DBS is one of the most popular local banks in Singapore with a plethora of financial products. Among its loan products there are personal loans, home loans, car loans, and business loans. The DBS SME Micro Loan is a business loan that can be taken by persons wishing to establish, improve or expand their business. Let us look at the features, fees, and application procedures for this loan.
Features and benefits of DBS SME Micro Loan
Here are the main features and benefits offered by this business loan:
- This loan is unsecured and is offered in collaboration with SPRING Singapore, an organisation that works towards supporting startups.
- You can take the loan for any business-related purpose, such as providing working capital, expansion, upgrade, buying equipment, etc.
- The maximum loan available to you is S$100,000.
- The loan tenure can be as long as 4 years.
- The loan comes with affordable interest rates starting from 6.75% p.a.
- You can apply online for the loan and get super-quick approval (subject to proper documentation).
- DBS claims to be the “largest lender for SPRING SME Micro Loan and SME Working Capital Loan”.
Eligibility Criteria for DBS SME Micro Loan
If you wish to apply for this business loan, you need to meet the following parameters:
- The company should be registered in Singapore.
- The company should be operating in Singapore.
- There is no restriction on which industry or sector the company is functioning in.
- The company should have a minimum of 30% shareholding.
- The company should have 10 employees or less.
- The company should have a turnover of not more than S$1 million.
How to Apply for DBS SME Micro Loan
You can apply for this SME loan through the DBS website within just 5 minutes. You need to fill in the application form and upload the relevant documents. Alternatively, you can go to a DBS bank branch and apply.
Fees & Charges of DBS SME Micro Loan Scheme
- Processing fee: S$500
- Interest rate: 6.75% p.a.
- Prepayment fee: NIL
- Annual fee: NIL
Required Documents for the loan scheme
You need to submit the following documents to get the DBS SME Micro Loan:
- Copy of NRIC (both the sides) of guarantors
- Notice of Assessment from the Income Tax for the last 2 years of directors/owners/ partners/sole proprietor
- Bank statements for the past 6 months if the account is not with DBS
- Audited financial statements for the most recent 2 years
- Original or certified True Copy of Updated Memorandum and Articles of Association by any 1 director (for Pte Ltd companies without a DBS borrowing account)
- Business Plan for businesses that haven’t been operational for more than 2 years
- For Professional Practices not registered with the Accounting and Corporate Regulatory Authority (ACRA):
- A copy of confirmation from the relevant authority on the constitution of the firm and the name of the sole proprietor or partners;
- Bizfile print-out dated for lawyers and accountants;
- Clinic licence from Ministry of Health for medical practitioners;
- Confirmation letter from Board of Architects on constitution of the firm for architects
- Original letter stating equity partners and authorised signatures for partnership
- SPRING Singapore application form, duly filled
- Other relevant documents with relevant financial information
- What is SPRING?
A. SPRING stands for Standards, Productivity and Innovation Board. It is involved in nurturing startups and offering opportunities of growth to them.
- Are foreigners eligible for the loan?
A. Yes foreigners are eligible for the loan scheme as long as they fulfil the eligibility criteria.
- Can I take this loan for non-commercial purposes?
A. No, this is an exclusive business loan.
- How long will it take for the loan to be approved?
A. You need to allow the bank a time of 2 weeks to reach a decision on the loan.
- Who can I contact for more information?
A. You can call the bank’s 24x7 hotline on 1800 222 2200 for further information on the SME Micro Loan.