Unsecured Loan Singapore

Unsecured Loan Singapore

Unsecured loans refer to loans that borrowers can obtain without pledging any form of assets. Lenders qualify borrowers for unsecured loans based on their credit history and income. Examples of more popular business unsecured loans available in Singapore include: Business Term Loans, Enterprise Singapore’s Working Capital Loans and LEFS Micro Loan Scheme.

Enterprise Singapore’s Working Capital Loans and LEFS Micro Loan Scheme are government-assisted unsecured loans, where the Singapore government shares the risk of loan defaults with the participating financial institutions in view that borrowers do not pledge any assets with lenders.

Tenor for the abovementioned unsecured loans usually –

  • 4 or 5 years
  • Borrowers can borrow up to S$500,000



Private funders also offer unsecured loans, but these typically come with –

  • Smaller loan quantum
  • Shorter tenor of up to 12 months
  • Higher interest rates such as 3% per month



Borrowers of these unsecured loans typically use the funding obtained for the business’ cash flow needs while they await repayment from their clients, expansion plans or even purchasing more inventory.