Should You Take a Personal Loan to Finance Your Wedding?

If you find yourself short on cash but with a dream wedding to plan, should you consider a personal loan to help you finance your celebration? We take a look at the pros and cons of such a decision.

Getting married? You have much to celebrate and even more so if you’re one of the lucky few whose parents’ are footing the bill. In these modern times however, most of us pay for our own wedding.

With lesser funds to spare, it’s no surprise when brides and grooms forgo a big shindig in favour of modest dinner parties after a formal registration ceremony at the government office.

Still, don’t let the ‘laid-back’ approach fool you. Between menu, venue, attire, hair and make-up, ceremonial affairs, and photography, even weddings that are void of bells and whistles can still run into the thousands. On the higher spectrum of extravagance, budgets can run over the RM200,000 mark.

If you’ve been saving up or wisely kept a wedding fund since meeting ‘the one’, good on you for planning ahead! But what if you don’t have enough or much at all for your big day, how would you go about funding this major life event?

A personal loan could help you with the shortfall but is it prudent to take one up for your wedding? We’ve drawn up the pros and cons to help you make your decision.

The Benefits to Taking a Personal Loan

The feeling of having enough resources to carry out your plans is like no other, but will the pros prevail over the cons for you?

1. You won’t have to burden anyone else

It’s no secret, weddings are stressful affairs because a major change is happening, in-laws are getting acquainted, and you’re trying to keep everyone happy.

Now throw in the money issue and watch the fireworks.

It’s a real blessing to be able to pay for the wedding on your own; you’ll lessen the load on your family and let them celebrate with you without the financial worry.

2. You can really make it your own

Here’ a sad fact: sometimes generous sponsorships aren’t so generous after all. Pledges from well-meaning relatives to help you pay for your wedding may come with strings attached.

Your personal loan, however, places you firmly in the driver’s seat leaving you and your fiancé to have the final say on your special day. You can always oblige to family requests but you do not have to be held ransom by it.

3. A day to remember

Weddings really are a joyous occasion to celebrate and you might want to do something a little extra, maybe out of the norm – and having enough resources will help you do just that.

Just think of the possibilities, you could do something fun like have your favourite local band play or let your guests feast on tasty treats from a decadent dessert table.

Your access to much-needed funds will give you the opportunity to make your wedding a magical and memorable day to look back on.

4. Saving cash in hand for more important matters

Some folk do have the money for a wedding but still opt for a loan. Why? Cash in the bank is worth a lot more to them than expected cash in future.

The rationale behind this is that the interest on a loan is a small price to pay to ensure you always have a nice emergency fund for other matters.

No one can really predict what will happen in future. Keeping cash handy will be much better to some folk than depleting the account and remaining debt free.

This is a matter of preference of course and there is no right or wrong.

The Drawbacks of Taking a Personal Loan

Nevertheless, while it might please you, your future spouse and even your family to have a grand affair enough to put the Kardashians to shame, can you contend with the drawbacks?

1. Starting out your life together in debt

The dreaded debt after the big day is probably the greatest concern for anyone considering a personal loan to finance a wedding. No one wants to embark on marital bliss with heavy loan repayments down the road.

The best way to avoid getting saddled with burdensome debt is to make sure you can afford the repayments.

Consider this example – if you earn RM4,000 a month and want to borrow RM25,000 at 7% interest rate (which is extremely low as far as personal loan rates go) over the next five years to finance your wedding, your approximate repayments would come in at RM563 per month.

Is this an amount you can reasonably afford?

If you’re not sure, use our personal loan calculator to help you figure out exactly how much you can realistically borrow and comfortable repay. This will help you plan and budget effectively to sidestep heavy debt.

2. You may need to put other major decisions on hold

Add your personal loan to all other borrowings you and your spouse have already accumulated along the way such as car loans, credit cards and even education loans, are you in heavy debt?

If yes, then consider how this will affect the decisions in the next stage of your life.

Buying a house and having children may need to take a slight pause till your earnings are strong enough to contain your debt.

3. Spending more than you should

Having more money to spend for your wedding might tempt you into unnecessarily extravagant frills and add-ons.

You might be tempted to take a larger personal loan than necessary for the extras thinking: I can always repay it later.

You can take a personal loan and avoid this problem of course, by simply taking only what you need according to your wedding plan and budget.

Saying “I Do” to a Personal Loan

Ideally your wedding day, whether modest or momentous, is going to cost you and while we’d like to rely on the goodwill of friends and family to help with financing by way of ang pows, it’s not always a practical approach for all.

You might have to fund at least a portion of the celebration even if you are receiving help from those around you.

In this dollars and cents world, even a simple ceremony can amount to a lot. Taking on a personal loan can be an amazing little helper to support your wedding plans, but is it right for you?

Here are some handy hints to help you decide.

You could consider taking on a personal loan if you:

  • Have steady income that can cover repayments over its tenure;
  • Are on the same page with your partner about how much money you should borrow;
  • Done your research and already have a reasonable costing plan for your wedding; and,
  • Have emergency savings ready to keep all your loans and other expenses covered for a period of 3-6 months.

That said, you might want to skip personal loans for the time being if:

  • Your job and income are unstable;
  • You have too many prior commitments and debts to repay;
  • Your savings and cash flow are limited at present; and
  • You don’t completely understand the terms of your personal loan.

Whether or not you take out a personal loan, remember that it is completely possible to make your wedding a dream come true no matter the budget.

On a mushier note, recognise that your wedding will be special because it’s YOUR big day. Just think of all the rest as the cherry on top of an already wonderful journey.

If you have decided to take on a loan to finance your wedding, you will need to find the best loan to suit you. Depending on your situation and occupation. Whether you are a civil servant or GLC worker; on a lower income; or looking for a fast approval loan; there's sure to be one for you. Don't fall in any of the aforementioned brackets? Then simply head to our personal loan calculator to find the perfect loan for you circumstances.


Agree or disagree with this post? Questions? You also have your word!

  • rita

    i would so take a loan for my wedding... i get to be thrifty on expenses and lock down an exact amount to pay back

    • Avantika

      This article helped my confused mind to come to a decision. Thank you RinggitPlus!

      • Chen

        If no money to wedding, then dun marry leh! ishk...

        • johan badru

          Maybe....your problem with the money can be settle...