Everybody loves a good wedding. To be sent off with flair, no expense spared, is just about every bridal couple’s dream. Nowadays, you can expect to pay between R80 000 and R250 000 for a traditional South African wedding.
The number of guests you invite, and your choice of venue, is the deciding factor in how deep in the red you’re prepared to be in the first few years of your marriage. According to professional wedding planners, you can expect to pay around R800 to R2 000 a head for a lavish sit down spread, with no holds on the bar.
Factor in the wedding gown and accessories, invitations, table gifts, flowers and music – not forgetting lobola of course – and you’ll need plenty of cash in the bank, or particularly generous parents willing to cover the costs.
As a young couple starting out, you probably don’t have money lying about. Fortunately, there are several ways to finance a wedding.
Tap into an access bond
If you’ve got a home loan with an access facility, you may be able to tap into your bond. You will, however, only have access to extra cash that’s been paid into the home loan account, over and above the monthly premium.
As your bond is a secured bank loan backed by the value of your property, the interest rates are comparatively low. Tapping into the access bond is one of the cheapest ways to pay for the big event.
It’s important to note that if you do access the surplus cash, you’ll have to pay a higher monthly premium. Default on the payments and you can damage your credit rating, and have your home repossessed.
Take a personal loan
If you don’t have collateral, you can always apply for a personal loan. You’ll need a steady stream of income and a clean credit record to qualify for an account top up.
You’ll have to have an active bank account, and the rate of interest on the loan is directly determined by your credit rating. A high credit score equates to a relatively low interest rate.
Borrow from family
You can always approach someone in your family who’s particularly flush, and ask them for a loan. You’ll probably get a great interest rate – or have it waived altogether – and plenty of time in which to pay off the loan. The only problem is that if you do default, there’s a good chance you’ll ruin a perfectly good relationship for life.
Apply for an instant asset-based loan
An asset-based cash loan is another way to finance your wedding. These days, there are regulated finance companies in South Africa that accept high value items – luxury watches, jewellery, art works and motor vehicles – as security for a loan.
As the cash advance is backed by the value of your asset, your credit rating is irrelevant. You can apply for a loan online, and once your asset has been independently appraised, and stored in a secure facility, the money is transferred into your bank account.
At Lamna, we offer fast, discreet loans against the value of a wide range of assets, from luxury watches and jewellery to vehicles or artwork. For more information about using an asset to secure a short-term loan, contact us on 086 111 2866 or simply complete and submit our online application form.
ILLUSTRATIVE EXAMPLE
Client borrows R10,000 for 90 days.
Loan Amount | Repayment Period | Monthly Interest | Total Cost of Loan | Initiation Fee | Monthly Fee | APR |
|---|---|---|---|---|---|---|
R10 000 | 3 months | R500.00 | R2 914.50 | R1 207.50 | R569.00 | 60% |
Fixed rates range from 36% to 60% APR and payment options range from minimum 3 to maximum 24 months. Apart from the initiation and monthly fees shown below, the only additional fee is credit life insurance if the borrower does not have this already.