Is a personal loan right for your wedding? How to borrow for the big day

People celebrating a wedding that was helped by a personal loan

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!).

If you’re gearing up for your perfect big day this spring or summer, an extravagant event calls for many things: floral arrangements, the grand venue, wedding cake, attire, and the list goes on! With all of these expenses, a personal loan might be exactly what you need to cover some of the costs.

There are a few things to look out for in your research, including interest rates, fees, repayment options and borrowing amounts. So read on to find out the answers to your top questions about personal loans for weddings.

Can I borrow money for a wedding? 

Some 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 financial situation and credit score. Before loaning you the money, a lender will determine whether or not they see you as a good borrower that can consistently make loan repayments.

You can also crunch the numbers using a personal loans repayments calculator to see what you can actually afford to pay back. While a big white wedding may be the perfect end to 2023, 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 personal loan?

A personal loan was used to fund the wedding including the floral decor

Depending on the lender, you may be eligible to borrow thousands of dollars for your wedding. Personal loan borrowing amounts typically range from $2,000 to $100,000. 

To determine the amount you need, it’s a good idea to reflect on your potential costs and how much you can cover before taking out a loan. As it stands, the average cost of a wedding in Australia is $34,715 with couples going over budget by 26%, industry data from Easy Weddings shows.

And with spring weddings being the most popular season to celebrate the big day, it’s possible that costs may be higher in line with demand. Something to keep in mind. 

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 and can afford. 

Which type of loan is best for a wedding? 

Again, the type of loan that’s best for your wedding will depend on you and your situation.

There are two types of personal 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 with personal loans 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 10.47%, while the average variable secured rate is a lower 8.99%. 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 27 May 2024

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


    interest rate
    comparison rate
    Monthly repayment
    6.75% 26.95% p.a.
    6.75% 26.95% p.a.based on $30,000
    over 5 years

    Borrow up to $50,000 unsecured. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Multi-year winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021, 2022, 2023 & 2024^'

    Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,430.23 including fees.

  • Unsecured Personal Loan


    interest rate
    comparison rate
    Monthly repayment
    5.76% 24.03% p.a.
    6.55% 24.98% 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 5.76% would cost $35,173.52 including fees.

  • Express Personal Loan


    interest rate
    comparison rate
    Monthly repayment
    14.95% 27.95% p.a.
    29.30% 42.8% p.a.based on $10,000
    over 3 years

    Access fast finance on loans from $3,000 to $25,000 with a Jacaranda Finance Personal Loan. Terms from 25-48 months. Check if you qualify with no impact on your credit score. Enjoy a speedy, online approval.

    Repayment terms from 2 years to 4 years. Representative example: a 3 year $10,000 loan at 14.95% would cost $14,324.71 including fees.

  • Debt Consolidation Loan

    interest rate
    comparison rate
    Monthly repayment
    6.57% 18.99% p.a.
    7.19% 19.39% p.a.based on $30,000
    over 5 years

    Competitive fixed rates on loans up to $75,000 depending on your credit score. Zero monthly account keeping fees, no exit fees and no early repayment fees. Make weekly, fortnightly or monthly repayments, over 1 to 7 years managed entirely online, at any time. Fast and easy, 100% online application.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.


Do banks offer wedding loans?

Yes, a range of banks offer personal 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 personal loan? 

There’s no one answer here. Personal loan terms can generally range between 1-5 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 that some lenders charge an early repayment penalty for doing this (which is often a lump sum and can be hundreds of dollars). 

To give you an example, if you borrow $20,000 at an interest rate of 8.99% p.a., your monthly repayment amounts are an estimated $636 with the total payable interest at $2,892. The expected time to pay off this loan is about 3 years. 

Do wedding loans have fees? 

There are a range of fees that lenders might charge on a 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, they may not be worth it over time. 

Can I take out a personal loan with bad credit? 

Welcome to our wedding sign, funded with a personal loan

Some lenders offer wedding loans to customers that don’t have good credit scores, through a model called risk-based pricing. All this means is if you are a higher risk borrower, you will likely be charged a higher interest rate.

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 it’s best to be realistic about your money before jumping into it. 

There are also ways to improve your credit score and by making some changes, you could better your chances of getting a personal loan.

Need to save a little more before your big day? Check out Mozo’stips to help you save money when you’re already on a budget. 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

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