Should I Get A Loan To Pay For My Wedding?
December 29, 2022
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, it goes without saying that a couple will have to spend a significant amount of money on that day to make it memorable. But not every couple can raise sufficient funds to bring their dream wedding to fruition.
A wedding loan can be a good solution for this problem when used wisely. So if you’re wondering “should I get a loan to pay for my wedding?”, the answer is yes.
We will explain why in this article and guide you on how to budget for and apply 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 having to dig into your savings or ask 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 making repayments.
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 be used to 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
- Wedding catering
- Honeymoon (accommodation and travel expenses)
- Wedding entertainment
- Car rentals
- Wedding planner
- Surprises for guests
The above expenses could cost between $10,000 to $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
To use the money well, you need to have a reasonable budget. 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 down spending each step of the way. Consider the activities involved and break them down into more minor components, with a cost allocated to each activity.
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, or design 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 number of outfits required.
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 enable you to spend a little without having to worry 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 terms of 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 at the moment. Or you may need to heed their advice when it comes to 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 receive the full amount immediately.
In contrast, your friends and relatives may be unable to give you the exact amount of money you want at once.
Where To Apply For A Wedding Loan In Singapore
If you have decided that you need a wedding loan, you can make an application 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 cash 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 use the DBS’ digibank app for loan transactions too.
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.
The UOB CashPlus comes with a CashPlus Visa card for customers. The card allows easier access to borrowed cash for online payments and withdrawals.
3. Citibank Ready Credit
It would help if you had a minimum income of $20,000 annually to qualify for a personal loan with Citibank. Its 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
The Standard Chartered Bank CashOne loan has a low-income requirement of $20,000 per annum for Singaporeans and permanent residents.
You can borrow up to four times your monthly salary with Standard Chartered. 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 after an hour, and you can have your cash in 24 hours. You must at least be 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 approval. The facility also allows for flexible repayments at low-interest rates of 3.5% per annum for Singaporeans and permanent residents.
The loan amounts can go as high as four times your monthly income, depending on how much you make.
7. Credit Thirty3
With licensed money lender Credit Thirty3, we guarantee fast wedding loan disbursement. The application process is also straightforward.
All you need to do is to make an online application that usually takes only five minutes. We will contact you for more 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 restriction on usage. You are free to decide what wedding costs it will cater for. We also offer low interest rates and flexible repayments.