An unsecured loan in Singapore is a loan that does not require collateral. In other words, it is a loan that does not require any security. They are also referred to as signature loans because a signature is all that you need if you meet the lender’s basic requirements.
Because lenders are taking a high risk releasing money that’s not backed by any security, they charge high-interest rates.
Characteristics of Unsecured Loan Singapore
Lower Loan Amounts – This type of loan involves low amounts of approvals as compared to secured loans. This is because it is a high-risk loan, and lenders are not willing to risk huge amounts of money. It is ideal for unexpected expenses or emergencies such as; medical bills, funeral costs, utility bills, school fees, travel expenses, etc.
Short Tenure – Because of the low approval rates, the repayment period is also relatively low. However, the mode of payment depends on the facility given. For instance, a personal loan operates on fixed terms, while credit cards may take the form of revolving debt.
No Tax Benefit – Unsecured loans do not attract tax benefits like in the case of secured loans, where you are allowed to deduct interest from your income tax.
High-Interest Rate – In an unsecured loan in Singapore the lender has nothing to hold in the event that you default the loan. Therefore, default cases can only be addressed through the court of law, rendering the loan risky. Due to this fact, the lender imposes high-interest rates and strict requirements prior to loan approval.
Absence of Collateral – This loan is not backed by security. The security is meant to safeguard the interest of the lender in the event of default. The absence of security renders the loan more expensive as the lender imposes high-interest rates due to the risk involved.
Benefits of unsecured loans Singapore
No-Risk To Your Property – You do not provide any security, and therefore, in the event of default, you do not risk losing any property.
A Variety of Uses – The loan is not restricted to any use, like in the case of car loans and mortgages. You can use the proceeds of the loan for any use, from vacation to payment of bills.
Quick Application and Approval – The processing of unsecured loans is faster than secured loans as there are no securities to be charged.
Why Choose Us?
Reliable – We are a reliable Licensed Moneylender in Singapore, and we respond to your request promptly.
Quick Turnaround Time – We process our loans within the shortest time possible. Therefore you can count on us for your emergency needs.
High Approval Rates – Our loan approval rates are high, and we ensure we offer a loan that meets your financial needs.
Simple Loan Application Process – Our loan application process is simple and straightforward, and it involves less paperwork.
Legitimate – We are registered under the ministry of law, and therefore we are operating legally.
Customized Loans – We customize your loan to fit your budget.