We often like to give loans niche names. But often we are talking about the same product, as a loan is a loan at the end of the day. But they serve different purposes, hence why some loans are marketed with certain names. With that in mind, we gave the lowdown on wedding loans.
Weddings Are Expensive!
Weddings are joyous occasions for many, but they may also be costly. If you don’t have enough money to pay for your dream wedding, you may need to get a wedding loan.
This comes as no surprise. According to surveys, the average cost of a wedding in the United Kingdom is between £20,000 and £30,000. This is an incredible sum for a single day. Even with funds and family assistance, you may still be unable to cover the expenditures.
A personal loan could be one of the simplest ways to pay for your wedding, especially if you don’t have much in the way of funds.
Lowdown On Wedding Loans – Pros Of Wedding Loans
Although most couples will have some money set aside for their wedding, many will find it difficult to cover the entire cost. On Moolr, you can borrow up to £5000 for personal loans with repayment terms of up to 5 years. You get the money right now, but you also get the time to pay off your debts. As a result, you’ll be able to fit repayments within your own budget. Payments are set in stone, allowing you to plan ahead.
If you can repay your debt in a shorter period of time, you will pay less interest overall. The total interest charge will be larger over a longer period, but each monthly repayment will be lower. Find the best price for you.
Cons Of A Wedding Loan
A wedding loan with a low interest rate of roughly 4% could be a very appealing option. However, whether you want to borrow less than £7,500 or more than £15,000, the interest rates would almost certainly be greater. When determining what interest rate to charge you and how much you can borrow, lenders look at your credit score. A bad credit history may prevent you from borrowing or result in higher interest rates.
Only borrow if all other options have been exhausted and you are confident in the repayment amount and timetable.
What If My Wedding Is Cancelled Or Postponed?
This is a real issue right now, as you may have noticed in recent times. The rules during a pandemic are ever-changing, and millions of weddings have had to be postponed or cancelled over the past 18 months or so.
If your wedding is cancelled for whatever reason, you must still repay your loan in full. If you have already used your loan money to pay for all or part of your wedding and it is non-refundable, you may be able to get it back if you have purchased wedding insurance.
Always ensure that you will be able to manage your monthly repayments if you take out a personal loan for your wedding, regardless of the circumstances.
