You may occasionally find yourself in need of immediate cash, but your savings are insufficient. You may have considered taking out a bank loan, but what if you can’t get through the red tape? The paperwork, the wait, and the uncertainty of not knowing if your application has been granted can be challenging. However, don’t be concerned. You might consider getting a secured loan in Singapore as a potential option.
You shall have to determine whether you want a secured or unsecured loan.
What, though, is the distinction between the two? And, given your existing circumstances, which path should you take?
What Is The Difference Between Secured And Unsecured Personal Loans In Singapore?
Let’s look at the distinctions between taking a secured loan in Singapore and unsecured loans now that we’ve covered a few scenarios.
- Secured Loans in Singapore
Secured loans are those that require the borrower to put up some form of collateral as a condition of borrowing. Secured loans include car and housing loans, for example. Pawning your belongings at a pawn shop is the same as taking out a secured loan in Singapore.
The item, which serves as collateral for the loan, can often be anything of worth your own. Property, vehicles such as automobiles or motorcycles, other high-value assets such as valuable jewelry, or even a fixed deposit may be included. If you default on your debt, the lender has the authority to seize and sell your property to recoup their losses.
It’s possible that even after the lender has taken the collateral, it won’t be enough to meet your loan obligation. This is referred to as a shortfall, and it commonly occurs when property or items deteriorate in value over time.
It’s crucial to remember that secured loans may contain restrictions on how you can use the funds. If you plan to spend the money to buy a car, for example, you may be obligated to use the entire sum.
Even after the lender has taken the collateral, it’s possible that it won’t be enough to cover your loan obligations. This is known as a shortfall, and it occurs when the value of property or items depreciates over time.
It’s crucial to remember that secured loans in Singapore may come with restrictions on how you can use the funds. If you want to buy a car, for example, you could feel obligated to use the entire amount.
When you take out an unsecured loan, unlike secured loans, you don’t have to provide collateral.
Because the lender is taking on more risk, unsecured loans have higher interest rates than secured loans. Failure to repay the loan on time will result in a low credit score, which can lead to serious problems in the future. This includes a lower chance of getting a loan in the future and the inability to get a credit card. It may make it more difficult to find a job, especially in the banking and finance sectors.
There are usually no limitations on how you can utilize an unsecured loan, whether it’s to pay for medical bills or a vacation. Personal loans and payday loans are examples of unsecured loans, both of which can be used for any reason.
Renovation loans are an exception to this rule. While you don’t need to put up any collateral to get a renovation loan, there are some limitations on what you may do with the money. You can only utilize a renovation loan to pay for renovations like electrical work, painting, and structural adjustments. You won’t be able to use it to buy new furnishings with it.
Benefits of obtaining a secured loan in Singapore
- Secured loans frequently have lower interest rates: When borrowing money from a lender, the interest rate should be examined. The interest rate for a secured loan in Singapore is lower. It enables you to take advantage of a reduced interest rate, resulting in cheaper monthly repayments.
- Higher loan amounts are available:
If you need a substantial sum of money, a secured loan in Singapore is the best option. It gives you the ability to borrow a large sum of money. You will, however, need to supply the lender with collateral as security.
- You can use your assets as collateral:
Different lenders allow you to utilize various assets as collateral for a secured loan. Property, vehicles, cash, and high-value assets are examples of these assets. Some lenders may allow you to utilize your valuable jewels and artwork as collateral.
Benefits of taking a secured loan in Singapore from Su Credit Pte. Ltd.
Su Credit Pte. Ltd can provide you with a secured loan in Singapore. We are a licensed moneylender in Singapore that offers a variety of lending options. Many firms in Singapore have benefited from our assistance in overcoming their financial difficulties. You can apply for a secured loan in Singapore through our online money lending platform. The platform is built to allow for a simple and quick application. We will contact you as soon as possible once you submit your application. Please use our online application to apply for a secured loan in Singapore today.
If you are looking for a loan, then it is crucial to know whether it is secured or unsecured. There are many loans available in the market, and one has to be very careful while choosing the loan as per their needs. The different types of loans include secured and unsecured loans. Secured loans have collateral for security purposes, whereas unsecured loans do not have any collateral.
