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 apply for a personal loan with Savvy?
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.
Types of personal loans
Personal Loan Repayment Calculator
It’s important to have an idea of what your loan might cost you overall before you apply. Fortunately, Savvy’s personal loan calculator is simple to use and lets you know how much your repayments could be.
Your estimated repayments
$98.62
| Total interest paid: | Total amount to pay: |
| $1233.43 | $5,143.99 |
Apply for your personal loan online
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Complete our simple online application form
First and foremost, you’ll need to fill out our quick and easy online form. Tell us about yourself, your finances, the loan you’re after and why you need it in just a few minutes.
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Compare your options with Savvy
Once you’ve done this, you’ll be able to assess the products on offer from our partnered lenders. A member of our team will reach out to help you choose the best available offer.
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Send your documents and formally apply
If you’re happy with one of the options available, you can go ahead and formally apply. We’ll handle this for you; simply send the required documents through our online portal and we’ll do the rest.
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Get approved and sign your contract
We’ll let you know when you’re formally approved, which can happen in a matter of hours, and all you’ll need to do is sign your loan contract electronically to receive your funds as soon as the same day.
Personal loan eligibility and documentation
Eligibility
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Age
You must be at least 18 years of age
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Residency
You must be an Australian citizen or permanent resident (or, in some cases, an eligible visa holder)
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Income
You must be earning a stable income that meets your lender’s minimum threshold (this can start from as little as $20,000 per year)
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Employment
You must be employed on a permanent, casual or self-employed basis
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Credit score
You must meet your lender’s minimum requirements related to your credit score and not be bankrupt or under a Part IX debt agreement
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Contact
You must have an active phone number, email address and online bank account in your name
Documents
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Personal information
Your full name, date of birth, address and contact details
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Photo ID
Such as a driver's licence or passport
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Payslips
Your last two consecutive payslips (or your last tax return if you're self-employed)
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Assets and liabilities
Information about any assets you own (such as a car or house) and liabilities in your name (such as other loans)
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Bank statements
90 days of bank statements may be requested, but not always
The benefits of taking out a loan for your wedding and honeymoon
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Immediate access to funds
A wedding loan gives you a lump sum of money upfront, allowing you to cover large expenses like venue deposits, catering or photographer fees when you need to.
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Spread out payments
Instead of paying for everything in one go, you can break down the wedding costs into regular, manageable repayments over one to seven years, depending on the loan term.
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Cheaper than credit cards
Wedding loans often come with lower interest rates compared to credit cards. This can help reduce the overall cost of borrowing, saving you from high-interest debt that credit cards typically incur if not paid off quickly.
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Flexibility
You’re free to use the loan on various wedding-related expenses, whether it’s for your dream dress, floral arrangements, catering or a honeymoon. You decide how to allocate the funds.
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Avoid draining savings
A loan allows you to keep your personal savings intact, so you won’t have to dip into emergency funds or change future plans to cover immediate costs, giving you financial peace of mind.
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Reduced financial stress
With a wedding loan, you know exactly how much you’re borrowing and how much your repayments will be, which can alleviate financial pressure during the wedding planning process and make it easier to budget for your special day.
