Our Pick Of The Best Wedding Loans
Getting married is an expensive business. The average wedding cost £20,700 in 2023, according to a survey conducted by Hitched, the wedding planning website. So it’s hardly surprising that many couples need to borrow to plug any financial gaps. And one way to do this is with a wedding loan.
Our top wedding loans
We carried out some research (May 2024) into which providers are offering the best deals on wedding loans of between £7,500 and £15,000.
The APRs you see listed are representative, which means you could be offered higher depending on your circumstances and credit score. Personal loans have also become more expensive in light of rising interest rates, so always check it’s the best course of action.
TSB
Representative APR
5.9%
Early repayment penalties
Yes
Borrowing term
1-5 years
Representative Example
If you borrow £10,000 over 60 months with monthly repayments of £192.15 Total amount repayable will be £11,529. Representative 5.9% APR, annual interest rate (fixed) 5.9% p.a. Credit available subject to status.
Representative APR
5.9%
Early repayment penalties
Yes
Borrowing term
1-5 years
Representative Example
If you borrow £10,000 over 60 months with monthly repayments of £192.15 Total amount repayable will be £11,529. Representative 5.9% APR, annual interest rate (fixed) 5.9% p.a. Credit available subject to status.
TSB is offering a competitive rate on borrowing of £7,500 at just 5.9%. Loans can be taken over one to five years. You can borrow between £1,000 and £25,000, although rates may vary depending on the loan size and your credit score.
- Competitive rates
- Payment holidays available
- Early repayment penalties
Sainsbury’s Bank
Representative APR
6%
(Nectar card holders. Non cardholders 6.4%)
Early repayment penalties*
Yes
Borrowing term
1-5 years
Representative Example
If you borrow £10,000 over 60 months with monthly repayments of £192.59. Total amount repayable will be £11,555.40. Representative 6% APR, annual interest rate (fixed) 6% p.a. Credit available subject to status.
Representative APR
6%
(Nectar card holders. Non cardholders 6.4%)
Early repayment penalties*
Yes
Borrowing term
1-5 years
Representative Example
If you borrow £10,000 over 60 months with monthly repayments of £192.59. Total amount repayable will be £11,555.40. Representative 6% APR, annual interest rate (fixed) 6% p.a. Credit available subject to status.
Sainsbury’s Bank is offering competitive rates at this level for customers who hold a Nectar loyalty card (non cardholders can get rates from 6.4%). Loans can be taken over one to five years.
- Competitive rates
- Can make overpayments
- Early repayment penalties
Tesco Bank
Representative APR
6.1% (Clubcard holders)
6.5% without Clubcard
Early repayment penalties*
Yes
Borrowing term
1-5 years
Representative Example
If you borrow £10,000 over 60 months with monthly repayments of £193.02. Total amount repayable will be £11,581.20. Representative 6.1% APR, annual interest rate (fixed) 6.1% p.a. Credit available subject to status.
Representative APR
6.1% (Clubcard holders)
6.5% without Clubcard
Early repayment penalties*
Yes
Borrowing term
1-5 years
Representative Example
If you borrow £10,000 over 60 months with monthly repayments of £193.02. Total amount repayable will be £11,581.20. Representative 6.1% APR, annual interest rate (fixed) 6.1% p.a. Credit available subject to status.
Tesco is offering loans from £7,500 at 6.1% APR if you have a Tesco Clubcard. Non Clubcard holders will get a rate of 6.5%. You can borrow up to £35,000 with varying terms (up to 10 years). Loans of £7,500 can only be taken over a maximum five year term.
Borrowers can make overpayments, but full repayment is subject to early repayment charges.
- Competitive rates
- Can make overpayments
- Two month payment holiday option at the start
- ERCs apply
- Higher rate if you don’t have a Clubcard
*Based on a settlement figure as set out under the Consumer Credit (Early Settlement) Regulations 2004. This states that if you have less than 12 months remaining of your loan, providers can charge up to 28 days’ interest. An extra 30 days’ interest can be added on if there is more than one year of the loan term remaining, taking the total maximum penalty to 58 days’ interest.
How did we rank the loan providers?
We assessed the following criteria to arrive at our star rankings for wedding loan providers:
- Interest rate: as measured by representative APR (these are fixed)
- Term: the repayment terms available on the listed best representative APR
- Flexibility: whether the lender charges a penalty for repaying the loan in full ahead of the agreed term
- Other factors: we considered other differentiating factors such as welcome bonuses or generous payment holidays
What exactly is a wedding loan?
The term wedding loan tends to refer to an unsecured personal loan that enables you to borrow a sum of money over a fixed period of time at a fixed rate of interest for the purpose of a wedding.
When you apply for a loan, you’ll probably be asked what you want to use the money for, with ‘wedding’ as one option. That’s because some lenders take the purpose of the loan into consideration when deciding whether to offer it to you or not.
However, the mechanics of the loan itself – the way it works, and how you need to repay it – are the same regardless of what you use the loan for.
With a wedding loan, you can usually borrow between £1,000 and £15,000, although it can be as much as £25,000 with certain lenders. However, of course you’ll need to weigh up whether sums like these are worth spending on what is essentially a one-off event.
You can choose to repay the borrowing over one to five years, although some lenders offer seven-year terms. Just keep in mind that the longer the term, the more interest you’re likely to pay in total.
Note that this type of loan is described as ‘unsecured’ because it is not secured against an asset such as your home. With a secured loan, your lender has the right to repossess your property if you are unable to keep up with repayments.
What are the advantages?
There are a number of benefits to taking out a wedding loan. Here are some of the main advantages of this type of borrowing:
- Competitive interest rates relative to other forms of debt (such as a credit card or overdraft), particularly if you’re borrowing £7,500 or more
- Choose how long you need to repay the amount borrowed
- Monthly payments are fixed helping you to budget
- Borrowing amounts are typically larger than with a credit card or overdraft
- Once you’ve been accepted for a loan, you can often receive funds by the next day.
What are the disadvantages?
Of course, there are also several drawbacks to watch out for:
- Rates on personal loans are competitive, but have risen considerably in the last year, so think carefully before taking on this kind of borrowing
- If you have a poor credit score, you won’t qualify for the best wedding loan rates, or your application could be turned down completely
- Interest rates are higher for smaller loan amounts, so a wedding loan may not be suitable if you only need to borrow £2,000 to £3,000
- Missing monthly payments will negatively affect your credit score. You may also find it harder to get access to financial products at a later date
- There will probably be an early repayment charge if you want to pay off your loan before the end of the term. This is often the equivalent of one to two months’ interest.
Find more information in our Frequently Asked Questions section, below.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