Depending on their requirement, one can get many benefits from these kinds of loans. A person who wants to buy something of high value must go for a secured loan because this type of loan requires the borrower to provide security against the loan they have taken. On the other hand, an unsecured loan does not require any kind of collateral, and thus there is no risk involved in handling this type of loan.
If you plan on taking a loan from an online lender, it is vital to know the difference between secured and unsecured loans. Here are some of the differences between them.
What is a secured loan?
A secured loan is a type of loan that requires the borrower to offer some form of collateral to secure the loan. The lender has a lien on this property until the loan is paid back in full. It’s sometimes called a mortgage loan because it uses a personal residence as collateral.
There are many different types of secured loans, including those available for cars and other vehicles, boats and jet skis, motorcycles and scooters, ATVs, campers and RVs, trailers, or tents. A homeowner can also secure a home equity loan or second mortgage against their home.
What is an unsecured loan?
An unsecured loan is a type of loan that does not hold security against an asset owned by the borrower. Its purpose is to provide the borrower with funds for any reason, usually for personal reasons. These loans are typically granted to those who have a good credit history and provide collateral. An unsecured loan is not secured by property or assets, and therefore, the lender cannot seize an asset in the event of default. Instead, they may garnish wages or levy bank accounts. The main benefit of an unsecured loan is that it can be approved faster than a secured loan.
Advantages and Disadvantages of secured and unsecured loans!
There are many benefits to taking out a secured loan. If you know what you are doing and research the market, you can save yourself a lot of money in interest payments over the life of the loan. The main benefit is the interest rate. Unsecured loans typically have higher interest rates than secured loans, so you will get a lower rate by using collateral (such as your house). Secured loans also usually have higher borrowing limits. You can borrow more with a secured loan because it is easier to qualify for them.
The lack of security makes unsecured loans riskier for the lender than secured loans. There are many reasons why someone may not have a sufficient asset to use as collateral, such as a recent bankruptcy or separation from a spouse. The proceeds of unsecured loans are generally used for non-income generating purposes and are repaid by the borrower from future income.
How do you qualify for a secured or unsecured loan?
To qualify for a secured loan, you must provide the lender with assets to utilize as collateral. On the other hand, you do not need any collateral to qualify for an unsecured or signature loan based on your income and credit history. To be eligible for a loan, you must first acquire information on your credit score. A low credit score will limit the amount of money you may borrow and the interest rate you’ll be offered. Your credit score is determined by your capacity to repay debt, including late payments and large amounts due. The FICO scoring model is based on the idea that the more you owe, the greater the chance you are to default on debt or miss payments. Thus, your credit score will be lower if you have high debt balances.
Fulfill your loan needs with SU Credit
This article has provided you with some vital information on the differences between secured and unsecured loans. If you’re looking for a loan that does not get tied to your assets, then an unsecured loan might be the option for you. However, if your assets are essential to you and want them protected against any type of loss, then a secured loan may better suit your needs.
After going over the differences between secured and unsecured loans, it’s clear that both loan types have their advantages and disadvantages. If you’re considering applying for a loan, make sure to consider your options carefully before deciding on either type of loan.
With that said, we understand the stress and insecurity you may have concerning getting a loan. That is why we work tirelessly on providing our clients with the most secure loans on the market today. Top banks and insurance companies accredit us in Singapore, so you know our services are genuine.
As Singapore moneylenders, we understand how important it is to make sure that the financial needs of our clients are met. If you’re looking for a Singapore money lender who can take care of your short-term loan needs, then look no further than SU Credit Pte Ltd. We have been serving the community for over ten years and are dedicated to providing our clients with the most efficient service possible.
If you want to get a loan from us, please fill out this form or contact us via email. We will get back to you.
Whether applying for a secured or unsecured loan, finding a legitimate and reliable money lender is essential. Borrowing from the wrong lender may cost you a fortune in the future.
Traditionally, money business was limited to the banks, but with the ever-expanding finance industry, the business has been taken over by individuals and private firms. This has made loan accessibility easier and has also reduced the turnaround time.
Unfortunately, scammers have also targeted the industry and are taking advantage of unsuspecting borrowers. This article is a sure guide to the recommended licensed money lenders.
