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How To Fund Your Lavish Wedding

Adhil Shetty

Whether you’re funding your own wedding or are a parent looking to throw their child a lavish wedding celebration, having the right finance on hand is absolutely essential. After all it is the key that gives you access to all the flourishes that make a wedding truly spectacular.

This year’s budget saw an increase in the cost of jewellery and cosmetics, which is said to have had a cascading impact on the cost of weddings. But if you think of it, the wedding industry in India is already an expensive arena. Valued at around Rs.50,000 crore, it is said to be growing at the pace of 20%–30% each year, with the cost of a wedding ranging from Rs. 15 lakh to around Rs. 5 crore.

Raising finance smartly will allow you to take care of all costs related to executing your dream wedding without wiping out your savings or landing you in a debt trap. Take a look at a few ways in which you can do this even when you have limited time on hand.

When You Have 3 Years or More to Prepare

If you anticipate the wedding taking place three years from now, you still have ample time to raise funds for it. You can invest smartly to do so. Take a look at the investment options that are suited to your need for high returns.

Systematic Investment Plans (SIPs): If you have less than five years to go, investing aggressively is the need of the hour. A smart way of doing this is through Systematic Investment Plans. Many banks and NBFCs also offer marriage or wedding SIPs that are tailored to create wealth for wedding expenses. By consulting a financial advisor you can use this as your primary source of finance for a lavish wedding.

Fixed Deposits: If assured returns are what you’re after, you must limit your risk exposure. An excellent way to do this is by investing in fixed deposits. The returns are assured since they aren’t linked to how the market performs. Shop around for the best rate and look into FDs by NBFCs to get higher returns on your investment amount. Check the credibility rating by CRISIL before your invest to ensure absolute safety.

Gold Exchange-Traded Funds (ETFs): Most people consider investing in gold jewellery with the view of creating a corpus for a family wedding, whether you’re a parent or someone planning their own ceremony and celebrations. However, bear in mind that buying jewellery isn’t the best way to invest in this precious metal. This is because the amount you pay also consists of making charges, storage charges and more. But when you buy gold ETFs that are traded on the stock market, each unit of the fund is represented by gold and the value of the fund and the underlying security is almost the same. This gives you better value for the amount you invest. Besides you can manage your investment online and exit whenever you wish to making it an excellent option.

When you Have Just a Year to Prepare

If time is of the essence, the best way to finance a lavish wedding is using a loan. Take a look at three options that are suited to this timeframe.

Personal Loan For Weddings: There are several financial institutions that offer you an unsecured personal loan customised for wedding expenses. If the wedding is likely to be under the Rs. 30 lakh mark, a personal loan for weddings is an excellent option as it offers quick disbursal too.

Loan Against Property: If you’re going all-out, you may probably need a much higher amount of money. In such a scenario a loan against property is a good pick. By pledging a commercial or residential property you can raise up to a few crores. In addition, this loan has a longer repayment tenor, allowing you to enjoy the festivities without any financial strain.

Loan Against Securities: If you have a robust investment portfolio comprising shares, mutual funds, bonds, insurance policies, Employee Stock Ownership Plans (ESOPs) or Fixed Maturity Plans (FMPs), you can use them as collateral to avail a loan against securities. Not only can you get a high-value loan for a lavish wedding using this option, you can retain ownership of your investment in securities and continue to earn returns on them as well.

Whether you want to serve an array of cuisines at the wedding or plan a spectacular destination wedding, when you use these options to finance an opulent celebration you can turn the wedding of your dreams into reality.