Should I Get A Loan To Pay For My Wedding?
November 9, 2022
A wedding involves a large cash outflow. Suffice to say you’ll be spending a lot – from the reception, wedding dress and suit, rings, and your honeymoon.
While you may be willing to splurge, you need to know that such overspending can saddle you with significant debt.
Luckily, a wedding loan can help. It can help you fund your wedding without much struggle. So if you are wondering “should I get a loan to pay for my wedding?”, the answer is likely a yes.
But how do you apply for a wedding loan in Singapore? Read this article to find out.
What Is A Wedding Loan?
A wedding loan is an unsecured loan that caters specifically to wedding needs. Singapore wedding loans are given in excess of up to $40,000, which ensures that it covers everything you may need in your wedding.
You can get a higher loan amount if you have a good credit history and an excellent credit score.
Another factor that determines how much you can borrow is the pre-existing loans you owe. Note that Singapore limits borrowers to 55% of their monthly income.
How Wedding Loans Work
Wedding loans in Singapore are unsecured. This means you can get a wedding loan without collateral, or securing it with an asset.
Therefore, wedding loans are offered to borrowers with stable employment, and who meet a specific age limit and the minimum income limit.
A wedding loan is a short-term loan that you’ll repay in installments over a specified period. You need a copy of your NRIC, Central Provident Fund (CPF) statement, and Notice of Assessment. You’ll also need your payslips for the last few months.
Some banks offering wedding loans have online platforms on which you can apply for your loan, while others have mobile apps that can also be used to apply for a wedding loan. The same applies to licensed money lenders.
Costs That Wedding Loans Can Cover
A wedding loan should be able to cover most, if not all, of your wedding expenses. Here are some wedding costs you will need help with:
- Wedding ring – up to $2,000
- Pre-wedding photoshoot – up to $800
- Wedding gown and suit – up to $5,000
- Wedding hair and make-up – up to $1,000
- Wedding banquet – up to $47,300
- Wedding photography – up to $4,000
- Wedding videography – up to $4,000
- Wedding car rental – up to $900
A Breakdown Of Wedding Costs
Here’s a quick look at the average costs of what Singaporeans tend to spend on their weddings.
Engagement And Wedding Rings
A wedding ring symbolises everlasting love between you and your partner. Therefore, people tend to go for quality rings.
The higher the quality, the higher the prices go. Some even spend up to $2,000 on wedding rings alone.
Wedding Gowns, Suits And Make-up
Everyone wants to look elegant on their wedding day. Therefore, people tend to splurge more on their wedding attire and so on.
In general, you will need at least $6,000 for your wedding dress and suit. However, this cost will vary depending on the number of outfits, types of gowns, and your photoshoot venue.
The cost for a wedding reception depends on the number of guests, venue, and entertainment requirements.
High-end reception venues in Singapore cost about $1,200 for a table of 10. Some high-tier hotels can charge up to $100,000 for a reception of 300.
Expect to pay more during the peak wedding season and if you hold your wedding reception on weekends.
A standard solemnisation in Singapore costs at least $1,000. However, more stylish ceremonies can go up to $5,000.
Quite obviously, this depends on where you intend to go. Honeymoons can be affordable if you are on a budget. However, if you want a unique memory and experience, be ready to spend between $8,000 and $10,000 abroad.
Benefits Of A Wedding Loan
So what are the perks of getting a wedding loan? A wedding loan can:
- Help you have the wedding of your dreams
- Give you freedom on your wedding ceremony
- Free you from having to borrow from your friends and family members and having to go by their conditions, which can be an awful experience
- Allow you to access the money in a lump sum. Taking a loan for a wedding allows you to access your financial resources at once and plan adequately
- Let you plan your Singapore wedding budget. Having the money ready allows you to determine your limits so you don’t accumulate excessive debt.
Where To Get A Wedding Loan
Should I get a loan to pay for my wedding? The answer to this question is made simpler if you have many options to choose from, which thankfully you do.
Singapore has several banks, financial institutions, and licensed money lenders that offer wedding loans. Here are some options*.
There are several licensed money lenders in Singapore offering wedding loans. At the top of the list is GS Credit.