Below are things that you should look at when finding a reliable money lender in Bugis:
The Reputation of the Firm
Reputation is key when it comes to the service industry. A good reputation gives one an assurance of the credibility of the firm while a bad reputation should raise a red flag. So, the first thing that you should look at before engaging a money lender is their reputation in the market. How do you assess the reputation? Simply go through testimonials and reviews from past clients. By doing this, you’ll be able to assess if the lender is credible or not. You can also ask friends to refer you to the most recommended licensed money lender.
Different money renders package their loans differently. You find that interest rates vary from one lender to the other. A reliable lender is one who offers loans at the most reasonable interest without altering them in the future. There are some unscrupulous lenders who offer loans at very attractive interest rates, only to alter and increase the interest rates after closing the deal. To avoid falling into such a trap, you should research from their website and get to see their interest rate trend. A reliable lender should portray some consistency when it comes to the charging of interest.
Terms of Agreement
This is the most important part when it comes to loan applications. Everything you agree upon should be stated in the agreement in a language that the borrower understands. Lenders with flexible terms are recommended. It is important to have a clear picture of the interest rate and the repayment schedule to avoid any violation of the agreement in the future. Before consenting to the agreement, it is important to get clarification on any hidden charges and the penalties if any. Sparing time to understand the agreement is crucial as your credit score is directly linked to your financial decisions such as loan repayment. Signing an agreement that you cannot fulfill can easily get you into trouble.
If you follow the above tips, you can be sure to get a reliable money lender in Bugis. If you are a first-timer, or you don’t have time to research the most reliable money lender you can follow this link to get the most recommended licensed money lender in Bugis.
Are you in need of cash urgently? Well, there are various places where one can acquire a quick credit loan. It might be a bank, moneylender, a friend, or even a relative. Some of the reasons one may need cash urgently might be sorting a medical bill, paying for tuition fees, paying the house or business rent, boosting the business, or even for a wedding among many other reasons.
In Singapore, you can acquire quick credit loans from licensed moneylenders. SU Credit Ltd is an example of a licensed money lending company that can offer you as an individual a quick credit loan.
Tips to guide an individual on getting a quick credit loan
Various tips are meant to guide an individual who is planning to get a quick credit loan. These tips include:
1. Having the necessary documents
You could be applying for the loan either physically or online. It is advisable to have hard copies as well as soft copies. If you have only hardcopy documents, you will be limiting yourself from applying for loans online. The necessary documents are:
- The income tax statement
- Identification card
- SPF statements
- Debt-to-income ratio
- Original payslips of the recent 3 months as well as their copies
- Documents that will prove your residential address
- An original and photocopy of a filled guarantor form
It is advisable to have both the original and photocopies of the documents both hardcopy and softcopy.
2. Knowing the terms and conditions
When planning to apply for a quick cash loan, you should read all the terms and conditions. This is to make sure that you will understand what you are getting yourself into. Before signing the contract, one should also ask about the things he or she is not sure about.
This is meant to avoid future misunderstandings with the moneylender. You should also calculate well the amount of interest you will pay as well as your monthly amount. It is your responsibility as the client and borrower to know and comprehend all the rules placed by the moneylenders.
3. Having a good creditworthiness
Creditworthiness means a client being trustworthy to give a loan. You should show that you are willing and responsible to manage the loan you will receive. It is also up to you to show the moneylender that you can handle the given repayment period. Creditworthiness also helps one acquire business loans easily. Here are ways one can develop a creditworthy character:
- Maintaining a good cash flow
- Paying the invoices in good time
- Getting a secured credit card
- Clearing bills on time
- Having a good business credit score
4. Doing an online application
As the name goes by quick credit loan. It means that the money should be acquired as soon as possible. Online loan application is known to be a very fast exercise that saves time. If you have all the required documents in softcopy form. The application will be processed within a few hours and you will get your loan the same day.
5. Getting a pre-approved offer
When in need of a quick credit loan, you may have the option of getting pre-approved offers. This is possible if you do it with a familiar moneylending company that you have a relationship with. These pre-approved offers are quick to process.
