5 Secured and Business Loans Scams You Must Know03/04/2017
4 Crucial Consequences of Defaulting on Personal Loan17/05/2017
In this post, we are going to share with you everything about secured loans, what they are and what are the benefits of secured loans. How secured loans differ from unsecured loans and how secured loans fair against unsecured loans as well. So let’s get started.
Secured loan as the name suggests are secured against something that you provide as security to your money lender in Singapore. Now there are various kinds of secured loans that you can take depending upon what you can keep as collateral or security. There are mainly 3 secured loan types available in the market:
- Secured Loan Against Property – These are generally called as mortgage loan that is a loan taken against your home. Usually mortgages are large loans and the repayment tenure can last up-to 20-30 years. There are certain ways by which you can cut down on your interest rate that is first by reducing the repaying tenure and then by making a higher down payment. Credit Xtra always advises clients that you must consider your savings, monthly income, have a good credit score, look at the stability of your job and inspect the house properly before taking up a mortgage in case you are buying your first home. If you are taking up a mortgage against your owned home, then try to again reduce the repayment tenure, make a higher down payment and keep up with the monthly installments so that you pay off your mortgage on time. Look for the best money lender in Singapore who is a licensed money lender and provides with you a decent rate.
- Secured Loan Against Car / Gold / Physical Assets – You can take a secured loan against your partly or fully paid car, gold or other assets as security with the money lender. One thing to fully understand and know here is that with all secured loans, whatever you keep as collateral or security, it can be taken away in case you don’t repay your loan. However you don’t have to totally panic for a single month installment and it is best to speak with your lender. You must be cautious and don’t spend unnecessarily since you have a mortgage to pay.
- Secured Loans Are Not Unsecured Loans – Your secured loan is certainly not an unsecured loan of course! There are times when your credit score is too bad, that money lenders would refuse to give you an unsecured loan since they are not sure if they will get back the money on time. Even if they provide you with an unsecured loan, the interest rate could be too high. The other safe road is taking up a secured loan that is backed by one of your assets so that the money lender has something to fall back onto in case you default in paying your loan amount. The benefits of secured loan hence are lower interest rate, you can take a large loan, the tenure is spread over longer period and usually are one of the best loan type to go ahead with. The opposite is a bit true with unsecured loans with higher interest rates, small repayment tenure. We wish you good luck with your loan and CreditXtra team is readily available over call or at our office for any further queries you might have around secured loans in Singapore.