Business Loans

Business Loan Interest Rates Singapore 2024

Lina Tay
September 17, 2024

Business loan interest rates in Singapore vary based on factors such as market conditions, lender policies, and, even your business finances. This can often make it difficult to identify attractive interest rates. 

As a loan marketplace dedicated to helping businesses gain access to financial solutions, and improving outcomes in approval and pricing, we wanted to share some of the prevailing business loan interest rates in Singapore to provide a reference for choosing the right loan and lender. 

Average Business Loan Interest Rates Singapore 2024

Note: Interest rates are subject to change and service fees may apply.

Read More: Guide To Business Loans in Singapore (Updated for 2024)

Top Factors that Affect Business Loan Interest Rates

Credit Worthiness

Your credit score plays a vital role in determining not only eligibility for a loan but also the interest rate offered. Lenders perceive good credit scores as a reflection of reliable repayment history and financial stability, and as such, offer lower interest rates due to the reduced risk. Conversely individuals with bad credit scores might receive higher interest rates due to the increased risk of a default. 

Benchmark Rates

Benchmark rates such as SOR, SIBOR and SORA also serve as a basis for determining interest. It’s worth noting that as of 2024, all new loans will reference SORA. Loans issued before 2022 that are linked to SIBOR or SOR will be transitioned to SORA. 

Type of Loan

The type of loan, and how it’s structured—that is to say, secured or unsecured—can affect interest rates. For example, a business applying for a secured business term loan might receive reduced interest due to the lowered risk for lenders. In contrast, unsecured term loans tend to have higher interest rates. 

Financial Performance

Before approving a business loan, lenders will evaluate your business’s financial health by examining statements such as your balance sheet, cash flow statement and profit and loss statement. A profitable business with a steady cash flow may receive more favourable interest rates as opposed to one with financial struggles and inconsistent cash flow. 

Economic Climate

Inflation, GDP and other economic factors also influence business loans. Higher inflation, for example, will result in higher interest rates to compensate for the reduced purchasing power of money repaid in the future

Read More: 4 Best Business Loans to Start a Business

How to Find the Best Interest Rates

Research and Compare Rates

Compare and contrast loan offers from different financial institutions. A loan marketplace like Lendingpot can make this easy; instead of spending hours visiting multiple websites, by filling out a simple form, you can receive a variety of personalised offers from the multitude of lenders on our platform. 

Avoid Applying for Multiple Loans at the Same Time 

All loan inquiries are recorded by the CBS which are subsequently shared with financial institutions conducting checks into your credit worthiness. Multiple business loan applications suggest that a borrower is likely to be credit hungry. 

Prepared a Strong Business Plan and all the Required Documentation 

Taking time and effort to present a complete picture of your business, detailing your financial health and a viable business model, enhances your credibility as a borrower, and can positively influence a lender's decision. 

Business Loans Made Fast, Simple & Fuss Free

Looking for a business loan? We can help! With a single application, you can gain access to more than 45+ lenders on our platform, each competing to offer the best rates. We take pride in our mission to redefine the lending process, helping businesses get the best outcomes and approvals. 

Having trouble getting started? Reach out to us here. Our team is happy to address any doubts you might have or help you navigate the process.


Leading digital loan marketplace Lendingpot connects SMEs to its network of 45 lenders comprising relationship managers from banks, financial institutions, and private and peer-to-peer lenders in Singapore. It aims to help SMEs overcome the information asymmetry problem and lack of transparency prevalent in the SME financing sector by offering SMEs financing options such as business term loans, property loans, revenue-based financing, credit lines, working capital loans, bridging loans, invoice financing, and more.

About the author

Lina heads up all things marketing and branding at Lendingpot. With a keen aesthetic eye, she believes in the use of design to communicate with our SME community and aspires to turn Lendingpot into a household name. Out of work, she is an avid camper and appreciator of nature’s best works.

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