New Delhi
Spending on weddings in India is increasing. Interest rates for wedding loans are high, ranging from 10% to 36% per year. According to reports, around 20% of loan applications from Indians aged 20-30 from 2018 to 2019 aimed to finance weddings. Young adults are now more likely to use formal financial institutions for wedding loans instead of relying on family savings or borrowing from relatives.
Banks and Non-Banking Financial Companies (NBFCs) are the main lenders for wedding loans. Banks generally offer lower interest rates than NBFCs, which charge higher rates due to higher funding costs and dealing with customers with weaker credit histories. This shift shows a change in how wedding expenses are financed in India, moving away from traditional practices where families save for years to cover costs.
Nowadays, couples are contributing more from their own savings, reflecting evolving social norms and greater financial independence among young adults. The wedding industry also impacts various sectors, such as automotive, consumer electronics, and home improvement. These sectors see increased demand during wedding seasons as families purchase gifts like cars and electronics and invest in home renovations. Companies in these sectors plan their strategies and product launches around wedding trends to benefit from the higher demand during these periods.