Types of loans offered by SU Credit Ltd
This kind of loan can be used to cater for anything. One can use it for educational purposes, medical purposes, marital purposes, business purposes, and also to sort bills. With this moneylending company, one does not need to give his or her private property as collateral. We agree with the client on the appropriate repayment period. We have friendly interest rates that we believe clients are capable of handling.
2. Business loan
This is a special type of loan meant to assist entrepreneurs and businesspeople. A business loan could cater for purchasing business equipment, inventory, sorting the business bills, increasing the capital, and sorting the salaries and wages. Creditworthiness does matter in this type of loan. There are two examples of business loans which are long-term loans and short-term loans.
3. Unsecured loans
One can acquire a loan to pay up for another loan. With this kind of loan, you do not have to give out collateral to get the loan. Instead, the interest rate is quite high to compensate for that. Unsecured loans help increase your credit integrity thus it will be easy for you to get loans from banks or any moneylending institutions.
When in need of money urgently, do not make the mistake of applying to many moneylenders at the same time. The more applications you do at the same time the more you raise suspicion and may get declined in all. When getting a loan, please make sure that you will be in a good position to pay it back to avoid misunderstandings.
Beware of loan sharks too. These people tend to con you and can even harm you and your family. Their deals are too good but think twice. It is recommended to research well when looking for a legit moneylender. Client reviews will help you judge whether the moneylender is good for you or not. It is essential to note that creditworthiness matters a lot. Try as much as possible to get a good reputation in the loaning industry.
Paying off debts is never easy. But a low interest rate and smaller payments can ease your burden.
When it comes to general consumer debt like credit cards and personal loans, one of the most popular ways to lower your rate is debt consolidation loans in Singapore.
It has both advantages and disadvantages, but you can make an informed decision when you consider the fees to borrow and how your debt is currently set up.
This is a type of loan as it is made available by a lender to settle all debts currently owed.
What is a Debt Consolidation Loan? It is a type of loan that is provided by a lender to pay off any debts currently outstanding. By availing of this loan, all monthly installments can be combined into a single payment that needs to be settled to a new lender. It makes sense to lower the monthly payments, lowering the interest rate, as this will be retained for a longer period of time.
Debt consolidation is a way to pay off debts, requesting a new loan that pays all your debts and that you focus all your efforts on paying a single debt, instead of several at the same time. However, debt consolidation is not for everyone and we tell you why: Pay off your debt by consolidating or with credit repair.
How to consolidate debts?
To consolidate a debt you have to follow the following steps:
Find the financial institution that is said to be willing to offer a debt consolidation loan, which is usually credit cards.
Of all the offers that money lenders make to you, accept the one that suits you best and suits your payment capacity, usually, you can extend the term and reduce the rate, but remember that reducing the monthly payment will also increase the time that you have to liquidate.
Identify the expenses that you can do without so that you can have the resources to pay your only debt.
Make a budget to analyze your ability to pay and thus not have problems in your personal finances for that one debt.
Types of debt consolidation
Using a balance transfer credit card, that is, transferring debt to another institution that has a lower rate, thus reducing the amount that is paid for interest or other commissions.
Take a personal loan that has the purpose of consolidating all your debts into one and thus you have greater control over your finances, by knowing exactly how much you have to pay and on what dates. This is convenient when having different debts makes your financial life look in chaos.
Requirements to consolidate debts
- Good credit history.
- Proof of address and income.
- Details of the bank account (s) you want to transfer.
Recommendations before consolidating a debt
- Consider that it is possible to consolidate debt from your card or account with the bank you want to contract.
- Make sure to contract loans with a fixed rate, in this way the amount to be paid will not increase.
- Do not forget to compare the interest rate you currently have with your card or loan and opt for the most convenient credit.
- Research about the money lender you plan to choose.
Some institutions condition the obtaining of credit with the purchase of insurance. This is to protect themselves and not cause problems for their relatives in the event of non-payment due to some misfortune.
Benefits of consolidating debt:
- Keep in mind that it is easier to have control of a single debt than three or seven.
- Make sure the interest rate is lower than those of your debts separately.
- Remember that by reducing your monthly payment, you will also increase the debt settlement period.
