The Best Secured Loans to Consider in 2025

Product	Est.EIR	Annual flat rate	Min. loan amout	Max loan amount
	Varies	From 4.5%	NA	70% of pledge

Overview:

DBS Share Financing provides access to funds for investment opportunities by leveraging your existing shares and ETFs as collateral. It's designed to maximise potential returns by allowing you to borrow against your investments.

Disclaimer:

Loan approval and terms are subject to DBS's discretion and terms and conditions. Investment risks apply.

Product	Est.EIR	Monthly flat rate	Min. loan amout	Max loan amount
	Varies	From 4.0%	NA	60% of pledge

Overview:

Lending Bee offers secured home mortgage loans and property refinancing for individuals seeking large sums of money quickly, including those who may have been rejected by traditional banks.

Disclaimer:

Loan approval and terms are subject to Lending Bee's discretion and terms and conditions. Property valuation and legal documentation are required.

Product	Est.EIR	Annual flat rate	Min. loan amout	Max loan amount
	Varies	From 1 month VLR + 0.75%	$10,000	80% of pledge

Overview:

HSBC Wealth Lending offers secured loans against existing eligible assets (unit trusts, bonds, equities, time deposits) held with HSBC, providing financial flexibility for investments or personal liquidity needs.

Disclaimer:

Loan approval and terms are subject to DBS's discretion and terms and conditions. Investment risks apply.

Product	Est.EIR	Annual flat rate	Min. loan amout	Max loan amount
	Varies	From 2.78%	$10,000	70% of valuation

Overview:

The DBS Car Loan allows individuals in Singapore to finance the purchase of a vehicle, with loan amounts determined by the car's Open Market Value (OMV) and the applicant's financial standing

Disclaimer:

Loan approval is subject to DBS's terms and conditions. Interest rates and fees are subject to change.

Product	Est.EIR	Monthly flat rate	Min. loan amout	Max loan amount
	Varies	1.0% - 4.0%	$1,000	6x monthly income

Overview:

Katong Credit offers flexible personal loans in Singapore with extended loan tenures and fast approval, providing quick access to funds for various financial needs.

Disclaimer:

Loan approval and terms are subject to Katong Credit's discretion and terms and conditions.

A secured personal loan is a type of loan that requires you to pledge an asset as collateral, such as a vehicle or savings account. This collateral acts as security for the lender, reducing their risk. If you fail to repay the loan, the lender can seize the collateral to recover  the funds.

These loans often have easier approval criteria, and interest rates can range from roughly 5% to 20% per annum, depending on the asset and lender.

>> Read: Four types of personal loans

In Singapore, applying for a secured loan involves submitting documents and having your collateral, like a car or fixed deposit, appraised. The lender assesses both your creditworthiness and the asset's value. Higher collateral value typically translates to a larger loan amount and better approval odds. Once approved, the funds are disbursed, with the asset serving as security.

>> Read: What is an unsecured loan?

Loan repayments in Singapore usually involve fixed monthly installments, with interest calculated on the outstanding balance, and with loan tenures varying. If you default, the lender has the legal right to seize your pledged asset, such as your car or savings account, and this will negatively impact your credit rating with the Credit Bureau Singapore (CBS).

Assess these pros and cons of getting a secured loan before you decide to borrow:

The pros

• Lower interest rates: Because secured loans are backed by collateral, lenders in Singapore perceive them as less risky, often resulting in lower interest rates compared to unsecured loans.

• Higher borrowing limits: The amount you can borrow is often tied to the value of your collateral, potentially allowing you to access larger loan amounts compared to unsecured options in Singapore.

• Potential for longer repayment terms: Secured loans in Singapore may offer more extended repayment periods, making monthly payments more manageable.

The cons

• Risk of losing collateral: The primary risk is that if you're unable to repay the loan, the lender has the legal right to seize your pledged asset, such as your car or savings account.

• Possible requirement for asset appraisal: Lenders in Singapore will typically require an appraisal of the collateral to determine its value, which can incur additional costs.

• Longer approval processes: Due to the need for collateral assessment, the approval process for secured loans in Singapore can sometimes be longer compared to unsecured loans.

Banks: Major banks in Singapore, such as DBS, OCBC, and UOB, offer secured personal loans, often backed by fixed deposit accounts or other assets. Compare their loan offerings, considering interest rates, loan terms and eligibility criteria to find the best fit for your needs.

>> Read: Explore the best bank loans

Licensed moneylenders: Licensed moneylenders in Singapore provide alternative sources for secured loans, particularly for individuals who may not qualify for traditional bank loans. It's crucial to understand the legal framework and protections in place for borrowers when considering this option.

>> Read: Explore the best moneylenders

Online platforms: Several digital platforms in Singapore facilitate secured loan applications, offering a convenient and user-friendly experience. These platforms often streamline the application process and provide tools for comparing different loan options.

>> Read: The best personal loan apps in Singapore

Many lenders also give you the option of pre-qualifying, to assess your rate on an unsecured loan without impacting your credit score, giving you a better idea of whether to choose a secure or unsecure loan.

