Secured Loan Financing in Singapore: Low Interest Rates with Collateral
Are you searching for a reliable way to secure a large sum of money for your financial needs? A secured loan in Singapore might be the perfect solution for you. At Unlimited Finance, a trusted licensed moneylender in Singapore, we offer the best secured loans with flexible repayment terms, competitive interest rates, and fast approvals. Whether you’re looking to fund a business venture, consolidate debts, or cover unexpected expenses, our secured loans are designed to help you achieve your financial goals with peace of mind.
“Secured loans are usually the best (and only) way to obtain large amounts of money.”
In this guide, we’ll explore everything you need to know about secured loans, their benefits, and why Unlimited Finance is your best choice for secured loans in Singapore.
What is a Secured Loan in Singapore?
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.
How to Apply for a Secured Loan in Singapore with Unlimited Finance?
Secured loans involve pledging an asset to secure the loan amount. Here’s how the process works with Unlimited Finance:
Step 1: Submit Your Application
Begin by applying for a secured loan through our website or by visiting our office at 703 Ang Mo Kio Ave 8, #01-2543, Singapore 560703. Provide details about the asset you wish to use as collateral.
Step 2: Provide Necessary Documents and Asset Valuation
Once we receive your application, we will evaluate the value of your asset to determine the loan amount you are eligible for. The higher the asset’s value, the larger the loan amount you can access.
Step 3: Assessment and Approval
After assessing your application and asset value, we’ll provide you with a loan offer, including the interest rate, repayment terms, and loan tenure. Upon approval, the funds will be disbursed directly to your bank account.
What Are the Eligibility Requirements for a Secured Loan in Singapore?
To apply for a secured loan with Unlimited Finance, you need to provide acceptable collateral, such as property, a vehicle, or other valuables, along with proof of stable income or employment. Required supporting documents include identification (NRIC or passport), proof of ownership of the collateral, and recent bank statements or income verification. You must pledge a valuable asset, and we carefully assess the value of your asset to ensure you receive the maximum loan amount while keeping the process straightforward.
Common types of collateral accepted include:
- Property
Real estate, such as homes or commercial properties, is one of the most common forms of collateral for secured loans.
- Vehicles
Cars, motorcycles, or other vehicles can be used as collateral for secured loans.
- Savings or Investments
Fixed deposits, bonds, or shares may also be acceptable as collateral.
- Valuables
High-value items like jewellery, luxury watches, or artwork can be pledged in some cases.
Secured Loans vs. Unsecured Loans: Which One Should You Choose?
When deciding between a secured loan and an unsecured loan, it’s essential to evaluate your financial situation, borrowing needs, and risk tolerance. Secured loans require you to pledge valuable assets, such as property, vehicles, or savings, as collateral. In return, you can typically borrow a higher amount at a lower interest rate, as the lender has a guarantee of repayment. However, this also means that if you fail to make payments, the lender can seize your collateral, making secured loans riskier for the borrower.
On the other hand, unsecured loans do not require any collateral. This makes them more accessible for borrowers who do not have assets to pledge, and the approval process is usually faster since there’s no need for asset valuation. However, because they are riskier for lenders, unsecured loans tend to come with higher interest rates and lower borrowing limits. While there’s no asset at risk, failure to repay an unsecured loan can still negatively impact your credit score and may lead to legal action.
Here’s a breakdown of the key differences:
| Factor | Secured Loans | Unsecured Loans |
|---|---|---|
| Collateral Required | Yes | No |
| Loan Amount | Typically higher based on asset valuation | Up to 6x of monthly income across all licensed moneylenders / 12x across all banks |
| Interest Rates | Determined by the value of the collateral and the borrower’s credit score. (The more valuable the collateral, the lower the interest rate) | Capped at 4% |
| Approval Speed | Slightly longer (due to asset valuation) | Same-day |
| Risk to Borrower | Asset at risk if payments are not made | No asset at risk |
Secured loans are ideal if you need a larger loan amount or want a lower interest rate. However, if you do not have valuable assets to pledge or prefer quicker access to funds, an unsecured loan may be the more convenient option. Ultimately, the choice between secured and unsecured loans depends on your financial goals, the amount you wish to borrow, and your ability to manage the associated risks.
Why Choose Unlimited Finance for the Best Secured Loans in Singapore?
When it comes to securing a loan, working with a licensed moneylender in Singapore ensures your peace of mind. At Unlimited Finance, we provide a range of benefits to make your borrowing experience smooth, transparent, and reliable:
- Reputation and Trust
Unlimited Finance is a licensed moneylender in Singapore regulated by the Ministry of Law. We adhere to strict legal guidelines to protect your interests and provide a safe borrowing experience.
- Fast and Hassle-Free Process
Our secured loan application process is designed to provide fast approvals and swift disbursements. With minimal paperwork and straightforward requirements, you can access the funds you need without unnecessary delays. Whether you’re using your property or assets as collateral, we make the process as efficient and stress-free as possible.
- Customer-First
Our friendly and professional loan officers are committed to putting your needs first. We take the time to understand your unique financial situation and offer tailored solutions that align with your goals. Whether you’re applying for a loan or seeking advice, we ensure that you receive exceptional service and support throughout the process, making your experience as smooth and stress-free as possible.
- Best Secured Loans in Singapore
With secured loans backed by collateral, we offer some of the most competitive interest rates in Singapore, making repayment more affordable. Our flexible terms allow you to choose a repayment plan that suits your financial needs, ensuring manageable monthly instalments. Additionally, secured loans enable you to borrow larger amounts compared to unsecured loans, with the value of your collateral determining the borrowing limit. This gives you the freedom to meet your financial goals with confidence.
Apply for the Best Secured Loan in Singapore with Unlimited Finance Today!
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!
Frequently Asked Questions About Secured Loans in Singapore.
Q: Can I still get a secured loan if I have a bad credit score?
A: Yes, secured loans are often more accessible to individuals with poor credit since the collateral reduces the lender’s risk.
Q: What happens if I can’t repay my secured loan?
A: If you default on the loan, the lender may repossess the collateral to recover the outstanding amount. However, at Unlimited Finance, we work with borrowers to find solutions before reaching this stage.
Q: How much can I borrow with a secured loan?
A: The loan amount depends on the value of the collateral you provide. Higher-value assets typically qualify for larger loans.
Q: How quickly can I get a secured loan approved?
A: At Unlimited Finance, we aim to process secured loan applications within 1-2 business days, including asset valuation.