How To Get A Wedding Loan In Singapore
March 14, 2023
Getting married is a milestone in one’s life, and it’s no surprise that couples want to make their special day as memorable as possible. However, planning a wedding can be expensive, so many couples seek a wedding loan to finance their big day.
In this article, we look at how to get a wedding loan in Singapore so you can have the wedding of your dreams without breaking the bank. With the right information and steps, you can get the loan you need to make your day even more special.
What Is A Wedding Loan?
A wedding loan in Singapore is a type of personal loan that assists in financing the costs of getting married. The loan is intended for couples who want to cover the costs of their wedding ceremony, reception, honeymoon, or other related expenses.
The loan amount and repayment terms vary by lender, but they typically range from $10,000 to $70,000, with repayment periods ranging from one to seven years.
Banks, financial institutions, and licensed moneylenders can provide wedding loans Singapore. However, compare interest rates and terms from multiple lenders to find the best deal.
How Wedding Loans Work
When applying for a wedding loan, you must provide your personal and financial information, including your employment status, age, and income.
Financial institutions and banks have specific paperwork requirements when applying for a wedding loan. You may need to provide copies of your NRIC, the IRAS Notice of Assessment, your CPF statement, recent pay slips, and proof of your billing address. Based on this information, the lender will determine the loan amount and terms, such as the interest rate and repayment period.
Once approved, the loan amount will be disbursed to you, and you can use the funds to pay for your wedding expenses.
Repayment of the loan typically begins one month after disbursement, and you must make monthly payments until the loan is fully paid off.
It’s important to note that wedding loans are unsecured, meaning that the lender is taking a risk by lending the money without any collateral. As a result, the interest rates on wedding loans are often higher than those on secured loans.
Your credit history and employment status can significantly determine the loan terms and interest rate.
Costs That Wedding Loans Can Cover
Wedding loans in Singapore can cover a wide range of costs, and the amounts will depend on your specific preferences and budget. Some common expenses that a wedding loan can cover include:
- Wedding banquet: $5,800–$47,300
- Honeymoon ($5,000–$8,000)
- Wedding photography: $2,000–$4,000
- Dowry ($500–$5,000)
- Wedding hair and make-up: $250–$1,000
- Solemnizing the marriage ($1,000–$5,000)
- Wedding car rental: $300–$900
- Bridal package for wedding gown and suit: $500–$6,000
- Miscellaneous ($1,000–$2,000)
- Engagement/wedding rings: $500–$5,000
Benefits Of Getting A Wedding Loan In Singapore
Low Interest Rates
Banks usually offer wedding loans at low-interest rates, making them more affordable than other financing solutions. This makes them ideal if you want to save money on your wedding.
Flexible Repayment Options
Wedding loans typically offer flexible repayment options, allowing you to tailor your repayment plans to your needs. This is especially helpful if you are paying for a wedding on a tight budget.
Funds Can Be Used For Any Wedding Expenses
You can use a wedding loan to pay for any wedding expense, from the venue to the attire and food. This eliminates the need to worry about where the money for each item is coming from.
Fast And Easy Application Process
The process is usually straightforward when applying for a wedding loan. Banks usually require minimal paperwork and can approve loans quickly.
Wedding loans don’t require collateral, so you don’t have to worry about putting your belongings up as collateral.
You Get Your Money Right Away
A marriage loan gives you access to the money they need at once to cover the costs of your wedding. This eliminates the need to wait for funds to be released, which can be stressful.
How To Apply For A Wedding Loan
To apply for a wedding loan Singapore, you generally need to meet the following requirements:
- Must be a Singapore citizen or permanent resident
- Must be above 21 years old and earning a minimum monthly basic salary of $2,000
- Foreigner in possession of a valid Singapore Employment Pass
Singapore citizens or permanent residents will need to provide the following documents for the loan application:
- A copy of NRIC or passport
- For salaried individuals, you should include the last three monthly payslips, a 15-month CPF statement, or an income tax statement.
- Attach a recent phone bill or utility bill from Singapore.
- Self-employed individuals should attach their previous two years’ income tax statements.
For foreign nationals residing in Singapore, the following documents may be required in addition to the above:
- Original, valid Singapore Employment Pass and passport as a part of the required documentation
- A copy of your original lease, a recent PUB bill, or a cell phone bill
- A letter of appointment from your current employer, as well as the last three months’ pay slips
- To further establish proof of income, you will provide your bank statements
It is advisable to check with the specific lender for their requirements. Also, remember that the loan application process may vary depending on the lender and the loan amount.
