• UOB Business Property Loan

    Home Loan BYTES FROM OUR KITCHEN

    UOB allows its customers to fund their business goals, aspirations and initiatives using the Business Property Loan that can suit your individual financial needs and requirements. If you are thinking of expanding your business, then this loan is ideal for your needs.

    Features of the UOB Business Property and Equity Loan

    For purchasing / buying or refinancing your business property –

    • You have the option to either purchase / buy or refinance your business property using this loan.
    • The bank offers a high quantum of financing of up to 80% of the valuation price for your property.
    • You can choose from different floating rate packages or rates that are pegged to the market.
    • UOB offers competitive interest rate structures for the Business Property Loan.
    • The bank provides the opportunity for you to customize your loan packages according to your business needs and requirements.

    For using your equity for the Business Property Loan:

    • You can secure an extended loan from UOB if you pledge your property as collateral to the bank.
    • You can pledge either commercial or residential property as a collateral for this extended loan.
    • The bank also provides subsidies for legal fees and valuation fees for this loan.

    Should you buy or rent a property for your business?

    Following are some of the factors that discuss the pros and cons of buying / renting of property for a business that may aid in making a better informed decision –

    1. Total Cost and Ownership
    2. Buying a Property:

      • A bank or financial institution will provide substantial financing for the purchase price / valuation price. UOB offers up to 80% financing when you buy a property for your business.
      • When you own the property yourself, it even allows you to apply for an additional loan when you want to expand your business by pledging your property as collateral. For instance, UOB accepts your property (residential / commercial) as collateral and offers an equity loan which is a form of an extended loan.

      Renting a Property:

      • Renting a property is always more unstable than buying the property because banks offer fixed packages during the repayment period but rental cost during the rental period with landlords will always fluctuate.
      • The total cost of renting the property may be higher in the long run when compared to buying the property.
    3. Repayment Cost
    4. Buying a Property:

      • When you apply for a loan to purchase the property, you will have fixed monthly repayment amounts / any changes during floating rate packages will be communicated to you in advance so you can prepare to adjust the repayment amount. These fixed repayments allow you to plan and manage your finances better.

      Renting a Property:

      • Your monthly rental fee for the property may not be lower than the monthly instalment amount on your Business Property Loan. In this case, you will be spending more to rent the property than to buy it.
      • The rental cost of properties tend to rise on a regular basis, usually every year.
      • Renting of a property also requires for an upfront rental deposit fee which is usually on the higher end.
    5. Renovations and Investments
    6. Buying a Property:

      • A Business Property Loan offers greater flexibility when it comes to renovation of your property space.
      • The value of your property may also appreciate when you renovate.

      Renting a Property:

      • Any plans to renovate or make improvements on the office space is subject to the approval of your landlord.
      • You or your business will not benefit in any way from the appreciation of the property value if you have made improvements through renovation on your rented property.

    Applying for the UOB Business Property Loan

    Following are the ways wherein you can apply for the Business Property Loan offered by UOB –

    • You can request a callback from the bank by providing your contact and personal details on the callback form and a representative from the bank will contact you at your preferred time. The form is available on the official UOB Singapore website.
    • You can visit your nearest UOB bank branch and apply for the Business Property Loan directly in person.
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