Here are the steps to obtain a secured loan:

1. Loan enquiry: Start by contacting potential lenders in Singapore, such as banks or financial institutions. Inquire about the different types of secured loans they offer, including the specific requirements, accepted forms of collateral (e.g., fixed deposit, property), and the loan terms. Understanding the various options available will help you make an informed decision.
2. Assess your budget: Thoroughly review your current cash flow and financial situation. Utilise a personal loan calculator, many of which are available online in Singapore, to estimate key details such as the Annual Percentage Rate (APR), the total loan amount you might qualify for and the corresponding repayment terms. This step is crucial in ensuring you can comfortably manage the loan repayments.
3. Select a lender: Carefully compare the secured loan options available in Singapore. Consider factors such as the types of collateral accepted by each lender, their interest rates (both the advertised rate and the Effective Interest Rate), any associated fees, and the overall reputation of the lender.
4. Gather the required documents: Prepare all necessary documents to expedite the loan application process. Most lenders in Singapore will typically require the following:
   
   • Government-issued ID (NRIC or Passport).
   • Proof of income (recent payslips, CPF statements, or Income Tax filings).
   • Bank statements.
   • Collateral documents (car title, property deed, or investment statements, depending on the asset used as security).
   • Proof of residence (utility bill or rental agreement).
   • Employment details (employment letter or work permit, if applicable).
5. Loan application: Once you've chosen a lender and gathered all the required documents, you can proceed with the loan application. This can often be done online or in person at the lender's branch. Be prepared for a collateral assessment, where the lender will evaluate the value and acceptability of the asset you're pledging as security.

>> Read: How to get a personal loan

Securing a loan with bad credit requires careful preparation and understanding of your financial situation. By following these suggestions, you can improve your chances of approval and secure a loan that fits your needs:

• Assess your debts and credit: Check your Credit Bureau Singapore (CBS) reports for any delinquencies or errors that could affect your loan application. Identify actionable ways to improve your credit score before applying. You can access your free credit report through SingSaver or directly at the Credit Bureau Singapore website.

• Assess your finances: Review all sources of income, including any non-employment income like alimony or child support, to provide a comprehensive financial picture to lenders. Calculate your debt-to-income (DTI) ratio to understand your current financial standing. If your DTI is high, consider paying down existing debts to improve your eligibility for a secured loan.

• Assess your collateral value: Determine the estimated value of your collateral, whether it's bank or investment accounts or a car, to understand the potential loan amount you can secure. Review balances and past statements if using financial assets as collateral. For car valuations, utilise online car value calculators specific to the Singaporean market.

While secured personal loans offer access to funds by leveraging assets, Singaporeans have other avenues for financial needs. The following alternatives can provide flexibility and avoid the risk of losing collateral:

Alternative options for bad credit

Unsecured loans for bad credit: Before opting for a secured loan in Singapore, it's advisable to check your eligibility for unsecured loans, as they don't require collateral. Some licensed moneylenders may offer unsecured loan options tailored to borrowers with bad credit, often with flexible repayment terms. Additionally, banks like POSB, HSBC, and Standard Chartered provide unsecured loans, though typically with higher interest rates, as they carry more risk for the lender.

‘Buy Now, Pay Later’ options: In Singapore, Buy Now, Pay Later (BNPL) services are increasingly available through various retailers, offering the convenience of instalment payments without the need for a traditional credit check. This can be a useful alternative for short-term financing of purchases.

Loans from family: Borrowing from family or friends can be a viable option in Singapore, potentially offering interest-free or low-interest funding. However, it's essential to establish clear terms and conditions to maintain healthy relationships.

Alternative ways to secure money: To supplement income, Singaporeans can explore freelancing, part-time work or gig economy jobs with platforms like Grab, Foodpanda, Shopee Live and Upwork. Additionally, leveraging government training grants, such as SkillsFuture Credits, can help upgrade skills and open doors to better job opportunities.

Alternatives that can build credit 

A credit card that’s secure: In Singapore, a secured credit card requires a fixed deposit as collateral, with the credit limit typically matching the deposit amount. These cards are offered by major banks like DBS, OCBC, UOB and others. Crucially, payments made on secured credit cards are reported to Credit Bureau Singapore (CBS), which helps cardholders build a positive credit history over time.

A credit building loan: While traditional credit-builder loans are not commonly found in Singapore, some licensed moneylenders offer small, secured loans that can contribute to building a credit history. For those looking for alternatives, the POSB Credit Limit Review and Debt Consolidation Plans can also be beneficial in improving one's credit standing with CBS, offering structured pathways to better financial health.

Alternatives for emergencies

Government financial assistance schemes: For Singaporeans facing immediate financial hardship, the ComCare Short-to-Medium Term Assistance (SMTA) provides critical support for basic living expenses, including cash assistance and help with essential bills. Self-employed individuals experiencing income loss can turn to the Self-Employed Person Income Relief Scheme (SIRS) for temporary financial aid. Additionally, those struggling with home loan repayments can explore the CPF Flexi Housing Loan Scheme, which offers flexible repayment options to ease the financial burden.

Assistance with medical bills: To alleviate the stress of medical expenses, MediFund in Singapore assists low-income individuals with outstanding medical bills at public healthcare institutions, ensuring access to necessary treatment. Singaporeans can also utilise their MediSave accounts to cover eligible medical expenses, reducing the immediate financial strain. Furthermore, hospitals often offer instalment payment plans, allowing patients to manage their medical bills over an extended period, making healthcare more accessible.

>> Read: Explore alternatives to payday loans