If you are thinking of expanding your new business venture, you will require a large amount at the onset. If you don’t have enough cash in hand, you may require a business loan. There are many banks in Singapore that offer business instalment loans with attractive interest rates. However, you must take all the necessary precautions and get a clear understanding of what is being offered by each bank before applying. The Standard Chartered Business Instalment Loan offers an amount of up to S$300,000 without any collateral which you can pay over a period extending from 12 to 36 months. The monthly instalment consists of both interest and principal components.
With the Standard Chartered Business Instalment Loan, you will enjoy the following features:
The table shows the various fees and charges applied to the Standard Chartered Business Instalment Loan:
|Annual fee||First year: Up to 2% of the approved loan sum with a minimum amount of S$400. Second year onwards: S$100.|
|Board rate||Business instalment loan board rate is 9% p.a.|
|Interest rate||Effective Interest Rate for each loan can differ up to BIL Board Rate + 2% p.a. (at 11% p.a.)|
|Default fee (charged if there are any overdue loan instalments)||S$100 + An extra interest at 10% p.a. above the bank’s current business instalment loan board rate shall be charged on all unpaid instalments until the payment date.|
|Special request (post loan disbursement)||S$250|
|Redemption fee (full)||5% of the unsettled loan amount if you redeem within 12 months from the date of payout. 3% of the unsettled loan amount thereafter, with a prior written notice of one month.|
|Prepayment fee (partial)||3% on the prepaid amount with a prior written notice of one month.|
The interest on the loan will be accrued on a daily basis and will be calculated annually in accordance with the following formula:
Interest rate (p.a.)/12 months ÷ days in a given month × scheduled loan balance.
You will have to pay interest on the dates set out in the disbursement notice. You shall be informed of the monthly instalments payable after the loan is approved.
To be eligible for this loan, you and your business will have to fulfil the following criteria:
When you apply for this loan, you will have to submit the following documents:
The repayment period for this loan and the loan amount approved is based on the bank’s sole discretion.
If you’re looking for more cash to expand your business in Singapore, the Standard Chartered Business Instalment Loan is an option you can consider.