- You will have the possibility of making a monthly budget to know your ability to pay the debt.
- Negotiate directly with the institution that can offer you the debt.
- Maintaining a good credit history is key to accessing future loans with better conditions.
Remember, this is about being very realistic when weighing your income, expenses and what you owe. Paying debts is not easy no matter what the reason for debt was, it is never too late, approach finance specialists and you will see that your financial situation is not as gray as you thought.
Are Debt Consolidation Loans Good?
Yes, as long as you have control of your expenses and do not fall into debt, because the new loan will be much larger and you must pay it, otherwise you will have a debt snowball that could lead to bankruptcy. Remember that to consolidate debts it is important not to have arrears, if you already have more than 3 months and do not have funds to continue paying, it is better to resort to a credit repairer such as Solve your Debt, which helps you settle your debts without having to ask a loan.
Benefits of Debt Consolidation
When considering the benefits of a debt consolidation loan:
- You have to pay a fixed monthly rate to the lender.
- Lower monthly payment, meaning more monthly cash flows in less time.
- The interest rate for the consolidation is usually lower than the current interest rate.
Main advantages of debt consolidation:
You only have one debt
Suppose you owe four different things: the car loan, money on two credit cards, and the card from a department store, you need to be aware of each of those debts and pay 4 bills each month.
With the consolidation, you will free yourself from pending payments with the help of credit, in which your 4 debts will be united into one, in this way you will need to pay only one receipt each month, which will make it easier to plan and budget for your expenses.
Reduction of the average interest rate on the total amount
With four different debts, the highest interest rate can be up to 18% and the lowest interest rate can be 3.5%. After consolidation, the grouped debt can have a single interest, so your average interest rate is significantly reduced, and with it your overall debt and what you have to pay each month.
Debt consolidation loans can reduce the total amount of money you pay monthly, that is, after the consolidation you pay less money in the single monthly payment than the one you pay now when adding all your monthly payments.
If you request a payroll loan, it will be very difficult for you to fall into default, since the monthly payments will be deducted from your payroll biweekly or monthly, and the money that they deposit you can use for your current expenses without worrying about another debt.
DEBT CONSOLIDATION AND FINANCING: WHERE TO CONTACT ME?
The panorama of lending in Singapore is very broad and the offer of the various legal money lenders can be competitive and different depending on the case to be analyzed, including with regard to debt consolidation.
These are just some of the realities in the credit landscape that offer this type of service, allowing you to obtain a mortgage that combines all the installments contracted from previous loans and, possibly, additional liquidity, processing a new and single installment which, thanks to a lower rate and the dilution of the repayment plan over time, it can guarantee you a peaceful night’s sleep.
In order to find the most appropriate debt consolidation plan for your situation, it would be advisable to evaluate the numerous proposals of the various lenders, as each financial company has its own amortization plan which may not be the one suited to your needs; for example, among the listed above, we have a range that can be financed between $S30 and $S100 thousand.
Many companies also offer the possibility of making an approximate and estimate calculation of the operation online, in order to provide you with a first idea which, although summary, will already clarify some aspects: if you have 3 monthly installments relating to as many loans for a total of $S600, with another 10 years of installments and you need $S15 thousand of liquidity to redo the bathroom, calculator in hand you will immediately go to exclude the financial that at most could finance you for $S30 thousand, avoiding unnecessary waste of time value.
Ever heard of scammers who persuade innocent people into getting loans of a large amount of money? Well, most of these scammers end up threatening people’s lives or even hurting their families. These scammers are mostly known as loan sharks. Most of these loan sharks forge licenses and run their illegal businesses which may also involve money laundering.
When planning to get a loan, make sure you check out people’s reviews on the various moneylending agencies to avoid future misunderstandings. An example of a legal money lender in Singapore is SuCredit Pte Ltd. Alternatively, you can also access a loan from a bank.
4 reasons to engage a legal money lender in Singapore
Getting a loan from a moneylender has its advantage in various ways. They include:
1. Low-interest rate
When it comes to borrowing money from a moneylender, they tend to vary their interest rates. They are mostly lower compared to those in banks. The lowering of these rates makes it cheaper to borrow money from these moneylenders.
