Should I Get A Loan To Pay For My Wedding?

Key Takeaways

Taking a loan for your wedding can ease financial stress and help you achieve your dream celebration without draining savings. Wedding loans are unsecured personal loans covering various expenses, including reception, attire, and honeymoon. Benefits include fixed repayments, no emotional strings, and flexibility in amount. Key lenders in Singapore offer competitive rates and accessible application processes.

For most people, a wedding is a once-in-a-lifetime event that brings family and friends together in a celebration filled with love, beautiful decorations, lots of food, and gifts.

Therefore, a couple will have to spend significant money on that day to make it memorable. However, not every couple can raise sufficient funds to bring their dream wedding to fruition.

When used wisely, a wedding loan can be a good solution for this problem. So, if you’re wondering, “Should I get a loan to pay for my wedding?” The answer is yes.

In this article, we will explain why and guide you through budgeting for and applying for a wedding loan in Singapore.

What Is A Wedding Loan?

A wedding loan is an unsecured personal loan facility that is used to cover wedding expenses.

It allows you to plan for your wedding day without digging into your savings or asking your loved ones for money. Banks and licensed money lenders offer wedding loans.

How Wedding Loans Work

First, you have to be employed or have a valid source of income. Your income will determine the amount of money loaned to you.  A stellar credit rating is also essential because it assures the lender of your commitment to repay.

Lenders will also consider your age. Lending to much older couples can be less risky as they may have some savings for their wedding.

Pre-existing debts with other money lenders may affect how much you can get for a wedding loan. Hence, you should also do a personal loan assessment.

Money lenders will require the following documents before granting a loan:

• IRAS Notice of Assessment
• Copy of your NRIC
• Your CPF statement
• Documents reflecting your billing address (phone or utility bill)
• Payslips for the last few months

Costs That Wedding Loans Can Cover

Apart from being unsecured, wedding loans are popular as they can cover considerable expenses, depending on the loan amount you qualify for.

You can use a wedding loan for:

• Wedding reception
• Wedding rings
• Wedding invites
• Hair and make-up
• Wedding gown and suit
• Outfits for the bridal team
• Wedding photography and videography
• Flowers
• Wedding catering
• Honeymoon (accommodation and travel expenses)
• Wedding entertainment
• Car rentals
• Wedding planner
• Surprises for guests

The above expenses could cost between $10,000 and $80,000, so if you don’t have enough savings, a wedding loan would be a big help in covering these expenses.

You could use part of the money you receive from your guests during the wedding to clear part of the wedding loan, leaving you with less debt. However, since you won’t know how much your guests will give, ensure you can settle your repayments using your income.

How To Do A Breakdown Of Wedding Costs

You need a reasonable budget to use the money well. Start with essential items and move on to the less essential ones.

If you are using a wedding planner, he or she should have a spreadsheet to track spending each step of the way. Consider the activities involved and break them into minor components, with a cost allocated to each.

For instance, you could list the dress, veil, shoes, jewellery, and accessories under the bride’s wedding attire.

Below is a list of some of the most critical costs you should consider when preparing a wedding budget in Singapore:

1.  Wedding Reception And Catering Costs

The amount you spend on the wedding reception and catering depends on the number of guests. These are the two most important things during wedding planning and should, at the minimum, take up around 40% of your budget.

2.  Photography And Videography Costs

In this digital age, everyone is looking to preserve memories. For your wedding, you should find a good photography and videography team to cover the preparation and the wedding with minor issues.

The cost should preferably not exceed 15% of your budget.

3.  Wedding Attire And Beauty Costs

To enjoy your big day, you must feel good about your appearance. You may rent a wedding gown, design one yourself, or buy one yourself.

In Singapore, the standard wedding attire comprises gowns, suits, and make-up, which cost around $2,000 to $6,000. This figure can be higher or lower depending on the required outfits.

4.  Engagement And Wedding Ring Costs

A ring is a symbol of a couple’s commitment. Some people go for $4,000 rings to symbolise their everlasting love.

However, there are still more affordable and good-looking rings that can serve the same purpose. You could use the money you save on rings for something else.

5.  Solemnisation Costs

At the Registry of Marriages, marriage solemnisation costs below $1,000. However, if you can afford a standard stylish ceremony, be ready to part with up to $5,000.

Why Should I Get A Loan To Pay For My Wedding?

