Unsecured personal loans are great way to get a loan in Singapore quickly without the need to declare assets. However, it should be noted that taking an unsecured loan to repay another loan is a strict no no. Unlike secured loans, unsecured loans are not associated with collateral. Collateral is not a requirement to take a cheap personal loans in this case. The lender simply issues a contract. The individual needs to fill a form with personal details, loan required, and purpose of the loan among others. The terms and conditions mentioned in the contract or the form needs to be carefully scrutinized for hidden charges and other penalties.
Unsecured loans are notorious for their hidden charges. Some lenders in Singapore charge late payment fees, which is quite high. Others charge small amounts for every activity related to the unsecured loan account including filling forms, getting loan payment schedules, or even payment receipts. Even for secured loans, such charges are low or nil. The well known Easy Credit Moneylender usually make their payment terms and other charges known beforehand before any complications arise but it is up to the individual to ensure this unsecured personal loans is worth the buy in.
Unsecured loans are associated with great risk. This is off course a risk for the lenders who do not have any collateral to fall back on in case the payments are defaulted. This is perhaps the biggest advantage of unsecured personal loans. However, the security for the lender is the higher interest rate and the fact that this personal loan is usually of a small amount taken for a short duration.