Congratulations on getting engaged! The next step is planning your wedding but you might be surprised that weddings tend to be expensive. The average wedding cost in Singapore is around S$30,000 to S$50,000. Extravagant weddings can cost you even more. That said, you may be asking yourself, “Can I pay the full cost at once?”
For most Singaporean couples, the answer is “no”. And even if you could, it’s not always a good idea. Why? Because there may be unexpected emergencies that might come up after the wedding where you’ll need your savings.
This is where a wedding loan can come in handy. Not sure if getting a loan for your wedding is a good idea? Read on to find out.
Is it a Good Idea to Get a Wedding Loan?
It’s only natural for couples to want the best for their special day. If you’re thinking of taking out a loan for your wedding, you must first consider your and your partner’s finances.
Wedding loans are simply personal loans. And just like any personal loan, banks and financial institutions will look at your credit history and score.
What Costs Can A Wedding Loan Cover?
You can use the funds to cover costs including, but not limited to:
- Wedding reception
- Engagement and wedding rings
- Wedding gowns and suits
- Hotel banquet
- Entertainment
- Photography and Videography
- Wedding car rental
- Bridal/Bachelorette party
- Wedding dowry
- Honeymoon
Some banks and licensed moneylenders can offer a loan 4x your monthly salary. But remember to borrow only what you need. You’ll have to repay the principal amount, plus interest, so be smart about deciding the loan amount.
Pros and Cons of Taking Out A Personal Loan For Your Wedding
Pros
- You can plan for your dream wedding without budget constraints
- You don’t have to borrow money from family
- May have lower interest rates than credit cards
- Flexibility
- You can keep your savings for emergency expenses
Cons
- You’ll have to pay a monthly payment after you get married
- More likely to spend more than what you need
- Can affect your chances of getting approved for a home loan
- Come with interest charges
- In case of late repayment, you’ll be paying for a late interest rate and late repayment fee
- Accumulate more debt
Top Banks Offering Wedding Loans With Low Interest Rates (2022)
| Bank Name | Maximum Loan Amount | Interest Rate | Loan Tenure |
| Standard Chartered CashOne | Up to 4x your monthly income, subject to max loan amount of S$250,000 | 3.48% p.a. | 1 to 5 years |
| HSBC Personal Loan | S$200,000 | 3.4% p.a. | 1 to 7 years |
| Citibank Quick Cash Loan | Up to 90% of your unused credit limit from your Citi Credit Card or Citibank Ready Credit Account | 3.45% p.a. | 1 to 5 years |
| UOB Personal Loan | 95% of the credit limit Note: UOB Personal Loans are only applicable to UOB CashPlus account or UOB credit card holders | 3.48% p.a. | 1 to 5 years |
| DBS Personal Loan | Up to 4x your monthly salary | 3.88% p.a. | 1 to 5 years |
Among the top 5 banks, HSBC Personal Loan has the lowest interest rate at 3.4% p.a. Additionally, they also have a flexible loan tenure of 1 to 7 years. However, you can only borrow up to S$200,000. But if you’re using it to pay for your wedding costs, S$200,000 is more than enough.
Tips on How to Get A Better Deal On Your Wedding Loan
1. Shop for Options
Different banks and financial institutions offer loans at different interest rates. The eligibility requirements will also differ. Even licensed moneylenders in Singapore offer different terms and conditions. That said, it’s best to shop around before making a decision.
There are trusted loan comparison websites that will help you find all the information you need. This makes loan comparison easier.
2. Good Credit Score to Lower Interest Rate
Provide the lender proof that you and your partner are good at paying on time. This means improving your credit score. Banks and licensed moneylenders will more likely approve your loan and offer you the lowest interest rates if you have a good credit history. For instance, if you have outstanding debt, pay them off.
3. Have a Stable Income
You and your partner need to have a steady income and employment. Most banks require a minimum salary to qualify for a loan.
Additionally, it’s also a good idea to have sufficient savings. Just in case you have trouble repaying the loan, at least you have savings you can use.
