Wedding loans 2022: Your top questions answered about borrowing for your big day

couple at their wedding

Something old, something new, something borrowed and something blue …

Who doesn’t love wedding traditions, right? We definitely do! 

And while we may not be able to help you out when it comes to that something blue, let’s talk about borrowing (because boy do we know a thing or two about that!). 

No matter if you’re finally putting on your covid-delayed wedding or simply gearing up for your perfect big day in 2022, a wedding loan might be exactly what you need to cover some of the costs.   

But there are a few things to look out for, from loan types, interest rates, fees, repayment options and borrowing amounts. So read on to find out the answers to your top questions about wedding loans and how it all works when it comes to borrowing money for the day you’ll never forget. 

Can I borrow money for a wedding? 

Some personal loan lenders offer wedding loans that allow customers to borrow for their big day. Whether or not you personally can borrow for your wedding comes down to you, your finance and credit score. Depending on the healthiness of your financial situation, a lender will determine whether or not they see you as a good borrower - meaning you can and will pay down debt (and not default on the loan). 

Also don’t forget to crunch the numbers yourself and see what you can actually afford to pay back. While a big white wedding may be the dream in 2022, it may not be a good idea to splurge if it’s going to spiral you into uncontrollable debt for the foreseeable future. 

How much can I borrow with a wedding loan? 

Depending on the lender, you may be eligible to borrow thousands of dollars for your wedding. According to the Mozo database, personal loan borrowing amounts currently range from $500 to $10,000. 

It’s important to note that while you may be eligible to borrow a high amount it’s not a good idea just to borrow for the sake of borrowing. Make sure you only borrow what you need to cover the cost of a wedding you can afford. 

Which type of loan is best for a wedding? 

Again, this depends on you and your situation. 

There are two types of wedding loans to be aware of: a secured loan and an unsecured loan. With a secured option, you will often receive a lower interest rate in return for putting a personal asset against the loan as collateral (such as your home, car or even savings). The risk here is that if you end up defaulting on your loan, the lender can repossess the asset. 

On the other hand, an unsecured loan doesn’t require any collateral at all. However, this option may have a higher interest rate than a secured loan. 

What’s a good interest rate for a wedding loan?  

The key is to look for an interest rate that is below average (if not, well below). 

Right now in the Mozo database, the current average variable unsecured interest rate sits at 9.53%, while the average variable secured rate is a lower 7.57%. In saying that, there are plenty of lenders that offer rates much lower, check them out below:

Compare personal loans for your wedding - last updated 14 May 2022

Search promoted personal loans below or do a full Mozo database search. Advertiser disclosure
  • Unsecured Personal Loan


    interest rate
    comparison rate
    Monthly repayment
    5.35% 19.09% p.a.
    6.14% 19.99% p.a.based on $30,000
    over 5 years

    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.35% would cost $34,832.61 including fees.

  • Home Improvement Loan

    Fixed, Unsecured

    interest rate
    comparison rate
    Monthly repayment
    5.75% p.a.
    5.96% p.a.based on $30,000
    over 5 years

    Handypay offers flexible home improvement loans for Excellent Credit or better. Handypay is a specialist home improvement plan provider and offers loans up to $75,000.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $34,840.18 including fees.

  • Personal Loan

    Unsecured, Fixed, Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    6.39% 7.89% p.a.
    6.39% 8.49% p.a.based on $30,000
    over 5 years

    With low rates for borrowers with excellent credit, a quick 1 minute rate estimate and simple online application, there’s a lot to love about this loan! You’ll not only benefit from no exit fees, there are also no early repayment fees. You could qualify by simply earning above $25,000 and you’ll be on the way to start spending (other eligibility criteria may apply).

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 6.39% would cost $35,126.40 including fees.

  • Unsecured Personal Loan


    interest rate
    comparison rate
    Monthly repayment
    5.95% 17.45% p.a.
    6.79% 17.86% p.a.based on $30,000
    over 5 years

    Wisr offers personal loans for any worthwhile purpose, tailored to your credit score to ensure you’re getting a fair deal. Plus, no ongoing or early exit fees. Loans from $5,000 to $79,000. Terms of either 3, 5 or 7 years. $595 establishment fee. Eligibility criteria applies.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 5.95% would cost $35,352.21 including fees.


Do banks offer wedding loans?

Yes, a range of banks offer wedding loans to customers. Similarly, online lenders and credit unions also offer these types of products as well. 

Be sure to compare products across a range of lenders, taking into consideration the interest rate, features and fees, to find the best loan option for you.  

How long does it take to pay off a wedding loan? 

There’s no one answer for this one as wedding loans come in all shapes and sizes. For example, in the Mozo database loan terms range from 1 to 10 years with weekly, fortnightly or monthly repayment schedule options.  

Some lenders also allow borrowers to make extra repayments, which means they can make additional contributions towards the loan on top of their regular repayments. This could mean that borrowers pay down the entire loan ahead of schedule - just be mindful some lenders charge an early repayment penalty for doing this (which is often a lump sum and can be hundreds of dollars). 

Do wedding loans have fees? 

There are a range of fees that lenders might charge on a wedding loan. Make sure you keep an eye out for the following: 

  • Upfront application or establishment costs 
  • Ongoing service charges 
  • Late payment fees (charged when you don’t make a regular repayment on time)
  • Exit or early repayment penalties (if you pay off your loan ahead of time) 

When comparing loans, add together the cost of any fees the lenders charge. Dodge as many fees as you can and remember if the fees are too high (even on a loan-rate loan), they may not be worth it over time. 

Can I take out a wedding loan with bad credit? 

Some lenders offer wedding loans to customers that don’t have good credit scores, through a model called risk-based pricing. This means that lenders offer those with excellent credit ratings lower rates than those with less healthy credit ratings. And while that may not seem beneficial to people without good credit, in some cases it actually means those that may otherwise not have a chance to borrow actually can. 

However, taking out a loan when you have bad credit may not be a good idea. In fact, it may end up worsening your financial position rather than bettering it. So, as mentioned above, when it comes to your wedding, really consider what you can afford and stick within your budget. Don’t over borrow if it’ll hurt you financially in the future. 

Need to save a little more before your big day? Check out Mozo’s 22 ways to save in 22. Or if you want to find out more about your wedding loan options, jump over to our personal loans hub for stacks of info!

* 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.