If the wedding is more than a year away, a recurring deposit or short-duration fund will cost you nothing and earn a return, instead of costing 13% a year. Where borrowing is necessary, a gold loan against family jewellery is typically several percentage points cheaper than an unsecured personal loan.
Before you borrow
- Compare the total payable, not the EMI — a longer tenure always looks cheaper monthly and costs more overall
- Check the processing fee, typically 1% to 3%, which is deducted before the money reaches you
- Ask whether prepayment is allowed and what it costs, since most personal loans are fixed rate
Run your numbers in the EMI calculator before you commit to anything.