Wedding loans

A wedding loan is a form of unsecured personal loan that you can use to finance your big day. It provides you with the cash you need to book a venue, hire a DJ, buy a dream bridal gown, hire caterers, and more.

According to Moneysmart, the average Australian wedding costs $36,200. Canstar puts the figure even higher, at $65,482. Either way, there’s no escaping the fact that hosting a wedding can be a very expensive exercise. However, with a low rate RateSetter loan, you don’t need to give up on enjoying the wedding of your dreams just because you can’t pay for it all at once.

A wedding loan works just like a personal loan. That is, you borrow a specific amount of money and then pay it back with interest over an agreed term. To qualify for a loan, you must submit an application and agree to a credit check that takes into account your borrowing history, employment status, credit score, and other factors.

Your loan can be used to fund anything you need for your big day (and beyond). Borrow for:

• Wedding rings / engagement rings
• Wedding venue hire
• Flowers / decorations
• Hair and makeup
• Wedding catering
• Wedding dresses / bridesmaids dresses / formal wear
• Photography / videography
• Wedding car hire
• Wedding cakes
• Wedding music

There are three key features that make up the cost of a wedding loan. They are the:

• Interest rate (e.g. fixed or variable rate)
• Upfront fees (e.g. establishment fee)
• Ongoing fees (e.g. monthly fees, late payment fees, and other charges)

These costs can be combined to create a measure called a comparison rate. This blended rate represents the total cost of the loan over a standard term (e.g. $10,000 over 3 years). This makes it a useful tool for comparing wedding loans on a like-for-like basis.

For an accurate estimate of the costs of your wedding loan, we recommend completing a RateEstimate. We’ll provide you with a summary of your repayment amount and options across different loan terms. This makes it easy for you to compare loans and choose the right option for you.

At RateSetter, we use risk-based pricing to set the overall cost of your loan. This means we look at a range of factors, including your credit history, to provide you with a personalised interest rate. The better your credit history, the better the rate we are able to offer. We also don’t charge any fees for early repayments. As a result, if you are able to pay back your loan early through additional repayments, you’ll benefit from lower interest repayments.

To be eligible for a RateSetter wedding loan you must be:

• Aged 21 or over
• An Australian citizen or permanent resident
• Be earning over $25,000 p.a. from a regular source of income
• Have a good credit history

RateSetter will consider a wedding loan application if you are self-employed. Additional credit assessment criteria and requirements may apply.

Applying for a wedding loan with RateSetter is easy. You will first need to complete a RateEstimate which will provide you with a summary of your loan options and borrowing power. This will include your personalised interest rate and fees for different loan terms. From there you will be able to select your preferred loan option and start your online application.

As part of your online application, we will need you to verify your identity. To complete this step you will need to make sure you have your Australian driver’s license handy. If you do not have a driver’s license you will need to provide us with a copy of your passport and documents verifying your current address.

During your online application, we will need to verify your income, expenses and liabilities (e.g. credit cards, loans etc). We will ask you to login to a portal which will allow you to connect to your bank account and share your data with us. You will need your bank login details on hand to complete this step. A member of our customer service team will let you know if we require anything further from you at this stage.

Finally, we will need you to provide us with your bank account details for your loan funds to be deposited. This account will be the same account we use to set up your direct debit payment schedule. You will also have the flexibility to make extra repayments at any time.

In completing our assessment of your application, we will look for evidence of how suitable a wedding loan is to your situation. This includes reviewing: