What are the business loan options in Singapore? (2023)


What are the business loan options in Singapore?

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(Video) How to get a business loan in Singapore
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What are the business loan options in Singapore? (2)
(Video) Guide to Options of Small Business Loan in Singapore

If you own a business in Singapore and need financing for your business, there are various loan options available. From and including 2023, several public bodies will provide loans to small and medium-sized enterprises. These organizations tailor small business loans at competitive rates for companies in various stages: start-up or growth.

Whether you're an established business looking for an infusion of working capital or a new business exploring expansion opportunities, these specialist lenders have you covered! Through their advanced search tools, they help businesses reduce the hassle of paperwork, while ensuring that all parties involved can easily agree on fair terms offered by financial institutions in Singapore.

What are the business loan options in Singapore? (3)

There are different types of business loans available in Singapore. Here are some of the most common:

  1. Credit for working capital for small and medium enterprises (WCL): world championship leagueis a government-sponsored financing scheme in Singapore to help small and medium-sized enterprises (SMEs) obtain financing to meet their day-to-day operations and working capital needs. Risk sharing between participating financial institutions and Singapore companies (ESG) is between 50-70%. The scheme was launched by ESG and the Monetary Authority of Singapore (MAS) in 2016 and is valid until 31 December 2023. Under the scheme, eligible SMEs can apply for an unsecured working capital loan of up to S$500,000 for a loan term of up to five years . Interest and repayment terms are usually in the easy range of 4-8% per annum for 1 to 5 years.

  2. Business credit (BTL):A business loan, also known as a business installment loan, is a form of financing in which the borrower receives a lump sum and repays it over a fixed period, usually from one to five years. The loan amount, interest and repayment period are determined in advance, and the borrower must repay the loan in installments, usually monthly. Financial institutions usually provide BTL and do not share risk with ESG. Beneficiaries are therefore generally better off compared to WCL, with interest and repayments on loans similar to WCL, 4-8% simple interest per annum, repayable over 1 to 5 years.

  3. Mortgage financing:Mortgage financing is financing provided to individuals or businesses to purchase, refinance, or cash in with property as collateral. Mortgage financing is generally available for both residential and commercial properties, with a maximum loan-to-value (LTV) ratio of 75% for residential properties and up to 90% for commercial properties. Business owners can also use individuals/companies as borrowers to pay off their unencumbered (fully paid) assets to finance their business/personal needs. The term of the loan is from 5 to 30 years, and the interest rate is from 3-12% per year. In addition to the loan amount, borrowers may have to pay other costs associated with mortgage financing, such as legal fees, notarization and appraisal fees. Legal fees and appraisal costs range from S$1,800 to S$4,500 and S$200 to S$800, respectively, depending on the value and size of the property. In addition to typical banks, there are financial institutions that offer flexible loan structures and criteria to take advantage of their financing characteristics. For example, directors in bankruptcy, people with bad credit ratings, etc.

  4. Invoice financing/factoring:Invoice financing and factoring is a form of financing where a company can obtain immediate cash flow by selling unpaid invoices at a discount to a lender or factoring company. The process of invoice financing involves companies selling outstanding invoices to a lender or factoring company that will pay them a percentage of the invoice value, usually between 70% and 90%. The lender will then collect payment from the customer on the invoice due date and deduct their fees before transferring the balance to the company. Invoice financing can be useful for businesses that have long payment terms and need immediate cash flow to pay bills or invest in their business. It is also suitable for businesses that are growing rapidly and need to manage cash flow efficiently. Rates and fees for invoice financing/factoring vary from 0.5% per month, depending on the circumstances of the borrower/debtor, the creditworthiness of the company, the currency in which the invoice is paid and the duration of the financing. In general, invoice financing can be an effective way for businesses to generate immediate cash flow from the sale of outstanding invoices. Apart from typical banks, there are financial institutions and factoring companies that provide such services.

  5. Revolving kredit:A revolving line of credit is a form of financing that provides a company with permanent access to a pre-approved line of credit. This means that companies can borrow and repay funds as needed, up to the approved credit limit. Revolving credit facilities are useful for companies that need flexibility in cash flow management and short-term financial needs. For example, a company may use a revolving credit facility to purchase inventory, pay operating expenses, or pursue a business opportunity that requires immediate financing. A revolving credit line can be secured or unsecured, depending on the policy of the lender and the creditworthiness of the company. A secured revolving credit facility requires the company to post collateral, such as accounts receivable or inventory, time deposits, or even property, to secure the line of credit. Unsecured revolving loans do not require collateral, but may have higher interest rates and stricter loan-to-value criteria.

  6. Rental/financing of equipment:Installment/equipment financing is a form of financing where a company can obtain funds to purchase or rent equipment for work. The equipment financing process involves a business obtaining funds from a lender to purchase the equipment it needs to operate. The equipment itself is often used as collateral for a loan. The loan is then repaid over a period of time, usually through fixed monthly installments. Equipment financing can be useful for companies that need to buy equipment but don't have enough money to do so. It can also be an advantage for companies that need to upgrade equipment to stay competitive or increase efficiency.

Government business loan support scheme

Getting a business loan in Singapore can help your business get off the ground and stabilize your business operations.

Major banks such as DBS, OCBC and UOB finance local companies. However, there are some limitations. These limits include the time frame in which the company operates and the amount of annual revenue.

To help small and medium enterprises (SMEs), the government scheme also provides up to300.000 S$Each lasts 1-5 years, depending on eligibility criteria, including a Singaporean/Permanent Resident (PR) with 30% ownership.

Businesses facing uncertainty due to the Covid-19 outbreak can opt for a temporary bridging loan, not limited to SMEs, with a repayment period of up to 5 years with restrictions1 million Singapore dollars.Startups requiring smaller amounts may prefer a seed loan, which usually caps its value at S$100,000 and requires a minimum of 6 months from establishment, rather than a good financial record. However, it is more feasible than conventional.

The Enterprise Finance Scheme (EFS) is a financing scheme launched by the Singapore government to help small and medium-sized enterprises (SMEs) obtain funding for their business needs. The program is managed by Enterprise Singapore, a government agency that supports the growth of local businesses.

(Video) How to get a bank loan for a business in Singapore? What are the options available?

The EFS aims to provide SMEs with easier access to finance in a number of areas, including working capital loans, trade finance, venture debt finance and equipment finance. The scheme aims to help SMEs obtain financing with more favorable terms, such as lower interest rates, longer repayment terms and lower collateral requirements.

Under the ESF, companies can apply for financing from participating financial institutions such as banks and finance companies. The government shares risks with financial institutions and encourages financial institutions to finance SMEs.

There are three types of ESF funding:

  1. EFS-SME credit for trade funds:The facility provides SMEs with working capital loans of up to S$500,000 to support their day-to-day operations such as inventory management and cash management.

  2. EFS trade loans:This financing provides trade finance to SMEs to support their import and export activities, such as financing pre- and post-shipment activities.

  3. EFS loan insurance scheme:The facility provides up to S$50 million in SME loan insurance to help SMEs secure financing on more favorable terms.

Alternatives to banks and non-bank financing solutions for SMEs in Singapore

Most banks and non-bank financial institutions offer competitive interest rates on their business loans. However, it's important to remember that the interest rate you get can vary depending on several factors, such as the amount you borrow, your credit score, and how long you've been in business.

Also remember that some of these lenders may require collateral (such as property) or a guarantee from you/your business partner before disbursing the loan amount if they deem it necessary. In addition to traditional bank/non-bank financing options for SMEs in Singapore, public financing programs are also available, particularly the PACT scheme, which enables co-financing with partner banks. Companies can receive grants of up to S$200,000 from Enterprise Singapore for a period of 1 to 5 years!

To qualify for the program, companies must, among other things, be locally incorporated, at least 30 percent locally owned and have annual revenue not exceeding $100 million annually. Finally, certain welfare organizations offer tailored grants and subsidies for individuals facing hardship, so check that out too if applicable!

Singapore offers a range of business loan options to suit the needs of SMEs. From government-backed loans to private financing solutions, you'll find an option that fits your unique needs. ThinkSME offers exciting loan packages that include low interest rates and flexible repayment plans tailored to the needs of small business owners.

No matter what stage or size your business is, there are loan options available to make your startup and expansion more sustainable than ever! Start exploring the ThinkSME website today, our experienced consultants are ready to answer any questions you may have about getting a loan for your business.

Make sure you understand all the terms attached to your offer before it expires. This way, you get the full benefit of getting money, while knowing what the money is for. Knowing this, entrepreneurs in Singapore can rest easy when running their own business.

Small and medium-sized enterprises (SMEs) in Singapore have a range of financing options beyond traditional bank and non-bank financing solutions. Some of these alternatives include:

  1. Peer-to-peer lending/crowdfunding:Peer-to-peer lending, also known as P2P lending, is an alternative form of financing that connects individual investors with borrowers through online platforms. With this type of loan, borrowers apply for loans on the platform, and investors themselves choose which loans they want to finance. The platform acts as an intermediary, facilitating loans and collecting payments from borrowers. Peer-to-peer loans can be an attractive alternative financing option for small and medium-sized enterprises (SMEs) that may not qualify for or seek loans from traditional banks. P2P lending platforms may have less stringent credit score and collateral requirements than traditional banks and may offer more flexible terms and lower interest rates. One of the main advantages of P2P lending is quick access to capital for SMEs. Borrowers can often receive funds within days of approval, compared to the longer processing times of traditional bank loans. P2P lending can also give SMEs more transparency and control over the loan process, as they can communicate directly with potential lenders and negotiate loan terms. However, P2P lending also has risks. Investors may face default risk if borrowers default on their loans, and SMEs may face higher interest and fees compared to traditional bank loans.

  2. private lending:Private lending is a form of alternative financing where individuals or businesses borrow money directly from borrowers, bypassing traditional financial institutions such as banks. Private lenders can be individuals, groups of investors or companies that specialize in providing short-term loans or bridging businesses. Private loans can be an attractive option for small and medium-sized businesses (SMEs) that may not qualify for traditional bank loans due to their credit history, lack of collateral or other factors. Private lenders may be willing to lend money at higher interest rates than banks and may require less paperwork and documentation.

In general, SMEs in Singapore have a range of financing options beyond traditional banking and non-banking solutions. It is important for SMEs to explore their options and choose the financing solution that best suits their needs and goals. This way, you get the full benefit of getting money, while knowing what the money is for. Having this knowledge can give entrepreneurs in Singapore wisdom

h Run your own business carefree. Start exploring the ThinkSME website today, our experienced consultants made up of former bankers are ready to answer all your questions before securing financing for your business.

(Video) How to get a business loan in Singapore? | #AskBizsquare EP 5

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(Video) How to - Find the best business loan in Singapore

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How does loans work in Singapore? ›

For bank loans, you must pay the first five per cent of the property price in cash. The next 20 per cent, however, can be paid through CPF. You can make monthly loan repayments for both HDB loans and bank loans through your CPF.

What are 3 possible sources for small business loans? ›

A small-business loan is a source of capital that can help you stock your shelves, buy new equipment or expand your footprint. Business owners can access funding through traditional banks, online lenders and community lending institutions.

What is the business loan interest rate in Singapore? ›

Business loan interest rates in Singapore range from between 1-13% per annum, with different rates and terms according to the borrower and their terms. However, the most reasonable average business loan interest ranges between 3.5% to 7%.

How much can a foreigner loan in Singapore? ›

Foreigners planning to apply for a foreigner loan in Singapore can only borrow up to six times their monthly salary. Therefore, if you are committing yourself to any foreigner loan or personal loan in Singapore, make sure you can handle any late interest rate and late fee once you fail to pay your repayments.

How to get easy loan in Singapore? ›

Here are some ways to cut short your personal loan approval time and maximise your chances of getting the funds in your account as soon as possible.
  1. Maintain a good credit score. ...
  2. Avoid applying to multiple banks. ...
  3. Tap on your credit card limit. ...
  4. Use SingPass MyInfo for instant loan approval. ...
  5. Check cash disbursement lead time.

Can foreigners take loans in Singapore? ›

Luckily in Singapore, foreigners are offered a range of personal loan options by banks and licensed financial institutions. To better understand what you are getting into, there are a few things that you should know and be aware of before applying.

Can I take a loan in Singapore? ›

The maximum amount that you can borrow generally depends on your annual income. Typically, banks in Singapore will require you to have a minimum annual income of S$30,000 to apply for a personal loan. Some may also offer personal loans to people who make less than S$30,000 yearly, though at a higher interest rate.

What is total loan limit in Singapore? ›

With MSR, you cannot exceed more than 30% of your household income and is only applied to HDB flats and executive condos. If you are looking to calculate your MSR, head over to use our easy to use mortgage servicing ratio calculator. However with TDSR, the loan limit is capped at 60%of your gross monthly income.

What is the most common type of small business loan? ›

1. Term loans. Term loans are one of the most common types of small business loans and are a lump sum of cash that you repay over a fixed term. The monthly payments will typically be fixed and include interest on top of the principal balance.

