Losing a loved one is devastating, and the last thing you’ll want to worry about is getting the funds needed to cover the funeral expenses. In most cases, death comes when you least expect it, so you might not have enough money set aside for the funeral arrangements. A funeral loan is one financial tool that you can consider to get the money you need to cover the burial or any other related ceremony. 

To help ease some of your stress during this difficult time, here’s what you should know about getting a funeral loan.    

What is a funeral loan?

A funeral loan is a type of personal loan that you can get to pay for burial expenses. Funeral loans are available through different lenders like banks and credit unions. In some loans, the money is transferred directly to the provider of the funeral or burial service, but with most funeral loans, you can access the money yourself and use it the way you see fit. Either way, you should understand that you will be responsible for repaying the money you borrow to cover your loved one’s funeral expenses.  

Calculate the Funeral Expenses

Before you obtain funding, it is vital to determine the cost of the services you need. You can do without some services, but you need to explore all the options. You should bear in mind that the credit you will get should be strictly used for funeral expenses and nothing else. More importantly, you must carefully go over the terms and conditions of the loan before applying for it. Some funeral homes may offer additional services that you might not need considering your budget. For instance, some providers can offer embalming services, which are typically costly. Other providers prepare special funeral ceremonies to honor the deceased’s memory.  In any case, you should get an invoice from the funeral home outlining the services that you require to bury your loved one. 

Choose a Reliable Lender

When you decide to get a funeral loan, it is imperative to shop around so you can choose a reliable and credible lender. Although they might sympathize with your situation, one thing that all lenders have in common is that they are in business, and they charge interest for the loans awarded to borrowers. Therefore, you must try to find a lender with competitive rates and flexible repayment terms. You must talk to the lender to make sure you fully understand the terms and conditions of repaying the loan as well as the consequences you might face if you fail to repay the money on time. You may also need to inquire about additional services offered by the lender to cover the funeral expenses.  

High-Interest Rates

As you may already know, personal loans are not secured, and they usually come with high-interest rates. The lenders often charge high-interest rates to protect their businesses against the risks of default. A funeral loan is usually awarded based on your creditworthiness, which makes it difficult to secure. The other reason why a funeral loan is not easy to get is that it is designed to cover a service that cannot be repossessed in the event of non-payment. If you manage to get a loan regardless of your poor credit, it is likely to carry a high-interest rate. 


The primary advantage of funeral loans is that they are readily available, and you can quickly secure the funds, provided that you have a good credit score. Depending on the type of credit you get, you can divide the payments over a specific period. Since a funeral loan is just another form of personal loan, you do not need collateral to get it. Your good credit record will determine the amount of money you can get as well as the terms and conditions of the loan.   

Paying for a funeral or burial ceremony is a challenge for many people, especially if the deceased was the primary income earner. If you are struggling financially after your loved one’s death, you can get a loan from a reliable lender to cover the funeral expenses. However, if you choose this option, you must know that you will have to repay the money as per the terms and conditions of the loan. More importantly, you need to remember that this type of personal loan comes with high interest since it is unsecured. If possible, you should evaluate other financial options before you decide to apply for a funeral loan to reduce the risk.