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Personal Loan or Credit Card - Which is Best for Covering Wedding Expenses?

Published on Nov 15, 2022Updated on May 2, 2024

Personal Loan or Credit Card - Which is Best for Covering Wedding Expenses?

A wedding is a once-in-a-lifetime experience and is best celebrated as a lavish affair. The cost of a well-planned, enjoyable wedding often comes to about INR 20-25 lakhs, and exhausting your liquid funds from your account for this purpose is not recommended. This is where the idea strikes to opt for a personal loan or credit card for a wedding.

Generally, considering how expensive weddings can get, people decide to loan an amount or borrow the money, so they don’t have to touch their savings. From the venue to the photographer, the music to the food, tons of arrangements will require money. In such cases, we reach out to the eternal solution of all, i.e., to use a credit card or a wedding loan.

This article will walk you through how you can have a lavish wedding with a personal loan or a credit card.

Personal Loan for a Wedding

For many reasons, a personal loan for a wedding is a good option. Such a personal loan is a feasible solution when you are looking at a large amount of money to spend at the wedding.

When you have the loan amount, you can choose to pay by cash. This way, you can take care of really big expenses. A wedding loan can be used to cover many huge expenses that include:

  • Purchasing gold or diamond wedding rings
  • Booking the venue
  • Buying bridal outfits
  • Reserving tickets to the honeymoon
  • Confirming the food catering services

Advantages of a Personal Loan for a Wedding

  • A personal loan is easy to opt for and is available to borrowers at their convenience, which means, the application procedure of personal loans is completely online. You may apply for a personal loan from the comfort of your home without having to pay a visit to the lender
  • With a good credit score, you can skip the worries of having a guarantor.
  • A personal loan lets you plan your wedding as you please without any intervention.
  • Personal loan amounts can go up to INR 25,00,000*, so you can borrow as much as you require for your wedding expenses.

Credit Card for a Wedding

Using a credit card for a wedding might not be an illuminating idea, especially because of the constraints it limits the users to. Since the credit limit of credit cards is fixed and defined, it becomes difficult to apply for a wedding loan with such limitations.

However, let us go through the pros and cons of a credit card for a wedding.

Must Read: Personal Loan vs Loan Against PPF

Advantages of a Credit Card for a Wedding

  • Credit cards let you win more rewards depending on the amount you spend. However, the rewards are limited, as is your credit limit.
  • The Consumer Credit Act of 1974 provides purchase protection (but this dozes off quite easily and quickly if not renewed).

Disadvantages of a Credit Card for a Wedding

  • Using a credit card for a wedding adds more to your existing debt or creates a new one.
  • It can influence the credit score if the credit is not settled within the settlement window.
  • The reward structure of the card is very picky, which can divert you to spend more.

Which is Better: Personal loan or Credit Card for a Wedding?

Depending on your situation and circumstances, choosing a personal loan or credit card for a wedding is up to you. However, a personal loan over a credit card has more benefits.

When you have an excellent credit score, you can use different personal loans with low-interest rates compared to credit cards. Secondly, credit cards are a good option when you are making small expenses, but for an occasion such as a wedding, a personal loan is an ideal choice.

Thus, if you are capable of making monthly repayments, borrowing a large amount through your personal loan for the wedding is an optimal selection.


As convenient as the idea of a wedding loan sounds, it could lead one to trouble when a healthy decision isn’t made. Therefore, once the decision to opt for a loan is made, you must make sure to choose the right financial institution that offers competitive interest rates and friendly EMI options.

SMFG India Credit offers personal loans for weddings that let you celebrate the most auspicious occasion of your life. A personal loan with SMFG India Credit disburses a loan amount of up to INR 25 lakhs* within 30 minutes* post the final loan approval.

The personal loan interest rate with SMFG India Credit starts from only 11.99%* per annum. Moreover, the online personal loan eligibility calculator can be used to calculate your eligibility for a personal loan, confirming whether or not you can take up a wedding loan. To apply, all you have to do is check your eligibility, fill out the form, and upload personal loan documents. Applying for a wedding loan hasn’t been easier, has it?

* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us

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