If you do not want to ask your family or relatives for money, a wedding loan can allow you to spend a little without worrying about every cent.

Here are other benefits of a wedding loan:

1.  Fixed Repayment Terms

A wedding loan is an installment loan. This means you can repay the borrowed amount over a fixed period at a rate you can afford, which allows you room for savings and investments.

2.  More Lender Options

Currently, many banks and credit institutions in Singapore offer wedding loans. While their goal is to make money, their flexible terms allow couples to hold their dream weddings more easily.

Singapore wedding loans vary in interest rates, prepayment fees, and loan tenures.

3.  No Emotional Attachments

When your family member or friend funds your wedding, you will feel obliged to support his or her wedding or fundraiser with a similar amount or higher, which you may not have. Or you may need to heed their advice regarding wedding arrangements.

A wedding loan leaves you with no emotional strings or guilt.

4.  You Decide On The Amount You Want

A wedding loan allows you to choose the amount you want to borrow. Once your application is successful, you will receive the full amount immediately.

In contrast, your friends and relatives may not give you the exact amount of money you want at once.

Considering a wedding loan to make your big day truly memorable? Credit Thirty3 offers flexible wedding loan solutions with quick approval and low-interest rates. Apply for a wedding loan with Credit Thirty3 today and bring your dream wedding to life without financial worries.

Where To Apply For A Wedding Loan In Singapore

If you have decided you need a wedding loan, you can apply with the following lenders*.

*Information correct at time of publication

1.  DBS Cashline

DBS Cashline is at the top of this list due to its quick availability. You can get up to 10 times your monthly salary that you can withdraw from DBS or POSB ATMs islandwide.

With DBS, the loan application process is fairly easy, and the interest is low. You can also use the DBS digibank app for loan transactions.

2.  UOB Cashplus Or Personal Loan

With UOB CashPlus, Singapore citizens and permanent residents can take a personal (wedding) loan of up to four times their monthly salary or six times their monthly salary if their annual income is $120,000 or above.

The interest rate can go as low as 3.4% annually, and the terms are even more attractive for UOB CashPlus members.

Customers who purchase the UOB CashPlus receive a CashPlus Visa card. The card allows easier access to borrowed cash for online payments and withdrawals.

3.  Citibank Ready Credit

To qualify for a personal loan with Citibank, you must earn a minimum of $20,000 annually. The interest rate is as low as 4.83% annually, and customers can apply for a loan through its website or mobile app.

Citibank also allows you to convert your credit card limit into cash and pay in installments.

4.  Standard Chartered Bank Cashone

Singaporeans and permanent residents must have a low income of $20,000 per annum to qualify for the Standard Chartered Bank CashOne loan.

Standard Chartered allows you to borrow up to four times your monthly salary. Its interest rate is also relatively low, at around 3.48% annually.

5.  HSBC Personal Loan

If you are a Singaporean or a permanent resident, you can secure a wedding loan with HSBC if your annual income is $30,000.

HSBC offers fast loan processing. Online applications are usually processed within an hour, and you can have your cash in 24 hours. You must be at least 21 years old to qualify.

The interest rate is also low, with loans of $10,000 attracting interest of 5.6% for standard clients and 3.8% for premier customers.

HSBC offers loans of up to $200,000 for its salaried clients. Clients can also enjoy a loan tenure of up to seven years for comfortable repayments.

6.  OCBC EasiCredit

OCBC EasiCredit allows borrowers to turn their credit limit into a loan. It is accessible via mobile and internet banking, ATM cash withdrawals, or cheques.

Access to the facility is fast. You can get cash three minutes after your application is approved. The facility also allows for flexible repayments at low interest rates of 3.5% per annum for Singaporeans and permanent residents.

Depending on your income, the loan amount can be as high as four times your monthly salary.

7.  Credit Thirty3

With licensed money lender Credit Thirty3, we guarantee fast wedding loan disbursement. The application process is also straightforward.

You can apply online, which usually takes only five minutes. We will contact you for more information on the specifics of the loan.

Once we reach an agreement, we will invite you to sign off on the loan and give you the money on the spot at our office.

In addition, our wedding loan comes with no usage restrictions. You are free to decide what wedding costs it will cater for. We also offer low interest rates and flexible repayments.

Contact Credit Thirty3 at +65 6292 2931 today or apply for a wedding loan.