often compare gold loans with personal loans, and the choice depends entirely on convenience and comfort. Gold loans suit those who already have a sizeable amount of gold, want lower interest costs and plan to repay quickly. On the other hand, personal loans work better for borrowers who prefer fixed EMIs, digital processing and the freedom to use funds across multiple wedding expenses without parking their assets as bank collateral.

When does it make sense to borrow for a wedding
 

Taking a loan for funding a wedding in India should be made after considering several key factors like:

Borrowing should be considered if:
 

• Savings cover a portion of the wedding.
• The shortfall is manageable.
• Monthly income comfortably supports EMI payments.
• An emergency fund remains untouched.
• Vendor payments require immediate payments.

Borrowing should be avoided if:
 

• The monthly EMI is large compared to the monthly income.
• Existing debt already impacts monthly expenses.
• Income is unstable.

Tips for responsible borrowing for funding weddings
 

Responsible borrowing for wedding expenses requires planning and responsible financial decisions. Listed below are key tips:

• Create a complete budget for all wedding expenses.
• Set a firm maximum spending limit.
• Compare lenders and review interest rates and charges.
• Check your credit score and calculate EMIs in advance.
• Borrow only the amount you genuinely need.
• Maintain an emergency fund and choose a tenure suited to your income.

IDFC FIRST Bank is changing how Indians fund weddings
 

A well-planned wedding requires a proper funding strategy. Savings, gold and family support continue to be the most common methods for funding for a wedding in India, but when a small financial gap remains, a structured loan for marriage can help.

IDFC FIRST Bank provides digital-first FIRSTmoney personal loan with quick disbursal, transparent terms and manageable EMIs, allowing families to make wedding payments stress-free.