What are the 7 sources of business finance? ›

The sources of business finance are retained earnings, equity, term loans, debt, letter of credit, debentures, euro issue, working capital loans, and venture funding, etc. The above mentioned is the concept, that is elucidated in detail about 'Fundamentals of Economics' for the Commerce students.

What are the three main types of financing for businesses? ›

There are three main ways to categorize business financing that you may want to consider. Each has its own benefits and drawbacks — equity capital, debt capital, and specialty capital.

What is Singapore's average interest rate? ›

The cash rate (Policy Rate: Month Avg: Singapore: Overnight Rate) was set at 3.58 % pa in Mar 2023.
Buy Selected Data.
Portugal (% pa)3.27 Feb 2023
Romania (% pa)7.46 Feb 2023
Russia (% pa)10.83 Mar 2023
Singapore (% pa)2.94 Mar 2023
74 more rows

What is the highest lending rate in Singapore? ›

Date: 21 April 2023
CIMB Bank Berhad5.5
Citibank N.A., Singapore Branch5.5
Credit Agricole Corporate And Investment Bank5.75
DBS Bank Ltd4.25
43 more rows

What is the best interest rate in Singapore? ›

1. At a glance: Best savings accounts in Singapore with highest interest rates (2023)
Savings accountInterest ratesBest for
Maybank Save Up0.15% to 3.00%Home, education, car loan users
Standard Chartered Bonus Saver0.05% to 7.88%High spenders
Bank of China Smart Saver0.10% to 5.90%High earners & spenders
6 more rows
Mar 15, 2023

Can a foreigner own 100% of a business in Singapore? ›

Just like a local Singaporean, a foreigner can register a company and own its 100% shareholding without facing any difficulties. In fact, anyone over the age of 18 years can start a company in Singapore.

Can foreigners get Singapore bank account? ›

There's no legal reason why you can't open a bank account in Singapore as a visitor, student or holding a Dependent pass.

Do foreigners have credit score in Singapore? ›

In Singapore, foreign workers have no credit scores and any tangible property that banks can easily liquidate if the borrower can't repay their loans on time.

How much can I borrow from bank Singapore? ›

The maximum LTV ratio for bank loans in Singapore is 75% of your home's value, of which 5% of the selling price must be paid in cash. The borrower – you – can pay the remaining 25% using cash and CPF funds. The maximum LTV ratio for HDB loans in Singapore is 85%.

How much can I loan from bank Singapore? ›

In Singapore, banks typically offer loans of up to 75% of the value of the property. However, the amount you qualify for will depend on your individual circumstances. In this article, we will look at some of the factors that banks consider when determining how much loan can I get from bank.

Am I eligible for bank loan Singapore? ›

Your average gross monthly household income must not exceed: $14,000 for families. $21,000 for extended families (refer to the guide for more details) $7,000 for singles buying under the Single Singapore Citizen (SSC) Scheme.

Can a self employed get a loan Singapore? ›

You have higher chances of getting a personal loan for the self-employed in Singapore approved. This is made possible by working with a wide range of lenders, especially online lenders. The process of applying for a personal loan with Lendela is pretty simple.

Who are the non bank lenders in Singapore? ›

Non-bank financial institutions

Hong Leong Finance, Sing Investments & Finance Limited (SIF), Singapura Finance and IFS Capital Limited have one thing in common: They are non-bank financial institutions (NBFIs) serving the SME market.

Do banks give loans to foreigners? ›

Traditional banks and online lenders typically don't offer loans for non-U.S. citizens or permanent residents without an eligible cosigner. However, certain lenders specialize in loans for immigrants, while others may extend credit if you meet the criteria.

How many years can I loan in Singapore? ›

LTV Limits

Standard mortgage products may become more difficult to obtain as you get older. The standard current rules that are valid for Singapore housing loans are: Age Limit for Salaried Individuals: 21 to 65 years. Maximum loan tenure can stretch to 35 years (applicable on refinancing too)

Is private money lending legal in Singapore? ›

In order to be a fully licensed private money lender in Singapore, the company needs to be registered by the Ministry of Law – Registrar of Money lenders. They then get an operating license to do business, if they operate within the rules and regulations of the government.

How many times your salary can you borrow Singapore? ›

FAQs on Borrowing from Licensed Moneylenders
Borrower's annual incomeSingapore Citizens and Permanent ResidentsForeigners residing in Singapore
Less than $10,000$3,000$500
At least $10,000 and less than $20,000$3,000
At least $20,0006 times monthly income6 times monthly income

What is loan ratio in Singapore? ›

The TDSR was introduced by the Singapore government in 2013 to make sure individuals borrow responsibly, and not end up drowning in debt. It was initially 60% but was revised to 55% on 16 December 2021.

