Cash woes? A personal loan to the rescue!

    POSB Business Loan

    In today’s world, new businesses are born on a regular basis as a result of human innovation and ingenuity. Thanks to the advancement of technology, it has become easier for people to convert their business ideas into realities. Even though starting a business is may not seem like a very difficult task in theory, in reality it can be a challenging task to arrange the money needed to start a new business. It becomes difficult for people to acquire the necessary finances for starting a business of their own. In such situations, people with a new business idea can apply for a personal loan such as a business loan and get access to the necessary finances. If you are an individual with a viable business idea in Singapore, you can easily apply for a POSB Personal Loan product like POSB Business Loan and acquire the required money to start your commercial operations.

    Overview of POSB Business Loan

    POSB is one of the top banks in Singapore and offers a wide range of banking and financial services to customers in the Lion City. Before being acquired by DBS Bank in 1998, the bank started as the Post Office Savings Bank with the goal of offering low cost financial and banking solutions to people in Singapore. POSB Bank still aims to offer Singaporeans with affordable banking products and solutions that are customized to meet their needs. The range of products offered by the bank include a business loan and the POSB Business Loan comes with a variety of beneficial features.

    Why Choose POSB Business Loan?

    People often come up with new business ideas that can become a huge success in the long run. Even though these ideas can be very viable and have the potential to be successful within a short period of time, converting such ideas into a reality requires a lot of financial support. However, such financial support may not be easily available and so people looking to start a new business need to apply for a business loan from a reputed bank.

    By opting for a POSB Business Loan, you can be assured that you will have access to the required funds within no time and you will be able to convert your business idea into a reality without any difficulty. POSB bank offers business loans through its MicroCredit Business Scheme.

    POSB Business Loan

    Features and Benefits of POSB MicroCredit Business Scheme

    Under the MicroCredit Business Scheme (MCBS), POSb supports the brightest and most innovative business ideas and helps individuals to head start their business success. The different features and benefits of the loans offered under this scheme are listed below.

    • It comes with higher loan amount – the loan amount offered with business loans under this scheme can be in the range of S$3,000 to S$50,000.
    • It comes with flexible repayment tenures – The loan comes with flexible repayment tenures of up to 10 years i.e. 120 months and so you can repay the loan with ease.
    • It comes with affordable interest rates – the loan comes with affordable and attractive interest rates of 8 percent to 12 percent and the rate depends on the loan amount.
    • It offers the flexibility of deferred repayments – The repayment of the loan can be deferred for a maximum period of 6 months from the date on which the loan is disbursed and so the borrower will only need to start repaying the loan later and they can be focussed on growing their business at first.
    • It will help you in evaluating your business plan – The office of the MicroCredit Business Scheme can evaluate your business loan and try to find out if it is feasible. Before you apply for the loan, you can even attend the training workshops conducted by this office and then learn the basic skills needed for successfully running your business organisation.

    POSB Business Loan Interest Rates

    Tenure of the loan Rate of Interest
    1 year to 5 years 8 percent per annum
    6 years to 8 years 10 percent per annum
    9 years to 10 years 12 percent per annum

    How To Apply for POSB Business Loan?

    You can apply for a POSB Business Loan under the MicroCredit Business Scheme by mail. You can download and print the application form from the website of the bank. After that, you will need to fill the form and then mail the same after signing it, along with the required documents. The form has three parts; Part A has fields related to the business plan, Part B has fields related to credit information about the sole proprietor/ partners and Part C includes fields related to standing instructions about the loan. You cannot leave any field blank and even if you do not have any information, you will have to indicate the same in the form as ‘NA’.

    Documents Required for POSB MicroCredit Business Scheme

    You will need to submit the following documents when you apply for a business loan under the POSB MicroCredit Business Scheme:

    • Sole Proprietor/ Partners will need to submit the supporting documents listed below.
    • Copy of NRIC (both front and back);
    • Last 3 months salary slips or employment letter in case you have recently started working. You will not need to submit these documents in case you are unemployed.
    • Transaction History of your CPF Account for the last 15 months;
    • Last 3 years Income Tax Assessment and
    • Credit Bureau Reports that can be acquired from Singpost
    • For registered and existing businesses, Business Profile (ACRA) also needs to be submitted
    • Existing businesses also need to submit their financial statements for the last 3 years, if applicable

    POSB Business Loan Eligibility

    • You should be a Singaporean.
    • You should be aged 18 and above.
    • You should either have no income or your annual income should be lower than S$30,000.

    Late Fee

    In case you do not make the instalment payments for the loan on time, you will need to pay a late fee of S$20.

    Explore Other Loan Products offered by POSB Bank:

    Frequently Asked Questions (FAQs)

    1. How is the interest calculated for POSB Business Loan?
    2. The interest is calculated on a reducing monthly basis, based on 365 days.

    3. How often will need to make instalment payment for the loan?
    4. As per the loan repayment terms of POSB Business Loan, the instalment payments have to be made every fortnight.

    5. What is the maximum loan amount offered with business loans under the under the POSB MicroCredit Business Scheme?
    6. Under the POSB MicroCredit Business Scheme, you can get a business loan of up to S$50,000.

    7. What is the minimum rate of interest offered with POSB Business Loan?
    8. The minimum rate of interest offered with POSB Business Loan is 8 percent per annum for loan tenures of 1 year to 5 years.

    9. What is the maximum tenure available with POSB Business Loan?
    10. The maximum tenure available with the business loan product offered by POSB is 10 years.

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