KOCHI: Managing wedding expenses is one of the biggest, if not the biggest, worries of future couples. To ease their concerns, financial firms and wedding planners are promising them funds to finance their big day. Dubbed Marry Now, Pay Later (MNPL), the schemes are popular in the West and are gaining traction in Kerala. Essentially, a prospective couple can avail a loan from the firms or planners to cover the expenses and pay it as EMIs (equated monthly instalments).
This way, would-be couples can stick to the plan of having a grand wedding without blowing through their savings. “I came to know about MNPL schemes when I approached a Pune-based wedding planner. My bank was charging 18% on personal loan, while the wedding planner offered Rs 5 lakh at 12% interest. Though the returning window is shorter, the schemes are a blessing for those who can afford them,” said Neethu Girish, an IT professional based in Kochi. Manoj Kumar, co-founder of Bengaluru-based Plan A Wedding platform that is gaining popularity among Keralites, said some parents are also seeking ‘marriage loans’.
Salaried employees earning a minimum of Rs 2.4 lakh per annum, and having a good CIBIL score can avail the loans. “The interest is calculated on CIBIL score. If it is 750 or above, the rate of interest will be low. If it is 650, the rate will be higher,” Kumar said. He said unlike personal loans, which take at least 1-2 weeks to process, marriage loans from his company can be availed in three days with limited documentation.
Bengaluru-based Shaadify, which offers loans up to Rs 25 lakh, is getting several enquiries from Kerala.
“We offer pan-India services. Of the 75 enquiries we get each day about MNPL, around 15-20 are from Kerala,” said Shaadify founder Alka Tiwari.
‘Pay later’ schemes are long-term debts: Fin expert
V K Vijayaku mar, chief investment strategist at Geojit Financial Services, opined that the desire for instant gratification gave rise to such financial products like ‘travel now, pay later’, and now MNPL. “The previous generation used to save for an entire lifetime for their children’s marriage.
Today’s youngsters want to get married in their own way and are willing to foot the bill,” he said. Adding a word of caution, he said, “Though such schemes may sound like a blessing, the truth is they are longterm debts. A majority of the younger generation spends more than what it earns, thanks to the credit card culture. However, they will face the music if they don’t pay attention to their finances.”