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      What is the definition of a loan?
      Loan is an act of borrowing and it is expected to be returned. In financial terms, loan is borrowing sums of money that are tied to a certain timeline to be paid back with interest.

      What kinds of loans are available here in Singapore?
      Loans can be mainly broken into 2 different categories
      1) Secured loans
      2) Unsecured Loans

      Secured Loans are loans that are taken to get certain things which are called assets. These assets could in turn act as a form of security for the creditors – to repossess it back should the borrower could no longer service their repayments.

      Examples of secured loans
      • Housing Loans
      • Car loans

      Examples of unsecured loans
      • Personal / Cash Loans
      • Credit Cards
      • Payday Loans

      One major difference between secured and unsecured loans are the interest rates set which are generally higher for the latter.