Whether you’re planning a big fat celebration or a simple private ceremony, a wedding can never be an inexpensive affair. While many of you may have saved up what you need, a personal loan can be a great option for those who haven’t.
Banks and financing institutions in Malaysia offer a number of personal financing facilities that are in line with conventional or Islamic banking concepts.
A wedding loan is just a regular personal loan that can be used to pay for your entire wedding. From decoration and guest accommodation charges to catering fees and venue rentals, you can pretty much use the money for anything and everything related to your big day.
A bank will never force you to use the loan amount in a particular way. This makes the personal loan a convenient-to-use financial tool. There’s two main types of personal loans that you can choose from for your wedding expenses – an unsecured loan where you don’t need a guarantor or collateral and a secured loan that requires you to have a guarantor or collateral.
Offline application: Once you’ve decided a suitable personal loan offer, drop by the bank’s nearest branch and fill out the application form with all the required details. Now, submit the form along with all the mandatory documents specified by the bank to initiate further processing of your application.
Online application: Choose a personal loan that suits your unique financial needs. Visit the official website of your chosen bank and fill out the online application form. You can submit this form online or download it and submit it in-person to the bank for further approval.
To get a wedding loan, you need to ensure that you fulfil the following eligibility criteria:
Most Malaysian banks have a minimum financing limit that ranges between RM1,000 and RM5,000. When it comes to the maximum amount of money you can borrow, there are banks that are willing to lend up to RM400,000.
Keep in mind that the loan amount you’re eligible for depends on your income levels, employment status, citizenship, and your repayment behaviour.
The process for approving a personal loan in Malaysia differs from one bank to another. While some banks provide in-principle approvals within a few minutes, others take a couple of working days or even a couple of weeks to process and approve your loan application.
Borrowing money can never be a good thing. However, your ability to use the money effectively and make repayments on time can turn out to be positive. Here’s how a wedding loan can affect your finances:
The table below contains top personal loan/financing plans offered by renowned banks in Malaysia:
|Personal Loan||Interest Rate||Maximum Amount Offereh||Maximum Financing Tenure||More Info.|
|Alliance Bank CashFirst Personal Loan||8.38% p.a. to 14.78% p.a. (flat rate)||RM150,000||7 years|
|Al Rajhi Personal Financing-i||6.99% p.a. to 8.25% p.a.||between 5x or 8x your monthly income and RM150,000||8 years|
|HSBC Amanah Personal Financing-i||10.5% p.a. to 12.5% p.a. (flat rate)||RM150,000||7 years|
|Hong Leong Personal Loan||9.0% p.a. to 13.5% p.a. (flat rate)||RM100,000||7 years|
|Standard Chartered CashOne Personal Loan||6.99% p.a. to 13% p.a. (flat rate)||RM150,000||7 years|
Your wedding will, arguably, be the biggest event in your life. For all the temptations of splurging on it, you need to remember that taking a wedding loan means additional financial responsibility of repayments. For this reason, it’s important that you plan your wedding expenses and borrow only what you need so you’re not in debt for a long time.