wedding loan interest rate

What is The Wedding Loan Interest Rate in Singapore?

With the rising costs to tie the knot, most Singaporean couples are faced with the challenge of how much they actually need to make a memorable wedding and how to finance such a very special occasion. An average wedding complete with a celebration, venue, and blessing costs about S $30,000 – S $50,000, and grand weddings can reach up to S $100,000 or beyond.

Singaporean couples who have saved money will want to take out personal loans or wedding loans to upgrade their wedding. It’s a good thing they have plenty of options for these financial products in the country.

Who Can Provide You With A Wedding Loan?

A marriage loan is a purpose-directed loan that can act as your main budgeting source for a wedding or a financial buffer in case of same-day wedding emergencies. People choose either a marriage loan or a personal loan because they can receive the same financing amount, but marriage loans can offer so much more.

Here are three products that can act as a marriage loan.

  1. Bank Personal Loan

A bank personal loan provides you with six months of your monthly income on average. In usual circumstances, banks have a minimum annual income of S $30,000 or above, giving you S $15,000 maximum loan amount. If you have a low credit score, you will find it challenging to borrow your desired personal loan amount or get your marriage loan online because banks view you as a high-risk borrower.

  1. Personal Line of Credit

A credit card or revolving credit account are personal lines of credit. These privilege-oriented products have skyrocketing rates beyond the average marriage loan interest rate. Because of their nature, we highly recommend using personal lines of credit as buffers that offer a single extended month of your income. Personal lines of credit are equivalent to payday loans, which provide an advance equivalent to your monthly income and a shorter loan tenure than a personal loan.

  1. Licensed Moneylenders

Singapore’s Registry of Moneylenders-regulated licensed moneylenders offer the most flexibility and biggest marriage loans range. These reputable lenders will take your net monthly income and provide you with flexible options to customize your personal loan for weddings. Plus, you wouldn’t need a high credit score to receive instant approval for a loan amount way above your average credit card loan.

 

Best Wedding Loan Interest Rates Criteria

We used the following parameters to create a helpful list of financial products that can bolster any amount in your savings account.

  1. Competitive Interest Rate

Rates vary depending on the type of loan and the lender. For wedding loans, the interest rate is the amount charged for borrowing money for a period of time. These interest rates are the percentage of the principal sum that you’ll pay according to the agreed terms of the loan. On wedding loans, interest rates can vary between 5% to 6%. Unsecured wedding loans that can have higher interest rates.

  1. Minimal Fees and Charges

Wedding loan fees can add to your expenses significantly. It is best to avoid them through loan research. Some financial products can contain hidden charges, which means that the cost of a loan you take out could be as high as 4%, excluding its regular interests. Make sure you have time to determine the risks and costs before taking out wedding loans.

  1. Tailored Loan Package with Flexible Terms

Personal loans can only cover so much of your marriage finances. Plus, they’re poor loans for marriages because of their limited resources and short-term payment period. Tailor-made wedding loans will always outdo personal loans, so ask your lender if they can make a suitable marriage loan package for you.

  1. Flexibility in Usage

Every marriage is unique, not just because of the differences between individual couples. Weddings are a beautiful way to spend time with your partner and friends, so you’ll want a package that includes all the important aspects of planning your wedding. There is more than one package available, and each should make it possible to customize themselves to your needs, so make sure to ask your lender about them.

  1. Ease of Application and Approval

Fast and easy applications are the best way to go about your wedding loans because you need to spend the money immediately. For example, licensed moneylenders are an excellent choice because they approve loans despite poor credit scores and supply you with your loan a few hours after your application.

What is The Wedding Loan Interest Rate in Singapore Today?

We’ve used the criteria above to find these six excellent loans that can help you create your dream wedding. Each one has a long-term payment period and some special features that can benefit you during your wedding. 

