A secured loan is a type of loan that requires you to pledge an asset, such as property, a vehicle, or other valuable items, as collateral. This collateral provides security to the lender, which allows them to offer lower interest rates, higher loan amounts, and more favorable repayment terms compared to unsecured loans. The item purchased, such as a home or a car, can be used as collateral, and a lien is placed on it. The finance company or bank will hold the deed or title until the loan is paid in full, including interest and any applicable fees. Other assets, such as stocks, bonds, or personal property, can also be used to secure a loan.
Secured loans are available from banks such as DBS, OCBC, UOB, Standard Chartered, and HSBC. Licensed moneylenders, regulated by the Ministry of Law, also offer competitive secured loans with flexible approval processes, making them an attractive option for borrowers who may not meet traditional banking requirements.
All banks, financial institutions, and licensed moneylenders are unlikely to lend a significant sum without assurance that it will be repaid. By putting up your home or other valuable property as collateral, you provide a strong guarantee that you will make every effort to repay the loan.
In Singapore, secured loans cater to individuals and businesses looking for a reliable and affordable financing option. Common purposes for secured loans include:
- Purchasing or refinancing a home
- Funding a business expansion
- Consolidating high-interest debts
- Covering large personal expenses such as education or medical bills
It’s important to remember that if you are unable to repay a secured loan, the lender has the right to take possession of the collateral you’ve pledged and may sell it to pay off the loan. As the term suggests, a secured loan means you are providing “security” that the loan will be repaid according to the agreed terms and conditions.
At Unlimited Finance, we’re committed to providing you with the best secured loans in Singapore. As a trusted licensed moneylender in Singapore, we ensure that your borrowing experience is secure, transparent, and stress-free.
Whether you’re looking to fund a significant investment or cover unexpected expenses, we’re here to help. Contact us today to learn more about our secured loans or start your application now!
