Before applying for a loan from licensed moneylenders or traditional financial institutions, you’ll probably be faced with the choice of a secured or unsecured loan. 
What exactly does a secured loan and an unsecured loan mean?
Secured VS Unsecured Loans Infographic Lending Bee

Secured vs Unsecured Loans Explained

In general, loans are broadly divided into two groups: secured loans and unsecured loans.
The type of loan that you choose to take will depend on your needs and the availability of collateral.
A secured loan is one where you will be required to provide an asset as security for the loan amount. In case of default, the lender has the liberty to sell your asset to recover the debt.
At Lending Bee, you’ll be glad to know that we offer secured loans up to $2,000,000. Some of these include private property purchase loan, or an auto loan. 
An unsecured loan is one where there is no collateral needed for you to get the loan. In this case, the loan is issued on the strength of your credit rather than on the value of an asset.
Lending Bee offers a wide variety of unsecured personal loans to suit your everyday needs.
The table below shows the comparison between secured and unsecured loans in Singapore.

Secured LoansUnsecured Loans
Collateral is requiredNo collateral is required
Lower rate of interest because of the lower risk for the lenderHigher rate of interest because of the higher risk for the lender
Risk to the borrower of losing an assetNo risk to the borrower of losing an asset
Higher loan amountLower loan amount
Longer loan termShorter loan term

Types Of Secured Loans Singapore

The type of loan that you choose to take will depend on the purpose of the loan. The following are some types of secured loans in Singapore and what they can be used for:

1. Car Loan

This is a loan that is secured by the car that you plan to purchase. In most cases, car loans are used to purchase brand new cars. Once you take out a car loan, the use of the funds is restricted to the purchase of the vehicle. If you default on a secured loan, you run the risk of losing your car.

2. Home Loan

This is another type of secured loan in Singapore. As the cost of buying a home in Singapore is incredibly expensive, a home loan can help to significantly ease the financial burden. The collateral used for this type of loan is the home that you would like to purchase.
That said, defaulting could cause you to lose your home.

3. Loan Secured By Personal Assets

If you have a highly valued asset such as an expensive boat, or some jewellery, then these can also act as security for a loan. In this case, the loan amount will depend largely on the value of the asset.
The funds that you receive from this type of secured loan are more flexible when it comes to usage because there is no restriction to a particular purpose as is the case with car loans or home loans.

Types Of Unsecured Loans Singapore

Most people would be more familiar with unsecured loans since they do not require anything in exchange for the loan. Hence, the barriers to entry are lower.
Being well versed in the moneylending industry, Lending Bee has a wide variety of unsecured loans available to help you tide through financial difficulties.
Some of them are listed below:

1. Debt Consolidation Plan

A debt consolidation plan helps to combine all your existing loans and credit card debt into one fixed monthly repayment.
This way, the chances of you missing out on repayments is lower and it also allows you to better keep track of your finances.
With a debt consolidation plan, you can borrow up to $100,000, and make comfortable repayments.

2. Wedding Loan

You’ll probably only hold your wedding once in your life. Thus, you would wish for it be an unforgettable one. You can easily spend tens of thousands of dollars on your wedding. An unsecured wedding loan from Lending bee can help.

3. Vacation Loan

Oftentimes, we all just need a quick break from our hectic schedule. Perhaps you might have your dream vacation destination. However, costs can be a pertinent issue in making your travel plans.
With an unsecured vacation loan, your travel expenses will be well taken care of.

4. Business Loan

Running your own business means that you’ll have to remain competitive and be updated with market trends. Sometimes, you might require extra financial help for things such as salary payments, equipment purchase, or rental payments.
This is where an unsecured business loan can help.

5. Home Renovation Loan

After successfully purchasing your home, the next step would be to start your home renovation. You will probably have envisioned what you wish your home to look like.
That said, you might have already exhausted majority of your savings into your home purchase. An unsecured home renovation loan can help to make up for the deficit in funds.

Why Choose Lending Bee As Your Secured / Unsecured Loan Provider?

In Singapore, there are several licensed moneylenders who issue both secured and unsecured loans.
So, what makes Lending Bee stand out?
Lending Bee was one of the six licensed moneylenders selected by the Ministry Of Law to pilot alternative business models for the moneylending industry. Thus, we strive to provide the best for our customers, ensuring that they will always have a reliable financial institution to fall back on.
We are able to offer our borrowers with unsecured loans of up to $100,000 and secured loans of up to $2,000,000.
There are many benefits of taking out a secured or unsecured loan with us:

1. No Early Repayment Fees

Unlike most banks and licensed moneylenders who impose a fee if you wish to make early repayments, we do not.
We understand that sometimes, your financial situation might improve and you wish to pay off the debt as soon as possible. This also ensures that you avoid incurring additional interest charges over the following months.
Hence, we do not penalise you if you wish to make early repayment.

