How To Get A Wedding Loan In Singapore
February 9, 2023
Getting married is exciting, but the expenses that come with planning a lovely wedding in Singapore can be stressful. Fortunately, we understand the challenge and can help you discover how to get a wedding loan tailored to your marriage.
First up, we imagine most engaged couples in Singapore who are serious about making this special day memorable spend an average of $30,000 to $50,000.
For comparison purposes, that’s almost equal to the downpayment on your HDB flat. However, in the case of a flat, you can use your CPF, but you can’t do that for your wedding.
So we understand that most couples like you are looking for a loan for weddings that can give you a much-need financial boost and relieve your stress.
In this article, we’ll provide detailed information on how to get a wedding loan in Singapore that’s designed to do exactly this and more for you.
What Is A Wedding Loan?
Before we get into the details, let’s define a wedding loan.
A wedding loan is a personal loan designed with the needs of couples who want to pay for their wedding expenses without any issues in mind.
From the above definition, wedding loans are a unique type of short-term credit, meaning you should be able to repay it within a few months. Like other personal loans, the interest rates can be relatively high, depending on your lender and credit score.
It’s important to note that strict requirements typically apply to wedding loans in Singapore disbursed by banks. Most licensed money lenders are more flexible and can custom-make a marriage loan in Singapore that suits your unique expectations.
How Wedding Loans Work
Marriage loans in Singapore work uniquely to unlock a ready line of credit. Since they are unsecured loans, your lender won’t ask for collateral.
Instead, if you are a Singaporean, it will ask you to provide the following set of documents:
- Copy of your NRIC or passport (you should be a Singaporean and at least 21 years old)
- 15 months’ worth of CPF statements or income tax statements (proof of full-time employment)
- Notice of Assessment from IRAS
- Documents confirming your billing address (a utility bill or recent phone bill will do)
If you’re self-employed, ensure you provide your previous two years’ income tax statements.
On the other hand, if you are a foreigner who is planning to get married in Singapore, you should provide the following:
- Singapore Employment Pass
- Original tenancy agreement or mobile phone bill for proof of residential address
- Employer’s appointment letter
- Last three months’ salary slips
- Bank statements for proof of income
You can apply for these short-term, unsecured loans online or visit the lender’s physical office. Some lenders provide secure mobile apps where you can apply.
Before you start applying, you should determine the amount you need and what various lenders are offering, and choose the best option.
Costs That Wedding Loans Can Cover
Wedding loans can cover almost all your expenses. Before applying, you should create a budget and figure out how much you need. Think carefully about the expenses you’ll have to pay.
Here are some of the estimated wedding expenses that your marriage loan can cover:
- Wedding banquet: $30,000
- Bridal packages make-up, gowns, dresses, etc: $3,000 to $6,000
- Wedding rings: $2,000 to $6,000
- Dowry: $500 to $5,000
- Solemnisation: $1,000 to $5,000
- Wedding photography and videography: $2,500 to $4,000
- Honeymoon: $5,000 to $8,000
- Miscellaneous costs: $1,000 to $2,000
You can get as much as 10 times your salary from banks to help you cover all these expenses. If you earn more than $20,000 yearly, you can borrow up to six times of your monthly salary from licensed money lenders.
While it’s true the red packets you will receive can help you to offset some of the costs, they are not guaranteed. So you should take advantage of a loan for a wedding to ensure there is enough cashflow throughout the planning period and main day.
Benefits Of Getting A Wedding Loan In Singapore
A wedding loan can be a lifesaver if you want to get married without draining your savings or getting into bad debt since it allows you to repay the amount in installments over a short duration. Many engaged couples consider it the best way to cover their expensive expenses.
However, there are other reasons for getting a wedding loan in Singapore, and you can find the major ones below.
Lenders usually only ask for a few documents that determine your citizenship and ability to repay your marriage loan.
Low Interest Rates
While you don’t need to provide collateral, the interest rate of marriage loans in Singapore is relatively low. Banks use your credit score to determine your creditworthiness.
They also evaluate your monthly income before approving your loan, which helps them to secure their money. Many licensed money lenders in Singapore typically offer lower interest rates or promotional rates to give their customers the best experience.
Timely Wedding Loan Approval
Even though some banks take a few days to approve wedding loans in Singapore, some lenders are highly flexible.
They can approve your application as soon as you avail all the required documents. So if you need an emergency marriage loan, you can look for one of the many licensed money lenders that offer instant or 24-hour approval. But be sure to only work with licensed money lenders.
