What Happens When You Borrow Money From A Friend To Pay For Your Wedding
Thinking of asking a friend for a loan to help meet your wedding expenses? Here’s what could happen:
So you popped the question and he/she said ‘yes’. But before you start living your happily-ever-after story, there’s your dream wedding to plan. The Big Fat Indian Wedding is very colourful and a lot of fun but can also be tremendously expensive. You and your partner may have pooled your savings, but you could still fall short.
What do you do in such a situation? Ask a friend to help out? If you thought asking someone to marry you was nerve-wrecking, you haven’t tried asking someone to loan you money! Yes, there are a lot of financial aspects and relationship dynamics to consider before you borrow money from a friend.
Why not take a Personal Loan from a bank instead? It is a lot simpler, cleaner, and hassle-free! If you’re still in two minds, here’s why it’s not a great idea to ask a friend for a loan:
- Hesitation: If asking a loan of couple of hundred rupees invites a jibe of ‘teri shaadi hai kya’, you can expect the reaction if you ask for a significant sum to fund your wedding. There’s no easy way around the situation for either party. You will have to rehearse how to breach the topic and later be obligated to share minute details of expenses. Be prepared for unwarranted advice on how to maximise available funds. No such drama if you approach a bank for a loan.
- Delays:While your friend may agree to give you the money, they may not always have it handy. It might take some time for them to free up the resources for you. This could mean a delay in your wedding preps – and that’s something you can do without. If you approach a bank instead, you get instant disbursal of the loan – or as soon as you provide the relevant documents. It is a lot faster than asking for a loan from a friend.
- Repayment period: Your friend could ask you to repay once the wedding is over or if an urgent requirement comes up. Coughing up the entire amount at short notice may not be possible (at worst) or convenient (at best) for you. You may also lose your peace of mind wondering how you’re going to arrange the money at such short notice. With a bank loan, however, you decide the repayment terms and tenure. You know exactly how much you have to pay and when to do so. If you have a windfall, you can also prepay a loan. It is a stress-free process.
- Obligation: Friendships are cherished, but at the same time they are also fragile. Asking for a loan is equivalent to taking on an obligation. Not many are comfortable with it. It could affect the relationship, where you feel indebted to your friend and may feel obliged to return the favour in some way. With a bank, on the other hand, it is a pure business transaction without any obligation. On the contrary, you could well receive some perks from the bank for the business you are bringing them.
- Awkwardness: Money is a double-edged sword. While it can solve most of our problems, it can also ruin relationships. By borrowing money, you are making your relationship vulnerable. If for some reason you are unable to repay the money on time, there is a possibility that your friendship will come under stress. Is it worth losing a good friend over money? With a bank, you can systematically pay back the loan in comfortable EMIs. If you miss an EMI, you can call and explain to the bank and pay a small late fee and settle it as soon as you get the money.
A Personal Loan from HDFC Bank is a much safer option when you are in urgent need of money. You can receive in-principle approval in less than 10 minutes for loans up to Rs 40 lac. Yes, you will have to pay interest, but your friend may not give you an interest-free loan either. With competitive interest rates starting at 10.99%, a loan from HDFC Bank could be a much better option for your financial needs – and it preserves your self-respect.
Cut out the hassles and approach HDFC Bank if you need money to plan your dream wedding! Apply for a Personal Loan now.
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* Terms & conditions apply. Personal Loan disbursal at sole discretion of HDFC Bank Ltd.