2. Speed & Convenience

At Lending Bee, our online loan application process can be completed within 3 minutes! You will know your loan status and if approved, you will be able to receive your funds within 24 hours.
Our fast loan application process ensures that your financial emergency is well taken care of.

3. Reliability

The Lending Bee is a legally licensed moneylender that fully adheres to the rules and regulations laid down by the Ministry of Law. This means that you will not be subjected to exorbitant interest rates and unscrupulous methods of debt collection. You will also be issued with a valid loan agreement before you receive the funds.

4. Flexibility

We are flexible with the loan products that we offer.
For example, if you suffer from bad credit, we can offer you a suitable loan option as long as you prove that you are able to make timely repayments. 

Documents Needed To Apply For A Secured / Unsecured Loan

Before you apply for an unsecured loan in Singapore, you will need to present the following documents:
For Singaporeans / Permanenet Residents (PRs)

  • Original IC
  • CPF statement / Notice Of Assessment (NOA)
  • Billing proof

For Foreigners:

  • Original Work Permit
  • Employment contract / Latest 3 month payslip
  • Billing proof

For secured loans, most lenders handle each client on an individual basis. However, most of the above eligibility requirements will need to be met. You will also need to have a document confirming that you are the legal owner of the asset that you want to put up as security. The value of the asset will also need to be confirmed by the lender.

What Should I Take Note Of Before Applying For A Secured / Unsecured Loan?

Once you have confirmed that you meet all the eligibility requirements, you can go ahead and submit your application for a loan. It is important that you take note of the following points as you approach the lender.

1. Secured vs Unsecured Loan?

Depending on the need that you have, choose the most suitable loan option.
If you suffer from a poor credit rating but have an asset that you can use as collateral, you might wish to opt for a secured loan. This might significantly improve your chances of getting approved for the loan, since you have an asset that you can use as collateral.
However, if you only wish to take out a loan of a smaller amount over a short period of time (e.g. a couple of months), then an unsecured loan will work best.

2. Find Out About Interest & Other Fees

It is important that you confirm the rates of interest as well as any other fees charged before you make a decision on the type of loan to take.
At Lending Bee, we strive to keep our interest rates and fees as low as possible. This is so that you will be able to make timely repayments and to also ease your financial burden.

3. Consider The Loan Amount

Be careful to borrow an amount that you will be able to repay without putting excess strain on your budget. Do not borrow huge amounts without considering the repayment schedule.
Work out a budget that will comfortably accommodate your repayment instalments because this will improve your credit rating and reduce any risks of default.

4. Consider The Loan Term

It may be more prudent for you to take out an unsecured short-term loan if your income is not guaranteed in the long-term. Generally, unsecured loans tend to be short-term because they carry a greater risk for the lender.

5. Ensure That The Lender Is Properly Licensed

There are several unlicensed moneylenders in Singapore who exploit unsuspecting borrowers. It is important that you confirm whether the moneylender that you want to engage is properly licensed. Licensed moneylenders have the following features.

  • They have their license displayed in their offices.
  • They do not charge a monthly interest above 4%.
  • They provide their borrowers with a valid written contract.
  • They do not use unscrupulous ways of collecting debt such as threats and violence. Licensed moneylenders only use legal avenues to collect debt.
  • Licensed moneylenders have a physical office that they operate from. Many unlicensed moneylenders do not have an office premise.

Lending Bee Offers Unsecured Loans Of Up To $100,000 and Secured Loans Of Up To $2,000,000!

Whether you require a secured or unsecured loan to tide you through, Lending Bee is here to help.
As a subsidiary of Credit 21 Pte Ltd and being one of the six moneylenders chosen to pilot alternative business models, you can be assured that we are backed by a huge capital. This way, we will also be able to provide you with a secured loan, or an unsecured loan to see you through any financial turmoils.
Apply for a loan with us today!

About Lending Bee

In a volatile, uncertain, complex and ambiguous world, you can count on one thing – your partner in credit, Lending Bee. Just like an industrious bee, we are committed to helping each and every customer access credit – quickly, easily and seamlessly.