How much of an unsecured loan can I get in Singapore? ›

As of 1 Jun 2019, the Monetary Authority of Singapore (MAS) has capped the maximum unsecured loan an individual can borrow to 12 times their monthly income. This includes all unsecured loans such as personal loans, education loans, renovation loans, and credit card lines and debts.

What is the maximum loan amount available? ›

A maximum loan amount describes the total sum that one is authorized to borrow on a line of credit, credit card, personal loan, or mortgage. In determining an applicant's maximum loan amount, lenders consider debt-to-income ratio, credit score, credit history, and financial profile.

What are small business loan options? ›

You'll have multiple options when looking at startup loans, including SBA loans, equipment financing, lines of credit, short term loans, and business credit cards. The payments will be based on the amount of the loan, as well as the interest rate, term, and collateral.

What is a realistic small business loan amount? ›

The average small business loan amount is $663,000. The average small business loan amount from large national banks is $593,000. The average small business loan amount from small national banks is $146,000. The average SBA loan is $107,000.

What do banks look at for small business loans? ›

They'll consider household income, business revenue, cash flow, outstanding debt, unused credit lines, and the amount of money the owner has personally invested into the business.

What is the cheapest source of finance? ›

Retained earning is the cheapest source of finance.

What is the best source of funding for a business? ›

The best way to get capital to grow your business
  • Bootstrapping. The funding source to start with is yourself. ...
  • Loans from friends and family. Sometimes friends or family members will provide loans. ...
  • Credit cards. ...
  • Crowdfunding sites. ...
  • Bank loans. ...
  • Angel investors. ...
  • Venture capital.

What are the 5 types of financial? ›

5 Types of Financial Statements
  • Balance Sheet. The first type of financial report is the balance sheet. ...
  • Income Statement. The second type of financial report is the income statement. ...
  • Cash Flow Statement. ...
  • Statement of Changes in Capital. ...
  • Notes to Financial Statements.
Dec 28, 2022

What are 2 sources of financing for a business? ›

Debt and equity are the two major sources of financing. Government grants to finance certain aspects of a business may be an option. Also, incentives may be available to locate in certain communities or encourage activities in particular industries.

What are the 4 common sources of financing? ›

The common financing sources used in developing economies can be classified into four categories: Family and Friends, Equity Providers, Debt Providers and Institutional Investors.

What are the two ways to obtain financing for a business? ›

  • Determine how much funding you'll need.
  • Fund your business yourself with self-funding.
  • Get venture capital from investors.
  • Use crowdfunding to fund your business.
  • Get a small business loan.
  • Use Lender Match to find lenders who offer SBA-guaranteed loans.
  • SBA investment programs.

Why Singapore interest rate so high? ›

Singapore banks have increased interest rates, as most loans are based on the Singapore Overnight Rate Average (SORA) or the Singapore Interbank Offered Rate (SIBOR) which moves historically in tandem with the interest rates set by the US Federal Reserve. The Fed has raised rates four times this year.

What is the interest rate for 10 years in Singapore? ›

The Singapore 10 Years Government Bond has a 2.780% yield (last update 27 Apr 2023 11:15 GMT+0).

Does Singapore follow US interest rate? ›

What Happens When Fed Raises Interest Rates? Rising interest rates in the U.S. will largely influence Singapore's domestic interest rates, as can be seen from the increase in recent months. As the Fed continues to increase the rate, Singapore's interest rate will continue to rise as well.

Who is the largest lender in Singapore? ›

  • 1) DBS. DBS is the largest bank in Singapore by assets and the 69th largest in the world. ...
  • 2) UOB. ...
  • 3) OCBC. ...
  • 4) Bank of China. ...
  • 5) Nomura. ...
  • 6) ANZ Banking Group.
Feb 22, 2023

What is the latest loan to value in Singapore? ›

The LTV limit for bank loans is set at 75%, while HDB loans have an LTV of 85%. Previously, the LTV for HDB loans was set at 90%, but it was revised downwards in December 2021. On 30 September 2022, the government further slashed the LTV limit for HDB loans from 85% to 80%. The LTV limit for bank loans remains at 75%.

