How to finance your dream wedding A beautiful wedding dress, a great location, food for all guests and then the honeymoon: the most beautiful day in life is not a cheap pleasure. If you can’t pay for your celebration and honeymoon out of your own pocket, you can take out a loan for the wedding. Here you can find out what to look out for.
Fund your dream wedding with credit
More than 400,000 couples choose to get married every year. Most bridal couples can have their wedding celebrations cost a few thousand dollars: 38 percent spend between 1,000 and 5,000 dollars, 26 percent even invest up to 10,000 dollars.
Not every bride and groom can raise the money for the wedding celebration out of their own pockets. In many cases, parents and in-laws contribute something. If this is also not possible, there is still the option to take out a loan for the wedding. The wedding loan is a normal, non-earmarked installment loan.
So couples don’t have to indicate that they want to use the loan for their wedding reception. If the bank approves the loan application, bridal couples receive the loan and repay it in constant monthly installments.
Where can I get a wedding loan?
Loan from house and branch banks
In addition to using our comparison calculator, there are other ways to apply for a wedding loan. Consumers can obtain consumer loans or personal loans from their house bank or other branch banks, for example.
Banks often offer particularly favorable conditions with their online loans, which are only offered via the Internet. Any non-earmarked loan is suitable for financing the wedding, but some banks also have special offers for newlyweds in their range.
Credit from private
Finally, there is also the option of having a private loan arranged through an online portal. In this case, the loan comes from private sponsors and is also repaid in monthly installments plus interest. The use of the comparison calculator is free and non-binding!
The conditions of the various lenders differ in some cases greatly. It is therefore worthwhile to make an independent loan comparison before applying. In order to keep the loan costs low, you should pay attention to the lowest effective annual interest rate possible. Unlike the borrowing rate, the effective interest rate includes all costs that are incurred for the loan.
What loan amount should newlyweds borrow?
Before looking for a wedding loan, you should consider how much the wedding ceremony should cost. The costs for:
- Dress and suit
- Hairstyle and cosmetics
- Civil registry office and location
- Invitation and greeting cards
- Possibly. Favors
Food and drinks are usually the largest item, so the cost of the wedding party depends primarily on how many guests you invite. If you also want to finance the hen party and honeymoon with the loan, take out a correspondingly higher loan.
What rate can you afford?
Knowing how much your dream wedding will cost, calculate how much money you can put aside for monthly installments. Make a household bill and compare your monthly income with regular expenses. Do not calculate too tightly so that there is enough money left for unplanned expenses.
What duration should be chosen for the wedding loan?
The loan amount and the amount of the monthly installments influence the term of the loan. Loans with a shorter term are cheaper because interest has to be paid for a shorter period. However, the shorter the term, the higher the monthly installments.
How to apply for your wedding loan?
If you have found a wedding loan in the loan comparison that fits your ideas, submit a loan application. The banks then carry out a credit check and ask credit rating whether you are considered solvent. To assess their creditworthiness, you must also submit proof of salary. Most banks require workers to have the employment contract and bank statements of the past three to six months. Self-employed and freelancers have to submit the last income tax notice in addition to the bank statements.
If the loan is approved, you will receive the loan agreement by email or post and must sign it and return it authenticated using the procedure. At many banks, you can also sign your application using a digital signature and submit it online. Authentication takes place via video chat; to prove your solvency, log in to your online banking account during the application process. You usually have the loan in your account a few days later.