Why Must You Co-Borrow a Wedding Loan with Your Spouse?

Updated on: 14 Dec 2021 // 22 min read // Personal Loans
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An Indian wedding is nothing less than a humongous fest. Stretching over 3-7 days, with hundreds and at times even thousands of guests, the wedding can often cost lakhs of rupees. As a young couple, you may not be prepared for such an extensive expense. While you can try to curtail some expenses, there are a few others which are more or less mandatory. You can either use your savings towards this expense, ask your friends and family to extend help or do both. However, a much better way to go ahead with an expense of this kind is to Get a Wedding Loan. Essentially, falling under the umbrella of Personal Loans, this loan will help you attain the wedding of your dreams.

As is the case with most other loans, even for a wedding loan, you can conveniently add a co-borrower. Before we tell you about the advantages of doing the same, let us first help you with the basics of a wedding loan.


In order to Apply for a Wedding Loan, and have a good chance of approval, you:

  • Should be between 21-60 years of age.
  • Must have a regular monthly income of 25,000 or above.

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Along with a duly filled application for a wedding loan, you must furnish the following documents:

  • Proof of Identity
  • Proof of Residential Address
  • Proof of Income – salary slip, ITR, P&L statement, balance sheet, and so on
  • Job/business continuity proof

Loan Amount

Depending on your income and credit history, you can expect a loan ranging from 50,000 to 50 Lakhs for your wedding.

Loan Repayment

As is the case with all other loans, the repayment of your wedding loan ought to be done in the form of Equated Monthly Instalments of EMIs. The amount per EMI will depend on the loan amount, the interest rate as well as the tenure of the loan. More often than not, the tenure for this loan will range between 12 – 60 months.

Reasons for Co-Borrowing Wedding Loan

Now that you are aware of the nuances of a wedding loan let us see, why co-borrowing this loan with your spouse makes sense. To begin with, you must understand that a wedding loan is unsecured, which implies that you don’t need to offer any collateral in lieu of the loan amount. It is for this very reason that banks primarily concentrate on two aspects while reviewing your loan application:

1. Income

2. Credit History

Considering that you are in the beginning phase of your career, your income may not be sufficient enough to help you qualify for a sizeable loan. Hence, if you as your would-be-spouse to join hands, your combined income may help you qualify.

It is suggested that your EMI outgo towards a loan should not be more than 40% of your monthly income. If you earn 80,000 per month, you will only be eligible for a loan amount that needs you to pay 32,000 as EMI. If, however, you co-apply with your fiancé who enjoys a monthly earning of 65,000, together you will be eligible for an EMI of 58,000. This will incredibly increase your chances of getting a heftier loan amount.

The same holds true for credit ratings. If you believe that your credit ratings aren’t good enough to help you qualify for the loan, then you should co-apply with your partner, of course, only if their scores are better than yours.

That being said, you must be aware of the fact, that in case you default with the payments, the credit history of you as well as that of your partner, both will receive a blow. Hence, opt for a combined loan, only if you are incredibly sure of being able to repay the same in a timely manner.

What to Look For?

When looking for a wedding loan, here are some aspects for which you should negotiate with the bank:

  • Shorter tenure:

A short tenure will increase you EMI by a bit, but it will also imply that you will have to pay a significantly less amount towards the interest. Besides, the quicker you get free of this obligation, the better it is for your future.

  • Fixed interest:

Since you are going to start a new life, you will come across numerous surprises concerning expenses. Hence, it is best that you avoid the surprise that comes along with a floating rate interest. In this new phase of life, it is best that you pay a fixed EMI every month, even if it means that you might have to pay a slightly higher rate.

Everything taken into consideration, it is best that you take a wedding loan, only to sponsor a part of your wedding and not the entire event. After all, you don’t want to begin your new life with your partner with a tremendous financial burden to take care of. Hence, make sure you don’t opt for an exorbitant amount of wedding loan, even if you are eligible for it. Calculate the amount that you necessarily require, and take only as much!

Also Read: 5 Wedding Expenses That Can be Financed With a Personal Loan

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 70+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.

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