Your wedding day is probably the most special day of your life when you share it with the one person you don’t want to live without. It is natural to want the best of best things on that day be it your floral arrangement at the venue, a 5 tier beautiful wedding cake or the perfect wedding dress. Times have changed from when your parents and in laws chipped in for your wedding fund. These days the betrothed couple themselves have to foot the entire wedding bill. This bit can drive the perfect brides into bridezilla mode and grooms to get sweat all over their expensive suits.
The general cost of a wedding in Singapore today starts at SGD 50, 000. Wedding budgets are meant to be overshot because no matter how much you plan, you know you’re looking at more zeros on the bill than what you anticipated. With the all accommodating financial market, you have an array of options to choose from to bankroll your big day. Under such circumstances, is it wise to get a Personal Loan to cover your wedding cost? If you are planning on opting for a personal loan to pay for your wedding, there are certain factors that you must consider.
One of the most important factor is to ask yourself if you are a financial stable couple. Do you and your future spouse have a good history of managing finances? This is an important question to ask because once you are married, you will already be shouldering a lot of responsibilities and shouldering a new debt will not be an issue for those couples who have maintained financial stability. The following are some of the areas that you as a couple should have a good track record for a personal loan –
These aspects if well maintained, will better equip you to repay your personal loan. Additionally, these factors will also greatly influence your lender to offer you a better deal in terms of flexible repayment options and lower interest rate structures.
Your credit history plays an integral role in the acceptance or rejection of your personal loan. The rates and the package that you get will also be determined using your credit history. Consider it as the benchmark on which your edibility for the personal loan will be assessed. Before you start applying for a personal loan, try to settle any outstanding debts you have remaining such your credit card payments and any other line of credit you may have open to increase your eligibility for good rates. If you are not able to make full payments, don’t just stick to making the minimum dues, try to go above the minimum to as much capacity you have. Evaluate your financial situation well with respect to considering the loan amount and tenure and what might work best given your current situation.
Financial issues are very common among people you share close relationships with. It is a rising source of concern among couples, especially young couples. You do not want a deal breaking fight with your significant other right before your big day, defeating the purpose altogether. If you and your spouse to be already have other expenses such as mortgage or a car loan, credit card debt etc. another loan will add even more strain on your financial situation. Under such scenarios, committing to a personal loan might prove to be catastrophic. This is where the tricky part comes in. You will have to make some tough calls on certain particulars of your dream wedding that do not compromise on the dream aspect of it. Depending on the cutbacks you make, you can then re-evaluate your financial situation with a smaller personal loan amount to see if that is feasible enough for you at the moment.
Whenever you choose to apply for a loan of any kind, interest rate will be your biggest concern. However, the objective is not simply to get the lowest interest rate. There are many other factors that you will need to consider apart from what interest rate you are being offered, for example, the Annual Percentage Rate or better known as the APR rata is also an influencing factor. The reason why the APR plays an equally important role is that this figure will be added to the borrowed loan amount and then your total amount due will be formulated. The APR is always a more accurate figure of the annual cost you will incur from your loan because it does not only include the interest rate but also other additional fees and charges that will be incurred by you such as processing fees, legal fees etc. among others.
Whether you are looking at a big or small loan amount, there are plenty options in the market for you to choose from that offer low interest rate structures designed for every couple’s budget. Weddings are one of the most expensive and profitable industry anywhere in the world, hence there are many banks and financial institutions that design their personal loans offered to couples at desirable packages. This loan has interest rates starting as low as 6.6% per annum when you apply for a personal loan above SGD 30, 000. On the other hand, if you have significant savings and need a little extra monetary push or your wedding budget has been planned almost perfectly by you to stay within the limit you have set, you can look into the Dash Advance Personal Loan that offers an even lower interest rate structure that starts at 5% per annum if you want loan amount of lesser than SGD 10, 000. This loan even offers a much flexible tenure of repayment up to 3 years.
Lastly, always keep in mind to maintain a track of all your expenses because planning something as big as a wedding, you will accumulate lot of additional costs especially closer to your big date. And the last thing you want to see just before walking down the matrimony path is your wedding bill which can seriously hamper your wellbeing starting the day after the biggest day of your life.