SocietyOne hits lending record, but brides-to-be are snubbing personal loans

SocietyOne posted record amounts of lending in 2017, but those about to tie the knot might be overlooking the potential value of a personal loan, according to a new survey from the peer-to-peer lender.

SocietyOne began offering personal loans to Aussie customers five years ago, and this year topped $350 million of total lending. The peer-to-peer platform’s current loan book also hit a high of $200 million this year for the first time ever.

“Our growth in 2017 underlines the demand from consumers for a real alternative to the major banks. Consumers are looking for a better deal on their finances and our risk-based pricing is attractive for customers that have demonstrated that they have a good credit history,” said SocietyOne CEO and Managing Director Jason Yetton.

Of the $350 million total lending amount, $7.13 million went towards funding weddings.

SocietyOne spokesperson, Maria Loyez, said that although the average cost of a wedding in Australia is just over $36,000, the average amount Aussies borrow to pay for their big day comes in at almost $17,500.

“This suggests Aussies are saving for their big day but may need a bit of help to cover some of the bigger expenses, like the venue or wedding rings,” she said.

RELATED: Australia’s best personal loans of 2017

A recent survey commissioned by SocietyOne found that while the majority of Aussies (62%) prefer to fund their dream wedding by dipping into their savings, 11% put the bill on their credit card.

Just 5% of Aussies chose to fund their upcoming nuptials with a personal loan, despite the fact that the average rate on an unsecured personal loan at the moment is just 11.76%.

“Couples may be tempted to put large wedding payments on their credit card but we would encourage people to think about a personal loan as they have much lower interest rates than credit cards,” Loyez said.

“They also allow you to take out just the amount you need, and to make manageable monthly repayments.”

Credit cards and personal loans both have their pros and cons, and which one is right to fund your big day - if either - comes down to your financial situation. Check out our personal loans vs credit cards guide to find out more.

If you’ve already decided that you’re in the market for a personal loan to fund your wedding bash, head over to our personal loan comparison table to find an option that’s right for you.