Written by A wedding loan is a form of personal loan designed to help you out with your special day. According to Moneysmart, the average Australian couple will spend at least $36,000 on their wedding. To help manage the costs, 60% of couples will take out a loan.
These personal loans are typically unsecured, meaning that you won’t have to put up any valuable assets like a car to secure your loan. However, to qualify, you will have to meet certain eligibility criteria, which we'll discuss later.
Once approved, you will receive a lump sum amount. The cost of your loan will depend on a range of factors specific to both you and your lender, so it pays to have someone in your corner when comparing your options. That's where Savvy can help you out. We'll do the heavy lifting to help you find the best available among our trusted lending partners. Get a free quote today!
Why compare personal loans with Savvy?
There's no need to worry about forking out to compare offers. Our service is free, so you can come back whenever you like.
You don't need to worry about sifting through documents and visiting the post office, as they can all be submitted online.
We've partnered with personal loan companies you can trust to ensure your comparison is a high-quality one.
What can I spend my wedding loan on?
Personal loans are usually quite versatile when it comes to how you wish to use your funds and can be used to pay for various wedding costs as you see fit. Your loan can cover the whole wedding or simply certain elements. Common wedding costs include:
- Dress
- Suits
- Rings
- Accessories
- Venue hire
- Flowers
- Decorations
- Photography
- Entertainment
- Cake
- Food and drinks
- Transport
All of this can add up quickly. Borrowing money can help you cover the expenses associated with getting married and manage the financial burden by spreading out the cost.
Can I buy an engagement ring with my personal loan?
Yes. If you've got your eye on a particular engagement ring but don't quite have enough in the bank to cover it, you can use a personal loan for your purchase. Loans can start from as little as $2,000 all the way up to $75,000, so whether you're looking at a cheaper design or something more expensive, you can get the funds you need.
You're not restricted to engagement rings either. The flexibility of personal loans means you can spend the money on whatever piece of jewellery you like, new or old. As such, you can purchase an engagement ring brand-new from a jewellery shop or buy a retro watch from a private seller. Once the funds hit your account, you can essentially use them without restriction. While jewellery is often highly valuable, these types of loans, like others, are typically unsecured and the jewellery is not used as collateral.
Can I take out a personal loan for my honeymoon?
Yes. You can put your wedding loan towards a honeymoon, or you could take out a travel loan specifically to cover some or all of the costs of your holiday. Again, these loans are typically unsecured and once you receive the funds, you can spend them as you choose. This applies even if you are taking your honeymoon outside Australia, as long as you reside in Australia and are able to meet other eligibility requirements. Honeymoon costs you could cover with a personal loan include:
- Flights
- Accommodation
- Meals
- Travel insurance
- Shopping
- Activities and excursions
Taking out a personal loan for your honeymoon can be a practical solution if you need immediate funds and prefer to spread out the costs over time. However, it’s crucial to carefully consider the terms and your ability to repay the loan. Exploring all available options and creating a budget can help ensure a financially smooth start to your married life.
How can I avoid spending more than I can afford with a wedding loan?
If you’re looking to cut down on spending, there are ways to save on your wedding celebrations.
Set a budget: make a list of all potential wedding expenses and decide which aspects are most important to you. Set a maximum amount you’re willing to spend on each item and try to stick to it. You can also save money by looking for discounts and putting your DIY skills to use rather than paying a professional.
Borrow only what you need: when you apply for a loan, you and your lender will agree upon a pre-determined amount based upon how you wish to spend the funds and your ability to pay the loan back. It might be tempting to borrow as much as you can, but this could lead to overspending and subsequently higher repayments on the loan.
Research and compare: compare interest rates and terms from multiple lenders, including banks, credit unions and online lenders. A lower interest rate translates to significant savings over the loan term, and a shorter loan term will mean higher monthly repayments but less total interest paid.
If you need help finding suitable wedding or honeymoon finance, you can compare your personal loan options through Savvy. Drawing from our extensive panel of lenders across Australia, we can help you find a suitable loan and ensure that your wedding expenses remain manageable.
The types of Personal Loans
Personal loan repayment calculator
It’s important to have an idea of what different loans might cost you overall before you apply. Fortunately, Savvy’s personal loan repayment calculator is simple to use and tells you everything you need to know about how much different offers might add up to overall based on a variety of different factors.
Apply for your personal loan online
Personal loan eligibility and documentation
The benefits of taking out a loan for your wedding and honeymoon
Common questions about financing your big day answered
Yes – we're partnered with lenders who specialise in lending to borrowers who currently are struggling with their credit score. It's important to note, though, that these loans come with greater restrictions on how much you can borrow (up to $10,000 to $12,000) and higher interest rates.
Yes – personal loan pre-approval can give you a clearer understanding of how much you can be approved for. This is useful if you're wanting to bargain on the cost of a particular item or service, as pre-approval gives your seller a clear ceiling over which they can't really go.
Yes – a joint personal loan could be the right move for you if you want to add the security of a shared repayment.
Yes – you can use a personal loan to fund a destination wedding. Since wedding loans are flexible, they can cover any related expenses, including travel, venue and accommodation costs for an overseas event.
If your wedding is postponed, you can still use the loan for future expenses. However, you’ll need to continue making regular loan repayments as outlined in your contract, regardless of any delays to the wedding itself.