An individual takes a loan when he or she is in a considerable financial position. The main reason behind that is to avoid overstretching while repaying the loan. This is a great opportunity for anyone regardless of your income.
2. Negotiations are allowed
When it comes to moneylenders, you can negotiate on the amount you need as well as the interest rate. One has the freedom to explain why he or she deserves the amount and also discuss the repayment period. In banks, you cannot find such a deal.
This is because banks have constant amounts as well as interest rates that cannot be changed for an individual. This is where you could build your trust in the moneylender. Having a good creditworthiness quality will you help you even in acquiring future loans. This is one of the superpowers that make money lenders prefer more.
3. Fast approval
When applying for a loan from a moneylender, the process tends to be fast. All you need to do is submit the required documents. These documents include:
- Your debt-to-income ratio.
- Your credit score and history.
- A photocopy of your identification card.
- SPF statements.
- Income tax statements.
- Residential address.
- A printed copy and an original copy of the 3 previous payslips.
Once the moneylender has gone through your application, your loan will be processed immediately. You can get the money on the same day you apply. Indeed, it is quite a fast process.
This comes in handy when you need the money urgently. Urgency in money may be due to unpaid school fees, medical bills, wedding expenses, unpaid rent, and other house bills as well as business funding.
In other words, moneylenders offer hassle-free loan applications. They also have a smooth process of verifying submitted documents.
4. Not so strict rules and regulations
Banks are known to have strict regulations when it comes to giving out loans. Banks tend to avid loaning small businesses or even young businesses. They prefer loaning people with a high credit score as well as high regular cash flow.
These regulations limit a lot of business people as well as individuals. Moneylenders are not strict and loan whoever is in need as long as the required documents are submitted. If you own a business and the bank denies you a loan, this is the best opportunity to turn to a moneylender. However, they still have some rules and regulations that need to be abided by.
How To Identify Legit Moneylenders
You might be looking for a moneylender within your area to acquire quick loan cash. You should be aware that there are loan sharks within the moneylending business. They are risky and can frustrate you. Yes, they will offer money quickly but are not legit. Here are some of the ways you can identify a legit moneylender:
1. They ask for collateral
As human beings, we like getting things easily. Loan sharks tend to use that trick to take advantage of innocent people. Most of the times loan sharks do not ask for collateral to gain your trust quickly. Legit moneylenders ask for collateral to complete the contract.
If you go to get a loan and the money lenders are too willing to give you money think twice. Yes, there is the reason giving of money, but if they pester you to take the money. That should act as a red flag.
2. They do not ask for personal information
A legal moneylender cannot ask you about your private family and marriage life. The only private thing that could maybe be asked is the number of wives and children you have.
A loan shark can ask you to tell him or her all the private details regarding your family. They record these details and may use them to hurt you when you fail to repay the money.
3. Checking out customer reviews
Most moneylenders have websites where people can apply online. You could try to research people’s reviews on different money lending agencies. This helps you know if the moneylender is legit or not.
It is advisable to avoid agencies that have no reviews at all or bad ratings. If there are also lots of complaints regarding a certain moneylending agency, avoid it.
When thinking of taking a loan, you should be very careful with who you are dealing with to avoid misunderstandings. You should also read the contract and understand it before signing it. You could get a long-term loan or a short-term loan from a moneylender. It all depends on your preference.
Loan sharks give their loans at high-interest rates which are not ethical. The kind of loans you can get from a moneylender are business loans, education loans, personal loans, wedding loans, house loans among many others. If you need clarification regarding loans, you can visit your preferred moneylender before applying for the loan.
With a quick loan, consumers can bridge a financial bottleneck or fulfill a long-cherished wish. To find the right credit loan within a short time, it is advisable to compare the conditions of different providers, as the respective banks usually have very different conditions for their quick loans. However, customers do not have to be laboriously and time-consuming to obtain individual quick loan offers from different banks in Singapore. Once you have entered the required loan amount and the desired monthly repayment rate in the quick loan comparison, you will receive current financing offers and can compare the conditions of various institutes at a glance without obligation and free of charge.
