The cost of weddings is rising at an estimated ten per cent a year, Sainsbury's Bank claims.
The personal loan provider has projected that 51,850 personal loans, worth £467 million, will be taken out this year to fund wedding celebrations.
Sainsbury’s Bank however believes that newlyweds funding all or some of their weddings with personal loans would pay up to £13 million in excess interest repayments if they fail to shop around for the best deals on personal loans.
According to Rachel Brereton, loans manager at the bank, taking out a personal loan is a sensible way to fund the average cost of £17,000 for an average wedding.
"However," she warned, "it is important to shop around for the best loan deals available, especially when you consider the dramatic difference in rates currently on the market."
Sainsbury's Bank is currently running a summer sale on all internet loan applications of £5,000 or more at an interest rate of 6.5 per cent APR typical.
The bank said that interest rates charged by high street banks or building societies could be as much as 5.4 per cent APR higher than the most competitive rates available, reinforcing the need for people to shop around for the best personal loans deal.
Personal loan customers at Sainsbury’s Bank have the option to make no repayments for the first three months.
Those who apply for a personal loan also receive an instant decision, and if the personal loan is approved, the borrower should receive their cheque within 24 hours.
More personal loans fund wedding celebrations
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More personal loans fund wedding celebrations
Mon, 11 Jul 2005
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