Loans – Borrowing for Wedding

Now it’s suddenly serious. You will get married and you and your future will arrange the best wedding ever. Now it is planning and action that applies.

But that’s just a small problem. Until very recently, both you and your partner lived super active lives with night life, travel and fashion being the top priority. Thanks to this interesting lifestyle, you have not saved any money whatsoever and asking parents for money for a wedding is not quite in the spirit of the present. You simply have to get the funding for the wedding itself.

You have two options to choose from. One is that you save for the wedding. The other alternative is that you lend money to the wedding. Since it would surely take you a year to save money for the wedding and since you are people living life at full speed – now together – it is completely unthinkable for you to save money for the wedding. In other words, it can become borrowing money.

Private loans for weddings

Private loans for weddings

Fortunately, there are many good options for borrowing money for a wedding. One of the best options is to take a private loan. A private loan can be used for just about anything and you almost never have to explain what you are going to spend the money on. It’s just borrowing and running.

Find lenders for private loans

Find lenders for private loans

There are very many companies in the market that offer private loans. You can find them by searching for “private loans” on the internet. You will then get a very large number of hits on companies that offer private loans and what you should do then is try to find out which of all these companies suits you and your needs. When looking at which lender suits your needs, it is very important that you carefully check all the terms and costs that come with the loan. Some parts of the information are often very clear, while other parts are less clear and some parts as clear but not as accessible.

There are often quite lengthy contract texts that you can approve when you take out private loans. It is very important that you take the time and read these contract texts carefully before accepting them. In the contract texts, there may be conditions regarding changes in interest rates, repeated credit information and other parts that may apply to you in your financial planning if you are not well aware of them. You surely want to avoid all such surprises.



One advantage you have when planning your wedding is that you are not alone in it. You should actually marry a person who certainly also has a job and an income. You can now take advantage of one of the great advantages of private loans, which means that you can both stand as a borrower. Anyone can actually stand as a borrower together on a loan so you don’t have to be married yet to be able to take the loan together.

Having a second person on a loan is called having a “co-borrower”. This means that you and the other person share the responsibility for the loan. It may still be the case that one of you is the person who pays interest, fees and amortization but by having another person it is your total income, loan burden and credit history that is evaluated – not just one of yours. This, of course, increases the likelihood of a substantial increase in order for you to have the loan granted and that you can borrow a larger amount. So considering having a co-borrower is a very good idea.

interest rates


When you take out a loan you have to pay interest on the money you borrowed. The first interest rate is the nominal interest rate. The nominal interest rate is the part of the cost of the loan that relates to the Riksbank’s repo rate. The Riksbank sets its interest rates based on how they expect the Swedish economy to develop which affects the price of money – which is what an interest rate is.


When you take out a private loan, there will often be some fees with the loan. These fees are referred to as all kinds of things such as newspaper fees, administrative fees, balance costs and more. In practice, these fees are a cost of borrowing money in the same way that the nominal interest rate is, so they should be grouped together.

Effective Interest Rate

Effective Interest Rate

When nominal interest rates and fees are added together, it is called effective interest. The effective interest rate is your real cost of the loan and it is the total amount of effective interest rate during the loan period that you can divide by the entire loan size to get the percentage of the loan that you pay during the loan period.


When you borrow, the bank or credit institution wants to get their money back. When you took out the loan, you applied for a certain credit period and when that credit period – the loan period – ends up that you should have paid off the entire loan. Amortization is usually done on a monthly basis and nowadays it is not common for sms loans that are amortization free. It has become a requirement from the authorities that loans should be paid off in order to avoid the Swedes being over-mortgaged.

How much you have to pay each month is determined by how much you have borrowed and how long the loan period is, but you must not forget that if you do not manage your payments then your unpaid interest can be added to your loan amount and then the loan grows instead of shrinking and it can be the beginning of a problematic situation for you.

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