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How Do Wedding Loans Work?

A wedding is a special occasion that’ll always stay close to your heart. There’s a lot of planning that goes on in the background, even months before your wedding day, to make that one day of your life unforgettable.

Weddings aren’t just about the rings, the attire and the catering. There’s a lot more to wedding planning than meets the eye. But there aren’t many days as big and exciting as this one. So how does one plan their dream wedding on a budget?

When you reminisce about your wedding, you should be able to relive the special moments instead of being haunted by the bills. In this article, we’ll learn more about how wedding loans work and what costs they cover. Can you borrow a joint loan with your partner? Read on to find out!

What are wedding loans?

As of 2020, people spent the average amount of money on their wedding rounds off to £24,000. Now, the average income of a UK household as per FYE 2020 amounts to £30,800. This implies that Brits are willing to spend almost 80% of their yearly income on their wedding.

The average amount of money that people spend on their wedding seems to be increasing each year. It could be peer pressure or the influence of social media, but couples have become competitive when it comes to wedding and are willing to shell out thousands of pounds to make their big day memorable. Even if you have friends and family pooling in some savings, financing your wedding with this money alone could be challenging.

A wedding loan can help you manage these costs more efficiently. Wedding loans are essentially personal loans that lighten your financial burden when planning a wedding. Wedding loans allow you to spread the cost of the wedding across a fixed period over fixed monthly instalments. Plus, your wedding day isn’t the only expense you need to fund when tying the knot. Marriage calls for a set of changes in your lifestyle. You might want to use your savings to give your partner a better lifestyle instead.

But taking out a wedding loan should be a well thought out decision. It would be best if you took time to fully understand how this product works and what are the repayment and interest implications involved. Borrow an amount that you can afford to pay back and adhere to your repayment schedule.

Is a personal loan for wedding expenses a good idea?

People usually either use a credit card or borrow a personal loan for wedding expenses. Let’s take a look at the comparison below to understand how they work out:

Personal or Wedding Loans: 

  1. Decent interest rates compared to other credit options such as credit cards and bank overdrafts.
  2. Fixed monthly instalments help you budget efficiently and set aside a monthly amount.
  3. Lenders are willing to lend a sizeable loan amount that can help you cover most of the wedding costs without tapping into your savings.
  4. Once the loan is approved, the disbursal is usually quick.
  5. Wedding loans are unsecured, meaning they don’t require collateral security.


Credit Cards and Bank Overdrafts:

  1. Credit cards and overdrafts come with credit limits. So you can only borrow so much.
  2. Interest rates on credit cards and overdrafts are higher than most loans.
  3. Too much outstanding balance on your credit card may incur additional charges.
  4. Unauthorized overdrafts can be problematic. Inform your bank when using the overdraft facility as the charges are high.
  5. The monthly repayment for credit cards is usually really low. So you may end up repaying for a prolonged period.

How do small wedding loans work?

For someone who doesn’t have adequate savings or instant, dispensable cash at hand, wedding loans can be a convenient option. Wedding loans are typically low-interest personal loans that are payable over fixed monthly instalments.

However, the interest that a lender imposes on you will depend on your credit score and financial circumstances. If you apply for a wedding loan with a below-average credit score, you may not be able to qualify for competitive interest rates. So, actively take steps to improve your credit score before applying for a wedding loan.

Most lenders offer personal loans at fixed interest rates, but some offer loans at variable interest rates. Fixed rates help you organize your repayments ahead of time because you’ll know how much you’ll have to pay.

So, work out a suitable loans amount, keeping your affordability in mind. Then, make a rough monthly budget to see if there’s room for loan repayments. Also, check your credit report before applying for a loan. Erroneous items in credit reports are common, so if you come across one, dispute it to give your score a boost.

Once a lender approves your loan application, you are free to use the funds to finance pretty much everything. But make sure to pay your instalments on time. Defaults can have serious repercussions – damage your credit score, or land you a CCJ.

What will an unsecured wedding loan cover?

When you’re about to get married, everything starts revolving around the wedding day. But to make the day eventful, there’s a lot that goes on in the background. A comprehensive task list will certainly help you stay organized. Along with this, run research on offers and deals to find cost effective options. Following is a list of the main expenses involved in a wedding:

  • Wedding venue
  • Entertainment (music, special appearances, etc.)
  • Catering – appetizers, wine, meals and the wedding cake
  • Photography
  • The bride and groom’s attire
  • Wedding rings
  • Transport to reach the venue
  • Flowers and decoration
  • Registrar fees
  • Stay for guests (optional)
  • Honeymoon expenses – hotels, flight tickets, food and leisure

Can I borrow joint wedding loans with my partner?

Joint wedding loans are a great way to share responsibility. You can certainly apply for a joint wedding loan with your partner to cover the expenses for the big day. However, joint loan lenders take both credit profiles into account. Moreover, you and your partner will have to share the repayment responsibility.

If one partner fails to keep up with repayments, then the onus of settling the loan falls on the other. Once you sign a joint loan agreement, you must pay the entire amount, even if your partner can’t or won’t repay.

Applying for a loan jointly may increase your chances of qualifying for a low-interest wedding loan. However, if your partner has a below-average credit rating, it may be wiser not to consider joint loans.

Furthermore, joint loans link your credit profile to your partner’s. Now, if you apply for credit in the future, the lender will be able to see your partner’s linked credit report. This can affect their lending decision.

Therefore, both of you should assess your credit score and financial standing before applying for joint credit.


A wedding is a memory to cherish for life. Don’t let bills ruin your romantic spirit. Consider a wedding loan to spread the cost of your wedding into affordable monthly instalments over a fixed period.

Warning: Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK

Credit subject to status & affordability assessment by Lenders.

LoanTube is a credit broker and not a lender. Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on any debt secured against it.

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