Overview of unsecured loans:
Unsecured loans are the types of loans in which you don’t need to pledge your assets to get it. It is only issued for borrowers whose credit scores are low, below 650. These types of loans are available at online money lenders, not in the traditional banks. In Singapore, unsecured loans are very popular due to its instant availability. In the emergency time, unsecured loans seem very helpful because, after approval, it will be transferred to your account within 24 hours.
Singapore is known for its high-lifestyle. To maintain a standard of living people, expenditure is relatively higher than savings. Sometimes, in an emergency, they don’t have a single penny as savings. At that point, unsecured loans help them a lot. There are so many online money lenders available on the internet which offers you a loan as quickly as possible without requesting you to submit assets against the loan. Along with that, they don’t check your credit scores as well. A basic documentation check is enough for them to give a loan approval.
Features of unsecured loans:
Absence of collateral: While availing an unsecured loan, you don’t need to pledge for collateral. A lender will ask you to submit any assets like property, car, and gold to take a loan. All they require are basic documents like proof of identity, income, address, and age, and three months’ bank statements to get a loan.
Lower loan amount: Unsecured loans amount is smaller than secured loans. You cannot use this money to pay off your big debt. These types of loans are used for small purposes like home renovation, children’s education fees, medical bills, and repay debt—the amount of loan sanctioned is based on your income. If you are self-employed then your amount will be smaller than full time employed.
High-interest rates: The interest rates of the unsecured loans are relatively higher than secured loans. To offset the risk of losing money, they offer a high-interest charge on loans. Also, they are not requesting to pledge an asset against the loan, so they charge a high-interest rate. If you can repay the high-interest based loan amount, only then it is wise to opt for the unsecured loans.
No tax benefits: Another feature of the unsecured loans is the lack of tax benefits. In a secure type of loan, you can avail of the benefits of secured loans. But this feature is not available in the unsecured loans.
No credit scores are required: While availing the unsecured loans, a money lender will not ask you to show your credit score as unsecured loans are only designed for the low credit score borrowers, so there will be no place to check or verify the credit scores. So, if your credit score is low and you need a loan urgently, then it is advisable to opt for the unsecured loans.
Types of unsecured loans:
There are a variety of unsecured loans available on the internet. But, below, we have mentioned only three unsecured loan Singapore that is often opted by the Singaporeans.
Easy credit card loans: It is one of the most popular types of unsecured loans. If you have a stable income, then you can easily get a credit card from the company. Whenever you need money, you can swap your credit card and sort out your needs. On the same date of the next month, you have to repay the loan amount to the company. If you are unable to repay the amount on time, the company will charge a high penalty or even block your card as well. By repaying the amount on time, you can easily increase your credit scores. The significant advantage you will get from this in future you will get secured loans from the traditional bank on the lowest interest rates.
Payday loans: A payday loan is another most popular type of unsecured loan. A moneylender offers you a loan for a shorter time to meet the urgent needs. The procedure to avail the payday loan is straightforward. All you need is to just contact a reliable lender and fill out the loan application online. As soon as he gets your application, he will review it, and if everything is fine, then we will approve your application and transfer the loan to your account.
Instant loans: Instant loans are also known as quick approval loans. It is designed by the lenders to sort the urgent needs of the borrowers. If your credit score is low and you need money in an emergency, then the instant loan is an excellent option for you.
Final Say:
We hope this comprehensive guide on the unsecured helps you a lot. If you are looking loan Singapore lender, then you can contact MoneyIQ. Here you will get all types of unsecured loans at the best interest rates.
