Wedding Loans: How Do They Work And Should You Get One?

Few milestone events in life require such a large cash outflow at once as a wedding. From the banquet to the honeymoon, many couples don’t mind splashing out to achieve the wedding of their dreams.

The reality, though, is that this can stretch their finances, and at a timee, too, when other major costs such as flat downpayment and renovations may come into play. 

This is when wedding loans can prove helpful. Also known as personal loans, these can help tide you over when circumstances necessitate a large spend.

Here’s a guide to wedding loans and how they could help you turn your vision of your big day into reality.

Table of contents

• What is a wedding loan and how does it work?
  • How to apply for a wedding loan in Singapore?
  • Difference between a personal loan and a wedding loan?
• How can a wedding loan help you?
  • Tips for picking the best wedding loan
• Best wedding loans in Singapore

What is a wedding loan and how does it work?

A wedding loan is a type of unsecured credit facility that provides a lump sum of cash you can use to pay for your wedding expenses. Such loans are available without the need for collateral backing.

Wedding loans are fixed instalment loans, which means you will repay your loan via monthly repayments. Each repayment include the interest charged on the loan; once you finish up paying all your monthly instalments, your entire loan would be paid off. 

You can choose wedding loan tenures from one to seven years, although most banks have an upper limit of five years. This makes wedding loans one of the most flexible and affordable options to pay for the high costs involved. 

As for how much you can borrow in a wedding loan? This depends on your income. Typically, you can borrow up to 4x your monthly salary. If you're earning S$120,000 or more per year, you can borrow up to 10x your salary.  

How to apply for a wedding loan in Singapore?

Wedding loans are readily available in Singapore, being offered by various banks and financial institutions. Note that applicants have to fulfil qualifying criteria around age and income requirements -- these may change according to your residency status.    

Documents required for application usually include a copy of your NRIC, your IRAS Notice of Assessment, CPF statement, your last few months’ pay slips, and documents reflecting your billing address.

Applications can be done online for most banks; some also allow you to apply through their mobile apps. For financial institutions, you can apply online or visit one of their outlets.

Difference between a personal loan and a wedding loan

If you're thinking that a wedding loan sounds a lot like a personal loan, that's because they are both one and the same. 

Wedding loans are just personal loans that you use for your wedding expenses. However, there is actually no restriction on what you use your loan for. Once the cash has been disbursed to your account, you are free to use the funds at your own discretion.

For this reason, some couples may decide to take a personal loan that exceeds the cost of their wedding, so they can use the leftover funds for other expenses. 

How can a wedding loan help you?

Wedding loans can range from 4 to 10 times your monthly salary, making them a great option to cover your wedding costs. These are some of the estimated expenses you could tap on a wedding loan to cover:  

• Wedding banquet (15 tables of 10): S$5,800–S$47,300
• Wedding photography: S$2,000–S$4,000
• Wedding videography: S$2,000–S$4,000
•  Pre-wedding photoshoot: S$350–S$800
• Wedding hair and make-up: S$250–S$1,000
• Wedding car rental: S$300–S$900
• Wedding gown and suit: S$500–S$5,000
• Wedding rings: S$500–S$2,000

A wedding loan could hence help to cover an amount between S$10,000 to S$70,000, depending on how lavish you want you big day to be. Some of these expenses could possibly be offset by the red packets you’d receive at your wedding.

However, as how much you'll be receiving from your guests is not guaranteed, you’d still want to ensure enough cashflow to cover all your bills. This means it might be prudent to err on the side of caution with a larger wedding loan. 

How to pick the best wedding loan

• Go for the lowest interest rate. As weddings loans can be a large sum, it's imperative to go for the loan with the lowest interest rate. Be sure to check the Effective Interest Rate (EIR) for a more accurate comparison when picking between loans. 
• Choose a suitable loan tenure. The longer your loan tenure, the lower your monthly payment will be. This gives you flexibility in repaying your loan, as you can choose whether to pay more per month, but for a shorter duration, or stretch out your loan tenure with lower monthly instalments. Do take into account future plans that may involve taking on new loans, when choosing your loan tenure.  

Best wedding loans in Singapore 

So you’ve decided that taking a loan would help you to breathe a little easier when it comes to your wedding expenses. Let’s take a look at some of the top options in the market.

HSBC Personal Loan

If you have an annual income of S$30,000 as a Singapore Citizen or Permanent Resident (PR), or S$40,000 as a foreigner residing in Singapore or self-employed Singaporean, and are aged 21 and above, the HSBC Personal Loan can provide you with one of the lowest annual interest rates from 2.22% p.a. (EIR 4.0% p.a.) on the market.

