How To Get A Wedding Loan In Singapore
A wedding is one of the most important events in a person’s life. It’s a great time to celebrate and make new memories with your friends and family. While many people can find the money to pay for a wedding, others might need help paying for their big day.
There are several types of loans available to you so you can still have an amazing wedding that you’ll remember forever.
While getting a wedding loan with a fair credit score might seem like an impossible feat, there are many ways to go about it. With the right information and preparation, you can get approved for a loan that works for you.
We will discuss the best ways to get a wedding loan in Singapore with a fair credit score, including how to apply for the loan and what factors are taken into account by lenders to determine your eligibility.
What Is A Wedding Loan?
A wedding loan falls in the personal loan category. Mostly the loan is designed for a once-in-a-lifetime event, a wedding. Couples can borrow loans from money lenders to cover wedding costs like luxurious gowns, restaurant, limousine, and invited guests.
Though the challenge every wedding presents is budgeting for the items. Therefore, it’s prudent to contact financial lenders after having a rough estimate of the event cost.
Here are some of the expenses a wedding loan can cover:
- Hiring personnel
- Renting vehicle(s)
- Reservation of wedding venue
- Gown purchase and other clothing
- Buying jewellery including the rings
- Payment of organiser’s fee
- Accommodation of invited guests
- Other miscellaneous expenses
How Wedding Loans Work
Weddings loans tend to work differently unlike other loans in Singapore. The loan doesn’t require any collateral backing when you are in need. To qualify for such a loan, financial institutions require that you’re employed, earn a minimum income annually and be of a specific age.
The loan is mostly short-term and requires to be paid in instalments over the specified period as per the lender. To apply for a wedding loan in Singapore, you will need:
- Copy of NRIC
- IRAS Notice of Assessment
- CPF statement
- Up to 3 months’ pay slips
- Billing address documents
For most banks, applications are done online while some allow you to do the applications through mobile apps. For financial institutions, you can visit their outlets or apply online.
Costs That Wedding Loans Can Cover
Wedding loans vary but are sufficient to cover wedding costs. Often, they range from small amounts to 5 times your monthly salary.
Here are some estimated expenses a wedding loan can cover:
- Wedding photography and videography: $2,000 – $4,000
- Wedding banquet: $5,800–$47,300
- Wedding gown and suit purchase: $500–$5,000
- Wedding car rental: $300–$900
- Wedding rings: $500–$2,000
- Wedding hair and make-up: $250–$1,000
With these rough estimates, a loan wedding can cover expenses between $10,000 – $70,000. Remember the estimates depend on what you want to be covered in the wedding.
Besides, some of the expenses you could offset using red packets you get at the wedding. But, know that the amount isn’t guaranteed so, ensure you have a good cashflow to help cover all the wedding costs.
Benefits Of Getting A Wedding Loan In Singapore
When planning for a wedding, you’ll only be having two options to work with: either borrow from family or friends or get a loan from money lenders in Singapore. All these avenues will ensure you cover all expenses.
Despite the method you choose, here are the benefits of taking a loan wedding from financial institutions:
- Money lenders charge low-interest rates
- No collateral needed
- Suitable loan terms
- Minimum requirement of documents
- Loan disbursement within a day
How To Apply For A Wedding Loan
If you’re planning to get married, you might have already started thinking about how much the wedding is going to cost. If so, you’re not alone: weddings are expensive!
But don’t worry, there are ways for you to save money on your big day without sacrificing quality or style. One way is by applying for a marriage loan in Singapore.
First, you should be having a stable job and a good salary if planning on taking a loan. In case of additional income, indicate it during your application. It will influence how much money you can qualify for.
If you have insufficient information, lenders take into account the availability of other loans in banks, your credit history, and whether you repay other loans or not. It’s prudent to pay all your loans in advance before seeking a wedding loan in Singapore. Additionally, have all your documents together before making an application.
To apply for a marriage loan in Singapore, meet the following criteria:
- Be a Singaporean
- Permanent resident
- If a foreigner, have a valid Singapore Employment Pass
- Be over the age of 21 and in full-time employment.
For Singapore nationals, avail the following documents:
- Have a copy of your passport or NRIC
- Attach a recent Singapore utility bill or phone bill
- Have at least three months’ payslips, income tax statement, or 15 months’ CPF statements for the proof of full-employment
- Have two years’ income tax statement in case of self-employment
For foreigners intending to have a wedding in Singapore:
- Ensure you have a passport and an original valid Singapore Employment Pass
- Must have your original tenancy agreement, cell phone bill, or PUB bill
- Have an appointment letter from your employer and the last three months’ salary slips
- Have bank statements as proof of income.
