A wedding is perhaps the most important event in a couple's life because it presents a unique opportunity to share joy with relatives and friends. To make the wedding enthralling, it requires meticulous planning that starts months before the great day. There are guest lists to prepare, venues to book, and bridal packages to decide.
All of these activities, plus a lot of others, come with some costs, and it can get really high in Singapore. So, if you do not have ample amount of cash to hold the wedding of your dreams, it will be an excellent idea to go for wedding financing from licensed lenders. However, ensure to carefully check the terms and conditions, such as fees, payments, fixed/variable interest rate, and time for repayment.
What is Wedding Financing?
This is a form of loan that you can take to fund your wedding or someone else's wedding, such as your child. The money you get can be used to cater for different types of wedding expenses, from decorations to wedding apparel. While it is a good idea, it is important to have a good wedding spending and repayment plan. If you do not, it can negatively impact your financial health.
In Singapore, wedding financing is an unsecured type of loan, which means that the lender will not come for your asset if you are unable to repay it. However, you should not be tempted to default payment because it can have serious repercussions, such as damage to your credit score and getting declared bankrupt.
Wedding loans are like personal loans in many respects, from interest rates like APR to credit score requirements. Again, just like a personal loan from SOFI, there is freedom on how every customer can use the money, but you need to do it wisely because the lender will demand repayment in full. Indeed, the repayment starts the next month after the money is approved and sent to your account. Then, the repayment continues until the total amount you got plus fixed/ variable interest and applicable fees are cleared.
What Makes Weddings So Expensive in Singapore?
In Singapore, the average wedding cost is about $50,000. It is pretty high, right? Here are some of the main costs to expect when preparing for your wedding:
1. Wedding banquet
$1,200 to about 1,400 (per table). A cheaper alternative might be booking a full small
The costs we have listed above are bare-bones, and the entire wedding will involve a lot more. For example, you should expect additional miscellaneous costs for things like a small token for the bridesmaids and the best couple for the help they offer during the wedding day. Again, change of venue at the last minute and other logistical challenges will mean digging deeper into your pocket.
Why Wedding Finance in Singapore is the Best Idea
If you ask most people about wedding financing in Singapore from SOFI, they will tell you that it is good to use personal savings, but that is not necessarily the best idea. Imagine you have saved some money, say $50,000, and it is time to pay for your dream wedding. Using the entire $50,000 from your savings to do the wedding implies that you will be starting a marriage with $0, or no money, which is not a good idea. Or is it?
Instead, wedding financing from lenders allows you to access funds for the event at low interest rates and then pay in instalments. See, your savings remain intact, and you will not even feel the payment pressure because only a small amount of the personal income will go to pay the loan every month.
What You Need to Think About When Applying for a Wedding Loan
Now that you know taking a wedding loan from SOFI is the best idea when preparing a wedding, it is important to think about a number of things before making your application. Here are some of them:
● Your Credit Score
Like other unsecured loans, your credit score is the most important factor when applying for a wedding loan. If your credit score is poor, 1,000 to 1,723, you are considered a high-risk party and lenders will attach high-interest rates to the wedding loan. Therefore, consider improving your credit score first using methods such as correcting errors (if any) in your credit report, repaying the existing debts like loans, and maintaining a good credit mix. Small loans with low APR will also be good options in building a positive credit history and pushing up the score.
● Ability to Pay
Although the wedding is a great occasion, it is important to appreciate that the loan you borrow will have to be repaid in full. Therefore, thinking of how the wedding loan will be repaid before making the application is very important.
In that regard, relook your budget and factor in the monthly payments for the wedding loan. If you notice that the monthly budget is very high, consider reducing luxuries and directing the money to pay the wedding loan.
● Interest Rates for Wedding Loans
The interest of the loan is the cost of credit that you are taking. When looking at the interest rates, know that they fall into two categories; the advertised rate and the annual percentage rate (APR). The advertised rate is the rate used to calculate the monthly payment.
However, it will not give the right picture of the cost of a loan because it does not factor in additional charges. Instead, you should work with the APR to get the total cost of the loan plus the amount payable by the time the loan is cleared.
How to Apply for Wedding Financing
Now that you know the most important things to consider when looking for wedding financing, it is time to apply. In Singapore, the long list of lenders can make applying for wedding financing challenging.
If you try to navigate the process alone, there is also a danger of falling into the hands of unlicensed financial institutions. This is why you should consider using a trusted lender comparison site, such as Lendela.
Lendela is a company focused on assisting customers / borrowers in making their applications and securing the funds they want easy. Instead of taking days to submit an application for a wedding loan in Singapore, Lendela helps you to complete the task in minutes.
First, you need to understand the requirements for wedding financing in Singapore and ensure you meet them. Indeed, these requirements are similar to what is needed for a personal loan in Singapore. First, you must be 18 years or older. Secondly, you need to have a minimum monthly income of $1,200. Finally, you must be a salaried Singaporean / PR / EP holder.
Here is the simple process that you need to follow when applying for wedding financing in Singapore through Lendela:
Visit Lendela’s website to submit a short application (this should take a few minutes only)
The application is sent to different lenders. To increase the chances of getting your loan approved, Lendela uses a matching making algorithm so that only lenders that are matching your criteria and financial situation receive your application.
Lenders return with their pre-approved offers.
You check the offers and select the preferred option. This might be an excellent moment to use a loan calculator in Singapore and seek help on concepts, terms that are unclear etc. Our Customer Relationship Team will be there to help you understand everything and make the right choice.
We help you book an appointment with the lender for you to sign the loan agreement.
Sign the loan and the money is disbursed to your account. Congratulations!
As you can see, weddings in Singapore are never cheap, especially if you have a bad credit score, but this is not reason enough to forgo your dream wedding. By taking a loan to finance your wedding, the cash is provided in a lump sum and you are allowed to pay in instalments.
Make sure to apply through Lendela because it makes the process of applying and getting wedding financing in Singapore straightforward. Lendela will also help you to avoid unlicensed financial institutions and enjoy every moment of your wedding. Make sure to repay the loan as agreed to avoid falling deeper into debt, damaging your credit score, and compromising eligibility for future access to loans.