HSBC also offers one of the longer tenures of up to seven years, so you’ll be able to spread out your repayments over a lengthier period of time. 

SingSaver Exclusive Cashback Offer: Enjoy the following rewards when you sign up for an HSBC Personal Loan:

Get up to S$1,100 Cash, an Apple iPhone 16 Pro 256 GB (worth S$1,749), a Dyson AirWrap 2.0 (worth S$859), an Apple Watch Series 10 GPS 42mm (worth S$599), or Apple AirPods Pro (Gen 2) With Magsafe Charging Case (worth S$349) when you get approved for a loan of min. S$8,000 with a minimum loan tenure of 3 years. Available to new and existing customers. Valid till 1 May 2025.  T&Cs apply.

Additionally, stand to win free trips to London, Tokyo or Bali, Samsonite Luggage, S$200 GrabGifts vouchers, cashback and other exciting prizes with HSBC's Sure-Win Spin. Simply transact with HSBC to start earning spins that guarantee a prize. T&Cs apply.

Trust Bank Instant Loan

A digital-only financial institution Trust Bank also offers a personal loan that you can tap on for your wedding needs. 

One of the more affordable loans on the market, the Trust Bank Instant Loan is available with interest starting from 2.22% p.a. (EIR 4.22% p.a.). It offers a loan tenure of three months to 60 months, and has a maximum loan cap of S$120,000. 

UOB Personal Loan

UOB Personal Loan offers an interest rate from as low as 2.88% p.a. (EIR from 5.43% p.a.) and a loan tenure of one to five years. There's also no processing fee. 

UOB CashPlus or UOB credit card members can borrow up to 95% of their credit limit.

The minimum annual income requirement for Singaporeans and Singapore Permanent Residents is S$30,000, and you can borrow up to four times your monthly salary. For those who earn S$120,000 or more yearly, the loan limit is six times your monthly salary (capped at S$120,000).

Citi Quick Cash Loan

Already have a Citibank credit card? Through Citi Quick Cash, you can convert your credit card’s credit limit into cash which is payable in monthly instalments. The interest charged on this loan starts from 3.45% p.a. (EIR 6.5% p.a.). 

Repayment plans range from one to five years, and the minimum income requirement is S$30,000 for Singapore Citizens and PRs, and S$42,000 for foreigners. 

For greater convenience, existing Citibank customers can apply for Citi Quick Cash through its mobile app or website.

Standard Chartered CashOne Personal Loan

Standard Chartered CashOne Personal Loan has one of the lower minimum annual income requirements, at S$20,000 for Singapore Citizens and PRs (but S$60,000 for foreigners living in Singapore).

Its loan tenure is also up to five years, and it has an annual interest rate starting from 1.90% p.a. (EIR 3.63% p.a.). You’ll be able to borrow up to four times your monthly salary, capped at S$250,000.

CIMB Personal Loan 

From 2.68% p.a. (EIR from 5.06% p.a.), CIMB Personal Loan offers one of the lowest personal loan interest rates in Singapore. You can also enjoy a cashback of up to S$2,000 provided that you take a loan size of at least S$10,000 with a minimum tenure of three years. 

Singaporeans or Singapore PRs aged from 21 to 70 years old with an annual income of at least S$20,000 can apply for a loan, and you can borrow up to S$200,000.  

OCBC Personal Loan 

OCBC also offers an option to turn your credit card’s credit limit into a loan, which can be repaid over one to five years.

The interest rate is 3.80% p.a. (EIR 7.49% p.a.), and Singapore Citizens and PRs with an annual income of at least S$20,000, or foreigners with an annual income of at least S$45,000, can apply.

Licensed moneylenders

Apart from the bank credit and loan offerings mentioned above, some may prefer to go to licensed moneylenders if they don’t meet the banks’ criteria. While this may be a viable option, you should do so with caution.

When in doubt, always check the Ministry of Law’s list of licensed moneylenders to confirm that the lender is aboveboard. They would also tend to grant smaller loans at higher interest rates than banks, so be sure that you can afford the repayments before agreeing to take out a loan with them.

Conclusion

Getting everything perfect for your wedding doesn’t have to be a financial headache if you take out a wedding loan. These wedding loans can give you a much-needed financial boost, and allow you breathing room in clearing your payments. 

Apply for your loan of choice through SingSaver’s comprehensive comparison tool to ensure you’re getting the best deal, and to benefit from exclusive offers.

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