Published: May 26, 2021 | Updated: May 29, 2021 | Posted by: Rouselle Isla | Loans
Weddings can get notoriously expensive, and the things you need to pay for can be a lot to keep up with. If you’re not careful, you could end up overspending, or worse, neck-deep in debt.
Ideally, you should have enough money saved up that can cover the cost of your entire wedding. But if you’re nowhere near your wedding savings goal and want to get married as soon as possible, don’t panic. Consider getting a loan for a wedding.
In this article, find out how to get a loan for a wedding, its pros and cons, and where you can find the best wedding loan rates.
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A wedding loan is simply a type of personal loan for financing a wedding. You can use it to pay for wedding expenses and even honeymoon-related expenses.
The great thing about wedding loans in the Philippines is that you don’t need to prove you’re getting married. You only need to meet the wedding loan lender’s requirements, submit your documents, and then make your monthly payments.
Get a loan for a wedding wherever personal loans are available from providers such as banks, online lenders, and other financial institutions. The amount you can borrow will depend on your qualifications, and how much you’ll pay will depend on the loan amount and the loan term.
Remember that this is still a debt that can affect your future cash flow, so don’t get a loan for a wedding on a whim. However, a wedding loan can be advantageous for these reasons or instances.
Maybe what you’ve saved up is only enough for the wedding venue. But you still have a lot of wedding suppliers to pay.
A loan for a wedding can be a good way to pay for all wedding expenses at one go. This means you can go ahead with booking all your suppliers to secure your wedding day and not get too stressed about the payments.
A loan for a wedding is flexible. You decide how much you want to borrow and how long you want to pay for it. This way, you can set up a payment schedule and budget your money.
A shorter repayment period will give you lower interest, while a longer repayment period will give you smaller monthly repayments.
Personal loans for wedding expenses can also avoid the uncomfortable situation of borrowing money from family members. Even if they can afford to lend the money and you have a really great relationship, there are potential pitfalls.
As this is also a personal finance matter, you don’t want to involve anyone else with your money issues. As much as possible, don’t ask family members for loans to avoid potential misunderstandings or animosity, especially when they don’t say yes or when you fail to pay.
If you get a legit bank loan for your wedding, you don’t need to deal with a tito or tita who reminds you about your loan every chance they can get.
Wedding planning can be unpredictable, as ironic as that may sound. With a wedding loan, you can handle unexpected expenses and have cash on reserve. So there’s no need to worry when your soon-to-be mother-in-law adds 10 more people to your guest list, or when you need to stay an extra night at the hotel, or when you need to buy a new set of wedding souvenirs because what you ordered won’t be ready in time.
You can even apply for a loan online, and your loan proceeds will be disbursed to your savings account in just a few days. This will clearly eliminate the stress and anxiety of making your payments to wedding vendors.
Read more: Are You Financially Ready to Get Married?
As helpful and convenient as wedding loans are, they also have their drawbacks. Make sure to know what they are before submitting that loan application.
If you opt for a wedding financing plan to pay for the cost of a big wedding, it can easily overwhelm your budget, especially if you already have existing loans or debts.
Even wedding loans with low interest rates can be an additional financial burden if your budget is already tight. When there’s too much debt, financial stress will always be in the picture.
As a newlywed couple, the next milestone will be to purchase your first home or start a family. But if you have a wedding loan to pay for, you may need to delay these plans until you fully pay off the loan.
Depending on how much your wedding loan is, it can impact your cash flow and make it more challenging to qualify for new loans. Banks usually look at a borrower’s existing loans to see if they can afford to pay off a new loan.
Starting your happily-ever-after with a huge debt looming over your heads is not ideal. It’s a period of adjustment for you and your spouse, and loans can produce a lot of stress in your marriage when not managed properly. This early in your marriage, the last thing you want is money trouble.
The answer will depend on how big your wedding will be, when and where you want to hold it, and who your wedding suppliers will be.
If you want a big wedding, the biggest chunk of your wedding budget will go to your wedding venue, wedding videographers and photographers, wedding rings, and catering, just to name a few (and the list is not short).
Make sure that you and your partner talk about how much of the wedding costs will be financed with your own money and how much will be covered by the wedding loan.
More importantly, decide on how long you want to pay off the loan and how you’re going to create a budget to pay for it.
Before you submit your loan application, make sure to look at these important features that can help you save money on your loan.
Choose a wedding loan that offers the lowest possible interest rate, so you can focus on paying off the borrowed amount and not the extra interest.
How long you’ll pay off the loan will determine how much you need to pay every month, plus the total amount of interest. Most loans offer up to five years as repayment period.
Wedding loans come with different fees and charges, which usually include monthly interest, processing or service fees, disbursement fees, late payment fees, and early repayment charges. Consider these fees when looking for a wedding loan.
Shop for different loans to help you find the right one for your wedding and the one you’re most likely to be approved for. Here are some of your options.
Plan your wedding to the last detail to help you manage your expenses. As much as possible, identify where you can cut costs and opt for the more practical choice.
Whether it’s to trim the guest list, switch to a different venue, or buy ready-to-wear entourage outfits, try to keep expenses low and take control of your wedding budget. There are lots of free online or downloadable wedding budget worksheets that can help you stick to your budget.
This way, you’ll know how much you need should you get a loan for a wedding. The goal is to have as little debt as possible, so you can have your dream wedding and enter married life without being burdened with too much debt.
Source:  Wedding Budget Worksheet (Realsimple.com)
Rouselle is a quirky midlifer who loves the hustle of writing. She is also passionate about books, food, and film. When not busy typing away on her laptop, she’s busy collecting life moments and indulging in guilty pleasures. Follow Rouselle on Linkedin.