The Singaporean government has provided a number of supportive measures to help SMEs due to the economic hardships brought on by the COVID-19 pandemic, including assistance in the form of business loans backed by the government. Here in this blog, we have made a comparison of several loan options like UOB, OCBC and SME business loans offered by several banks.
An Overview of DBS, UOB, Maybank & OCBC SME Business Loan
An elaborate explanation of the various types of business loans:
DBS Business Loan
This loan is open to all companies, even those who don’t qualify for financing with government assistance. You are permitted to borrow up to 500,000 dollars to help with operating costs or business growth. You can return the loan over one to five years, depending on the bank’s evaluation of your ability to pay. Accounts receivable purchases, overdrafts, and supply chain financing are additional methods of getting working capital. DBS also provides venture debt financing and the Enterprise Financing Scheme Trade Loan (EFS-TL) for SMEs interested in learning more about trade financing.
UOB SME Business Loan
Applications are accepted from partners, proprietors, and private limited corporations in Singapore for at least three years. Companies must have at least thirty percent of the share, not exceeding 100 million dollars in annual group sales, and employ no more than 200 people. The UOB Business Loan incorporates the SME Operating Capital Loan, UOB BizMoney, Temporary Bridging Loan (co-offered by Enterprise Singapore), and UOB BizMoney.
SME Working Capital Loan offers a secured loan of up to 300,000 dollars, extremely low-interest rates, and a maximum 5-year payback. With loans up to one million dollars, relatively low-interest rates, and a repayment period of up to 5 years, the UOB Temporary Bridging Loan is an excellent option for all firms. You can learn more about government assistance programs, export services, and import services on the website.
Maybank Business Loan
Companies that have been around for at least three years with a minimum annual turnover of 300,000 dollars and holding at least 30 percent of shares are eligible. The loan has a maximum working capital amount of 500,000 dollars and a maximum 5-year repayment duration. Collateral is not needed for this loan. One can consider the SME Working Capital Loan, which provides up to 300,000 dollars with a 5-year maximum payback period and no collateral requirements. Alternatively, the Temporary Bridging Loan has no collateral requirements and gives up to 3 million dollars with a maximum 5-year repayment duration.
OCBC SME Working Capital Loan
Singapore-based businesses that have been in operation for six months up to at least two years are eligible for this loan. Additionally, they need to own at least thirty percent of local shares, make up to one hundred million dollars in yearly sales, and employ no more than 200 people collectively. When you apply online for this collateral-free SME company loan, you will receive fifty percent off your facility costs in addition to a loan amount of up to 300,000 dollars that will be repaid over five years.
There are no early redemption fees, and the payments are distributed in full at the beginning. Businesses operating for less than two years having at least thirty percent local ownership, a 1 million dollar annual revenue, and no more than ten workers may apply for the OCBC Business Loan. You can also check the Temporary Bridging Loan, which provides up to 3 million dollars with a 5 percent annual interest rate cap and 70 percent risk sharing by the government.
Learn About Best SME Loans Up to 200,000 Dollars
You might wish to look into these three SME loans if your company just needs a small loan, such as less than S$200,000.
OCBC’s First Business Loan
This loan has a maximum loan amount of 100,000 dollars and a maximum term of four years. it does not require any paperwork or collateral but at least one Guarantor (a Singaporean or Permanent Resident 21 years of age or older with an annual income of at least 30,000 dollars necessary) must be provided.
UOB SME Loan
This loan is a comparable loan that enables you to borrow up to 100,000 dollars. The maximum payback term, however, is only three years long. Your company must be at least a year old, 30 percent locally owned, and have more than 50 percent of its stock held by individuals in order to be eligible. Additionally, your company should not employ more than 200 people, and your annual turnover should be less than 100 million dollars.
DBS Digital Bank Loan (DBL)
This loan does not demand collateral and lets you borrow up to 200,000 dollars with a 5-year repayment duration. You can pay only your interest over the first twelve months of the loan since it is available under the Resilience Budget. To qualify, your company must be at least 30 percent locally owned and physically operating in Singapore.
More Information on the Best SME Loans Up to 500,000 Dollars
Maybank and UOB can supply the funding you need if you’re seeking a company loan between 300,000 and 500,000 dollars.
UOB BizMoney Loan
This loan provides a little bit of additional business capital with a loan maximum of up to 350,000 dollars. Additionally, the maximum repayment term is extended to five years. This loan’s current effective interest rate is 10.88 percent per year, plus a 2% facility charge. Keep in mind that an annual fee is also included, which is 500 dollars. Private limited firms, partnerships, and sole proprietorships registered and doing business in Singapore for at least three years are eligible for this loan.
Maybank Business Term Loan
This can be appropriate if you’re looking for a business loan for 50,000 dollars. This loan has a maximum disbursement of 500,000 dollars and a maximum 5-year repayment period. Your company must be at least 30 percent locally owned, in operation for at least three years, and with a minimum annual revenue of 300,000 dollars in order to qualify.
Final Words
Even though it isn’t stated expressly, specific “high-risk” industries may not be eligible for loans from some banks due to risk classification. More options are available apart from UOB, OCBC and SME business if you don’t qualify but need money to maintain or grow your business. Considerations include credit lines, personal installment loans, and invoice factoring.
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