Wedding loan, or a marriage loan, is a category of personal loan that is availed to meet the financial needs of all wedding-related costs such as catering, venue booking, photography, decoration, and jewelry. This type of personal loan offers multiple benefits such as quick loan disbursal, lower interest rates, and easy repayment options. In addition, some banks offer pre-approved wedding loans for privileged customers that can be paid off quickly. To make these loans more affordable and attractive, they are available in various EMI options and repayment flexibility. The interest rate ranges from 10% to 20%, depending on the credit score of customers.
Millennials Opting for Wedding Loans
Rising wedding costs and increasing popularity of destination weddings have significantly boosted the demand for wedding loans. According to Allied Market Research, the wedding loans market is estimated to generate a revenue of $23.3 billion by 2033. The industry garnered $11.6 billion in 2023 and is expected to register a CAGR of 7.3% from 2024 to 2033. This revenue growth is further driven by increase in trend among millennials to self-fund their weddings without burdening their families. A recent survey conducted by Jeweler Jean Dousset, a leading lab diamond designer jewelry brand, involved 1,850 couples. It was found that 50% of the couples paid for their own wedding. Moreover, a latest survey of 1,200 millennials led by the CAIT Research & Trade Development Society, a research and business promotion board founded by the Confederation of All Indian Traders, revealed that approximately 42% of millennials prefer to self-fund their weddings, whereas 26% take wedding loans. As a result, these findings highlight the shifting focus on financial independence among millennials regarding wedding expenses.
Important Aspects Considered While Disbursing Wedding Loans
Although applying for a wedding loan is a hassle-free process, customers have to meet basic eligibility criteria. For instance, credit score of the customer should be 650 or higher to increase the chances of loan approval. In addition, minimum net monthly income should be between $1,000–$2,000 per month and above with minimum two years of employment. Some lenders may also ask for $3,000 and above. Lower debt-to-income ratios further make the loan approval process easier for the customers. Minimum age to apply for a marriage loan is 21 years, whereas salaried individuals should not be aged more than 58 years and self-employed candidates should not exceed 65 years. Thus, to ensure a smooth loan approval process, customers must meet these requirements.
Increasing the Preference for Wedding Loans over Traditional Loans
Increasing number of couples are opting for wedding loans instead of traditional loans and credit cards. This is majorly attributed to the fact that payments made using credit cards charge higher interest rates as compared to wedding loans. Moreover, in case of delayed payments, the risk for even higher interest rates increases substantially. On the other hand, acquiring traditional loans from banks and other financial institutions requires an exhaustive application process, involving credit score checks and extensive documentation. Moreover, traditional loans take longer processing time and stringent eligibility criteria, which make them less accessible to couples requiring immediate wedding funds. Furthermore, rigid repayment structure of banks and traditional lenders limits their adoption. Conversely, streamlined and quick approval process offered by wedding loans and flexible repayments have shifted the preference of couples toward these loans. Lower interest rates and lump sum payment make wedding loans a cost-effective and convenient option, allowing couples to manage easy monthly repayments. as a result, multiple benefits offered by wedding loans make it a viable option for couples to cover all expenses.
Rising Penetration of Digital Lending Platforms
With advancements in technology and rapid digitization, digital lending platforms are witnessing high traction across the globe. This is attributed to the fact that digital lending platforms offer instant loan approvals with minimal paperwork. For instance, recently, a popular digital lending platform, IndiaLends secured $5.1 million in a Series A funding round, with existing investors ACP Partners and DSG Consumer Partners leading the investment. Approximately 8 million customers have registered on the platform which has disbursed more than INR 2,000 crore as it has recently launched API-based lending services for B2C lending firms. With this launch, the company claims to serve around 100 million customers.
Furthermore, a prominent matchmaking site, Matrimony.com introduced a wedding loan service, WeddingLoans.com in November 2024. It provides its wedding loan service in collaboration with IDFC First Bank, Tata Capital, TVS Credit, L&T Finance, and Bhanix Finance and Investment Limited. The loan amount offered is between Rs 50,000 to Rs 25 lakh. Its marry-now-pay-later scheme has allowed couples to efficiently manage their marriage expenses through easy installments. The firm pays on behalf of the customer and recollects the money in a span of 3-36 months.
Closing Thoughts
Rise in urge of millennials to self-fund their wedding and increase in popularity of destinations weddings have notably boosted the need for wedding loans. Moreover, complicated and time-consuming loan approval process in traditional loans have shifted the preference of couples toward wedding loans. Strict eligibility standards of typical loans further encouraged couples to opt for marriage loans. With rising digitization and increasing adoption of marry-now-pay-later schemes, couples can easily manage their wedding expenses more conveniently and repay the amount without any financial burden. Thus, as wedding loans are more flexible than traditional loans due to their easy and rapid approval process, their acceptance is expected to increase significantly among couples in the coming years.
As the editor of the blog, She curate insightful content that sparks curiosity and fosters learning. With a passion for storytelling and a keen eye for detail, she strive to bring diverse perspectives and engaging narratives to readers, ensuring every piece informs, inspires, and enriches.
