Understanding both sides of secured loans
Secured loans, as the name suggests, are those loans wherein the borrower provides his home as a security for availing the loan from Money Lender Singapore. These are also known as homeowners loans since the borrower’s home serves as collateral for the loan. In secured loans, the borrower needs a mortgage along with free equity for qualifying for this loan. This is a loan scheme in which both the parties are in a win-win situation- the licensed money lender is secure with the fact that the money loaned out will be recovered in any case, while the borrower can enjoy a loan that comes with a good rate of interest and increased flexibility, especially in terms of repayment schedules.
The advantages of secured loans
If you need a considerable amount of money and that too quickly, then a secured loan is one of your best bets, saving you from a lot of complicated hassles and valuations that the bank may do in other cases. In fact, with a low LTV, there is no formal valuation required! The bank knows that it is covered since your house acts as collateral in case you stop making payments and this is what helps it give out secured loans at better interest rates than personal loans. It can also help you save on quite a bit of money- in case you have a bad credit history, or have several loans to pay back, then refinancing and then paying them all back at a much better interest rate is what can be made possible via secured loans. You can use the money that you got at a lower interest rate to pay back all your debts and save on a lot every month!
The disadvantages of secured loans
Obviously, secured loans have their own set of disadvantages. The biggest amongst all of these is that in case you are unable to make payments due to any unexpected circumstance, then you stand to lose your house. Thus, while applying for an secured loan, you should be sure that affording the monthly payments will be possible for you in any circumstance, even in the worst-case scenario. Keeping your home safe is important, and you should know if you can keep your home by sticking to your payment schedule even if you lose your job. As it is with any loan, a responsible attitude needs to be present while thinking of secured loans. Do not borrow any more than what is essential, and do not try to agree to an EMI plan that may be too high for your current income to support. Use the obtained money only for an essential purpose, and if it is for debt consolidation, try to be more responsible this time. Try to manage your finances better so that you do not end up at the same spot a few years later. Finances require close attention and a responsible attitude, so that you know what you are doing and do not end up in a mess of loans. Making an informed decision regarding every financial aspect is how you can do the same and ensure minimal troubles for you, both now and in the future!
To get a secured loan, visit LoanSingapore.SG and contact a licensed moneylender now!