The Effect of Covid-19 crisis on the Wedding Industry
The big fat Indian weddings are as big as the name implies. With months of planning, thousands of guests, and several days of celebrations, a wedding is a dream come true moment for the Indian couples. Indian people spend an exorbitant amount of money on weddings. To make the once in a lifetime event memorable, banks also provide marriage loans for those who go out of their budget.
The wedding industry in India has been the key factor that bestowed an extra boost to the marriages. It also provided livelihood to millions of people. The industry has always been immune to the economic volatility to date. However, the onset of COVID 19 has put a dent on the wedding business. The Pandemic has put the overall business in a crisis. With cancelled bookings and postponed weddings, the wedding industry is facing an uncertain future.
Wedding industry in uncertainty
As the COVID 19 pandemic has forced people to postpone or cancel their grand wedding ceremonies, wedding industries are in a crisis. The situation has affected every nook and corner of the wedding industry. Most of the people have decided to cancel their International destination wedding plans, which again caused a loss to the wedding planners. The hospitality sector is also facing challenges as there had been mass cancellations on hotel bookings. Most of the hotels and planners had to return the advance money as per the contracts. Not only the hotels and event planners but also the informal sector, which includes the vendors, florists, caterers, etc. are also facing a tough time. As the situation is still uncertain, most of the wedding industries are unsure about their future. The government has allowed conducting ceremonies with limited guests, but the impact it will create on the marriage industry would be significant.
Impact on personal loans
Indians spend at least half of their life’s savings on hosting a wedding. Owing to the enormous expense needed for a wedding, most of the people opt for a personal loan for the wedding to meet the needs. But, the outbreak of COVID 19 pandemic has decelerated the growth of personal loans. The marriage loans offered by several banks charged interest rates starting from 11% before lockdown. However, the lockdown is taking a hit on the loans. It has paralyzed the business sector, which again, will affect the repayment ability of customers and demand for loans. Even people with existing loans are applying for a moratorium on EMIs due to financial crunch.
The COVID pandemic has impelled many changes in the normalcy of day to day life. As the Pandemic is tightening its grip on the businesses around the world, the wedding industries are also suffering a hit. At present, the future of the wedding industry is uncertain.