Though it is difficult to predict everything right in advance, Simran must figure out how her financial life is likely to be after marriage. She should first calculate the expenses she plans to fund through the loan. She should also make sure that she will be able to use it revenue The way she wants after her marriage. If it is expected that he should contribute to the expenses of the new home, he may have difficulty maintaining his savings as well as paying off his loan. If she and her husband decide to acquire other assets in their joint names, Simran’s existing debt could reduce her ability to borrow more.

It is likely that Simran’s banks may be ready to give her a loan against her existing assets and investments. Loan against deposits, PPF or ULIP is cheaper than a personal loan, as the former is a secured loan while the latter is unsecured. The advantage here would be that his assets remain intact, while the repayment in EMI would be the same as he would have paid in case of a personal loan. Attitudes towards money can be very different, and couples need time to find an approach that works for both of them. Simran should also consider allocating her income to savings that she would like to continue with after her marriage.

Investments in SIPs, recurring deposits, or specific contributions to PPF can all be set up to last for a long period of time so that he is able to save and build his portfolio even after he gets married. It can be helpful if the husband and wife are able to discuss how much of their income they will contribute to a common pool of both current and future expenses, and how much they will continue to save. Only after they are comfortable with their relationship and their monetary situations will they be able to have a more common ground and a better understanding of their financial lives.

Content on this page is courtesy of Center for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.