Pros and Cons of Wedding Loans

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The wedding season is around the corner, and the UK government has lifted several COVID restrictions – including the cap on the number of attendees. This brings a sigh of relief for couples waiting to tie the knot since last year and those who had made bookings for their wedding day this year.

Although, many couples who got hitched during the pandemic ended up savings heaps of money. They saved all the money they would have otherwise spent on the venue, catering, and décor. With the subsiding lockdown, some couples might feel the pressure of organizing a full-fledged wedding, welcoming more guests.


We all have aspirations of a dreamy wedding sequence, but your wallet doesn’t have to bear that burden immediately. A wedding loan can help you make your dream wedding a reality – spread the cost of your wedding into monthly instalments over a fixed term.

Learn more about the pros and cons of using a personal loan for your wedding expenses here.

What are wedding loans?

Wedding loans are inherently personal loans that you can borrow to cater to your wedding expenses. These loans are unsecured, which makes them more accessible for non-homeowners or tenants. People usually borrow wedding loans for 2-5 years, but the repayment periods differ from lender to lender.

Wedding loans enable you to spread the cost of your wedding into affordable monthly instalments over a fixed repayment period. Not having to worry about repaying the loan within the short term can take off much pressure from your finances. Because let’s face it, you’ve to stay prepared for a plethora of expenses that might kick in after the nuptials.

On average, people borrow amounts ranging from £7000 – £15000 at an interest rate of 5-35%, depending on their credit scores. The credit score is an integral part of the loan application – it determines the interest at which a lender agrees to lend money. Lenders assess your creditworthiness and repayment capability based on your credit score.

If you apply with a stellar credit history, you’ll likely qualify for competitive interest rates and terms. However, a low credit score could hamper your chances of securing credit at low-interest rates. So, the higher your credit score, the better.

A wedding loan can cover most of your wedding expenses, including:

  • Wedding venue
  • Entertainment (music, special appearances, etc.)
  • Catering – appetizers, beverages, meals and the wedding cake
  • Photography
  • The wedding attire
  • Wedding rings
  • Décor and flowers
  • Registrar fees
  • Honeymoon expenses – hotels, flight tickets, food and leisure

How do small wedding loans work?

Wedding loans are essentially unsecured personal loans. Based on your credit history and financial circumstances, you can borrow a decent amount of money to cope with the expenses that you incur while planning your wedding. While choosing a term for your loan, consider extrinsic factors that might affect your repayments and take a call accordingly.

Repayments are critical to credit building, and thus, you should prepare a tentative repayment strategy before borrowing money. Lenders regular report your payment history to credit bureaus. Timely repayments can boost your credit score, but a missed payment can eat up 80 points from your score.

Plus, if you miss too many payments or default, the lender can get a County Court Judgement (CCJ) issued against you. A CCJ stays on your credit report for up to 6 years and costs you 250 points from your credit score. This could hamper your chances of securing credit in the future, impacting the future goals and financial milestones you planned with your partner.

Should I use a personal loan for wedding expenses? 

There’s a variety of products to choose from when it comes to covering wedding costs, but here’s what gives personal loans an edge:

  • Better interest rates than other credit options such as credit cards and bank overdrafts.
  • Fixed monthly instalments allow you to plan repayments more efficiently by setting aside a monthly amount.
  • Personal loan lenders have higher lending limits that can help you cover most of the wedding costs without tapping into your savings.
  • Personal loans have fast disbursal.
  • Personal loans are unsecured, which makes them easier to borrow when you don’t have collateral.

Pros and cons of an unsecured wedding loan


  • Competitive interest rates on larger loan amounts (usually more than £7000), compared to other high-cost credit products.
  • You can choose a repayment period that suits you better, depending on how long you think it’ll take you to repay the loan.
  • Fixed monthly repayments are easier to accommodate into your monthly budget.
  • You can borrow a more significant amount of money with a personal loan than a credit card, overdraft or short term loan.
  • Funds are disbursed within a matter of days so that you can plan your deposits accordingly.


  • It can be tough to qualify for a wedding loan with competitive rates and terms if you have a low credit score. Some lenders may turn you down altogether.
  • Smaller loan amounts incur a higher cost of interest – it may not be worth borrowing if you only need a few thousand pounds.
  • Failing to keep up with the repayments could gravely impact your credit score. Plus, a default could cost you a whopping 350 points from your credit score.
  • Some lenders charge a prepayment fee on early payments. This charge could be equal to one or two months’ interest.
  • You may be able to get a secured loan at a lower interest rate. However, there’s a set of risks associated with these loans. Your lender could repossess and sell your property to cover their loss if you default on a secured loan.


Your wedding day marks a key event in your life. But you need to remember that there’s more to a wedding than just the wedding day, so it may not be worth exhausting your savings. It is better to keep your savings locked. A wedding loan helps you make fulfil your wedding dreams without burdening your finances.

However, it is important to remember that there are repayment implications associated with personal loans. So, adhere to your repayment schedule and pay your dues on time.

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Alfred Williams, a distinguished business writer, navigates the corporate landscape with finesse. His articles offer invaluable insights into the dynamic world of business. Alfred's expertise shines, providing readers with a trustworthy guide through the complexities of modern commerce.