Comfortable Marriage Loan Terms
Marriage loan terms often vary from one lender to another. However, you can negotiate with a licensed lender in the country to accommodate your unique needs. For example, you can agree on the most suitable loan tenure and grace period.
How To Apply For A Wedding Loan
Have you learned how to get a wedding loan in Singapore and are now ready to apply? This section provides all the steps you should follow to do so successfully.
1. Gather Your Personal Information
Did you know that your lender will want to know your employment status, Total Debt Servicing Ratio (TDSR), and more? For example, your TDRS shouldn’t be more than 55% of your gross monthly income.
So ensure you prepare all the items we’ve listed above, including identification documents such as your NRIC, passport, or Singapore Employment Pass, and proof of full-time payment early enough to simplify the application process.
2. Check Your Credit Score
Your credit score plays an important role in determining the cost of your marriage loan. In some cases, it can bar you from accessing the loan.
Hence, it’s wise to get your credit score from the Credit Bureau Singapore (CBS) to see where your chances of success lie. Note that you’re a high-risk borrower if your score is nearer to 1,000. If it’s nearer to 2,000, you have the lowest probability of defaulting on loans.
3. Determine The Exact Amount You Need to Borrow
Factor in every wedding expense that you want to use the loan to cover, from photography to the wedding banquet. Use that to set your wedding budget.
Subtract the amount you can pay in cash. The balance should be enough to cover all the remaining expenses.
4. Shop Around With Several Marriage Loan Lenders And Then Apply
Find out the rates of multiple wedding loan lenders and compare them. Also, compare fees, funding timelines, and read reviews.
In short, here are the criteria you can assess to choose the best marriage loan lenders in Singapore:
- Low fees
- Flexible loan usage
- Wide range of loan amounts
- Transparent interest rates and other fees
- Flexible repayment terms
You can share important information about the kind of product you need with your wedding loan lender if you can’t find the ideal choice.
Once you are done, choose the best wedding loan offer.
Best Wedding Loan Options
So you have learned how to get a wedding loan and how it can help you plan your dream wedding. Let’s look at a few of the best wedding loan options* that you have today in the Singapore market.
HSBC Personal Loan
The HSBC Personal loan is one of Singapore’s most affordable marriage loans. Its annual interest rate is pretty low, approximately 3.2%.
It can offer up to $200,000 and requires you to pay interest on the amount you eventually spend only. Better still, it provides one of the most attractive tenures in the market, up to seven years.
You can qualify for the loan if you are a permanent resident (PR) or Singaporean aged 21 years and above and earn an annual income of at least $30,000.
Foreigners residing in the country and self-employed Singaporeans who meet the same age requirement and earn $40,000 and above per year can also take out this personal loan.
DBS Cashline or Personal Loan
DBS Cashline is another popular wedding loan in Singapore. A Singapore citizen or PR can take out up to 10 times his or her monthly income. Another beneficial feature is that it requires a relatively low annual income of $20,000.
Qualified engaged couples can apply for DBS Cashline via the bank’s mobile app. The interest rates range from 20.5% to 29.8% per year.
If the interest rate doesn’t serve you well, you can opt for DBS’s Personal Loan, which provides a 1% processing fee and fixed annual rates ranging from 2.88%.
This personal loan’s tenure is between one and five years, and you get up to four times your monthly income. If your annual income is $120,000 and more, you can get up to 10 times your monthly salary.
POSB Loan Assist
PosB Loan Assist charges interest on a flat rate basis, meaning you pay the same interest and monthly instalments for the entire loan duration.
You get a minimum of $25,000 at an interest rate as low as 5.18% per annum. In addition, you can pay within three to five years.
You are qualified to get POSB Loan Assist if you earn an annual income of at least $20,000 and aren’t a DBS Cashline customer.
Maybank Secured Overdraft
Maybank’s Secured Overdraft determines your eligibility based on the financial value of the physical assets you pledge. Interest rates depend on Maybank’s Prime Rate, which is currently slightly above 5% per annum.
Citibank Ready Credit
You are eligible if you have a minimum annual income of $20,000. Once your application is approved, the bank offers you a welcome offer of a low interest rate of 4.83% per annum with a loan tenure of 36 months.
*Information correct at time of publication
Apply For A Wedding Loan In Singapore Today
Now that you know how to get a wedding loan in Singapore, you can get the much-needed financial boost and enjoy the day regardless of whether you have enough cash.
If you don’t qualify for a bank loan, how about considering a licensed money lender? Our loan officers at Credit Thirty3 will be happy to help you find the best wedding loans that suit your marriage.