Question: I took out a loan for business expansion, but have a wedding to make. May I use the money from the business expansion loan to cover the cost of the wedding?
Answer: The Shulchan Aruch writes that it is prohibited to borrow money and spend it wastefully so that the lender will not be able to collect. (C.M. 97:4) The Taz explains that this is prohibited only if the borrower 1) changes the intended usage and 2) depletes the money.
The implication is that if the person will be able to repay the loan, it is permissible to use the money for a purpose other than the intended one. Therefore, it seems permissible to use the money for the wedding if this will not delay the repayment of the loan.
However, it is prohibited to falsely state the purpose of the loan when submitting a loan application, especially if the lender would not be willing to grant the loan for the real purpose. In addition to lying, this borders on stealing from the lender. (See Pischei Choshen, Halva’a 2:11)
Authored by Rabbi Meir Orlian
These articles are for learning purposes only and cannot be used for final halachic decision.
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