Now that you are engaged, it’s time to start preparing for the next step! Definitely, our concern is about tying the knot at the wedding.
Starting the new journey with the important one is assuredly an occasion to rejoice. As it is one of the best days of your life, so, undoubtedly you want it to be the best and smooth one.
When in Singapore, you need to know that weddings in Singapore are costlier. Not all can meet the wedding costs with their savings or with the help of family members. If you have sufficient savings to fulfill every wedding expense or parents to look after your bills, then, you are lucky enough.
But, if you are not that fortunate, then, you need help. Are you taking debt for your wedding or you are cutting back to have a smaller ceremony?
Look around!! There are many alternatives. Wedding loans Singapore are here for financing.
The wedding loan is one of the personal loans for managing the wedding expenses. A credit card is one of the possible solutions, however, only when you can pay off the debt at the right time. Of course, you do not want to begin your new beginning in the high-interesting debt for the next few years.
The wedding loans allow you to experience the unsecured personal loan that has lower rates than credit cards. Its fixed monthly payment schedule and fast loan approval from the licensed moneylender make it simple for you to create a budget after the wedding.
If you are planning to take the wedding loan, then, you need to read-on. Here, in this article, we are giving you the best tips to get a wedding loan faster. But, first of all, let’s know what the wedding loan is.
Wedding Loan- Explained
The wedding loan is the other name of the personal loan. Especially, it is meant for the life-changing event- wedding. By getting funds from the licensed money lender in Singapore, you can satisfy the cost of your wedding activities. The wedding event budgeting includes the expenses of all items. Hence, before approaching the lenders, it is important to know the estimate. Generally, the wedding loans include the below expenses:
- Hiring able personnel
- Reservation of a banquet hall
- Fee for the services of the organizers of the wedding
- Buying clothing, the bride’s dress as well
- Purchasing rings and essential jewelry
- Vehicle rent
- Accommodation of guests of the wedding
- Another fewer expenses
How to get a loan with a definite outcome?
The wedding loan is filed by the newlyweds with a high salary and stable job. Also, if you have extra income, then, do not forget to integrate it into the documents. It will assure your chances of obtaining a loan.
However, many times, this information is not adequate. Many licensed money lenders consider the availability of the loan in different banks, credit history, and it does not matter if you pay off the loan monthly or not. All this has an immense effect on the lending decision. Hence, it is advised to pay every debt of yours in advance. Arrange every single document before applying for the loan.
For applying for the wedding loan Singapore, assure you fulfill the below criteria:
- Permanent Resident
- Singaporean
- Foreigner with a real Singapore Employment Pass
- Assure you are above 21 age and are full-time employed
Below documents are needed for the Singapore national:
- Must have proof of passport or NRIC
- Recent phone bill or Singapore utility bill
- To prove full-employment, you should have the last three months payslips or income Tax Statement or 15 months CPF statement
- For self-employed, two years’ income tax statement is needed
Those who are foreigners and are preparing for organizing the wedding in Singapore, then assure they have:
- Original valid Singapore Employment Pass and passport
- Original tenant agreement, cell phone bill, or PUB bill
- Appointment letter from the company and last three-month salary slip
- Bank statement as income proof
Best ways to get the wedding loan Singapore faster
After making your mind of having the loan for your wedding, you want to get it quickly. Check out below the best tips on approving it easily:
Best credit history
The credit history or the credit history plays an important role here. It shows that you are a good player and can pay off the loan on time. With the best credit history, you can get a beneficial loan quickly. This is because of the reason that the licensed moneylender or the banks accept the loan applications of those that have excellent credentials.
So, boost the credit history by paying the bills or credit card payments on time, settle the unpaid loans, avoiding bouncing cheques, etc. You can view the credit report on your profile to know if your credit score is excellent or find out the areas where improvement is needed.
A saving account is also the best method to improve the credit history. Also, even if you no longer use credit cards, avoid closing them, as closing credit card accounts and bank accounts can damage your credit score.
Improve your Debt to Income (DTI) Ratio
DTI is also the major factor that many lenders consider while checking your loan application. For the beginners, it is the sequence of your monthly loan obligations divided by the income.
It shows the ability you have to pay the extra loan while holding other loans. DTI is the main factor that money lenders count on while analyzing your capacity to manage the loan’s monthly installment. With an accurate DTI, you can have more options of money lenders for your wedding.
Borrow the desired amount only
It is advised not to get more than desired for your big day. The reason lies in the fact that you will end up spending more than required. Like, if you have made an estimation of your wedding as S$60,000 in Singapore and you are taking a loan amount of S$80,000 to use. With more than S$20,000, you will definitely buy more or choose more expensive things for wedding activities. That means you will use all of your S$80,000 amounts. It might seem to be a good idea while preparing the wedding activities, however, later on, you will regret it.
Rather than paying for the costs of your initial plan, you will pay more monthly and interest clearing fees. So, apply for the loan only when you have outlined the budget of your wedding expenses and then, choose the loan that fulfills your planning.
