Funding your wedding – Loans, cash, instalment plans or grants

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One of the big questions when planning a wedding is always the financing. How are you actually going to raise the money to fund your dream wedding? We’ll guide you through four different financing options:

– Finance your wedding with a wedding loan

– Pay for your wedding in cash

– Is it possible to pay for your wedding in instalments?

– Any wedding grants available

– What is the best option for financing a wedding?

– Frequently asked questions about wedding financing

Take out a loan to finance your wedding

If you don’t have cash or savings, you can easily apply for a personal loan to finance your wedding. A personal loan may be necessary if you haven’t saved up any money. The advantage of wedding loans is that you usually do not need to provide any security and you always pay a fixed monthly amount (unsecured loans usually mean higher fees and interest rates). There are many different lenders, so it is important to compare the various options for personal and wedding loans. According to the comparison service Lånea, the loan broker Lendo is the best option for wedding loans. However, it is important that you compare different lenders to find the right personal loan for your situation. 

TT reports that one in three Swedes spends more than 100,000 SEK on their wedding. This means that most people can finance their wedding through a personal loan. However, the amount you can personally borrow varies from person to person. It is therefore important that you plan and draw up a clear budget to finance your wedding in line with your personal financial situation. 

Paying for the wedding with your own funds

It is usually best to fund your wedding using your own savings and cash. You can therefore draw up a clear budget, review your savings and work out if and when you can pay for the wedding in cash. You can also use your savings to work out the right date for your wedding. By saving up for the wedding, you’ll have plenty of time to plan and can reduce costs by comparing different options, such as hiring essential wedding items ahead of the big day. For example, hiring a wedding dress or a tailcoat instead of buying one.

A major advantage of paying in cash or using your own funds is that you don’t have to worry about interest costs or repaying debts to lenders. You can then (together with your partner) focus on other things that are worth spending or investing money in. 

Is it possible to pay for your wedding via an instalment plan?

Some private companies offer instalment plans to help finance your wedding. Essentially, the process is the same as being granted credit or a loan. You can normally borrow between 50,000 and 500,000 SEK, depending on the type of credit or loan you apply for. Bear in mind that the terms and conditions of these loans can vary greatly, and you may be offered anything from interest-free periods to high interest rates for up to two years.

Paying in instalments can be a good option for those who are unable to make a large lump-sum payment in one go. However, you’ll need to factor in future interest and fees. This means you’ll pay more money in the long run, but it’s still a financial help. 

A further advantage of companies offering wedding instalment plans is their network of contacts, such as photographers, florists and caterers. They can help you with budget planning and, in some cases, may even offer volume discounts.

Ask family and friends for a contribution

Did you know that, according to old traditions, it was the bride’s parents who were supposed to pay for the wedding? It was considered to be the final expense before the bride was handed over to the groom. This is no longer the norm in Sweden, but there’s nothing to say you can’t ask for a small contribution from friends and family. You can therefore take out an informal loan from someone close to you; this is usually an advantage as it helps you avoid fees and interest.

It is important that both parties agree on a repayment plan or whether the contribution is a loan or an actual gift. Contributions in the form of ‘loans’ can affect your relationships, so it is important to keep the arrangement professional and not personal. A solicitor can help draw up an agreement. 

What is the best option for someone wanting to finance their wedding?

Only you can decide which financing option is right for your wedding. We suggest seeking advice from a financial adviser at a lender, or from friends or family, to find the right financing option. Generally speaking, it’s always a good idea to avoid loans and debt because of interest rates and fees. A wedding is one of the most important experiences in your life and relationship, so it’s worth comparing the various options. 

If you choose a wedding loan (personal loan), it is very important to compare different lenders before applying for a loan. There may be discounts, but also hidden charges.

Frequently asked questions about financing your wedding

01. Can I finance a wedding with a loan?

Yes, you can finance your wedding with a personal loan. There are several different lenders offering wedding loans at various amounts and interest rates. 

02. Should I pay for the wedding in cash?

Whether you pay for the wedding in cash is up to you. Sometimes there may be other investment opportunities that, in the long term, will give you a better return than the repayments on your wedding loan

03. Can I expect financial contributions to help fund my wedding?

No, you cannot expect financial contributions from other people. There is no law or unwritten rule stating that you are entitled to such contributions. However, you can raise the issue with family and friends to see if anyone would like to contribute money towards your wedding.