Planning a wedding can not only be stressful but also costly. According to a study made in 2020, over 40% of Singaporean couples spend an average of $30,000 to $49,999 for their dream wedding. Only 11% spend over $80,000 on average for their wedding.
Although having a wedding might be costly, there are certainly many ways for you and your fiancé to achieve your dream wedding. One of the options is to pay in installments through applying for a wedding loan. Let’s get you up to speed on all things you need to know about wedding loans!
Before We Dive Into Wedding Loans, Let’s Find Out How Much A Wedding Would Cost You
When it comes to weddings, the price is usually doubled or tripled as it tends to cost more. Just ask a baker how much for a normal cake, and then ask another one about a wedding cake – you’ll see the difference.
According to Seedly, here’s the full breakdown of how much a wedding would cost:
- Registration fee: $42
- Solemnizer: $50 – $120
- Wedding bands: $890 – $1,680
- Gowns & suits: $3,000 – $5,000
- Photos & videos: $2,000 – $4,480
- Decorations: $1,030 – $2,200
- Virtual: $71 – $141
- Mosque: $200
- Church: $2,500 – $7,000
- Restaurant: $5,180 – $26,000
- Cafés: $5,950 – $18,120
- Hotel: $17,420 – $40,540
P/s: Do note that the estimates for the initial planning of your wedding, it doesn’t predict any adversaries you would have to overcome or deal with nearing your wedding date.
In total, it estimates between $7,385.50 to $60,976. This would depend on what kind of dream wedding you would like to have and if there are any cultural celebrations, which ultimately would affect the cost. If you don’t have enough budget to finance your wedding, you should take a look at wedding loans – proven helpful to help you over the expenses.
But, How Do Wedding Loans Work?
In case this is the first time you’ve heard about a wedding loan, it is a type of unsecured personal loan in Singapore to help make your dream wedding come true. In a way, it’s a fast cash loan (6 times your salary) that can assist in financing your big day.
As a future bride and groom, you must be overwhelmed thinking about the entire thing – from the smallest to the biggest details. And, the cost is the biggest thing to worry about. All of these worries can be taken away by taking a wedding loan – it’ll give you the ability to get what you need for the wedding without the financial strain.
As a wedding loan is a type of unsecured loan, they do not need any collateral. This means that you can use the money for anything related to your wedding celebration; it doesn’t matter if it’s pre-wedding, during the wedding, or post-wedding.
For your information, the wedding loan can cover wedding expenses such as:
- Reservation fee
- Payment for the organizer’s services
- Hiring qualified personnel/vendors
- Purchase of clothing, including the bride’s dress.
- Buying rings and other jewellery.
- Vehicle rental
- Accommodation of non-resident guests of the event.
- Other minor expenses
If you are looking for hassle-free wedding loans with same day approval, you can consider applying one from QuickLoan Pte Ltd, you could even get up to 6 times your monthly salary. More, if you apply for a joint loan with your fiancé.
So, What Are The Steps To Increase Your And Your Partner’s Chance Of Applying For A Wedding Loan?
Just like any other loan, financial institutions and licensed moneylenders would look at your pre-existing debts and current total income. Not to mention, they would also look at your credit score and history whether they are good or not.
Here’s what can be done to increase the wedding loan approval:
Good Credit History
Your credit history tells many things, and one of them is how reliable are you when it comes to paying off your debt. If you have a good credit history, you’ll be able to get the wedding loan approved much more quickly. This is probably because they trust applicants that have great credentials and are trustworthy.
Hence, it pays off by making sure you pay your monthly debt in full amount and on time. You don’t purposely pay it late without any reason. And, if you have more than enough, you’ll pay more than what you usually do. Read this to get tips for paying off your credit card debts.
Good Debt-To-Income (DTI) Ratio
Simply put, the debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes to paying your monthly debt payments. This ratio is used by financial institutions and moneylenders to determine your borrowing risk.
If it’s your first time borrowing, you’ll just divide your monthly loan obligations by your monthly income. In a way, it gives an image for the approval to see whether you can pay a new debt on top of your current debts.
According to Investopedia, 43% is the highest DTI ratio a borrower can have and still qualify for a loan. However, this doesn’t mean you won’t be able to get your financing approved if your DTI ratio is much higher. There’s still a probability your application will get approved (hopefully!).
For example, your monthly income is $3,500, and you use 37% of it to pay off your existing debts. So, it’s highly likely that you’ll be able to get the wedding loan since it’s below 43%. The lower your DTI ratio, the higher the chances financial institutions or moneylenders will lend you money. Ideally, the lender prefers a DTI lower than 36% – recommended.
Only Borrow What You Need
It’s understood if you might get tempted to put a much higher amount than what you really need. But, ask this, are you able to pay the high principal amounts once you’re done with the wedding? You also need to consider other parts of the marriage such as the honeymoon, your first home, and financial responsibility among others.
With that, it’s highly advisable to only put the desired amount – just enough for the wedding. Better yet, only put a similar number as your wedding budget.
Get A Co-Signer Or Apply For A Joint Wedding Loan
When you’re getting a wedding loan, instead of getting it individually, make it a joint effort with your fiancé. This means that both of you are responsible for getting it and also for paying it off. You can go with 2 alternative methods on this:
Be a co-signer – As one of you will be the sole applicant, the other one will act as the co-signer. So, when the sole applicant is unable to pay, the co-signer will be able to step up and help when needed, officially or not.
Apply for a joint wedding loan – Both are responsible for getting it and paying from the start. Financial institutions and moneylenders would look at both profiles before approving the loan. Your chances of getting approval also are considerably high!
Choose The Best Financial Institution Or Moneylender
If you are not sure where to start, check out any trusted comparison website and compare all available wedding loans and see which one fits you the most. From there, you can see which financial institutions and moneylenders that have the best rates or if they have any ongoing promotions at the moment. Then, you’ll be updated on the available options that you have.
Here are reasons why you should take up a wedding loan with QuickLoan Pte Ltd:
Fuss-Free and Affordable
Taking a low-interest wedding loan from us requires only three easy steps: Apply, free consultation and agreement signing, then receive your cash!
Flexible and Personalized
Look forward to flexible plans tailored based on your salary, circumstances, and needs for better repayment ease with a dedicated loan officer at your service.
As one of the best money lenders in Singapore, Quick Loan offers personalised service to all our customers looking to pay by installments for life’s large purchases. Apply for your wedding loan with us today!