Top 8 Options for Choosing the Best Wedding Loan (Singapore)

wedding loan singapore

Every couple planning to get married might want to consider taking out a loan for their dream wedding to come true. For many, the idea of weddings can only be described in one word—big. But before that big day, you need to make sure you have the finances in order.

Wedding loans are personal loans that are commonly used for costs and expenses related to nuptial events. Whether you borrow from commercial lenders or reputable banks, there will be strict guidelines in place that govern how much you can borrow and when.

These loans come in many different forms too, so it’s essential to understand which wedding loans in Singapore will be most beneficial to you before starting the loan application process.

How much money do I need for a wedding?

On average, an affordable wedding in Singapore can be a bit of a financial strain, costing anywhere from S$30,000 to S$50,000. Lavish weddings, on the other hand, can substantially demand more cash.

The cost of the ceremony, catering service, flowers, professional photography and videography services, professional hair and makeup services, organisation service, and other necessary items can easily exceed the money you have in your pocket. This is where wedding loans in Singapore come in useful.

What loans can you take for a wedding?

Personal loans

Tying the knot is often a costly and time-consuming undertaking. Purchasing a pair of bridesmaid dresses alone will amount to hundreds of dollars in cash. Thankfully, the options for financing a wedding are surprisingly diverse. Personal loans, in particular, will have better interest rates and fees and are less strict than conventional bank loans.

Personal loans are unsecured loans, where, unlike other loans, the amount you borrow is advanced to you without the bank being as fussy about the details of where you plan to spend the money. As such, personal loans can serve as wedding loans in Singapore, providing you with that $30,000 or more.

Which bank is the best for a marriage loan?

There are many loans to choose from. We’ve compiled a menu of loans to browse:

  1. Standard Chartered CashOne Personal Loan
  2. HSBC Personal Loan
  3. Citibank Citi Quick Cash Loan (New Customer)
  4. UOB Personal Loan
  5. OCBC Extra Cash Loan
  6. Citibank Citi Quick Cash Loan (Existing Customer)
  7. DBS Personal Loan
  8. POSB Personal Loan
Bank Loans Loan Amount Interest Rate Charges and Fees Repayment Period
Standard Chartered CashOne Personal Loan The maximum amount of S$250,000, plus 4x your monthly income 3.48%, EIR: 7.3% Processing Fee: S$0, first-year annual fee of $199 applies. $50 annual fee for subsequent years (free of charge if payment is received by the due date for the preceding year) 3 years for $306 per month
HSBC Personal Loan S$100,000 3.4%, EIR: 6.5% Processing fee: S$0. Partial and full repayment penalty: 2.5% of the redemption amount 3 (S$306 per month) to 7 years
Citibank Quick Cash (New Loan Customer) Principal Amount of

S$10,000

3.45%, EIR: 6.5% Processing fee: S$0.

Full Repayment Penalty: 3% of the remaining principal amount or S$100, whichever is higher

3 to 5 years
UOB Personal Loan At least S$30,000 3.48%, EIR: 7.17% Processing Fee: S$0 (for loan tenures that are 3-5 years), 1% (for loan tenures below 3 years) 1 to 5 years
OCBC ExtraCash Loan Up to 6x monthly income for annual income S$120,000 and above;

4x monthly salary for annual income S$30,000-S$119,999, and2x monthly salary for annual income S$20,000-S$29,000

5.43%, EIR: 11.47% Processing Fee: S$100. Restructuring fee: 3% of the remaining amount. 3 to 5 years
Citibank Quick Cash (Existing Loan Customer) Principal Amount of S$10,000 4.55%, EIR: 8.5% Full Repayment Penalty: 3% of the remaining principal amount or S$100, whichever is higher 3 to 5 years
DBS Personal Loan Principal Amount of S$10,000 3.88%, EIR: 7.% Processing Fee: 1% of the loan amount. 3 to 5 years
POSB Personal Loan Principal Amount of S$10,000 3.88%, EIR: 7.% Processing Fee: 1% of the loan amount. Full Repayment Penalty: S$250 3 to 5 years

Verdict: People naturally wouldn’t want to fall deep in debt, so loans with low interest rates will stand out best when it comes to wedding loans in Singapore. Standard Chartered CashOne Personal Loan, HSBC Personal Loan, and Citibank Quick Cash’s low-interest rates have the most negligible impact on your finances.

