Cash woes? A personal loan to the rescue!

    Personal Loan to Pay for Your Wedding

    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.

    What is a Wedding Loan?

    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.

    How Does a Wedding Loan Work?

    • On successful application, you will receive a lump sum amount from the bank that you will have to repay regularly as monthly instalments.
    • A fixed or floating interest rate will be applicable based on the type of wedding loan.
    • Interest rates can vary according to the bank’s policies, your income, and your credit history.
    • Depending on the loan or financing amount, you can select a convenient repayment tenure. While most banks offer maximum repayment tenures ranging between five and seven years, there are some banks offering repayment periods that go up to 10 years.

    How Do You Apply for a Wedding Loan?

    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.

    How Do I Qualify for a Wedding Loan?

    To get a wedding loan, you need to ensure that you fulfil the following eligibility criteria:

    • You need to be at least 21 years old.
    • Your monthly income should be RM2,000 or more.
    • You should be a Malaysian citizen or a Permanent Resident of Malaysia.
    • You must furnish valid documents like a proof of identity and proof of income as and when the bank asks you to.
    • You should have a good credit score that ranges between 650 and 750.

    How Much Money Can I Borrow?

    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.

    How Long Does it Take to Process a Wedding Loan?

    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.

    Is Taking a Wedding Loan a Good Idea?

    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:

    • A wedding is a joyous occasion which requires you to splurge on anything and everything. As a result of such mindless spending, you may end up misusing all the funds and be in a worse financial situation than before.
    • A personal loan makes sense when you’re facing a financial crisis or when there’s an emergency. Borrowing money for a wedding that should be planned in advance and spending mindlessly on it can never be good for your financial health.
    • You may get carried away and borrow an exorbitant sum for your wedding. Besides the fact that you need to pay back the entire sum along with interest, late payments of any sort can be detrimental to your credit score.

    How Do You Save On a Wedding Loan?

    • Never accept the first loan offer that comes your way. Keep in mind to shop around and compare quotes from multiple loan providers.
    • Don’t ever borrow more money than you can repay. Try and ascertain the right amount of money you’ll need to organise a memorable wedding, not a lavish one.
    • Get an idea of what you’ll need to repay every month with an online premium calculator. Plan your future finances accordingly.
    • Look for wedding loan offers that come with zero processing fees, late payment charges, or pre-closure charges.
    • Plan your wedding well in advance and consider spending your money only when it’s absolutely necessary.
    • Lastly, figure out your priorities and stick to your pre-decided budget. Any kind of additional expenditure can only mean more debt.

    Best Personal Loan in Malaysia for your Wedding

    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.

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