How to Get a Loan for a Wedding

Are you planning your wedding? You probably already know how expensive weddings are nowadays and you’re probably already starting to worry. Or perhaps you are planning your wedding abroad. This makes things even more expensive. How are you going to cover the costs? Without paying the required deposits you might lose out on the right suppliers required to make your day as perfect as it can be.

Have you thought about how to get a loan for a wedding? It could be your best option. Below we take a look at what you need to know about wedding loans.

How Much Do Weddings Cost?

Before you take out a wedding loan, do you even know what it costs to host a wedding? You must have an idea of what you need to pay. This helps you apply for the correct loan amount.

In 2018, the average wedding cost about $33’931. So let’s take a look at the breakdown of the possible costs of a wedding. Remember, these prices are for the average wedding in the U.S.

• Ceremony venue hire – $2’382
• Wedding invitations – $386
• Ceremony musicians – $797
• Ceremony officiant – $286
• Photographers – $2’679
• Videographer – $2’021
• Florist – $2’411
• Wedding planner/coordinator – $2’002
• Reception venue hire – $15’439
• Catering – $70 per head
• Reception bar/liquor – $2’564
• Reception band – $4’247
• DJ – $1,292
• Wedding day transportation – $856
• Cake baker – $528
• Hairstylist – $123
• Makeup artist – $102
• Wedding attire (for both persons) – $2’164

The expenses listed above are an estimate according to the average wedding. You can make yours cheaper or more expensive as you like.

Are There Loans Specifically for Weddings?

Yes, there are loans for weddings. But they aren’t just for weddings. You can use a personal loan for whatever you want to. People just call it a wedding loan since its being used to finance a wedding.

Before we find out about how to get a loan for a wedding, we need to look at the pros and the cons of a wedding loan. The following may help you decide if a wedding loan is your best option.

Pros of Wedding Loans

Wedding loans have fixed repayment terms. It helps you to plan your monthly budget as you set aside a portion of your income to settle your debt over the following months. A loan also has a set number of repayments. This helps you plan accordingly and balance your income with all your other expenses.

There are also many lenders to choose from. You can get multiple loan offers and choose the cheapest and best one. This ensures you get the cheapest possible repayment terms by choosing the lender with the cheapest loan offer.

You can choose the loan amount you need. It’s up to you how much you borrow. Make sure you qualify for the amount you need, however, and apply with the lenders of your choice. Wedding loans generally have lower interest rates when compared to paying for a loan with a credit card.

Cons of Wedding Loans

Loans require repayments. This unavoidable part of a loan is probably the biggest con, but it is to be expected. Use a loan calculator to help determine the possible costs of the loan before you accept an offer. You must be able to cover the required monthly repayments or else you may default and your credit score will suffer. You can even find yourself in bankruptcy if your loan costs exceed your monthly income.

Unfortunately, some people don’t yet have a strong credit score. This is especially true for immigrants who might be planning a wedding in India, for instance. People who don’t have good credit scores get high interest rates on loans which makes the loan so much more expensive. High interest rates may, therefore, stop you from making use of a wedding loan.

What to Look for in Wedding Loan Options

We’ll look at how to get a loan for a wedding in more detail below. But let’s first look into some important details about personal loans.

Unsecured Loans

Personal loans (the ones used for wedding loans) are generally unsecured loans. This means the loan has no form of security. You don’t have to submit collateral for an unsecured loan. Collateral is something of value that serves as security for a loan which is used as payment if the borrower fails to repay the loan.

Please note, however, secured loans usually have lower interest rates when compared to unsecured loans of the same amount. But it could count in your favor to opt for an unsecured loan if you don’t have anything of value to submit as collateral.

Short Term Loans

Personal loans generally have shorter repayment periods. The number of required payments is usually much fewer when compared to a home loan for instance. Some personal loans could possibly be repaid within 24 months. Having fewer loan repayments could mean larger repayment amounts but it helps you save on the amount of interest you repay in the long run.

Fixed Interest Rate

Opt for a fixed interest rate on your wedding loan. This helps improve your budgeting efforts since much of the success of your wedding planning relies on the actual costs of the items in your budget. A fixed interest rate keeps your monthly debt repayments set at a certain amount even when the Fed hikes the interest rate.

How to Get a Loan for a Wedding

Personal loans are great tools. People use it in many different ways, even to pay for weddings. Are you an immigrant? Don’t worry, you can also be eligible for wedding loans. You just need to find the right lender willing to help you. Traditional lenders are sometimes hesitant to offer credit to immigrants and people with bad credit scores. But you could possibly be approved for a loan with online lenders. Keep looking and find the best offer for your situation.

Let’s look at how to get a loan for a wedding.

Apply

Apply online for the loan amount you need. Submit your best possible application. Stronger loan applications get better loan offers.

Accept

Soon you’ll receive feedback on your application. Supply any additional information if required by the lender. Wait for their notice of your application approval and receive your loan offer.

Some loan offers come with a promissory note. Sign and return that promissory note if you want to accept the loan offer.

Repay

The loan is disbursed into your U.S. bank account and now you need to set up your repayment method. Consider an autopay option as it will help you to pay on time each month.

It’s that easy! Now you can go pay your suppliers and get ready for your big day.

Wedding Loan Alternatives

Loans aren’t the only option you have. Here are some additional methods you can use to help with your wedding expenses. You can definitely make use of these wedding loan alternatives!

Budget

Give yourself enough time (if possible) to plan well for your wedding. Look for the cheapest yet acceptable solutions for each of your wedding needs. Don’t commit to a vendor before you are sure about it. Also, keep a list of the expenses you’ve already paid and committed to for your wedding and make sure you don’t overspend above your budget. Starting with a budget and sticking to it will help to keep the costs under control.

Family and Friends

Don’t make this a matter of pride. Eat some humble pie and ask your closest friends and family to help out with certain expenses. You could even ask their help in covering these expenses instead of a wedding gift. There might be some of your closest pals who are more than eager to help make your day as special as can be.

Defer Costs

Weddings aren’t cheap. Some vendors require deposits upfront and the last payments before the day of the wedding. Don’t take on costs you aren’t able to cover. Who says you must buy an expensive ring now? Speak with your fiancé and buy what you can now. Save up and buy the extravagant ring later as an anniversary gift.

Scale Back

You know where you can possibly cut costs. Maybe your reception venue has a beautiful view. Why obstruct it with expensive flowers and furniture? Capitalize on opportunities where you can scale back on expenses to help save your budget. There are many ways you can save on costs and still enjoy a wonderful wedding day.

Why don’t you skip the expensive engagement party and save money for the wedding? Do you really need a live band at both the ceremony and reception? Sit and plan with your fiancé. Choose the things you must have and find ways to make do without the rest. After all, the day isn’t about the wedding expenses. It’s about you and your future spouse’s matrimony and the joy of having your closest friends and family there to witness it.

Conclusion

Weddings can be very expensive. Especially if you have to plan one abroad. How do you cover the costs if you don’t have the money now? You can make use of a wedding loan.

Use the tips provided above on how to get a loan for a wedding and make your day as special as it deserves to be. Apply for your wedding loan today!

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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