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    Best SME Loans Singapore

    SME stands for Small and Medium Enterprises. The significance of providing a loan to small and medium enterprises is to encourage and assist their business growth in terms of finance and economy. SMEs are the economy builders in any country. As SME businesses grow in Singapore, they create job opportunities for many Singaporeans. Hence, there are many banks that offer SME loans.

    Types of SME Loans

    SME Micro Loan: Small businesses with 10 or less than 10 employees who require funds for business operations, automation and upgrading factory equipment, etc.

    SME Working Capital Loan: Medium businesses with 200 or less than 200 employees who need working capital for business operations. Loan amount can go up to S$300,000.

    SME Equipment Loan: It is broadly known as the Local Enterprise Finance Scheme (LEFS) equipment loan. It is meant for SMEs with 200 or less than 200 employees to acquire capital of up to S$15 million for equipment upgradation and purchase.

    Eligibility Criteria

    SME loans are applicable for those enterprises who meet the following criteria:

    • Company must be registered and operating in Singapore.
    • Minimum local shareholding range must be 30%.
    • Group annual sales must be between S$1 million to S$100 million, or group employment size must be between 10 to 200 employees.

    Documents Required

    • Audited account statements or certified account statements of the past two years.
    • Bank statements of the past 6 months.
    • Income tax notice of assessment of either director, owner, partner, guarantor, or sole proprietor.
    • NRIC copy (both sides) of either director, owner, partner, guarantor, or sole proprietor.
    • Residential address proof.

    Benefits of SME Loans

    1. SME Micro Loan Maybank:
      • Loan amount up to S$100,000.
      • Loan tenure up to 4 years.
      • Loan applicable only for:
        1. Automation of plant or machinery.
        2. Enhancement of working capital.
        3. Setting up a viable business.
        4. Expanding production capacity of the existing business.
        5. Renovation of existing business or setting up business premises.
        6. Development and launch of new product.
    2. SME Micro Loan UOB:
      • It falls under Local Enterprise Finance Scheme.
      • Can be used for meeting working capital requirements or purchase of equipment.
      • Maximum tenure is 4 years.
      • Maximum loan amount per company is up to S$100,000.
      • There is a condition to get this loan and it is “company’s total micro loan must not exceed S$100,000 across all participating institutions”. If a company already has a micro loan with another bank with more than S$100,000, then that company is not eligible for a micro loan with UOB
    3. SME Micro Loan DBS:
      • This micro loan is introduced in conjunction with SPRING Singapore.
      • Maximum tenure is 4 years.
      • Maximum loan amount per company is S$100,000.
    4. Business Loan UOB:
      • UOB business loan comprises three variations of loans – UOB Bizmoney, SME Micro Loan, and SME Working Capital Loan.
      • Maximum loan quantum up to S$550,000.
      • It’s not mandatory to produce property monetary deposit collateral.
      • Maximum repayment period is 5 years.
      • Partnership or Sole Proprietor or Private Limited Companies are eligible for this loan.
      • Companies must hold minimum 3 years of business experience.
    5. Business First Loan OCBC:
      • This loan is collateral free that is offered under SPRING Singapore’s Micro Loan Programme.
      • Maximum loan quantum up to S$100,000.
      • Repayment period is up to 4 years.
      • The company must be registered and operating in Singapore between 6 months and 2 years.
      • One guarantor of the company must be Singaporean or Singapore PR, aged between 21 and 62 years.
    6. Equipment & Machinery Financing OCBC:
      • Funding up to 90% of the valuation or purchase price.
      • Repayment period is up to 8 years.
      • Funding can be claimed on both new and used equipment.
      • Part of the Local Enterprise Financing Scheme
    7. Business Term Loan by DBS
      • Maximum loan quantum up to S$500,000.
      • This loan is collateral free.
      • Maximum repayment period is 5 years.
      • Interest rate is 10.88% p.a.
    8. Bizmoney UOB
      • Maximum financing up to S$350,000.
      • Maximum repayment period is 4 years.
      • No monetary or property deposit required.
      • Partnership or Sole Proprietor or Private Limited Companies are eligible for this loan.
      • Companies must hold minimum 3 years of business experience.
      • Interest rate is fixed at 10.88% p.a.
      • Facility rate is 2% of the loan amount.
      • Annual fee is S$500 p.a.
    9. Business Installation Loan and Business Overdraft Loan Standard Chartered Bank:
      • Finance up to S$300,000.
      • This loan is collateral-free.
      • Maximum repayment period is up to 5 years.
      • Effective interest rate per year can be up to BIL (Business Installation Loan) Board Rate + 2% p.a (at 11% p.a).
      • Annual fees for the first year is between of 1.5% of approved loan amount (minimum S$500).
      • Partnership or Sole Proprietor or Private Limited Companies are eligible for this loan.
      • Companies must hold minimum 3 years of business experience.
      • Minimum 50% shareholdings must be held by Singaporeans/Singapore PRs.
      • Minimum turnover must be between S$750,00 and S$21 million.
    10. Business Property Loan Standard Chartered Bank:
      • Applicable for industrial and commercial units, shop houses, and residential units.
      • Financing up to 80% of valuation price or property purchase price.
      • Repayment is up to 25 years for new purchases and 30 years for property refinancing.
    11. Business Working Capital Loan Standard Chartered Bank:
      • Finance up to 120% of property’s market value, based on different property types.
      • Maximum loan amount is up to S$4 million, based on collateral pledged, existing exposure to other banks, sales turnover, and subject to internal credit assessment and approvals.
      • Foreign Exchange hedging facilities of up to US$500,000.
      • Operating account must have a minimum business inflow of 50% of loan amount every quarter.

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