Loan Product Interest Rate Loan Tenure Processing Fee Maximum Loan Amount Minimum Annual Income Requirement Ideal Use
HSBC Personal Loan 3.5-3.6% 1-7 years S $88 S $200,000 (with different income tiers) S $30,000 Best Overall Personal Loan
Standard Chartered CashOne Personal Loan 3.48% 1-5 years S $199 first year S $250,000 (with varying income tiers) S $30,000 Best For Its Promotions:

50% first month’s payment in cashbackApply via MyInfo for a S $20 Cashback
The annual fee of S$50 is waived from the second year onwards if payments are made on time
POSB/DBS Personal Loan 3.88% 1-5 years 1% of loan principal.

None for loans above S $30,000
4 times your monthly salary

Income earners above S $120,000 yearly can get 10 times their salary
S $20,000 Fast Bank Loan Disbursement
Citibank Quick Cash Personal Loan 3.45-3.56% 1-5 years None 4 times your salary S $30,000 Best for Short Term Loans
OCBC Cash-On-Instalment 4.7% flat rate 1-5 years 1% Maximum available credit limit (bank evaluated) S $30,000 Best Cash-On Installment Loans For Weddings.
Licensed Moneylenders 1-4%  6-12 Months Up to 10% of the principal Up to 6 times your monthly salary S $1,500 minimum monthly income Best for low-income borrowers with below-average credit scores

 

Each item on this table is a purpose-oriented wedding loan suitable for any couple’s situation. For example, you can use HSBC’s offer if you want to finance your wedding with the longest payment term. Alternatively, borrowers with low-income and below-average credit scores will find licensed moneylenders useful.

Despite any loan’s repayment convenience, we highly recommend learning about the cons of each product. For example, OCBC Cash-On-Instalment allows you to pay in installments up to five years, but its flat rate can inflate your debts in the future.

5 Best Wedding Saving Tips

These are effective tips that can help you save money for your wedding.

  1. The Loan Amount You Need

When thinking about all the expenses for a wedding, it seems impossible to pay for everything. If you are only able to afford one item, you have to decide if the item is worth the money. For example, can you afford a dress or a corsage? A dress probably will not be worth it if you only have S $600 for your wedding budget. On the other hand, a corsage may be worth it if only S $20.

  1. Compare Interest Rates

You should compare loan interest rates to help save money and reduce expenses. This is typically done by determining what the expected monthly payments will be for the loan. For example, a person with a S $10,000 loan at a 4% interest rate will have to pay S $400 a month for the loan. Your best choice is to use financing with lower interest rates with lower processing fees.

  1. Use Special Loan Features Effectively

Some loans have special features that can work to your advantage. These include first-year interest-free repayments that can reduce wedding loan costs. Low-credit-score borrowers can have access to higher, wedding-oriented loan amounts. Lastly, interest-free repayments on loans can reduce the cost of borrowing for borrowers with lower credit scores.

  1. Prioritize Payment Flexibility

Wedding payment flexibility is important because it allows the couple to have more control over their wedding budget. They can choose to have a larger wedding day because they have compatible repayment options. Flexibility allows the couple to select saving or spending much more using their wedding budget based on what they need.

  1. Reduce Cost and Fees Where Possible

Marriage celebrations are expensive. However, there are ways to cut on expenses and save a lot of money. It’s not something every couple wants to do, but you can ask your parents for a loan if you need one. You can also do the following:

  • Ask for wedding fund donations from trusted friends and family.
  • Look for discounts or cash-back offers on your favorite venues and suppliers.
  • Use a registry site for marriage gifting options.
  • Ask for store credit or bartering services if the venue and shops allow it.
  • You’d be surprised that many people, venue owners, and suppliers are willing to support you if you can show integrity that you’ll return the favor you owe them after your wedding.

To Sum Everything Up

  • Marriage loans in Singapore can bolster or act as your main wedding budget
  • Licensed Moneylenders and Banks offer Wedding loans that are equally competitive but with varying terms and interest rates which can work to your advantage when reviewed properly. 
  • Among the many financing options, it is smart to use a loan comparison site to easily spot the best loans that are fit to your needs.

 Instant Loan: Your Dream Wedding’s Best Friend

Instant Loan can provide you with three high-quality quotes from Singapore’s excellent licensed moneylenders free of charge. You can save up so much time comparing your options with attractive interest rates that offer the same loan amount. 

With a quick visit to our website, you can get your options within the same day by filling out our simplest form.

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