The licensed money lender ensures all your wedding needs are well taken care of. The good thing about GS Credit is that it has minimal requirements for one to qualify for a wedding loan.
Besides, its interest rates are competitive, meaning you won’t pay high and unjustifiable interest.
However, you must be a Singaporean or permanent resident (PR) to qualify for a wedding loan. Foreigners must have a valid work permit to qualify. No matter your nationality, you must be 21 years or above to apply.
UOB CashPlus Or Personal Loan
UOB’s CashPlus offers wedding loans of up to four times your monthly salary or six times your monthly salary if your annual income exceeds $120,000. Your annual income should be more than $30,000 to qualify for this loan.
HSBC Personal Loan
HSBC offers wedding loans in its personal loan terms. You can borrow up to $200,000 and repay within seven years.
The loan attracts an interest rate of 3.2% charged on the amount you spend for your wedding.
Singapore citizens or PRs need to have an annual income of more than $30,000 to apply for this loan. However, foreigners must have at least $40,000 as their annual income.
Besides, you must be at least 21 years old to apply for the loan.
Citi Quick Cash Loan
You can convert your Citibank credit card’s credit limit into cash through Citi Quick Cash. You’ll get the loan in monthly installments and repay it between one to five years.
However, Singapore citizens or PRs must have a minimum annual income of $30,000 to apply for this wedding loan.
Foreigners who wish to apply for the loan must have not less than $42,000 annual income. Existing customers can apply for this loan on the official bank website or mobile app.
OCBC Cash-On-Instalments Or EasiCredit
OCBC is another financial institution that lets customers convert their credit card limits into a loan. However, Singapore citizens or PRs who wish to apply for this loan must have an annual income of at least $20,000, while foreigners must have a $45,000 annual income.
Qualified customers can get up to two to six times of their monthly income. The loan attracts a 3.5% annual interest rate, payable within five years.
The overall interest rate (20.9-29.8%) varies depending on the borrowed amount.
Maybank CreditAble offers wedding loans to its Singapore citizens and permanent residents. You must have a $30,000 minimum annual income to qualify for this loan.
You can borrow up to two times your credit limit or monthly salary. Online applicants won’t have to pay the 1% processing fee.
You can repay this loan within one to five years. The interest rate payable is 3.88% per annum.
Standard Chartered CashOne
Standard Chartered offers wedding loans to borrowers up to four times their monthly salary, provided you have a minimum annual income of $250,000. You will repay the loans at a 3.48% annual interest rate for up to five years.
This loan’s minimum annual income requirement is $20,000 for Singapore citizens or PRs. Foreigners must have at least a $60,000 annual income to qualify for the loan.
This offers wedding loans of up to 10 times your monthly income. However, you must have an annual income of more than $120,000 to qualify for the loan. You can apply for this loan through DBS Bank’s digibank application.
The repayment plan for this loan is flexible as you can pay in weeks or months for one to five years. The loan attracts a 20.5-29.8% annual interest rate.
However, you can opt for a more affordable alternative that allows you to pay a fixed 2.88% interest rate and a 1% processing fee.
This allows its customers (Singaporeans and PRs only) to convert their credit card limits into cash. Use your Visa Signature, CIMB’s Platinum Mastercard, Visa Infinite, or World Mastercard to apply for this loan.
You’ll receive the loan in your account in monthly installments. However, you must have a $30,000 minimum annual income to apply for the loan.
You can repay the loan within one to five years. New customers pay a 3.5% interest rate, while existing customers pay a 4.5% interest rate.
*Information correct at time of publication
Should I Get A Loan To Pay For My Wedding?
While taking credit to pay for your wedding may sound a tad risky, it can give you a lot more to work with if the loan goes through.
After all, it can be a nightmare planning for such a happy occasion while worrying about every cent.
In short, a wedding loan can be a good option if you are aware of the risks involved. It’s important to choose the right lender and only borrow what you need – and can repay.
GS Credit is a reputable money lender that is licensed in Singapore to offer wedding loans. We offer these loans at competitive rates, ensuring you have a seamless repayment process.