Archive · 19 Sep 2026
Experts Weigh Wedding Loans Against Using Personal Savings
A wedding can cost a lot of money, so people must decide how to pay for it.
One choice is to use money already saved.
This avoids interest and monthly loan payments.
But using too much savings could leave less money for emergencies.
Another choice is taking a personal loan.
A loan keeps savings available, but it must be repaid every month for several years and costs extra because of interest.
Missed payments can hurt a person’s credit record.
Experts generally prefer savings if enough emergency money remains afterward.
If borrowing is necessary, they advise keeping the payment small and planning early.
Using savings avoids interest charges and monthly loan repayments, but may reduce emergency cash.
A personal loan preserves savings but adds interest, EMIs and potential credit damage if payments are missed.
Experts say wedding borrowing should not exhaust emergency funds or undermine goals such as buying a home or saving for retirement.
Personal-loan rates cited in the article range broadly from 7.5% to 15%, while some bank and NBFC loans may cost 10% to 17%.
If borrowing is unavoidable, Kapil Makhija recommends limiting the EMI to 10%–15% of monthly income and avoiding app loans above 20% interest.
- Who
- People planning or funding weddings, with advice from financial experts Yudhajit Baul and Kapil Makhija.
- What
- The article compares paying wedding expenses with savings versus taking a personal loan.
- When
- The timing is not specified; the article discusses planning before wedding expenses arise.
- Where
- The article discusses personal loans from banks, non-banking financial companies and loan apps, without specifying a location.
- Why
- The choice affects interest costs, emergency funds, monthly cash flow, credit standing and other long-term financial goals.
Use Savings
Borrow Selectively
Overall cost
Use Savings
Using available savings avoids interest and makes the wedding less expensive overall.
Borrow Selectively
A personal loan can spread the expense over time, but interest raises the total cost.
Financial flexibility
Use Savings
Avoiding debt preserves borrowing capacity for goals such as a home or car loan, but spending savings can reduce the emergency buffer.
Borrow Selectively
Keeping savings available may help with emergencies and future needs, but the new EMI reduces monthly flexibility and borrowing capacity.
When borrowing may be acceptable
Use Savings
Experts say savings are preferable when they can cover the wedding without exhausting the emergency fund.
Borrow Selectively
If borrowing cannot be avoided, experts advise using an established bank or NBFC, limiting the EMI and avoiding loans with interest rates above 20%.
- Savings advantage
- Using savings avoids borrowing costs, interest and new monthly repayments.
- Loan drawback
- A personal loan spreads payments over about three to five years but increases the total wedding cost.
- Emergency fund
- Savings should not be used so extensively that the emergency reserve is exhausted.
- Cited loan rates
- The article gives a broad personal-loan range of 7.5% to 15%, while another cited range is 10% to 17%.
- Suggested EMI limit
- Kapil Makhija recommends keeping wedding-loan EMIs within 10% to 15% of monthly income.
- Investment illustration
- Yudhajit Baul says investing ₹10,000 monthly through an equity mutual-fund SIP at an assumed 12.62% CAGR could grow to ₹8.23 lakh in 10 years.