Wedding loan in the Philippines – a marriage proposal, a yes answer, and getting ready to start: the weeks and months leading up to the actual wedding are already fraught with great moments for the future bride and groom. The wedding itself is supposed to be the most beautiful day of a newlywed’s life until that point, so spending often doesn’t play the most significant role in a wedding. But unexpectedly, high costs add up quickly, or there isn’t enough money to finance the wedding from the start. The unwavering desire of the young people to put up a bright and magnificent holiday against the backdrop of the high cost of all its components pushes future spouses to apply for financial support from the bank.
Increasingly, even people in the Philippines find themselves in this situation, as experience shows that weddings are becoming more prominent, expensive, and exclusive. To be able to design their wedding day following their ideas, many people who want to get married think about taking out a loan. Banks offer borrowers particular loans for this purpose.
- What is a Wedding Loan, and How is it Different From Other Loans?
- Benefits of Taking Out a Wedding Loan
- What Can You Use Your Wedding Loan For?
- Wedding Loan: Safety Rules
- How to Get a Loan for a Wedding With Minimal Overpayments
- Best Wedding Loan Options in the Philippines
- BDO Individual Loan
- Maybank Personal Loan
- Citi Personal Loan
- HSBC Personal Loan
- What Features Should You Look for in a Wedding Loan?
- How to Calculate Wedding Expenses
- Final Thoughts About Wedding Loan Philippines
What is a Wedding Loan, and How is it Different From Other Loans?
In principle, wedding loans are ordinary installment loans that banks pay accessible to newlyweds. Such a wedding loan differs from other loans in one critical point: while loans for purchasing a car or real estate are targeted and therefore can only be used for an agreed project, newlyweds can use a wedding loan for all types of events to use the wedding ceremony.
In addition to spending directly on the wedding day, such as the wedding dress, venue, or hospitality, the bride and groom can easily use wedding loans to book hotels, honeymoons, and many other marriage-related activities. Borrowers repay the borrowed funds to the bank in equal monthly installments. Their size depends on the loan amount, term, and interest rate, as with other loans.
Benefits of Taking Out a Wedding Loan
Among the top benefits of taking out a wedding loan in the Philippines are:
- the opportunity to organize the vacation of your dreams;
- relatives are likely to ease their pressure, and the newlyweds will be able to make more independent decisions during the organization of the holiday;
- the opportunity to spend a honeymoon in almost any country in the world;
- you can pay attention to all the little things: from creative invitations to personal gifts to guests as a token of gratitude for attending the event;
- the possibility of at least two days of celebration;
- unlimited budget freedom to choose a restaurant, photographer, videographer, outfits, etc.
Moreover, there will be no need to save on salutes, fireworks, and an incredible wedding cake.
Among the significant disadvantages:
- family life begins with debts;
- the debt load will limit the spouse’s costs in the future;
- the risk of not paying back the debt on time due to losing a job.
The idea of lending to a wedding has quite significant pros and cons. The primary thing is that you don’t have to regret taking on family obligations at the end of the honeymoon trip. The perfect option is a compromise between your desires and material capabilities. After all, you can celebrate it in a relatively narrow circle and fly to exotic countries with the money saved on the same day or at dawn. The easiest and most effective way to get a loan for a wedding is to apply for a customer loan in cash or a credit card at a bank. A credit card will allow you to avoid unnecessary expenses, providing the opportunity to use strictly as much money as you need. You will have to pay interest only when the money is used.
What Can You Use Your Wedding Loan For?
No conditions from the bank on the use of credit funds for the wedding:
- payment for the services of all necessary personnel;
- buying a dress, suit, rings, and accessories;
- transfer of guests;
- banquet payment;
- technical support, decor;
Not every couple will decide to take a loan for a wedding because people around often condemn this option, considering spending on something like that pointless. But for many, a wedding is not just a formality. But there is no time to save up for a celebration for a year or two.
The main argument of opponents of a wedding loan Philippines is that debt obligations are a severe test for a couple, and in the event of a divorce, the money will still have to be returned. But after all, regrets about an unfulfilled holiday can be no less a reason for quarrels than having a loan. And it is still unknown what will lead to a break faster.
The reasons for a magnificent celebration can be very different: a childhood dream, a reason to finally gather all relatives and friends together, a desire to start family life with a bright event, memories of which will warm you all your life, or for you this is a remarkable psychological moment that consolidates a new status your relationship. In any case, if this is important to you, make up your mind!
Wedding Loan: Safety Rules
Credit obligations are a serious matter, so it is essential to consider some points:
- Talk to the other half and make sure that both agree to celebrate the celebration on credit. If the desire is not mutual, you will have to decide whether to rely only on your strength or organize a more modest holiday;
- Evaluate your sources of income. It is a bad idea to take a loan for a wedding if you have a seasonal job or you provide yourself with irregular earnings;
- Think about the risks.
If there is a high probability of changing jobs, moving to another city, or getting injured due to extreme hobbies, you should consider taking out insurance.
How to Get a Loan for a Wedding With Minimal Overpayments
First, decide what budget will be required to organize the celebration and what goods and services you must pay for. Specify where it is possible to pay by card and where cash is needed.
