Nowadays, it is very difficult for young couples to find a sufficient amount to organize a wedding celebration for themselves. Such an event is very important in everyone’s life and there is so much to buy like a wedding dress, jewellery, rings, a groom’s suit, and many more. In addition, a wedding also requires a photographer, a banquet, and transport. So, what to do if you do not have enough money? How can you handle such expenses? Where can you get the money? In this article, We write about Applying For a Wedding Loan.
One of the reliable options is to acquire a wedding loan from trustworthy organizations. Applying for a wedding loan is the first step to getting cash to pay for your wedding. A wedding loan allows you to spend a holiday in accordance with all the wishes of the newlyweds. You can issue a promissory note-taking into account the coverage of the costs of a honeymoon trip. In this case, you will be able to choose your favourite vacation spot in advance. Loan funds will allow newlyweds to remove the financial burden from close relatives and not feel obligated.
When it comes to obtaining wedding loans in Singapore, you have many options. There are also many free apps and personal loan calculations that can help you calculate your instalments and interest rates. Numerous personal lenders can offer you instant cash if you meet their requirements. But, before you even think about taking out a wedding loan, here are some important things to consider in how to apply for a wedding loan.
Here are some important points for the method for applying for a wedding loan
What is a Wedding Loan?
A wedding loan is commonly a personal loan that you can utilise to cover all the wedding expenses. Such loans permit you to obtain a fixed amount of money on an unsecured basis for a short term. A list of licensed money lenders in Singapore allows its consumers to take out a wedding loan with a fixed rate, which further empowers you to make repayments accordingly.
What to Consider While Applying for a Wedding Loan
Well, wedding loans are becoming increasingly popular among people to handle their wedding expenses. Budgeting wedding events include many items of expenses, so before contacting the money lenders, you need to draw up a complete estimate of the celebration. By borrowing money, you can cover all the wedding-related costs or part of the costs that personal savings are not enough to pay off.
- Credit Score
The first thing to consider is your credit rating. You should do your best to improve your credit history before the process of applying for a wedding loan. Make sure you pay bills, credit card fees, and other expenses promptly to ensure you have a solid credit rating. The lender calculates your credit score based on the information you provide. Therefore, make sure all your paperwork is accurate. Check your credit score and prepare paperwork in advance to meet the lender’s requirements.
- Interest Rate
The money lenders calculate the interest rate depending on factors like the borrower’s monthly income after deducting their fixed obligations and other EMIs, their credit history, and credit score. Generally, banks and other financial institutions look for a credit score of 750 and above. Therefore, before applying for a wedding loan, you need to make a list of potential lenders. You need to choose the lowest interest rate for your wedding loan. In addition, you should also calculate the total cost and risks associated with that particular loan.
- Your Solvency
Before granting you a wedding or fast loan in Singapore, lenders will check your creditworthiness. They check your fixed commitment to income ratio. You should make sure that this ratio is between 40-50 % before applying for a personal loan. Furthermore, the lender calculates the liability-to-income ratio by checking your income used to pay off debt, including your monthly and credit card payments. If you have lower creditworthiness, you can choose a longer repayment period with a higher interest rate. If you can, pay more money than the monthly instalment on the loan.
- Eligibility Criteria and Documentation
Before applying for a wedding loan, you must meet the basic requirements. Make sure you have all the necessary documents to avail a wedding loan. You need to submit government-issued IDs such as Passport, Voter’s ID, driver’s license or PAN card to attest to the fact that you are a citizen. Do not forget to provide your salary slips and bank statements in order to reflect your financial ability to repay the loan on time. Furthermore, employee ID cards and electricity bills or phone bills are also essential for validating your employment status and providing proof of address respectively.
- Foreclosure Charges
Generally, the duration of wedding loans ranges from one year to six years. Check if your lender allows prepayment of loans as many banks levy a penalty or foreclosure charge. You also need to go for a loan that gives the flexibility to repay the amount earlier.
- Number of Loan Application
Before applying for a wedding loan, it is very important to know all your methods for applying for a wedding loan. You can easily compare the lender’s interest rates and other fees by visiting online websites. But you should also avoid contacting many lenders for a wedding loan. When the lenders receive your report from the credit bureau, they will know your financial history automatically. Refusal to issue a wedding loan can be a reason for a lower credit score. If your lender finds out that you have approached several lenders for a loan, they will not approve your wedding loan application.
Conclusion
Getting a wedding loan from a Singapore loan company can help you cover all the wedding expenses. If you are well prepared before applying for a personal loan, there is a good chance that you will get the right type of personal loan. To get the perfect wedding loan for your needs, keep the above points in mind.
