Being financially strained is not one of the best feelings. Luckily, there are ways that you can use to acquire the best-secured loans of all time.

There are different types of loans that you can consider, however, they should be based on your immediate needs. What do you want to cater to at the moment?

What Is A Secured Loan?

A secured loan is a type that requires you to provide collateral in place of the loan that you get. Therefore, when you default the payment and the specified time has elapsed, your collateral will be liquidated, and the money lending company will take the money to pay off your loan.

The beauty of a secured loan is that it has a longer repayment period, therefore, you can pay it up before the money lending company sells your collateral.

The main motive of a secured loan having collateral is to motivate the borrowers to repay the loan on time without any hesitation. This will make the borrower fear losing the collateral and therefore work extra hard to pay off the loan.

When you approach a money lending company for a secured loan in Singapore, you will be requested to provide collateral for your secured loan. What are you willing to put at stake? In the case that the borrower has an issue in paying off the loan, the lender can put a lien, which is a legal term for the lender’s claim to the borrower’s collateral.

The lien remains active till the loan is fully paid. Once paid, the collateral returns its ownership to the borrower. Therefore, as a borrower, think twice before giving out any of your property or asset as collateral.

The Benefits Of Getting Secured Loans

Secured loans tend to be a bit different from other types of loans. They tend to be a bit flexible and better

1.      Get To Borrow A Large Amount

One amazing aspect of secured loans is that you can borrow a large amount. This is because you will provide collateral in case you fail to pay off the loan, it will be liquidated.

However, it gives you the freedom to borrow a large amount at ease. You can use assets such as a car, mortgages, and private properties. Secured loans can help to borrow a large amount.

2.      Lower Interest Rate

Secured loans tend to have lower interest rates. Therefore, you can settle all your money needs at ease. The interest rates are also reasonable, and you won’t have to worry about anything. You will get the best-secured loan rates of all time in Singapore.

3.      The Repayment Plan Is Flexible.

Flexibility is really important when it comes to loan payments. Secured loans offer the best repayment plans and periods. You can discuss with the loan advisor to see how best to go about your loan and pay it back on time.

The interest rates are also flexible, therefore you won’t strain too much. You can get the best rates of all time. At On-Line Credit, you have the flexibility of talking with a loan officer to get the best advice of all time.

4.      Longer Borrowing Period

With an unsecured loan, you can get a large amount of money. That’s why you can be given a longer borrowing period. Therefore, you can pay within a longer time.

This is based on what you agree with the loan officer. Also, when you offer collateral, it shows your motive to pay off the loan. There is also a lot of security that comes with secured loans.

Different Types Of Secured Loans

1.      Mortgage Loans

These mortgage loans are some of the most popular types of secured loans. In this, the borrower puts his house as collateral. Therefore, any default in paying the whole loan on time leads to the home asset being taken from the person.

Therefore, as a borrower, you need to be wary of this to prevent losing such valuable assets. Regardless of the price of the house, they will take it.

2.      Vehicle Loan

These are the loans given so that you can purchase certain kinds of auto vehicles. However, after purchase, the vehicles or the automotive item can be used as collateral.

Therefore, if you fail to pay off the loan, the item will be taken by the money lending company or bank. Thereby, not to lose your asset, you better pay them back on time.

3.      Secured Credit Cards

If you have no credit history at all, you can get secured credit cards. This can help to boost your credit scores. However, for this, you need to provide a cash deposit as collateral. In the case that the borrower refuses to pay the monthly bill, the cash deposit will be removed from the card by the money lending company. Therefore, any borrower must be careful not to fall, victim.

Collateral Examples

  • Real estate, land, house
  • Bank accounts
  • Automotive vehicles, carts, motorcycles,
  • Stocks, mutual funds, bonds
  • Insurance policies
  • Precious valuables

What If I Can’t Pay My Secured Loan On Time

Communication is key when it comes to loans. Money lending companies tend to be understanding if you explain. However, if you are just silent, they can assume, you just don’t want to pay up.

Step 1: Talk with the money lending company

If you note that you won’t be able to pay off a certain amount in a certain month or finish on time. You can request an extension or some pardon in that specific month. You might have had too many responsibilities that month that the money at hand, can’t be enough to cater to the loan repayment.

Just talk with the lender, and you will know the way forward. Don’t wait till the time that you will get noticed because they will take the loan without thinking twice.

Step 2: Arrange your payments

You also need to have payment priorities. You couldn’t want to lose your asset. Therefore, consider having priorities to know what you will pay first. If you have both secured and unsecured loans, and you don’t have enough cash, consider paying the secured loan first

Also, you can try to find the means to pay off the secured loans.

Step 3: Seek financial help

In the case that you feel frustrated about paying off the secured loan, talk with a financial advisor to know how to handle the situation. This will help you to make sober decisions without any problem. At times, when you feel strained, you might not make sober decisions.


Getting a secured loan is a wise decision. Just try to find the right rates so that you can take up a secured loan for a bigger cause. However, try to be disciplined and pay off the loan on time.

Money lending companies and banks prefer genuine people. This will build your credit score, prevent you from losing your collateral, and make you happier.