There are various types of loans available in the Singaporean financial market today. This various type of loans is considered to be a big help in developing the country’s economy and raising the living conditions of many residents here. There are two general types in which loans in Singapore are categorized and these are the unsecured and secured loans.
Secured loans are those types of financial help where the borrower need to secure or cover the loan with some kind of valuable assets, such as a car, property or any other personal asset whose value is more or equal to the value of the total amount of money provided by the lender. The interest rate for this kind loan is usually reasonable and repayment terms are usually longer.
Unsecured loans, on the other hand, are exactly the opposite of secured ones where the borrower need not secure the loan with some form of assets. The interest rate for this type is a lot higher and repayment of the salary loan has shorter terms.
There are a variety of loan companies where one can get financial help in Singapore, and many of them provide both secured and unsecured financial assistance to loan applicants. There are conventional and conservative financial institutions like banks and financing companies. There are also various licensed cash lenders found around Singapore that provide short and long-term small loans and other types of loans to various individuals here. All of them have their own loan policies and loan amount ceiling; interest rates and repayment terms. Under the secured and unsecured loans are still a variety of loans that an individual in Singapore can avail of and they include the following:
- Personal loan – one of the most popular loan in Singapore. It has no specific use, but many take out this kind of a loan to purchase a variety of personal things. The loan can go as much as 4 months of your salary. The interest rate is fixed and repayment options are usually short. Personal loans are usually available in banks and other licensed lenders.
- Payday loan-this is usually a small cash loan with low interest rate in Singapore, but with high-interest rates and needs to be repaid within the next 30 days or your by the time you receive your next paycheck. It’s easy to apply and qualify for. There is no credit check and the only document you need to submit is your proof of employment or business income. The loan is available in almost all parts of Singapore.
- Foreigner loans-basically for foreigners who have legal work or employment permit in Singapore. If you are a Filipino citizen living and working in Singapore, this may be similar to OFW loan or Overseas Filipino Worker loan. This type of loan is available mostly in major banks.
- Business loans-these are funds provided to various businesses by different organizations, financial institution, private lenders and banks.