Should I Get A Loan To Pay For My Wedding?
If you’re planning your dream wedding, you probably already know the expenses can go over the roof.
Not many milestone events in life need such massive cash amounts as weddings. Yet many couples don’t mind spending big to achieve their dream weddings.
However, the reality is that this can stretch your finances, especially when other major costs, such as renovations and flat downpayments, are at play.
So if you’re wondering “Should I get a loan to pay for my wedding?”, the answer is yes.
While wedding loans don’t work like housing and car loans, a wedding loan can be a big help in achieving your perfect wedding, especially if you’re planning to spend a substantial amount.
As a result, affordable wedding loans in Singapore have become available, with financial institutions and banks competing to offer the best and most practical loans.
In this article, we’ll look at whether you should apply for a wedding loan in Singapore, how it works, and everything in between.
What Is A Wedding Loan?
As the name suggests, a wedding loan is a loan that finances your wedding expenses.
Fortunately, Singapore has numerous financial institutions to give you an affordable wedding loan.
The package usually involves an unsecured personal loan. Unsecured loans do not require any security or collateral.
You can use a wedding loan for anything related to your wedding and honeymoon.
The amount given is high enough to cover all these costs and usually ranges up to $40,000 in Singapore.
With a higher income level and good credit rating, you can apply and get approved for even higher principal amounts.
How Wedding Loans Work
What sets a wedding loan apart from other loan types is that they unlock a ready line of credit without requiring collateral.
To successfully apply for a wedding loan, financial institutions and banks need borrowers to be employed, of a certain age, and earn a minimum income.
Usually, these are short-term loans repayable in installments over a set period.
The documents required for a wedding loan application typically include your NRIC, a copy of your IRAS Notice of Assessment, CPF statement, the last few months’ payslips, and documents that show your billing address.
For most banks, applications can be made online and through mobile applications. The application can be made online or by visiting a financial institution.
Costs That Wedding Loans Can Cover
It’s important to have a plan before tying the knot. Let’s look at the breakdown of the wedding costs that wedding loans can cover.
The wedding reception depends on the number of guests, entertainment, venue, etc.
The top wedding venues in Singapore can reach up to $1,200 per table of 10. Some high-tier hotels can cost approximately $100,000 for huge weddings of about 300 people.
However, the prices can be lower depending on the venue, the number of guests, and the wedding season.
Wedding Gowns, Suits And Make-up
You must look the part on your wedding day and so must your wedding party. A package with everything included ranges from $2,000 to $6,000, depending on:
- The number of outfits
- The type of suits and gowns
- The cost, location, and number of the photoshoot venues
Engagement And Wedding Rings
Most people in Singapore spend an average of $4,000 on their wedding bands.
However, some believe that it’s the thought that counts more than the actual price, and purchase affordable rings.
Others view wedding rings as sentimental and important symbols of their undying love and splurge on pricey jewellery in the five-figure range.
To afford their dream wedding rings, couples often take out wedding loans to reimburse the costs of this long-term investment.
Guo Da Li
Some Singaporeans might be more traditional or have traditional parents.
If so, you’ll need to factor in a Guo Da Li in your budget when planning a Chinese wedding. This is the ritual that symbolises your betrothal consisting of several gifts. These gift baskets can be expensive and cost your family as much as $5,000.
A typical solemnisation at the Registry of Marriages costs less than $1,000. However, if you’re looking for a stylish ceremony with all the bells and whistles, consider a high average of around $5,000.
Other costs include:
- Wedding car rental
- Pre-wedding photoshoot
- Wedding videography and photography
Apart from these five mandatory expenses, some couples also plan for unique honeymoons. If you’re on a budget, go for wedding venues in Singapore that include a staycation.
On the other hand, a honeymoon abroad can cost anywhere between $8,000 to $10,000.
Benefits Of A Wedding Loan
Getting a wedding loan has become common in Singapore. A wedding loan gives couples, especially young ones, a chance to have a dream wedding.
In fact, the wedding loan market is booming as more and more couples look for affordable financial packages after the worst of the pandemic.
Some couples prefer raising their own money, asking for help from families and friends, or tightening their budget with more affordable alternatives.
However, a wedding loan in Singapore has several benefits, including:
- You can have your dream wedding without compromises as you can get exotic entertainment or hire a five-star venue for your guests.
- There are no emotional strings attached as there are no guilt and obligations. Asking for help from your friends and family implies you need to consider their wishes and conditions. Conversely, getting a wedding loan will give you full rein.