With the help of various filters, consumers can view the quick loan offers according to different criteria and thus further specify their selection. For example, if the amount of money is needed as soon as possible, customers can only view offers that are paid out within 48 hours of being approved by the bank. If the borrower wants special conditions, such as the option of special repayments or installment breaks, these can also be selected using a filter. In some cases, consumers receive their quick loan via the loan comparison at exclusive special conditions that the competitors and the respective banks themselves do not offer. Customers can also view this particularly cheap quick loan offers using a filter.
For certain professional groups, such as self-employed or freelancers, it may not be so easy to find a suitable quick loan offer, as they usually do not have a regular, constant income and can therefore be less attractive customers when it comes to lending to banks. You can use the loan comparison to display special quick loan offers for your professional group.
Once the right and cheapest quick loan have been found, the desired loan can be conveniently selected and applied for from home or on the go using the loan comparison. To do this, customers enter some personal data and their financial situation in the application process and then find out within a few moments whether the bank has provisionally approved the loan request. Consumers must always provide the correct information when applying for a loan. Loan customers will only find the best quick loan for their situation if they provide truthful information about themselves and their finances. If during a thorough examination of the customer’s documents, the bank finds that incorrect information has been provided, it can offer the loan on less favorable terms or even reject the loan application.
Tip: When applying for a quick loan, it is advisable to state what you want to use the amount of money for. In this way, the loan can be tailored even better to your financing requirements. If the loan amount is to be used, for example, to replace an expensive old loan, consumers can in this case specify rescheduling as the purpose and thus receive a quick loan at more favorable terms.
If you are looking for a personal loan online, you likely feel a little undecided about which is the best for you.
Therefore, here we share a series of key questions that will help you identify which alternative is the most suitable for you.
1. Do you need to get it?
Generally, online loan companies offer better response times than traditional financial institutions.
However, if you are urgent to get the loan as soon as possible, the best thing you can do is opt for an immediate or express loan.
As its name suggests, the main characteristic of this type of credit is that you can get the money you need in a matter of minutes.
Just keep in mind that speed comes at a cost since these loans tend to charge higher interest rates and provide shorter repayment terms.
2. What do you need it for?
Another important point to consider is the destination of the loan, that is, what do you need it for, what do you plan to use it for?
If you need a relatively small amount to face an emergency or unforeseen, an immediate loan could be the best way.
But if you plan to use it to consolidate debts, a person-to-person loan (p2p lending) would be the ideal option.
Online loans provide different benefits, make sure you choose the one that best suits the destination you plan to give it.
3. What rate are you looking for?
Another very important aspect is the interest rate because the range that you can find is very wide.
We would all like to get a low rate; however, that is not always possible because it depends on the credit history and the type of loan that is requested.
As we already said, immediate loans tend to charge higher rates, since they are small amounts and are aimed at people who may not do very well in a bureau.
For their part, person-to-person loans are aimed at people with a good history and who, therefore, can access better rates and higher amounts. That is the reason why they are a better alternative to consolidate debts.
4. How are you at credit score?
The options for a person with a good record and a good credit rating are very different from those of someone with no record or a poor credit rating.
Although it is not a rule, for people who do not have a credit history or who do not do well in a bureau, immediate loans are usually more accessible.
On the other hand, as we already mentioned, those who have good credit history can find more attractive rates and amounts with a loan between people.
Do not lose sight of the fact that your history in the bureau is very important if you want to access loans with more attractive rates and higher amounts.
So what is ideal for me?
If you need money to face an emergency, you are not doing very well in a bureau and the amount is relatively small, you may want to look for an immediate loan online, just don’t forget to consider the interest rate.
If you have a good history and want the money to consolidate debts with a lower rate or you are looking for a personal loan that charges you less interest than traditional alternatives, person-to-person loans could be the best option.
Finding yourself in the middle of some financial emergency is not an inconceivable thing. More often than not, such situations do arise where one has to take a loan to cater to their professional or personal errands.
Opting for a loan seems highly feasible when you do not have sufficient savings or investments.
There are various places where one can apply for a loan in Singapore, including banks, financial institutions, and licensed money lenders. Multiple types of loans are also available through various financial sources. However, one needs to be very cautious while choosing which kind of loan they select to meet their financial needs. A different set of rules and procedures for repayment are involved with each of the distinct types of loans. As a borrower, to apprise yourself of such varied rules is extremely important to stay away from the repercussions that one may face in case of failure to repay their loan.
