A wedding is a once-in-a-lifetime event. Most couples would want to have a dream wedding. However, a wedding needs a lot of money, which you may not have. This is where a Singapore wedding loan comes in handy.
If you’re wondering: Should I get a loan to pay for my wedding, we would say, yes you should.
This is because the loan can help you cover various costs in your wedding budget. However, taking out a loan you can manage to repay is essential.
Here is a guide to help you understand how wedding loans work, the costs they can cover, their benefits, and where you can get them.
What Is A Wedding Loan?
A wedding loan is a type of personal loan offered by various financial institutions such as licensed money lenders and banks. It is available as an unsecured loan – thus, you do not need to provide collateral.
You can use the loan to cover your wedding and honeymoon costs. Usually, lenders provide up to $40,000. However, you can qualify for a higher amount if you have a good credit score and a higher income.
In addition, your existing loans determine the amount you can borrow for your wedding. This is because you cannot take out more than 55% of your gross monthly income in Singapore.
How Wedding Loans Work
When you source a marriage loan in Singapore, you can unlock a ready line of credit without providing collateral. This means you can take cash advances up to your set credit limit.
However, to get this loan type, you need to be employed, earn a certain minimum income, and be of a certain age. The specific criteria depends on a lender.
Note that this short-term loan needs to be paid back within the agreed loan term.
You will also have to provide relevant documents, including:
- Copy of your NRIC
- IRAS Notice of Assessment
- CPF statement
- Billing address documents
- Payslips for the last few months
Costs That Wedding Loans Can Cover
If you are still wondering should I get a loan to pay for my wedding, the good news is that you can use it to settle small to huge expenses for your wedding. This is because you can borrow as much as 10 times your monthly income.
Here are some of the costs you can cover with this loan:
- Wedding gown and suit
- Pre-wedding photoshoot
- Wedding rings
- Wedding banquet
- Wedding photography
- Wedding videography
- Reception and venue
- Car rental
- Hair and make-up
- Wedding planner
- Guo Da Li gifts
- Honeymoon plane tickets and accommodation
How To Do A Breakdown Of Wedding Costs
Before approaching a lender for a wedding loan in Singapore, you need to have a list of the items you want to cover with your loan. This will help you find the best deal in the financial market.
You can break down your wedding budget into the following:
Wedding Gown, Suit And Make-Up
You and your partner should look good as you tie the knot. Therefore, you need to choose your outfits carefully.
Start by considering the type of gown and suit you want to wear. Also, how many outfits do you need for the day? This will help you determine the amount you need.
A complete package can range from $2,000 to $6,000, depending on your preferences.
Where will your wedding reception be hosted? This can depend on several things such as the wedding venue and number of guests.
Top wedding reception grounds in Singapore cost about $1,200 per table of 10. On the other hand, there are other high-end places where you can pay $100,000 for 300 people.
However, you can cut the costs by having your wedding out of the wedding season and holding it on a weekday instead of the weekend. This will also lower the loan you will take out for your wedding.
For a standard solemnisation at the Registry of Marriages in Singapore, you pay $1,000. However, if you want a modern celebration with all the bells and whistles, be ready to spend about $5,000.
How do you perceive wedding bands? On average, most Singaporeans spend $4,000 on their wedding rings. However, some may go for cheaper options because they value how much they love each other than the rings.
On the other hand, others value wedding bands as special symbols of their love. Therefore, they are willing to spend five figures on them.
As a result, they borrow a loan for their wedding to make their dreams come true.
Wedding Honeymoon And Accommodation
After walking down the aisle, you need to spend quality time with your partner before you embark on your life together. If you are on a budget, you can consider a staycation in Singapore.
However, some couples may want a honeymoon to a unique destination. A honeymoon package outside Singapore can cost about $8,000 to $10,000.
If you still observe your culture or your parents are traditional, you can factor that to your wedding.
For example, if you are doing a Chinese wedding, you can include Guo Da Li in your Singapore wedding budget. This is a type of ritual consisting of several gifts that symbolises your marriage.
A Guo Da Lin gift basket can cost your family up to $5,000.