Best Wedding Loan Options
Here are some loan for wedding options* to choose from:
1. DBS Cashline
DBS is one of the most popular wedding loans with ease to access in Singapore. It allows for a cash infusion amounting to 10 times your monthly salary if you have S$120,000 and above as an annual income. The loan is available for Singapore citizens and PRs with a minimum income of S$20,000 annually.
The interest rate on this loan is competitive between 20.5-29.8% per annum, but there is an additional fee of S$500 for each year of tenure (up to 5 years).
2. United Overseas Bank (UOB) Personal Loan
United Overseas Bank loan is the perfect option if you need to borrow between $1,000 and S$100,000 for your wedding. The minimum loan amount is $1,000, and you can apply online or over the phone.
The interest rate is fixed at 4.25% per month over 12 months with no hidden fees or charges. Besides, terms are attractive when you’re UOB CashPlus member, you can choose fixed or flexible repayment and have access to funds same-day after approval!
3. Oversea-China Bank Corporation (OCBC) Limited EasiCredit
OCBC Limited’s EasiCredit offers a range of wedding finance plans for couples who are looking for a loan with flexible repayment terms. This wedding loan can be used for any wedding expenses that you may need to cover with a monthly repayment as low as 3% when you’re prepared to pay.
You can apply for this wedding loan in Singapore online, and qualify for 4 times your monthly salary if earning at least $30,000 yearly. It’s incredibly fast as you can get money in 3 minutes after your loan approval.
4. Oversea-China Bank Corporation (OCBC) Limited Extra Cash
OCBC Limited Extra Cash scheme is ideal for those who want a one-time loan with an annual income of S$20,000 and above.
Interest rates vary with 15% per annum applying to those with $30,000 and above as their annual income and 22% applicable to those having an annual income ranging from $20,000 to $29,999. Having fixed monthly repayments, you’re bound to manage your finances properly during the repayment phase.
5. Citibank Ready Credit
If you have a fair credit score, then you can get a loan from Citibank. This is the best wedding loan option for those who want to tie the knot immediately.
The loan amount requires an annual income of up to $20,000 to join Citibank’s personal loan scheme. You will have to pay an interest of 4.83% per annum with $5,000 as the minimum amount borrowed and a loan tenure of 36 months.
6. Standard Chartered Bank CashOne
Standard Chartered CashOne has a good track record of helping people with their wedding budgets.
They offer personal loans up to 4 times your monthly income if the annual income is at least $30,000 with flexible repayment options. The interest rate is 6.88% per annum and there are no hidden fees or charges when taking out these loans.
7. HSBC Personal Loan
One of the best wedding loan options in Singapore is the HSBC Personal Loan. It offers a low-interest rate of 5.6% per year for a minimum loan amount of $30,000 or 3.8% for HSBC premier customers.
If you want to apply for this loan, ensure you meet the minimum annual income threshold of $30,000 where loan processing takes only 1 hour with cash disbursement the next day. The salaried customer enjoys a loan tenure of up to 7 years with a minimum borrowing amount of $5,000.
8. POSB Loan Assist
If you don’t qualify for the HSBC Personal Loan or if it isn’t enough for all of your wedding expenses, try the POSB Loan Assist program instead.
It’s available for Singapore citizens only, but it’s easy enough for anyone who has been living in Singapore for at least three years (or more). What makes POSB Loan Assist stand out is its flat rate interest rate basis.
You can get a minimum loan amount of $25,000 with a low-interest rate of 5.18% per annum with a 3 to 5 years’ tenure. All you have to do is have $20,000 and above as annual income and not a DBS Cashline customer to qualify for the loan.
9. Maybank Secured Overdraft
If you have a fair credit score, your best bet is to apply for a secured overdraft from Maybank. This option is more affordable than most other wedding loan options in Singapore because it allows you to pay back the loan by securing it against your savings account or assets you pledge.
Its interest rates vary according to Maybank’s Prime Rate currently at 5.25% per annum.
10. Bank of China (BOC) MoneyPlus Fund Transfer
For those with fair credit scores, BOC offers an online fund transfer option that allows you to borrow at low-interest rates by transferring funds from your bank account into a credit line, existing credit card, or current account of any bank.
However, you must have $30,000 as your annual income to apply loan for wedding with a minimum transfer fund of $1000.
If you’re obedient to keep a 3 to 6 months loan tenure, you will enjoy a 0% interest rate.
*Information correct at time of publication
Get Your Wedding Loan In Singapore Today
In order to get the best deal that fits your needs, it is important to consider all the features of different wedding loans in Singapore and debt solutions available.
Think through how you will approach paying off any new debts and how soon you can afford to clear them again. A long-term strategy considering all future costs will give a good security net for life.
If you need assistance, contact BST Credit today to learn more about weddings loans or apply for a loan with us now.