For non-cash payments, issue a credit card with a grace period and cashback. Pay it for expenses wherever possible: cashback will cover part of the debt, and interest payments can be avoided entirely if you return the money during the grace period.
For cash payments, apply for a consumer loan for a wedding. If you own a car, a land plot, an apartment, or a room, you can apply for a secured loan. In the presence of collateral or guarantors, the bank offers a more favorable interest rate, and the overpayment on the loan will be less.
Many organizations pay financial assistance in connection with marriage. Check with your company’s accounting or human resources department to determine how much you can expect. After receiving the payment after the wedding, you can send it to the early repayment of the loan.
Best Wedding Loan Options in the Philippines
When it comes to wedding loans, Filipinos usually have a wide choice — they can go to both banks and lenders. There are many offers, and here it is best to find out the details of these offers to choose the best option.
BDO Individual Loan
Financing a wedding shouldn’t be a problem if you opt for one of the best banks in the Philippines. BDO is one of the most influential banks in the country, as well as one of the most stable. The minimum loan amount is 10,000 pesos. According to the bank, you will be able to choose any fixed rate from 3 to 36 months.
Maybank Personal Loan
Maybank is one of the most excellent lenders since it can quickly offer funds for any necessity. This business is prepared to provide good working circumstances for young people. The bank offers a loan of up to PHP 1,000,000 with a three-year repayment period and a 15.60 percent interest rate. It is a fantastic alternative for individuals who want to get the most out of their celebration.
Citi Personal Loan
One more popular option is the Citi loan for weddings. According to the bank, newlyweds can get a loan of up to PHP2,000,000 for a loan that is repayable for up to 60 months.
Among other features:
- Additional interest 1.26%
- Loan amount from 20,000 to 2,000,000 Philippine pesos.
- Loan terms up to five years
- Processing time within 24 hours
- Other Fees and Charges Php500 late fee.
According to the bank, the applicant must be between 21 and 65 to apply for a wedding loan at this organization. Furthermore, the client must be a Philippine citizen or a visitor with a legitimate Philippine billing address. It is also necessary to submit a tax identification number and to have a significant credit card. Aside from that, if a person has a required gross yearly income of 250,000 Philippine pesos, he may expect his application form to be approved.
HSBC Personal Loan
HSBC is a great option as the company offers an incredible loan package that can strike a good balance between budget and time. A budget of half a million pesos for a wedding is an excellent chance to create the wedding of your dreams. According to the bank, marginal cost is calculated as described on the HSBC website, so the client can easily understand what conditions he needs.
The short processing period for each client application is one of the primary advantages of choosing this bank. Regardless of the bank’s workload, each customer will receive a prompt response. In as little as five days after submitting their application, newlyweds will receive word on whether their financing has been approved or denied. Furthermore, there are highly adaptable criteria for people whose lives are constantly changing. For instance, customers can pay back the loan in six, twelve, eighteen, twenty-four, or thirty-six months.
What Features Should You Look for in a Wedding Loan?
Before you apply for a loan, check out these essential features to help you save money on your loan:
- Low-interest rate. Choose a wedding loan in the Philippines with the lowest possible interest rate so you can focus on paying back the loan amount, not the extra interest;
- Loan maturity. How long you pay off the loan will determine how much you need to pay each month, plus the total amount of interest. Most loans offer up to five years as a repayment period;
- Low commissions and fees. A wedding loan comes with various expenses, including monthly interest, processing or maintenance fees, repayment fees, late payment fees, and early repayment fees. Keep these fees in mind when looking for a wedding loan.
How to Calculate Wedding Expenses
To do this, independently calculate and write down how much and what you are willing to spend, and these tips will help you create a perfect plan:
- Outfits of the bride and groom. It isn’t easy to talk about any amount of money here, because it all depends on your wishes and preferences. A bride or groom can wear a vintage wedding outfit that they inherited, choose an outfit from a little-known brand, or vice versa, one of the luxury brands;
- Ceremony. It should include the state duty for registering a marriage in the registry office and the cost of an official outdoor ceremony or unofficial registration;
- Site rental. If you plan to organize a dinner in a restaurant, this article can probably be crossed out: most restaurants provide a hall for free when booking a feast;
- Decor and floristry. Decide on what kind of design you choose. If you plan to decorate tables with flowers, decorate a podium, an arch for registration, and put up the scenery, the amount will grow indefinitely;
- Banquet. The cost of the banquet will depend on the number of guests, the category of the restaurant or catering service, the number of dishes and drinks, as well as whether your venue provides furniture, tablecloths for tables and chair covers, dishes, equipment for the dance floor and performances by artists, and so on.
Final Thoughts About Wedding Loan Philippines
In principle, every bridal couple should intend to finance their wedding essentially themselves. Nevertheless, if taking out a wedding loan cannot be avoided, this is a good time for loan comparison. Interest rates are currently low so that a unique dream wedding can be financed more cheaply than ever. Moreover, as a recommendation, it is still the case that wedding loans should only be viewed as bridging loans. Long-term planning as an installment loan should be avoided. In this context, the bride and groom should set themselves the goal of free particular repayment after the wedding.