UOB provides a unique loan which helps businesses scale their operations and grow through financial assistance. The bank provides this assistance in the form of UOB Biz Money Business Loan, which eliminates all the hassle involved in getting a loan. Besides, you need not pledge any monetary deposit or property to apply for this loan.
The primary features and privileges provided with UOB BizMoney loan include:
The following table illustrates the underlying calculation for this loan. For illustration purposes, we’ll assume that a business borrowed an amount of S$250,000 for tenures of 2 and 3 years. Let’s consider the interest rate of 10.88% p.a., as currently dictated by the bank.
|Sum borrowed||Rate of interest||Tenure||Estimated repayment sum|
|S$250,000||10.88% p.a.||2 years||S$11,639 per month|
|S$250,000||10.88% p.a.||3 years||S$8,171 per month|
As you can see in the table illustrated above, when the tenure is of 2 years, the repayment amount stands at S$11,639 each month. However, when the tenure is changed to 3 years, the repayment amount decreases to S$8,171 per month. The repayment amount will also change with difference in the amount borrowed. However, you are paying more in terms of interest charges for longer tenures.
The following eligibility criteria has to be met in order to qualify for the UOB Biz Money Business Loan:
UOB Bank’s Business Board rate stands at 8% p.a. for the moment. However, for calculating the actual interest rate per year, a marginal interest of 2.88% p.a. is added on top of the existing Business Board Rate, that might change with time. The following table illustrates how the rates of interest are applied on this business loan:
|Rate of interest||Facility rate||Yearly fee|
|10.88% p.a.||A charge of 2% is applied on approved loan sum||S$500 p.a.|
You can apply for the UOB BizMoney business loan in two ways:
Q. What is the late payment charge associated with the loan?
A. A late payment fee of S$100 is charged on the loan.
Q. What is the availability fee associated with the loan?
A. The availability fee on this loan stands at S$250.
Q. What happens when you abort the loan prior to its disbursement?
A. An abortive fee standing at 4.8% of the loan sum that was aborted is applicable in such a scenario.
Q. What is the minimum amount you have to borrow with this loan?
A. The borrowed sum for this loan shouldn’t be less than S$50,000.
Q. What is the minimum tenure for which you can apply for this loan?
A. The minimum term for which you can borrow this loan is 1 year.