The right loan for you depends on your needs and personal circumstances. There are different options to choose from. In general, loans can be classified into two categories: Secured Loan Singapore and Unsecured loans. A secured loan has security attached to it while the unsecured loan does not carry any security. Below are the main differences between the two categories of loans: Collateral A Secured loan will require you to attach an asset as collateral. This can either be a car logbook, title deed, household chattels among other valuables. Unsecured loans do require any asset to be attached to them Interest Rate A Secured loan attracts a lower interest rate as they are less risky due to the asset attached to them. An Unsecured loan attracts a higher interest rate as they are considered riskier since no security is attached to them. Loan Amount Secured loans attract huge loan approvals given the security and the extended loan period. The disbursement amount is based on the value of the collateral and the ability to pay. Unsecured loans attract low amounts of loan approvals given their risky nature. The disbursement amount depends on the borrower’s ability to pay and the credit score. Loan Tenure Secured loans are mostly spread for a long time given huge amounts Unsecured loans are only spread for a short time Risk Probability to Losing an Asset For a Secured Loan Singapore, you risk losing your asset upon default. The creditor repossesses the asset when the borrower fails to honor the loan terms as per the loan agreement. For the unsecured loan, there is nothing to repossess, but the borrower risks a negative listing upon default. Example of Secured Loans Mortgage – This is a loan that the borrower uses to purchase a house. The property purchased acts as the collateral. Car Loan – This is a loan obtained solely to purchase a motor vehicle. The car logbook is used as the security. Example of Unsecured Loan Personal loan – This is a general-purpose loan. There are no instructions given on how to utilize your money. It is given with a fixed term of regular monthly installments. Overdraft – This is a type of debt whereby you are allowed to withdraw an amount that is over and above your current account balance. The interest accrues only on the amount overdrawn. Credit Card – This is a card issued by a financial institution to the cardholder, to enable them to borrow funds from the institution. Where to Apply for the Loans Financial institutions and Licensed Moneylenders can offer you different types of loans along with their terms and conditions. You can compare the terms and choose the one offering the most favorable ones. Well, if you are a Singaporean, then we’ve got you covered. SU Credit is a licensed money lender that operates in Singapore. Why Choose Us? We are Licensed, Moneylenders We Offer Quick Turnaround Time We Offer Personalized Loans We have a Simple Loan Application Process We have a high Loan Approval Rate Click here for appointment on loan application

Between January and November 2019, at least 1700 cases have been reported, with at least $6.8 million cheated. Victims would typically receive a SMS text message or WhatsApp message offering loan services. The sender may even claim to be a staff from a licensed moneylender. Interested parties are then instructed to transfer a sum of money as a deposit before the loan can be disbursed. However, after transferring the money, no loan was disbursed. The victims only realised that the message was not from a licensed moneylender, and the person whom they had been corresponding with did not exist, after contacting the respective licensed moneylenders that the scammer had claimed to represent.In another variant, perpetrators would send victims PDF documents, purportedly from the Ministry of Law and/or Monetary Authority of Singapore, informing them that they are required to pay a deposit sum and 7% GST for the loan amount, before the loan can be approved. This was to deceive the victims into believing that they were corresponding with a licensed moneylender. In some cases, the victims received another PDF document informing that the loan request had been processed. When these victims declined to make the payments, the perpetrators would harass them by claiming that the loans have already been approved and that they had to pay a processing fee to cancel the loans.Members of the public should take note of the following:a. A licensed moneylender is not allowed to make any cold calls or send any unsolicited text messages to members of the public. b. The licensed moneylender is obliged under law to verify the identity and particulars of the borrower at its approved place of business. The licensed moneylender cannot approve or grant a loan to a borrower remotely. The address of each licensed moneylending office is published on the list of licensed moneylenders on the Ministry of Law’s Registry of Moneylenders website at https://rom.mlaw.gov.sg/information-for-borrowers/list-of-licensed-moneylenders-in-singapore/. c. A licensed moneylender will not ask a loan applicant to make any payment before the disbursement of the loan, or to make any payment to secure the disbursement of the loan. This includes GST, “admin fee”, “processing fee”, or any other fees. An administrative fee may be charged by the licensed moneylender after the loan has been granted, but this will usually be deducted from the loan principal that is disbursed to the borrower.Members of the public are advised to take the following precautions with regard to such scams: a. Ignore such advertisements. Do not reply to these messages. Instead, block or report the number as spam on WhatsApp or through third party applications. b. Do not give out your personal information such as NRIC, SingPass or bank account details to anyone.If you receive a cold call or unsolicited text message asking if you would like to take up a loan, call the anti-scam helpline at 1800-722-6688 to verify. Visit www.scamalert.sg to find out more about scams. Join the ‘Let’s fight scams’ campaign at www.scamalert.sg/fight by signing up as an advocate to receive up-to-date messages and share them with your family and friends. Together, we can help stop scams and prevent our loved ones from becoming the next scam victim.