Funeral Loans: Best Lenders for Funeral Financing in July, 2025

There's nothing easy about losing a loved one, but it can be particularly overwhelming when you're tasked with financing the funeral. If you're struggling to come up with the cash to pay for end-of-life expenses, a funeral loan can help ease the burden.

The best funeral loans have low interest rates, flexible terms, good customer service, and quick funding. Getting a funeral loan won't relieve the pain of losing your loved one, but it might make planning the memorial a little easier. Below, learn how funeral loans work and how to get one.

Compare funeral loan rates

How much does a funeral cost?

The latest data from the National Funeral Directors Association shows that the median cost of a funeral — with burial and viewing — was $8,300. Funerals with cremation were about 24% less expensive, at $6,280.

The total cost of a funeral includes a wide range of expenses, which, based on the same data, break down as follows:

If the burial involves a vault, that adds a cost of $1,695 and brings the total median funeral cost to $9,995.

Best personal loans for funeral financing

Methodology

Credible evaluated 32 lenders across 1,216 data points to find the best personal loans for funeral financing. We ranked lenders based on the following weighted categories:

• Rates and fees: 18.75%
• Eligibility and options for bad and no credit: 17.5%
• Availability: 12.5%
• Loan amounts and terms: 10%
• Customer satisfaction: 10%
• Customer service: 10%
• Efficiency and fund delivery: 10%
• Discounts: 7.5%
• Credible proprietary data: 3.75%

Credible's team of experts gathered information from each lender's website and from our partners directly. We also considered each of our partner lenders' statistics over a 12-month period — including average funding times, average credit scores for approved applicants, and average rates. Each data point is verified by a senior editor to make sure it's accurate at the time of publication. Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.

What are funeral loans and how do they work?

A funeral loan is any loan you take out to pay for funeral costs. It's typically an installment loan that can be repaid over months or years — like a payment plan through a funeral home or a personal loan. We focus on personal loans because they provide an upfront lump sum and can be used for a wide range of expenses beyond what the funeral home covers. For instance, you could also use a personal loan to pay for travel costs, catering, and lodging expenses.

Interest rates generally range between 6.49% and 35.99%. Typically, the better your credit, the lower your cost. You can get a sense of the interest rate you might be approved for by looking at the most recent monthly data for personal loan interest rates from the Credible personal loan marketplace:

How to compare funeral loans

When comparing funeral loans, there are several important factors to consider:

• APR: A loan's annual percentage rate, or APR, indicates the annual cost of borrowing, expressed as a percentage of the loan amount. A loan's APR consists of the loan's interest rate plus upfront fees, making it a better measure of borrowing costs on an annual basis than the interest rate alone. The Truth in Lending Act requires lenders to disclose APRs. 
• Fees: Not only do fees add to the cost of the loan, but some fees, like an origination fee, could reduce the amount you receive. If you're charged an origination fee (also called an administration fee) and the lender deducts it upfront instead of adding it to the loan amount, you'll receive less money than you set out to borrow. Know what fees are charged (and how they're charged) to avoid surprises.
• Loan amount: Personal loans typically range from $1,000 to $50,000. But the amount you can qualify for depends on factors like your income, debt-to-income ratio, and credit score.
• Repayment terms: Repayment terms can range from one to several years, depending on the type of funeral loan you get. For example, personal loan terms generally range from 2 to 7 years. The shorter your term, the higher your monthly payment, but the lower your overall cost of borrowing. Choose a term that allows payments to fit comfortably into your monthly budget and long-term plans.
• Funding time: Lenders can fund personal loans relatively quickly, often within a couple of business days. But if you need access to cash as soon as possible, some lenders offer same-day funding, like LightStream and Citi (if you're an existing Citi customer).
• Customer service: Good customer service is always important, but it's crucial when you're dealing with something as emotional as the loss of a loved one. Scan customer reviews on the Better Business Bureau or Trustpilot to identify red flags, like long phone hold times or difficulty contacting customer support.

What expenses does a funeral loan cover?

Funeral loans, whether through the funeral home itself or a personal loan provider, are intended to cover the cost of services a funeral home provides, including casket, burial, and ceremony. A major perk of getting a personal loan is that you can also use personal loan funds for other costs like travel expenses and lodging if the funeral is out of town. You might even use it to pay off funeral-related expenses you've put on a high-interest credit card.

Pros and cons of taking out a funeral loan

Taking out a funeral loan can relieve you of some of the pressure of planning a funeral for a loved one — and in some cases, that relief is priceless. But the pros extend beyond that. For example, you could get a funeral loan in a matter of days.

“The quicker you receive the payout, the quicker you can focus on saying goodbye to your loved one and less on the logistics and finances,” says Jeffrey Zhou, CEO and founder of Fig Loans.

