Establishing a viable and profit-generating business in Singapore requires a sizable fund. If you’re considering obtaining a personal loan, you will need to decide whether to take a secured or unsecured loan. You can get either a secured loan in Singapore or an unsecured Singapore loan from us. The pros and cons attached to each type of these personal loans will determine which one is right for you.
What are secured and unsecured personal loans?
A secured loan is a loan that requires specific collateral for you to be qualified for funds. In case you default on the loan, the asset you used in securing the loan can be repossessed to offset the unpaid loan funds. A secured loan in Singapore is associated with lower interest rates than an unsecured Singapore loan. An unsecured loan is a loan that requires no form of collateral to be qualified for funds, but a good credit score will be required, and interest rates could be higher.
Though there is no security attached to unsecured loans, the lender would still recover the funds if the borrower could not make the repayments. Interestingly, a secured loan in Singapore will permit you to borrow more money than an unsecured loan. Various assets could be used as security for a secured loan in Singapore. These assets include property, vehicles, cash, and high-value assets.
Which personal loan is right for you?
Making the right choice on either secured loans Singapore or unsecured loans depends on your standards, affordability, and needs. Below are some tips that will assist you in making the best choice of loan for yourself.
- Capacity to provide collateral: If you require a sizeable fund and assets you can use as collateral, you can select a secured loan in Singapore. It pays you because you will get your desired amount at a significantly lower interest rate. However, if you don’t have any assets you can use as collateral, you should go for an unsecured personal loan.
- Consider the time frame: If you need the money very fast, you can consider getting an unsecured loan. Unsecured loans are processed quickly, collateral-free, and you can get them within hours, making it the best choice of personal loans for rapid or emergency funding. However, you can go for a secured loan in Singapore if you need the fund for a planned project and the specification is still under a week or more.
- Specific loan amount needed: Online lenders can easily approach if you want a small loan, instant loan or same-day loan. If you need an enormous amount of loan, you can go for a secured loan in Singapore.
As Singapore licensed moneylender, we are to assist you in making your business thrive. Our online money leading platform is designed to offer a safe and quick application for secured loan Singapore and unsecured loans. You can apply for any type of loan through our online application today. All that is required of you is to complete your loan application online.