But as is the case with any loan, the best personal loans are always the ones that are compatible with your income, eligibility, and ability to make repayments. They will also usually depend on the services you need to address for the event.

There may be variations in the interest rates from what is displayed here as they are customised. Be sure to confirm the different details: interest rates, tenure, and repayments.

What if I have a bad credit score?

If you have a bad credit score, moneylenders can be an excellent alternative to bank loans. This is especially true if you don’t have any credit history at all. Borrowers with bad credit scores can benefit from lenders as lenders can give borrowers a chance to improve their score by paying off debt over time and making regular payments.

Money lenders also provide more favourable, low-interest rates—a great relief if you’re struggling to manage your wedding expenses.

How to choose among the best wedding loans

Choosing between wedding loans can be overwhelming, as there are so many factors to consider. How much do you want to pay? How many years will it take? Do you have any outstanding debts? Do you and your partner have enough savings to make it through a payment? These are just a few questions you should ask yourself before pursuing one.

How to apply for wedding loans in Singapore

Getting a wedding loan may seem like a risky proposition, but there’s a decent chance that you’ll be able to get approved for one—if you are adequately prepared.

Banks

If you want to get a wedding loan from a bank in Singapore, you need to pass specific criteria, such as being a permanent resident not younger than 21 years old and having a good credit score.

You will have to provide your name, age, and proof of identity, financial information including assets, debts, and liabilities, as well as employment details, including income and employer contact information when you apply.

Money lenders

Licensed and legal money lenders typically impose more flexible requirements for their lending services. They also provide various loans to eligible borrowers at competitive interest rates and personalised recommendations for the best loan product tailored to address their specific circumstances.

Normally to employ the service of a money lender, one would need to book an appointment through the lender’s website. Your needs and eligibility can be discussed during the appointment, and you can apply for approval.

Licensed money lenders in Singapore also tend to be quick with their services. As soon as your application has been approved, you can receive the cash in-person on the same day.

Tips on how to get a better deal on personal loans

Prepare your credit report.

Whether you have a bad credit score or not, your credit score is a crucial factor in the type of loan you can get and the terms of that loan. Make proactive efforts to improve your score by making regular payments on time and following the rules of your other existing debts.

Make sure you are financially stable.

If the loan doesn’t fit within your budget, there will be consequences, like making a late payment or missing one entirely. This could ultimately just cause you further financial hardship.

For this reason, it is vital to understand the loan details and the lender’s terms and conditions before entering into any of the loans available.

Determine your pay range and the maximum you’ll be able to pay. Then take action to lower your payments and increase your pay-off rate.

Compare the deals.

When you are looking for personal loans, the best thing to do is to compare the loans available from different companies.

Wedding loans in Singapore will have different interest rates, amounts, terms, and income guidelines. The more data you provide the lenders when applying for loans, the better your chances are of being approved.

Conclusion

  • Asking for loans isn’t necessarily bad; it just needs to be done wisely. The most important thing would be to go through this process with a long term mindset.
  • Know what loan you need, why you need it and how you will pay it back.
  • Shop around and compare different lenders’ offers to determine which best fits your wedding budget.

But if you want to avoid all that hassle, consider A1 Credit Personal Loan to finance your wedding. A1 Credit is a money lending service in Singapore that makes applying for personal loans easy, with flexible terms to help you get the money you need without the hassle. Apply online in minutes and receive your offer via email within hours.

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