Mozo's quick guide to wedding loans
From the invitations to the venue, the cost of a wedding can add up quickly. However, a wedding loan can be a useful way to handle the bill. Like any personal loan, the right wedding loan can come with competitive interest rates and flexible features - all you have to do is find the one!
Let’s take a closer look at how.
What to look for in a wedding loan
Remember, wedding loans are basically personal loans, just with a fancier name. So interest rates, fees and payment flexibility should all be top of mind as you select one.
Here’s a quick run-down of some top features to look for:
Fixed vs. variable rates: variable rates can change at any time, typically in line with official rate cuts. With a fixed rate your regular repayments won't change, so you'll be better able to budget.
Extra repayments: pay your loan off faster and therefore minimise interest charges. The more payments you make, the less you owe in the end.
Low or no ongoing fees: bring down the cost of your loan - keep an eye out for any fees.
Which lenders offer wedding loans?
Most personal loans are versatile and so can be used for a range of things such as weddings. The goal is to find a loan that offers you the amount needed with a good interest rate and minimal fees.
Comparing loans is a must and it’s worth looking at a few different providers. Chances are one of them will offer a loan that’s suitable for your wedding. On our Mozo comparison table for personal loans you’ll see a range of lenders, including:
Major banks and credit unions
Most major banks and credit unions offer wedding loans. Generally you’ll just apply for a standard personal loan and then set the loan term and amount you're after.
Peer to peer lenders
Peer to peer lenders usually offer tiered risk-based interest rates - meaning you could score better rates if you’re a creditworthy borrower with a good credit rating.
How do I calculate personal loan costs?
At Mozo we provide you with an easy to use personal loans repayments calculator. Here’s a simple example of how your costs can be calculated:
- $30,000 loan
- 10.50% p.a. interest rate
- 5 year loan term
According to the Mozo calculator:
Monthly repayment = $645
Total interest paid = $8,689
Try it yourself. Plug in some variations to help you compare loans.
Other wedding costs to consider
It’s natural to get caught up in the excitement of a wedding, but you'll need to keep your eye on the prize to avoid some of some of the typically higher wedding pricetags.
Here are some common costs that can sneak up on you:
- Wedding invitations
- Photographer
- Dresses and suits
- Catering
- Transportation
- Make-up and hair
- Cake and/or desserts
- Flowers and decorations
Yes, there’s a lot to budget for and these things need to be planned for even if you use a personal loan.
Bottom line: How do I compare different wedding loans?
Start by comparing interest rates and features of a few different loans. Remember, there’s no individual product that is the best for everyone, so you’ll want to weigh up a number of options to make a more informed decision.
Also consider your borrowing capacity and how your finances may change over time. If the loan is for several years, you’ll want to budget for that period of time.
We’re here to help. Start comparing some of the top personal loans in our database as picked by Mozo’s experts.
Wedding loan FAQs
How do you finance a wedding?
Wedding bills can pile up. Credit cards are flexible but they can often come with relatively high interest rates. A personal loan offers an alternative form of credit with a typically lower interest rate than a credit card that can be paid back over a longer period of time. With that said, taking on a personal loan is not for everyone. It takes sound research, financial discipline and strong money management skills.
How long does it take to get a personal loan?
The time it takes to get a personal loan will differ between providers. But typically, an online application only takes around 10-15 minutes to complete. Funds can be placed in your account within a few business days, or in some cases, as quickly as within an hour.
Should I get a secured loan or unsecured?
The rate of interest you pay on a personal loan is often determined by whether the loan is secured or unsecured. An unsecured loan means that you don’t have to provide any security for your loan, and often applies to a holiday or renovation loan. The interest on these loans can often be higher. By contrast, a secured personal loan is a loan guaranteed by an asset such as a car. This security usually means the lender can offer a lower rate on the loan. Let’s break these down a bit further.
Is it a good idea to get a loan?
A personal loan can be useful for lump sums between $2,000 and $100,000, which are often too big to put on a credit card. It’s also useful because as long as you meet your monthly repayments, you’ll know how long you’ll have debt and approximately how much interest you’ll pay from the beginning.
* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
^See information about the Mozo Experts Choice Personal Loan Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.