How To Qualify For Wedding Loans?
Eligibility:
- Citizenship Status: Singaporean/Permanent Resident
- Age Requirement: between 21 and 65 years of age
- Employment Status: Salaried Employee, Variable/Commission-based Employees, or Self-Employed
- Minimum Annual Income: S$30,000 (this may vary depending on the bank or financial institution)
Requirements:
Application requirements may vary by bank or financial institution. Here are the most common requirements you should prepare:
For Salaried Employees/Partial Commission-based Earners
- Copy of NRIC (front and back)
- Latest payslip OR
- Latest 6 months’ CPF Contribution History Statement
- Latest Income Tax Notice of Assessment (NOA)
For 100% Commission-based Earners
- Copy of NRIC (front and back)
- Latest Income Tax Notice of Assessment (NOA) OR
- Latest 3 months of Commission Statement from the same employer
For Self-employed
- Copy of NRIC (front and back)
- Latest Income Tax Notice of Assessment (NOA)
What Are Some Alternatives To Getting A Traditional Bank-Issued Wedding Loan?
Another option that you and your partner can consider is to borrow from the licensed moneylenders in Singapore. These are money lenders who are approved under the Ministry of Law. They are legally allowed to provide financing to Singaporeans, Permanent Residents, and foreigners with a valid Employment Pass.
To check if a moneylender is licensed or not, visit the list of licensed moneylenders in Singapore on the Ministry of Law’s website.
How much can you borrow?
For secured loans, you can borrow any amount. For an unsecured personal loan, please take a look at the table below:
| Borrower’s annual income | Singapore Citizens and Permanent Residents | Foreigners residing in Singapore |
| Less than $10,000 | $3,000 | $500 |
| At least $10,000 and less than $20,000 | $3,000 | |
| At least $20,000 | 6 times monthly income | 6 times monthly income |
Licensed moneylenders can only charge up to 4% interest rate per month. This cap applies regardless of your income or whether you applied for a secured or unsecured loan.
Eligibility
- At least 21 years of age
- Minimum salary of S$2,000 for Singaporeans and Permanent Residents
- Minimum salary of S$3,000 for foreigners
Requirements:
- Identity Card
- Proof of residence (utility bill, a letter addressed to you, and or tenancy agreement)
- Proof of employment (certificate of employment or recent 3 months payslip
- SingPass (to log into IRAS website)
Other Things To Know
1. What is the average interest rate for a wedding loan?
The average marriage loan interest rate is 3.5%.
2. Can I get a loan for my wedding?
Yes. As long as you meet the eligibility criteria, you’ll have a higher chance of getting approved.
3. How much loan can I get if my salary is S$25,000?
Standard Chartered CashOne has a minimum annual income requirement of S$20,000. That said, you can try applying for their CashOne personal loan. However, most banks have a minimum annual income requirement of S$30,000.
If you’re unable to meet this criterion, you can consider borrowing from a licensed moneylender. These lenders only require a minimum salary of S$2,000 for Singaporeans or Permanent Residents.
4. How much loan can I get if my salary is S$15,000?
As previously mentioned, most banks have a minimum annual salary requirement of S$30,000. Another option is to borrow from licensed moneylenders. With a salary of S$15,000, you can borrow up to S$3,000.
Conclusion
These are just a few things you need to consider if you’re planning to take out a loan for your wedding. Banks and licensed moneylenders can help you get the wedding you want. However, you’ll have to think about the monthly repayments afterward.
- The average personal loan interest rate is 3.5%.
- With some banks, you can borrow up to 4x your monthly salary
- Licensed moneylenders only require a minimum monthly salary of $2,000 for locals and PRs and they can only charge up to 4% interest rate per month.
If you’re thinking of borrowing from licensed moneylenders, be sure to compare your options first. Loan Advisor is a reliable loan comparison website. Request up to 3 loan quotes from top licensed moneylenders to make the best financial decision.