Benefits Of A Wedding Loan
If you are looking for a Singapore wedding loan, plenty of lenders are providing this option with competitive rates. Hence, you can get affordable wedding loans to help you tie the knot without too much struggle.
Even though you can decide to raise the money, go for cheaper alternatives, or ask your friends and family to chip in, a wedding loan can be a good idea.
Here are some benefits of borrowing a loan for your wedding:
It Eases The Burden
Wedding costs in Singapore may not be easy to manage with your partner. Besides, asking for money from friends and family means you may have to bow to their demands.
However, when you take out a wedding loan, you will have no obligation to abide by anyone’s wishes. Instead, you will have the final say over what you want your ceremony to look like.
It Allows You To Have Your Dream Wedding
A marriage loan can cover every wedding cost in Singapore. This will allow you to have the wedding of your dream without compromising.
For example, you can buy that wedding gown you saw online or book a five-star wedding reception venue.
It Saves You Money
With a wedding loan, you will have a budget that outlines how much you need to spend on each item. This will help you to have better control over the money at hand.
As a result, you won’t borrow what you cannot afford.
You Get The Money At Once
After a lender approves your loan application, it disburses the whole sum at once. This means you can pay your vendors on time, making the planning process easier and faster.
If you rely on your friends and family, they may not be able to give you the whole amount at one go. Therefore, you may have to put some purchases on hold, which can make you lose great deals with vendors.
Where To Get A Wedding Loan
The wedding loan market is booming in Singapore. As a result, you can find many lenders providing this type of loan.
You can opt to source your loan from a bank or a licensed money lender. Here are some options*.
*Information correct at time of publishing
Apart from banks, you can get a Singapore wedding loan from a licensed money lender like Lending Bee. This is a perfect option when you do not meet the banks’ eligibility criteria.
It is safe to borrow from Lending Bee because it is a licensed money lender regulated by the Ministry of Law. Therefore, this lender cannot charge you more than a 4% monthly interest rate.
Even if you have a bad credit score, you can apply for a marriage loan at Lending Bee. The financial institution aims to help all lovebirds have their dream wedding. You only need to be Singaporeans or permanent residents (PRs) with work permits. Also, you should be at least 21 years old, and employed or self-employed.
The approval process is faster than that of a bank. Once you accept and sign the loan contract, your loan is instantly disbursed.
DBS provides two options to finance your wedding. You can take out a personal loan or a cashline. With the DBS cashline, you can get up to 10 times your monthly income if you earn $120,000 per year and above.
This line of credit is available for Singapore citizens and permanent residents who earn at least $20,000 annually.
The interest rate for the DBS cashline is 20.5-29.8% per annum, and you can repay in months, weeks, or days.
However, you can consider a personal loan if you want a lower interest rate. It has an annual fixed rate starting from 2.88% and a 1% processing fee. You can repay the loan in one to five years.
United Overseas Bank
UOB provides a CashPlus or personal loan to help you meet a Singapore wedding budget.
To qualify for a CashPlus loan, you must earn at least $30,000 per annum. If you are a Singaporean or a permanent resident, you can get up to six times your monthly income if you earn at least $120,000 per year. The interest rate for this loan type is 20.9% per annum.
If you want a UOB personal loan for your wedding, the annual interest rate is 3.4%. You need to earn at least $30,000 per year and be a Singapore citizen or a permanent resident. The loan tenure is between one to five years.
Should I Get A Loan To Pay For My Wedding?
When you want to tie the knot with the love of your life, you need a lump sum for a decent ceremony. You can ask for support from friends and family or find a cheaper alternative, but a wedding loan gives you more freedom.
All you need to do is to come up with a wedding budget to know how much you can afford to repay. Besides, there are numerous lenders to choose from, from banks to licensed money lenders.
If you are looking for a licensed money lender to give you a Singapore wedding loan, search no further because Lending Bee has your back.
We provide affordable loans that cater to your annual income and favourable fees.
About Ashley Sim
Calling herself a “professional multi-tasker”, Ashley worked as a relationship manager in a bank for five years. She left her job just before the pandemic happened and became a freelance writer for about a year. Now, she’s making the most of her love for writing and knowledge of the banking and financial industry in her role as a content marketing lead. She hopes to help people make better financial decisions through her content and campaigns.