Many reasons make individuals go out to get a loan. The high cost of living in Singapore is a reason to make one go out of the way and look for a line of credit that will help meet their financial obligations. At times, the money may be required to offset an emergency before the next payday, others want to establish businesses, and others want to buy long-term assets.
If you are looking for an option for any of these?The next question is, Is the organization the best to work with? The fact is, it depends on one’spriorities. But let’s consider that Singapore is an economic hub with many financial activities. Getting a loan is one of the best solutions to meet economic needs. For instance,entrepreneurs looking forward to expanding their businesses or employees looking forward to meeting their emergence needs.
Banks, saccos, credit unions, and licensed money lenders are all sources of getting such loans; this article will explain more about getting a money lender secured loan in Singapore and how the process takes place.
What is a Secured Loan?
A secured Loan is a line of credit whereby one gets access to credit against an asset you own or buying an asset with the loan, and it is used as collateral. Secured loans can either be long-term or short term depending on the need. Some of the securities used are the car log book, a mortgage title deed, gold, deposits (monetary accounts), and many others.
If in great need, one can still take a secured loan to cater for emergencies such as medical bills, car or house repairs, with an anticipation of paying back the loan in a short span.
Features of Secured Loans
High Risk of Losing a Collateral– If the borrower fails to pay the installments as agreed, and after many consultations, the lenders fall back point is the sale of the collateral.
They Offer Low-interest rates- Low-interest rates are because of the collateral, where the lender feels they are at a lower risk when providing the funds.
How is a Money Lender Secured loan considered the right option?
Before taking a loan, knowing whether it is the right option is essential. In Singapore, a loan with a licensed money lender can be an option for several reasons. These are:
Ability to Manage your Repayments– Taking a secured loan is risky due to the fact that, if you fail to repay your loan, chances are that your asset can be auctioned and cover the deficit. Licensed money lenders are protected by law to auction, and as such, essential to evaluate the extent to which your ability is before taking a secured loan.
Whether you Meet the Lenders Requirements-There are some conditions that one is required to meet when taking a secured loan. For instance, what is the age of the vehicle, or how much is the resale value? If you do not meet some of these conditions, the chances of failing to get a secured loan are low.
Confirm if you have an Asset Guarantee– Any lender will demand that you either want to secure a loan with the mentioned asset or buy the asset and use it as a security. If your options do not match the said information, you do not qualify for a secured loan.
Advantages of Takinga Money Lender Secured Loan in Singapore
- Flexibility– Apart from buying the vehicle or land using the same collateral as security, you can secure a personal loan with old cars so long as the amount requested is not higher than the value of the collateral.’
- Low-Interest rate– Because the lender has a lower risk of losing the loan, they offer at a relatively lower rate than it is for unsecured loans.
- Faster Approval Process– The lender has an assurance of getting the money back. This facilitates speedier approval because of the low risk attached to the loan.
Disadvantages of taking a Secured Loan in Singapore
- Valuation– Any time you attach an asset to a loan, the lender will demand to have it valued. This is a cost on its own. On the same note, the lender will offer the loan based on the amount of the asset’s valuation.
- Risk of losing the Asset– The borrower stands to lose the asset if they do not pay in good time because you gave out the assets as a guarantee of repayment in case of default.
Tips to Compare the Best Money lender Secured Loans
In Singapore, there are many financial lending organizations. Licensed money lenders are the backbone of small organizations or individuals looking forward to being advanced credit. It is therefore vital toknow some pointers to look out for when getting a loan.
- Choosing a Reliable Money Lender- Be wary of the loan sharks in Singapore who offer illegal and high-interest loans. It is advisable that you visit the Ministry of Law Website and search for the legitimately licensed money lenders available. From there, evaluate those close to you and see if they meet your expectations.
One of the renowned licensed money lenders near you is the Online Credit PTE Ltd. It is a licensed money lender in Bedok, and you should be sure of getting the best services with them.
- Loan Amounts- Confirm that the loan amount offered is sufficient to meet your need and risk your collateral.
- Loan Term– Generally, unsecured loans range from 2- 7 years repayment period. Confirm if they meet your needs before proceeding with the application.
As you plan to make any secured loan application, confirm that you can be able to repay without challenges to retain your asset pledged. There is a need to carefully compare the lenders and work with the one with the favorable options rather than suffer at last.
Are you looking forward to getting a safe money-lender secured loan in Singapore? Talk to us today and enjoy our quick and convenient solutions.