Personal loan for wedding or engagement rings

Whether you decide to go big or keep it intimate, your wedding is a life moment that you’ll always remember. No matter how you choose to celebrate, weddings can be expensive, and the financial aspect can be overwhelming.

Personal loans may offer a practical solution to cover necessary funds without the need to make too many compromises, or dip into savings. Here’s what you might want to consider. 

Understanding wedding expenses

The average cost of a wedding can be considerable, and no matter where in the range your wedding falls, or whatever your financial circumstances, it’s not just spare change. 

Common wedding costs can seem endless. They may include:

• Engagement ring: No matter who’s proposing, engagement ring costs can be significant. The cost will vary depending on the size and quality of the ring or stone, as well as the metal used. 
• Wedding ring: If you opt for wedding rings for both partners, especially if you’d like matching bands or custom designs, the cost could be substantial. 
• Wedding attire: Whether it’s a wedding dress, formal suit, or something else entirely, wedding attire can add up quickly with extras such as tailoring, accessories and shoes. 
• Venue and catering: This is often the most significant expense, and will depend on the location, guest count, and type of food and drinks served. 
• Photography and videography: Professional photographers and videographers can be expensive, and cost will depend on location, experience, and packages offered. 
• Other miscellaneous expenses: These can include decor and flowers, transportation, entertainment, and invitations. While they might seem like small individual expenses, they can quickly add up. 

A well thought-out wedding budget could help prevent overspending on your big day. Consider starting a list of all potential expenses and assign a cost to each. It’s important to prioritise what’s important to you while sticking to a budget. 

Don’t forget an emergency fund for unexpected costs, too. It could also be worth shopping around and getting a few quotes from different suppliers.

Considering a personal loan for your wedding?

An unsecured loan is one option that could help finance your wedding. It’s called an unsecured loan because the loan doesn’t have anything assigned as security against the debt, unlike secured loans for buying a car, for example.

Personal loans let you borrow a sum of money that you can repay over a period of time with a set repayment amount. A fixed interest rate could provide certainty with fixed weekly, fortnightly or monthly loan repayments, which may make planning your financial life easier. This loan could allow you to budget and be in control, knowing what your loan repayments will be and when your loan should end. 

Personal loans for weddings also typically offer lower interest rates compared to credit cards, making them a potentially more cost-effective option for covering large expenses. So, you may pay less in interest over the life of the loan, which could save you money in the long run.

Westpac’s personal loan borrowing power calculator could help assess how much you may be able to borrow, while the repayment calculator could help estimate how much your monthly repayments could be on fixed rate loans before you apply, based on the information you input. 

How to choose the right personal loan

Understand your interest rate

A major factor in choosing your wedding or engagement ring financing option will be the loan's interest rate. Consider looking around at the different personal loan interest rates available to help you choose the best offer that meets your needs, because even a small difference in rates may significantly impact the total cost of the loan. 

Some variable loans, including the Westpac Flexi Loan, offer a continuous line of credit, so you can choose to withdraw as much as you need, and you only pay interest on that amount, rather than taking out your whole balance in one lump sum and paying interest on the total sum. 

• Explore the Westpac Flexi Loan

Choose your loan term

You’ll also need to choose the right loan term that suits your financial situation. 

A longer term may have lower monthly repayments, but you could pay more in interest over time. A shorter loan term may require higher monthly repayments, but you could pay the loan off sooner and pay less interest overall. 

Know any fees and charges

Personal loans can come with fees and charges, so be sure to understand these before signing the loan contract. Fees and charges might include application fees, early repayment fees, exit fees, or service charges.

If you choose a personal loan with Westpac, you won’t be charged any repayment fee for making additional repayments during the course of your loan, however, there is an early repayment fee if you pay off your loan in full before the loan term ends.

Meet the eligibility criteria

Before applying, you’ll need to make sure you meet the eligibility criteria. You’ll need to be aged 18 or over, have permanent residency in Australia or New Zealand, or hold an acceptable visa (PDF 489KB). You’ll also need a fixed residential address in Australia and a regular, verifiable Australian taxable income. 

You’ll be assessed on your ability to repay the money you borrow, so to improve your chance of being approved, make sure you’re meeting your current repayment obligations for rent, bills, credit cards and loans. You can also check your credit history before you apply by going to creditsmart.org.au and following the links to a free credit report. 

Applying for a personal loan for a wedding or engagement ring 

Whether you’re an existing Westpac customer or a new customer, you can complete an application for a personal loan online, at your nearest branch, or over the phone. 

It’s possible to get a personalised interest rate for your personal loan in under 5 minutes, and you can request this rate without it impacting your credit score. 

To apply for a personal loan, you may need to provide a range of documents, including your proof of identity, proof of income, your regular monthly expenses and any current debts in your name (such as a home loan, personal loans, credit or store cards and instalment purchases like Afterpay and Zip Pay).

Once your loan is approved, you’ll receive your loan contract via email. Existing customers can receive funds within the hour after signing the loan contract, if an existing Westpac account is nominated. Other nominated accounts may take up to 3 days to receive the funds*.

• Apply for a Westpac personal loan

Some borrowing tips for personal loans 

Planning a wedding can be stressful enough without having extra financial strain on your mind. To help manage your personal loan for an engagement ring or wedding, you might want to: 

• Set up automatic repayments in line with your loan repayment plan, so you can spend less time on life admin and more time on wedding planning.
• Choose a repayment amount that suits your budget. Estimate your repayments via the repayment calculator before getting started. 
• Consider other financial commitments. Before taking on a new loan, be sure to consider your other financial obligations. 

To sum up 

Whether you’re paying for the perfect ring or planning your dream wedding, a personal loan could be a helpful tool for financing expenses. Personal loans may offer flexibility, convenience, and often have lower interest rates than credit cards. However, it’s important to carefully consider your options and choose the right loan that fits your needs.