Personal loans and payday loans stand among the most widely used forms of borrowing in the market. A comparative analysis of one of the two most common loans available in Singapore is provided for you here to help you make an informed decision.
Personal loan & Payday loan –
An individual borrows money from a bank or financial institution in a personal loan and pays the amount back in fixed installments over a definite period. However, a minimum income is required to be maintained, and the bank would check the credit history of the person applying for a personal loan.
Whereas in the case of a payday loan, it provides you with money that you require until you receive your next paycheck and is known as a short-term, high-cost loan. The compensation one receives is used to clear the debt. Thus, this is just a case of pulling forward the paycheck through some days. But this is done at the cost of very high-interest rates. Payday loans are easier to get as they get easily sanctioned because the banks or financial institutions lending the sum don’t usually check the borrower’s credit score. They only require some proof showing that the individual would receive their paycheck within the pre-determined tenure. Another crucial aspect of a payday loan is that it should necessarily be lower than the income receivable through your paycheck.
Hence, we can’t solely rely on payday loans for huge financial requisites.
Pros and Cons of Payday Loans
● The money lenders, banks, or other financial institutions whose help you might have received a payday loan won’t check your credit history. Thus, you can easily avail of a loan despite some unpleasant history with credit and debit cards. They need proof to corroborate that the person applying for a loan would receive his/her paycheck within the specified time for repayment.
● Moneylenders in Singapore charge exorbitantly high interest rates for a payday loan. Interest rates as high as twenty-four percent per two weeks can be levied upon a payday loan, which is way higher than what is charged on a personal loan.
● If the person fails to pay back the payday loan within time, the amount will mount to become so huge that they might not be able to pay it back ever again, owing to the exorbitantly high interest rates.
Personal loans: Pros and Cons
How do personal loans work?
A personal loan is when a lender gives some lump sum money to the borrower as per his requirements. The lender then has to repay the loan with interest in fixed amounts in the decided period.
The collateral system doesn’t work in personal loans. It means that they are typically unsecured. Hence to determine the eligibility and APRs, the lenders rely on the debt to income ratio and your credit score.
However, some lenders only offer secured loans. Such loans are backed on any precious asset owned by you, like your home, car, or plot of land. If you are a borrower with a lower credit score, secured personal loans may be a viable option for you as they typically come with lower APRs than unsecured personal loans. The only pitfall is the risk of losing the asset in case of default in repayment.
Embrace the numerous benefits of a personal loan
Many websites are offering online personal loans that are easy to repay in fixed amounts. Your monthly repayment will remain equal, so you’ll always be able to budget for how much you owe.
The biggest plus point is that they do not require any collateral. Especially in online unsecured personal loans, you don’t have to risk your asset to get your loan sanctioned.
Personal loans can be useful in many ways. You can use a personal loan to finance virtually anything, including:
Credit card refinancing, Common uses for a personal loan, Debt consolidation, Business expenses, Home improvements, Wedding expenses, Car financing, educational expenses, medical bills, large investments and purchases, moving expenses, to name a few.
The perfect choice for getting personal loans- SU Credit
Singapore is an expensive country, and saving money can be quite difficult. Amid inflation in prices and rising living costs, more often than not, you’ll find yourself without sufficient savings to back you in case of any financial emergency. However, financial assistance such as personal loans can solve this problem for you. A payday loan can prove to be an extremely egregious form of capital, especially in Singapore. The options of online personal loans are, without a doubt, the most reliable choice to make which is highlighted in the reasons mentioned above.
Here at SU Credit Pte Ltd, our main aim is to provide you with all sorts of financial assistance so that you can March towards your goals without being hindered by financial barriers. We offer our clients top-grade service and hassle-free loans. With comparatively lower APRs and easy installments for repayments, our packages are perfectly tailored to ensure that all your needs are met at your convenience and comfort. So what are you waiting for? Apply for personal loans with SU Credit today and say bye-bye to financial worries?
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:
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
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.
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.
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
For loan application kindly click here
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.