How To Get A Wedding Loan In Singapore

The average cost of a wedding in Singapore is between $30,000 to $50,000. And that is the average cost of the amount you may need. If you are planning a more lavish affair, you could be looking at a bill that’s double or even triple that amount.

So how do your finance a wedding if you don’t have the savings to cover it? One option is to take out a loan for wedding.But how do you get a marriage loan in Singapore?

In this article, we explore how to get a wedding loan  and what you need to know before you apply.

What Is A Wedding Loan?

A wedding loan is a type of personal loan that you can use to finance the cost of your wedding.

They are a good option for couples looking to finance their wedding and pay back the money on flexible terms. You need to have a good credit limit and show proof that you have an income to qualify for a wedding loan, just like any other personal loan.

You can get a loan for wedding from banks and licensed money lenders in Singapore. It’s important that you compare the multiple offers from licensed money lenders and banks to get the best deal.

If you decide to get a wedding loan, look out for the following features:

Interest Rate

A high-interest rate will make the wedding loan expensive. The lower the interest rate, the better. Compare interest rates from different lenders and select the one with the lowest.

Loan Tenure

A short loan term reduces the interest you will pay on the loan. Although the monthly payment may be higher, the overall cost of the loan reduces if the loan tenure is short. It’s better to opt for a short loan term.

Monthly installments

It’s important to make sure you can afford the monthly payments. Ensure the monthly repayments fit into your budget.

Fees And Charges

Consider the application fees from each lender and choose the one with the lowest. Higher fees increase the cost of the loan.

How Wedding Loans Work

A wedding loan will help you cover wedding expenses. Before applying for a wedding loan, prepare a budget.

The wedding is a comprehensive list of every expense you will incur during the wedding. To be able to prepare an accurate wedding budget, make sure you get quotations from various vendors.

Use the quotations to come up with a budget. Get as many quotations as possible and work with the vendors who offer quality at the lowest price. The budget gives you an almost accurate idea of how much the wedding will cost.

Do a thorough analysis of your budget and see what you can do without, and then come up with the final figure. Using the final figure, you can now approach different lenders and get wedding loan quotations.

You can get a wedding loan if:

You Need The Money To Pay Secure Vendors

When you are planning a wedding, you will realise the best vendors and venues are booked way in advance. If you don’t have the money, you may need to borrow a loan for the wedding. This will help you book the venue, vendors, and that gorgeous dress for the bride.

You Have A Good Credit Score

A good credit score will help you qualify for a marriage loan with ease and at a lower interest rate. It’s important to ensure you have a good credit score.

Proof Of Income

The lender will need proof that you will be able to pay back the loan. Most lenders will request proof of income, among other documents. Make sure you borrow only what you can manage to repay.

You can apply for the wedding loan online or using the lender’s mobile app. After applying for the wedding loan, make sure you allocate the money appropriately. It’s important to stick to your budget. This will help avoid getting multiple loans.

 Costs That Wedding Loans Can Cover

A wedding loan can cover all your wedding expenses. It depends on how much you will get from your preferred lender. When paying for the expenses, stick to your budget. Here are some of the costs you can pay using a marriage loan.

• Pre-wedding photoshoot
• Wedding makeup and hair
• Wedding video and photography
• Wedding venue and reception
• Car rentals for use during the wedding
• Wedding gown for the bride and suit for the groom
• Wedding rings and jewellery
• Honeymoon and after-party
• Entertainment

How To Apply For A Wedding Loan

If you’re planning a wedding and wondering how to get a wedding loan in Singapore, here are the steps you should take.Note that the steps may vary from one lender to the next.

 Check Your Credit Score

The first step you should take is to check your credit score. This gives you an idea of your creditworthiness and the chances of getting the loan.

In Singapore, a credit score of 2,000 or near 2,000 shows financial health and a low risk of default.

If your credit score does not look so good, take the necessary steps to improve it. Consider paying off some debts to improve your credit score.

 Prepare Your Documents

After determining you have a healthy credit score, prepare the documents you will need when applying for the loan. You will need to have the following documents:

• Proof of income such as payslips and bank statements
• Copy of your NRIC or passport
• Foreigners need to have a valid employment pass, payslips for the last three months, and a tenancy agreement.
• The most recent utility bill
• If you are self-employed, you will need the previous year’s income tax statement.

After preparing the documents, you can check your eligibility for a loan. The lender will use the information from the above document to assess your eligibility for a loan.

They will tell you how much you are likely to get and the terms of the loan.

 Compare Loan Offers From Different Lenders

After the assessment, you will have information on the loan terms from various lenders. Compare the interest rates, fees, and loan tenure.

Choose the wedding loan with the best interest rate, fees, and favourable repayment terms. Check the penalties and fines for late payment as well.

The thought of having the wedding of your dreams is exciting but take what you can manage to pay off the loan.

Choose The Lender And Complete Your Application

Once you settle on your preferred lender, you need to fill out the loan application. You can fill out the application through the lender’s online portal or visit the brick-and-mortar location.

The lender will do a thorough financial assessment and credit check. They may require additional documents before approving the loan.

Make sure you follow up on your application if they don’t get back to you in the agreed-upon time.

Get The Money And Use It Appropriately

The lender will deposit the money into your account. It’s important to make sure you use the money as per your wedding budget.

Don’t be tempted to impulse buy or go over your budget.

Best Wedding Loan Options In Singapore

To help with your search, we have listed some of the best wedding loans in Singapore. Here are the top options*:

*Information correct at time of publication

HSBC Personal Loan

HSBC offers personal loans to Singapore citizens or permanent residents earning $30,000 and foreigners with an income of at least $40,000.

They offer 3.2% interest rates, loan terms of up to seven years, and a credit limit of $200,000.

Katong Credit

Katong Credit is a licensed money lender that offers cash fast and at an affordable rate. They offer wedding loans at the best rates in the market.

If you need money fast to book the venue or pay the vendors, Katong Credit will offer you the money you need.

DBS Personal Loan

DBS offers you a personal loan of up to 4 times your monthly salary or 10 times your annual salary. You must be a citizen or permanent resident with a minimum salary of $20,000.

They offer the loan at an interest rate of 2.88% plus a 1% processing fee.

UOB Personal Loan

UOB offers a personal loan with an annual interest rate of 3.4% for those with a minimum annual income of $30,000.

Singapore citizens or permanent residents can apply for the loan, which has a tenure of up to 5 years.

Citi Quick Cash Loan

Singapore citizens or permanent residents with a minimum income of $ 30,000, as well as foreigners earning $42,000 or more, are eligible for this loan.

Alternatively, if you have a Citi credit card, you can convert your limit to cash.

Standard Chartered Cashone Personal Loan

To qualify for a Standard Chartered loan, one must have a minimum income of $20,000 per year. Foreigners need to have an income of at least $60,000 to qualify.

They offer a loan tenure of up to five years at an interest rate of 3.48%. You can borrow up to four times your salary.

Taking out a wedding loan can be a stress reliever when it comes to tackling the costs that go into planning your wedding.

With so many options available, we hope by now you know how to get a wedding loan and can choose the best. Make sure you repay your loan on time.

Planning the wedding of your dreams? Visit Katong Credit and get a wedding loan to cover your wedding expenses and make a memorable.

Katong Credit offers wedding loans at an affordable interest rate and fast.