Wedding loans: everything you need to know
TRENDS I March 24, 2021
Putting on a wedding in Spain costs around EUR 21,600 on average, according to estimates drawn up by Statista. Many couples may find it difficult to put that kind of money together, and so they prefer to arrange a wedding loan.
In this case, the couple's first task is to estimate the outlay to organise the event, to calculate the loan they have to arrange to pay for the wedding.
The cost of organising a wedding depends on the type of event: whether it is an intimate occasion, or has a large number of guests; whether it is an all-day event, or afternoon only; whether or not it has live music; whether it is held at a single venue, or guests have to travel from one venue to another etc. But, in general, the following are the most common outlays:
A wedding budget must also take account of the invitations, the rings, flower arrangements, music, gifts for guests, transportation to the venue for the ceremony or the banquet, and an amount for any contingencies that may arise.
When the amount for the event has been calculated, and the portion that may be undertaken by savings has been subtracted, it is time to approach the bank and apply for a wedding loan. Like any other personal loan, the bank sets a maximum amount to be loaned, at a set rate of interest. Within this limit, the couple may apply for any amount they may need, and pay it back in instalments, along with the interest and fees agreed.
As for any other consumer loan, applicants will have to demonstrate their financial solvency, either with their payslip (tax returns and VAT payments if they are self-employed), or other income. They must ask for an estimate, a proforma or official bill for all the services they may arrange concerning the wedding, because the bank will ask them for this documentation to arrange the loan.
Before actually arranging finance for the wedding, you can calculate your loan with our personal loan simulator. You will see the monthly instalment payable over the payment period, and whether the loan meets the conditions for preauthorisation.
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