Choose the best money lender
Getting the right marriage loan is equally important as choosing the best-licensed moneylender. Of course, reliable lenders provide the right loan with the best rates and promising guidelines. Choosing a suitable money lender is important to avoid scams and debt traps (do not choose the lenders with negative ratings).
We advise you to go through the loan comparison websites while choosing the best loans in Singapore. From these websites, you can secure the best deal and get the loan with minimum effort. All you have to give your time to know the best offers in wedding loans Singapore. Leveraging the pre-approval also assists you in choosing the monthly rates and interest rates that you can easily manage.
Use the co-signer
In accordance with the other loan payment options, you can easily or simply qualify with the use of a co-signer. The co-signer is the one who applies for the wedding loan with you and acknowledges to pay when you cannot. It is helpful when you have personal loans for bad credit as the cosigner can invalidate the credit score.
Prefer to apply for a joint loan
A joint loan is a loan that is shared by you and your partner. It is the same as the co-signer, which implies that you both are responsible for paying it. This is beneficial when it is about approving as the moneylenders analyze the credit score and income.
In addition, you and your partner can also act as the co-signer, that of course is a good choice if you cannot insist on the friend to become the cosigner for your wedding loan.
Moreover, you can qualify easily, particularly when you both have an excellent credit rating. If you both are working then you can apply for more than if you are the only person applying for the wedding loan.
Advantages and Disadvantages of Wedding Loan Singapore
Similar to other loans, the wedding also has some advantages and disadvantages. Check out below some of them:
Advantages of Wedding Loan
Getting a wedding loan has its own benefits, that is why many resorts to taking it. Check out the advantages of having a wedding loan for your D-day:
Convenient option
The loans are the best and an easy method of getting a quick cash loan. While preparing for your wedding, you came to know that the service providers such as catering services, the wedding venue, etc. demand advance payments. In addition to all these, the other wedding expenses, like, wedding cakes, wedding dresses add-up quickly. With not much cash saved for the wedding, you end up taking the loan to cover up all expenses.
Smooth applying process
The loans for weddings can be applied easily. Many licensed lenders like Jurong East money lenders receive online applications and make the overall process smooth. When your loan gets approved, the money gets deposited to the bank account directly (or via some other way). Many lenders in Singapore release cash quickly and many releases the cash just in a day after approval.
Unsecured wedding loan hold no collateral
Obtaining wedding loans does not risk your property being repossessed, as they are usually unsecured.
Improve the credit score
If you want to boost your credit score, then, it is required to take and pay the loan on a timely basis. All you need to assure that you are not missing any payment. Hence, the chances of improving the credit score increases.
A high credit score owns many benefits, the important one is that it makes it easy for you to qualify and get the loan easily.
Does not harm the credit score
If you are making the soft credit checks, then there are no chances that the wedding loan will affect the credit score as it will not reflect on the credit report.
Less interest rate than the credit card
Earlier than wedding loans, many prefer to use the credit card for wedding expenses. Nevertheless, it is not an ideal choice as credit cards hold high rates.
Normally, wedding loans have less rates than credit cards. If you are continuing a good credit score and the right credit history, then good rates are assured. That is why it is not advised to consider a credit card for your wedding.
Disadvantages of wedding loan
As you have seen above, there are many advantages of having a wedding loan, but, there are many disadvantages as well. Though, it has some disadvantages as well as listed below:
Long time paying
Getting the wedding loan for D-day implies that you are bound to pay monthly till the loan duration. It would be either 5 months or even 6 years.
Starting the new chapter of life with debt
Money is the main reason behind the couple’s separation or fight. So, before taking the loan know if you are prepared to take the debt burden in the initial year of your marriage?
If you have to borrow money to support the Singapore wedding you want, likely, you do not have much disposable income or you do not have sufficient savings. Also, if you do not want to start a married life while paying the monthly for a single day, then, you need to think twice. You and your partner should start your first year of expanding wealth together rather than repaying loans.
Difficult to qualify for a new loan till you have the wedding loan
Those who have any current loan have fewer chances to get another loan. Hence, if you want to purchase a new vehicle or have a new house after marriage then it is tough for you to qualify for the loan (if the wedding loan is unpaid).
When some money lender in Singapore checks your loan application, they will look after your current loans to know if you can pay the loan you are asking for. With the outstanding loan, the lender can reduce the approval amount or also can reject the loan application.
Chances of spending more are more
After having a loan, you end up having money in your hand. This may make you spend more than planned. Like, you can buy a costlier dress, order rich fancy arrangements or invite more than usual to your wedding. Integrating all these factors can make everything costlier and make you debtful.
Applying For A Wedding Loan With Cash Direct
The wedding loan is a helpful solution to cover all or part of the wedding expenses in Singapore. Even though you must look around and choose the best option for you. Do not forget that you have a choice of creating a small budget or cutting costs for your wedding.
Use Cash Direct and apply for the low-interest wedding now! Also, you can approach us to know more about the wedding loans.
