Wedding loans: A risky path to years of financial struggle, say experts

SHAH ALAM - Living beyond one’s means, especially by borrowing for weddings, has long been discouraged.

However, the rise of debt options like personal loans and Buy Now Pay Later (BNPL) has normalised couples taking advance solely for wedding expenses.

Financial and Islamic law experts cautioned against this trend and urged couples to prioritise budgeting over extravagance to avoid accumulating long-term debt.

Mohamad Faiz Azmi, financial expert and founder of Financial Faiz, when asked about a recent viral case where a couple took a RM20,000 loan for their wedding, warned that weddings should be moderate and debt-free, particularly if existing debts remain unsettled.

“A wedding is one day of celebration, but could mean years of debt.

“If you must borrow, ensure you can repay it and don’t do it just to impress others. What matters most is life after marriage, not just the event,” he said.

Faiz advised couples to prioritise debt repayment in their monthly budgets and to avoid overspending.

He recommended alternatives such as holding simple ceremonies, saving gradually or postponing weddings until funds are sufficient.

“A small ceremony means more than a grand one that leaves you in debt,” he added.

He also warned against cultural pressures that push couples to overspend and hide financial realities.

“Without proper planning and open communication, couples risk starting married life under financial stress,” Faiz said.

Echoing this, Universiti Kebangsaan Malaysia Islamic law expert Professor Datuk Dr Mohd Izhar Ariff Mohd Kashim said that although in Islam, loans and financing are permitted, especially for home or vehicle financing.

However, the ability to repay comes first, provided that excessive debt is not taken.

"Islam does not encourage taking debt if we might not be able to repay it as agreed. This makes it vital that any form of financing or loan must be carefully assessed before a contract is made," he said.

Emphasising within the context of marriages, he said that financing needs to be scrutinised carefully for its purpose.

"If the financing is to cover necessary and obligatory expenses, then it is permissible, but it must be able to be repaid within the agreed time.

"However, if the loan is taken just to be extravagant in holding a lavish ceremony, then the ruling can change from permissible to discouraged (makruh).

"If the excessive financing leads to harm, such as taking loans from loan sharks (ah long) or similar, then the ruling changes from makruh to haram (forbidden). This is because it involves riba (usury) and causes harm to oneself and the family," Izhar said.

He advised couples facing financial difficulties to postpone their marriage rather than resorting to a loan, encouraging them to nurture the saving habit and work hard to be able to afford it.

"You can also hold the wedding with the lowest possible cost. What matters most is the solemnisation (akad) and that the core requirements of marriage are fulfilled," he said.

Izhar said that marriage, in its original purpose of safeguarding one's faith, is encouraged and therefore every Muslim is obligated to work hard and earn a living to fulfil their needs and desires without resorting to probably harmful alternatives.

"One of the problems faced by today’s youth is living luxuriously without saving, which leads to financial issues, made worse by the burden of unnecessary debt," he concluded.

Recently, a Malaysian woman revealed that she and her husband took a RM20,000 personal loan to fund their wedding, sparking discussions about the costs and choices behind tying the knot.

In a small-scale study published on International Journal of Academic Research in Business and Social Sciences, 80 per cent of 204 respondents borrowed between RM20,000 and RM50,000 for their weddings due to high cost of wedding ceremonies, the need to provide large dowry and social pressure to host extravagant weddings.