- You get your money at once. In contrast, your friends and family might not immediately give you the entire amount. As a result, you’d need to temper your purchases or even lose great wedding deals in the process. A wedding loan lump sum streamlines all the hiring and planning, giving you peace of mind.
- You save some money as the wedding loan clearly defines your budget so that you’re aware of what you’ll be spending on. This means that you won’t become indebted beyond your reach, and can shortlist your vendors and venues faster.
- It’s flexible and may have lower interest rates than credit cards. If you have a good credit score, you can get a loan with a fixed interest rate.
- It lets you keep your savings for other expenses and goals, such as a downpayment.
Cons Of A Wedding Loan
That said, there are some downsides to a wedding loan, such as the following:
- A wedding loan requires a monthly payment, which can become a financial burden after your honeymoon.
- It comes with interest charges that could be higher for borrowers with low credit ratings – it can even go up to 24.99%.
- It may encourage overspending as lenders could give you a loan of more than you had actually planned to spend. This could influence you to raise your wedding budget.
- It doesn’t offer payment protection as you’ll be responsible for repaying the debt despite what may happen on your wedding day. On the other hand, credit cards could offer important buyer protection.
- It may not be the most affordable option.
Where To Get A Wedding Loan
Other places you can get a marriage loan in Singapore include:
HSBC Personal Loan
- Open to Singaporeans or permanent residents (PRs) with an annual income of $30,000
- For foreigners in Singapore or self-employed Singaporeans earning $40,000
- Aged 21 years and above
- Lowest annual interest rate of 3.2%
- Grants a credit limit of up to $200,000
- Long tenures of up to seven years allow you to spread the repayments over a lengthier period
- Approved within a day
DBS Cashline or Personal Loan
- Gives you a quick cash infusion of up to 10 times the monthly salary
- An annual income of $120,000 and above
- Available to PRs and Singaporeans with a minimum annual income of $20,000
- Easy access to your loan
- You can apply through DBS’ digibank application and use it for online transactions
- Flexible repayments in days, weeks, or months
- Interest rate ranges from 20.5-29.8% annually
- Fixed annual rates from 2.88% with a 1% processing fee
- The loan tenure ranges from one to five years
- You can get a loan amount up to four times your monthly salary or 10 times if your annual income is above $120,000
UOB CashPlus or Personal Loan
- Convenient access to your loan
- Comes with a CashPlus Visa card for making online payments and withdrawing cash
- Minimum annual income of $30,000
- Singaporeans and PRs can get up to four times their monthly salary
- Get up to six times your monthly salary if your annual income is above $120,000
- Annual interest rate of 20.9%
- Annual interest rate of 3.4% with up to a $600 cash rebate if you apply for a loan of at least $30,000
- Available to Singaporeans and PRs with a minimum annual income of $30,000
- Loan tenure of one to five years
Citi Quick Cash Loan
- With a ready Citibank credit card, you can convert your card’s limit into cash payable in monthly installments
- Repayment plans range from one to five years
- Available to Singaporeans and PRs with a minimum income of $30,000; and $42,000 for foreigners
OCBC Cash-On-Installments or EasiCredit
- Convert your OCBC credit card’s credit limit into a loan repayable over one to five years
- Interest rate of 3.5% annually
- Open to Singaporeans and PRs with an annual income of $20,000; and $45,000 for foreigners
- Conveniently accessible via internet banking and mobile app, or through cheques or ATM cash withdrawals
- Loan amounts begin from two times of your monthly income and go up to six times your monthly income, depending on the income range
- Annual interest rates range from 20.9-29.8%, depending on the borrowed amount
- Maybank CreditAble Term Loan
- Bank of China SmartLoan
- Standard Chartered CashOne Personal Loan
- Licensed money lenders
- Wedding loans customised by financial institutions
Other Alternatives To A Wedding Loan
- Budget and start saving in advance
- Ask your friends and family for help
- Defer the wedding until you have enough funds
- Prioritise ruthlessly
If you’re still wondering “should I get a loan to pay for my wedding?”, it’s clear that a wedding loan can help you cover the wedding expenses and comes with many advantages.
So if you’ve decided that a wedding loan in Singapore will help you breathe a little easier when covering your wedding expenses, Horison Credit is a licensed money lender you can trust.
With a proven track record of providing some of the best marriage loan terms in Singapore, we are sure you’ll never go wrong with us.