Your wedding is a once-in-a-lifetime event. It’s wise to stick to a budget to avoid sinking into debt, but you shouldn’t be skimpy either.
Read this guide to find out more about wedding loans and why they’re better alternatives than asking your family for help. We’ll also discuss seven of the most affordable financial packages in Singapore, so keep reading!
If you’re scouring the market for an affordable wedding loan, Singapore has many financial institutions to help. This financial package consists of an unsecured personal loan with advantageous interest rates.
What are unsecured loans?
They are loans that do not need any collateral.
You can use this money for anything relating to your wedding and your honeymoon. The sums are high enough to cover all these costs, usually ranging up to $40,000. Of course, if you have a higher income level and stellar credit rating, you can apply for even more significant principal amounts.
Pre-existing debt also influences how much you can borrow. Think home loans, car loans, student loans. Remember that in Singapore, your debt is limited to 60% of your gross monthly income.
Pro tip: use an online calculator for a wedding loan comparison before choosing your financial provider. Be it a bank or a private financial institution, you should compare the rates.
You can use your wedding loan for anything included in your wedding’s price. For example, you can purchase:
Alright, let’s have a plan before you tie the knot!
Your wedding reception depends on the venue, number of guests, entertainment, and so forth. The top wedding venues Singapore boasts offer prices of around $1,200/table of ten. Some high-tier hotels on the island will cost about $100,000 for massive weddings of around 300 people.
However, these prices can be lower if you’re having a Monday lunch outside of wedding season.
Check out our wedding banquet price lists here!
Take note to cater for wedding photography and videography as well.
You need to look the part when you’re getting married, and so does your wedding party. A package with everything included ranges from $2,000 to $6,000 depending on:
Most Singaporeans spend an average of $4,000 for their wedding bands. Some couples consider that it’s the thought that counts more than the actual price, so they’ll purchase affordable rings.
Other couples view their wedding rings as important symbols of their everlasting love. Thus, they splurge on expensive jewellery priced in the five-figure range.
Some of us might be a little more traditional or have traditional parents. If you’re having a Chinese wedding, you need to include Guo Da Li in your budget. This ritual that symbolises your betrothal consists of several gifts.
These gift baskets aren’t cheap; most packages end up costing your family as much as $5,000.
A standard solemnisation at the Marriage Registry is south of $1,000. If you want a stylish ceremony with all the bells and whistles, consider a higher average of about $5,000.
Apart from these five mandatory expenses above, some couples want to plan unique honeymoons. If you’re on a budget, consider some wedding venues Singapore boasts for a staycation. Otherwise, a honeymoon abroad can cost around $8,000-$10,000.
The wedding loan Singapore market is booming as many couples search for practical financial packages. It gives young couples a chance to have the wedding of their dreams.
The banks and financial institutions on the island are, therefore, competing with affordable wedding loans.
Some couples prefer to raise their own money, ask their families for help, or tighten the belt with cheaper alternatives. From that regard, a wedding loan has several advantages:
1. You can have the wedding of your dreams without compromises. You can hire a 5-star wedding venue in Singapore or get exotic entertainment for your guests.
2. There are no emotional strings attached. No guilt and obligations. Asking your family for help means taking into account their conditions and wishes. Conversely, a wedding loan gives you full rein again.
3. You’re getting all of your money at once. Your family might not be able to give you the entire sum from the get-go. Thus, you’d need to temporise your purchases and even lose massive deals in the process. However, a lump sum streamlines all the planning and hiring, sparing you the headache.
4. You’ll save some money. A wedding loan defines your budget so that you’ll know exactly what you can spend. As a result, you won’t become indebted more than you can afford. Besides, you’ll be able to shortlist your venues and vendors faster.
The wedding loan Singapore moneylenders will craft for your needs looks different from agency to agency. That’s why you should use a wedding loan comparison tool, such as an online calculator. You should research various banks and moneylenders, especially if you have a low-income level and low credit rating.
We’ll help you out with a selection of the seven best wedding loan solutions in Singapore:
1. DBS Cashline - DBS Cashline is one of the quickest solutions for couples in Singapore. You can use any ATM on the island to get your money or transfer it into your vendors’ accounts. Cheques that your mother-in-law prefers are available as well.
- Another advantage is that auto top-ups are available.
2. OCBC EasiCredit - EasiCredit by OCBC is as easy as its name suggests. We like this offer because couples have lots of flexibility, which is an essential factor in planning your wedding.
- Thus, reimbursing your balance requires a minimum payment of 3-5%/month to keep your tab open for the following months. You can continue your purchases each month within a limit of two to six times your monthly income.
- Another advantage is the low 1.74% monthly interest. On the downside, you can only apply if you’re a citizen or PR earning at least $20,000/year.
3. UOB Personal Loan - A fast wedding loan comparison between UOB Personal Loan and EasiCredit shows that UOB has more affordable interest rates. As such, you can pay as little as 4.25%/ year in interest. All you need is to borrow a minimum sum of $1,000.
- If you have a UOB CashPlus membership, prepare for additional perks such as same-day approval.
4. Standard Chartered CashOne - Standard Chartered CashOne is a practical solution if you’re planning a budget wedding because you can get four times your monthly income if your yearly earnings are $30,000+.
- Plus, CashOne boasts some cashback options that depend on your principal sum. These range from $200 to $1200.
- On the downside, your annual income needs to be $20,000 if you’re a citizen or PR. If you’re a foreigner living in Singapore, your minimum income threshold should be $60,000.
5. POSB Loan Assist - POSB loan assist is one of the best options for medium-priced weddings because you’ll enjoy flat rates throughout your loan tenure. These rates are exciting too, considering they start at 5.18% per year. You can make a plan for the next 3-5 years.
6. Maybank Secured Overdraft - A quick wedding loan comparison shows that Maybank Secured Overdraft is best for people with low budgets and big dreams. The standard lower threshold for the banks above is a minimum income of $20,000/year. In this case, you can only access meagre sums.
- However, Maybank Secured Overdraft is a secured line of credit based on collateral.
7. Wedding Loans Customised By Financial Institutions - The banks above offer competitive loan packages for everyone. They’re quick, affordable, and will help you get the wedding of your dreams.
- However, many Singaporeans have poor credit scores, low incomes or need money for their wedding urgently. If you need money urgently within a few hours, you can consider getting a wedding loan from a financial institution.
- These financial institutions will customise your wedding loan depending on your needs and disburse your cash quickly.
If you are tired of searching for a good wedding loan, try our search tool. We help you source the best wedding loan in the market so that you can proceed with an ease of mind.
Receive multiple offers in 15 mins. FREE quotes. Apply for a personal loan with Money Kinetics here to enjoy the best interest rates in the market.