Additionally, personal loans generally have lower interest rates on average than credit cards, offer large amounts, and are often unsecured.

On the other hand, a personal loan adds to your debt burden, which can strain your budget for years to come. Plus, if you have fair or poor credit, you may have to pay a high interest rate or struggle to get approved.

While weighing your options, Zhou recommends you evaluate your budget and answer the following questions: “Are multiple family members helping to foot the cost? Can you reasonably repay the loan (plus interest) without dipping into an emergency or retirement fund?” Honest answers to these questions can help you decide whether getting a funeral loan is the best idea.

How to get a personal loan for a funeral

Getting a personal loan for a funeral isn't too complicated, but it's worth taking some time before applying to make sure you get what you need.

1. List your expenses: Consider your loved one's wishes and your own desires when determining what type of funeral you need to finance. For instance, cremation costs less than burial, so this factor can have a large impact on your budget. Also consider the cost of the location and smaller details, like a headstone, casket, and flowers.
2. Shop around for a funeral home: Just like you should shop around for a lender, shop around for a funeral home. Get price estimates from each to compare costs and services. The Funeral Consumers Alliance, a consumer advocacy organization, offers a number of tips on how to save money and seek financial assistance.
3. Check your credit: Use Credible's free credit monitoring tool to check your credit before shopping for a loan. Knowing your credit score can help you identify lenders that are likely to work with your credit profile. You can also check your credit report at AnnualCreditReport.com for any errors that may be affecting your score. If you find any, dispute them with the credit bureau.
4. Compare funeral loans: Compare various personal loans based on loan amount, APR, repayment term, funding time, and customer service.
5. Prequalify: After comparing a handful of potential lenders, prequalify with your top choices. You can prequalify with several at once using Credible's “Check Rates” tool. This gives you an estimate of your loan interest rate without a hard credit inquiry (though your rate may change when you apply).
6. Apply: After choosing a lender, submit an application along with any necessary paperwork. You typically need to provide your ID, Social Security number, proof of address, and proof of income. 
7. Receive funding and begin repayment: If the lender approves your application, review the loan agreement closely — at a minimum, check the APR, whether upfront fees are charged, the repayment term, the monthly payment, and the loan amount. If all is agreeable, sign the documents and wait for funding. Make a plan for repayment, such as enrolling in automatic payments, to help avoid missing any deadlines.

Other funeral financing options

A personal loan may not be the best financing option in every situation. If you need cash for a funeral but want to explore alternatives, check out the following:

Life insurance assignment

If your loved one had a life insurance policy and named you as beneficiary, it's possible to use this money to pay for funeral costs, either directly or by assigning a portion of the proceeds to the funeral home. A funeral assignment can ease the burden of upfront payment while you're waiting for the insurance money to pay out and is commonly accepted by funeral providers.

Estate assets

Even if the deceased didn't have a life insurance policy, they may have left other assets in their estate that can be used to pay for a funeral. According to David P. Fritch, CPA, PC, and founder of Visionary Wealth Creation, many people overlook this option. “The biggest mistake I see is people not understanding that funeral expenses can actually be paid directly from estate assets before any other distributions.” In other words, when the estate is settled and payments are made, funeral expenses are given first priority.

Funeral home financing

Some funeral homes may offer payment plans to ease the financial burden of a costly funeral. If you consider this option, make sure you understand the plan's interest rates and any fees that come with it. Fritch also recommends getting the plan in writing. “The funeral home payment timing is negotiable, but here's the key: Get everything in writing before the service,” says Fritch. You might even be able to get a low- or no-interest plan if you're awaiting an estate payout and you specifically request it.

0% APR credit cards

If you can qualify, a 0% APR credit card provides an interest-free borrowing period that often lasts between 12 and 21 months. During this time, charges don't incur interest. As long as you can repay the debt during the introductory period, you can borrow interest-free; otherwise, you'll rack up some hefty interest charges once the 0% APR introductory period is over.

Home equity loans and HELOCs

If you own a home, you may be able to tap its equity to cover funeral costs. Home equity loans and home equity lines of credit (HELOCs) are secured loans, making them riskier for the borrower, but less so for the lender. These loans generally have lower interest rates compared to personal loans (though rates may be comparable if you have excellent credit). Please note that if you default on the loan, the lender may seize your home.

Prepaid funeral

Prepaying for a funeral can prevent a lot of stress, but it's only a viable option if you're able to plan ahead. A prepaid funeral is just what it sounds like, allowing you to plan and pay for your own funeral in advance. While this option lets you lock in current costs, there's always the risk that your chosen funeral provider will go out of business.