Best Wedding Loan Options
In getting to know how to get a wedding loan, consider the best options available. Generally speaking, wedding loans can come from banks or money lenders. Let’s look at some of these options*.
*Information correct at time of publishing
Standard Chartered CashOne Personal Loan
With Standard Chartered CashOne, you can enjoy flexible loan repayment terms of up to five years. Additionally, the annual interest rate stands at a competitive 3.48%.
However, it’s important to note that there are minimum annual income requirements to be eligible. For Singapore citizens and PRs, it’s $20,000, while for foreign residents, it’s $60,000.
DBS Cashline Or Personal Loan
DBS Cashline offers Singaporean citizens and Permanent Residents an annual income of at least $20,000 and the option of accessing a line of credit with a maximum limit of up to 10 times their monthly salary. To be eligible for this quick cash solution, you must have an annual income of $120,000 or higher.
You can obtain your loan through the DBS digibank app, which allows you to perform online transactions, withdraw cash, and pay bills. You can make the repayment flexibly, and the interest rate can vary from 20.5% to 29.8% annually.
The DBS Personal Loan is an alternative if you value a lower annual interest rate. This loan has tenures of one to five years and fixed annual rates that start at 2.88% with a 1% processing fee.
Up to four times your monthly salary is the maximum loan amount, or ten times your annual income if you earn $120,000 or more.
Citi Quick Cash Loans
Utilizing Citi Quick Cash, you may turn the remaining credit on your credit card into money that you can pay down in manageable monthly installments. The repayment term can range from one to five years, and eligibility requirements vary based on residency status.
Singapore citizens and permanent residents must earn a minimum annual income of $30,000, while non-residents must earn at least $42,000. The application process for Citi Quick Cash is streamlined and convenient, as Citibank customers can apply through its mobile app or website.
HSBC Personal Loan
For Singaporeans/PRs earning an annual salary of $30,000 ($40,000 for foreigners/self-employed) and aged 21 or above, the HSBC Personal Loan offers a competitive interest rate of 3.2%. You can access a credit limit of up to $200,000, only paying interest on the amount used.
With a loan term of up to seven years, you can enjoy lower monthly repayments spread over an extended period.
POSB Loan Assist
The POSB Loan Assist is an exceptional choice for weddings within a medium budget range. Its flat interest rates, starting at an attractive 5.18% annually, remain consistent throughout the loan term. This enables you to have a clear repayment plan for the next 3 to 5 years.
Maybank Secured Overdraft
When comparing wedding loans, Maybank Secured Overdraft stands out for individuals with modest budgets and grand aspirations. Unlike other lenders who often require a minimum annual income of $20,000.
With the CreditAble account, you can borrow up to double your monthly salary or the credit limit on your account. The repayment term can range from one to five years, and you’ll be charged a yearly interest rate of 3.88%.
OCBC’s EasiCredit offers a hassle-free option for wedding financing. Its flexibility makes it an attractive choice, allowing you to keep your payment options open.
With a minimum repayment requirement of 3-5% per month, you can maintain your credit line and continue making purchases within a limit of two to six times your monthly income. The low monthly interest rate of 1.74% is a bonus. However, there is an eligibility requirement of being a citizen or PR, earning a minimum of $20,000 annually.
UOB Personal Loan
UOB offers an annual interest rate of 3.4% on personal loans. To be eligible, you must be a Singapore citizen or permanent resident with a minimum annual income of $30,000 and a loan tenure of one to five years.
Licensed Money Lenders
Licensed money lenders in Singapore are a great option if you want to finance your wedding expenses. Moneylenders offer a variety of loan products with competitive interest rates and flexible repayment terms.
They can also provide quick approvals and often provide funds within a few days in some cases. Additionally, licensed money lenders are regulated by the Ministry of Law in Singapore, ensuring a safe and secure borrowing experience.
Get The Best Wedding Loan
Getting a wedding loan in Singapore is relatively easy. You can find the right loan that fits your needs through careful planning, budgeting, and researching.
You should also consider the long-term implications of taking out a loan by researching different lenders and comparing rates and terms.
You can make your dream wedding come true with the right loan without breaking the bank. Knowing how to get a wedding loan can help you make smart, informed decisions about financing your wedding.
Are you looking to take a loan to finance your wedding expenses? Look no further.
GS Credit is here to help. We offer competitive rates and flexible repayment plans to make your wedding dreams come true.
Apply now to get your wedding loan and make your special day even more special.