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.
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.
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.
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.
|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|
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’.
You will need to submit the following documents when you apply for a business loan under the POSB MicroCredit Business Scheme:
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.
The interest is calculated on a reducing monthly basis, based on 365 days.
As per the loan repayment terms of POSB Business Loan, the instalment payments have to be made every fortnight.
Under the POSB MicroCredit Business Scheme, you can get a business loan of up to S$50,000.
The minimum rate of interest offered with POSB Business Loan is 8 percent per annum for loan tenures of 1 year to 5 years.
The maximum tenure available with the business loan product offered by POSB is 10 years.