What is the interest rate for business in Singapore? ›

Business loan interest rates in Singapore range from between 1-13% per annum, with different rates and terms according to the borrower and their terms. However, the most reasonable average business loan interest ranges between 3.5% to 7%.

What is the interest rate for 20 years in Singapore? ›

The Singapore 20 Years Government Bond has a 2.625% yield (last update 24 Apr 2023 11:15 GMT+0).

Why Singapore bank interest so low? ›

Singapore's mortgage interest rates tend to be closely linked to global interest rates. When the pandemic began in March 2020, the US Federal Reserve slashed interest rates, in turn, lowering Singapore's. Back then, interest rates were near-zero.

What are the different types of home loans in Singapore? ›

There are two main types of mortgage loan options in Singapore: HDB loan and bank loans. You can use an HDB loan when purchasing public housing, otherwise known as HDB flats. You can also use a bank loan to finance your HDB flat purchase.

What is HDB loan in Singapore? ›

An HDB loan requires you to make a downpayment of at least 10% of the purchase price, which you can pay in full using your CPF Ordinary Account (OA) savings, with cash or a combination of both cash and OA savings.

What are green loans in Singapore? ›

The Green and Sustainability-Linked Loan Grant Scheme (GSLS) supports corporates of all sizes to obtain green and sustainable financing by defraying the expenses of engaging independent service providers to validate the green and sustainability credentials of the loan.

What is secured loan Singapore? ›

A secured loan requires collateral, and the amount borrowed depends on the value of the collateral used to secure the loan. Secured loans have many advantages, such as good interest rates, high amounts of cash, and even being able to borrow with a low credit score.

What are the 2 most common types of loans? ›

Two common types of loans are mortgages and personal loans. The key differences between mortgages and personal loans are that mortgages are secured by the property they're used to purchase, while personal loans are usually unsecured and can be used for anything.

How much deposit required for home loan in Singapore? ›

For bank loans, the downpayment needs to be 25% of the purchase price, and at least 5% must be in cash, so make sure you have the money. If you're buying a $600,000 flat for example, you need to have at least $150,000 set aside as a downpayment.

What is the difference between HDB and bank loan? ›

HDB is known to be more lenient than banks. For bank loans, there is usually a penalty of 1.5% to 1.75% if you decide to make early repayments within the lock-in period to reduce your loan size. Banks' late repayment fees differ from bank to bank and are much harder to get waived or reduced.

What is term loan Singapore? ›

When you take on a term loan with a bank, you will be able to borrow a certain amount of funds at a floating interest rate. The loan must be repaid in regular repayments within a fixed period. A DBS Business Term Loan, for example, allows SMEs to borrow up to $500,000 over a five-year period.

What is the loan-to-value limit in Singapore? ›

Bank LTV (up to 75%)

For a bank loan, the maximum LTV ratio is capped at of 75% LTV for the first loan (i.e. if you have no outstanding home loans). Of the remaining 25%, 5% must be paid in cash. The remaining 20% can be paid using a combination of cash or your CPF-OA savings.

What is ESG loan Singapore? ›

The MAS SGD Facility for ESG Loans (“Facility”) provides low-cost funding for banks and finance companies to grant loans under Enterprise Singapore's Temporary Bridging Loan Programme ("TBLP") and Enterprise Financing Scheme – SME Working Capital Loan (“EFS-WCL”).

How much can I borrow from money lender Singapore? ›

How Much Can I Borrow From A Money Lender?
Annual incomeSingapore Citizens and Permanent ResidentsForeigners residing in Singapore
Less than $10,000$3,000$500
$10,000 – $20,000$3,000$3,000
$20,000 and aboveSix times of monthly incomeSix times of monthly income
Jul 27, 2022

What is the difference between a secured and unsecured loan in Singapore? ›

The main difference between secured and unsecured loans is what happens when you default on your loans. Secured loans are loans with an asset attached, which the lender has the right to take away if the borrower cannot repay the loan within a specific period of time.

What are four kinds of secured loans? ›

Types of Secured Loans
  • Vehicle loans.
  • Mortgage loans.
  • Share-secured or savings-secured Loans.
  • Secured credit cards.
  • Secured lines of credit.
  • Car title loans.
  • Pawnshop loans.
  • Life insurance loans.

How does Reno loan work in Singapore? ›

You can borrow up to $30,000 or six times your monthly income – whichever is lower. The loan tenure to repay the loan balance is one to five years. The interest rate for your renovation loan will be much lower than that of a personal loan. The borrowed amount is disbursed to your contractor as a cashier's order.


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