Products Comparisons

Comparing loan solutions for SMEs: DBS, UOB, Maybank & OCBC

Belinda Wan
July 15, 2021

Grow your business: Many major banks offer specific loans to help SMEs during this uncertain period. Photo credit: Unsplash

From a circuit breaker, a cautious reopening, to a Heightened Alert – Singapore has been through various stages of the pandemic as the situation on the ground changed and our understanding of the virus improved.

Since the virus seems set to stay on in some form or other, Singapore is preparing to treat the pandemic like the common cold – in other words, an endemic that is constantly in our midst.

If this does happen, what does it mean for the rest of us, including SME owners? It seems to suggest that we have to get on with our lives (and businesses) since the virus may not go away permanently. In other words, we have to live with the virus.

After all, the show must go on.

Now that we are in the third quarter of the year, and with some encouraging signs here and there, it may be a good time to think about how to help your business get a loan so it can sustain itself against any headwinds.

Even better news: The government is extending its aid to SMEs until 31st March, 2022.

With that, here’s a comparison of various loan solutions for SMEs offered by various banks here.

1. DBS Bank

Name of loan: DBS Business Loan

Who can apply: Open to all businesses, including those that do not qualify for government-assisted loans.

What it entails: You can borrow up to S$500,000 to support your operational expenses or business expansion. The loan amount depends on the bank’s assessment, but you can take 1 to 5 years to repay the loan.  

What you need to do: Prepare the latest two years of financial statements and the latest three months of financial statements. The latter is not required if DBS is already your main operating bank.  

How to apply: Apply online here via MyInfo Business or ACRA Search, and read the frequently asked questions.

Track your application status on online business banking platform DBS IDEAL. Once your application has been approved by DBS, the bank will give you an offer, which you can approve via DBS IDEAL. You will then be notified when the funds have been disbursed.

Other loan options: Other ways of obtaining working capital include accounts receivable purchase, an overdraft, and supply chain finance.

DBS also offers venture debt financing and the Enterprise Financing Scheme Trade Loan (EFS-TL) for SMEs keen on exploring trade financing.

Or find loan solutions for fixed assets, government-assisted schemes, or capital markets.

2. United Overseas Bank

Name of loan: UOB SME Business Loan

Who can apply: Singapore-registered sole proprietorship, partnerships or private limited companies that have been operating in Singapore for at least three years can apply.

Companies need to have at least 30% local shareholding, and must not have group annual sales of more than S$100 million nor have more than 200 employees.

What it entails: Ideal for SMEs that want to expand or get working capital, the UOB SME Business Loan is a bundled loan facility that combines the SME Working Capital Loan, Temporary Bridging Loan (jointly offered by Enterprise Singapore) and UOB BizMoney.  

The UOB Temporary Bridging Loan (which now includes all businesses) offers loans of up to S$1 million, preferential low interest rates and a repayment period of up to 5 years. The SME Working Capital Loan offers secure financing of up to S$300,000, preferential low interest rates and a repayment period of up to 5 years.

What you need to do: If you have any queries, click here to contact a SME loan specialist, who will get back to you within one business day.

Read the frequently asked questions, and terms and conditions here. Or use the Loan Installment Calculator to get a gauge of much your monthly repayment will be.

How to apply: Apply online in just five minutes using MyInfo Business.

Other loan options: Find out more about government assistance schemes, as well as import services and export services.

3. Maybank

Name of loan: Maybank Business Term Loan

Who can apply: Companies with at least 30% local shareholding that have been established for at least three years and have a minimum annual turnover of S$300,000.

What it entails: The loan offers up to S$500,000 for working capital with a repayment period of up to 5 years. No collaterals are required.  

What you need to do: Fill up the SME Banking Form.

Next, prepare the financial statements for the last two years, bank statements for the last six months, guarantors’ Notice of Assessment (NOAs) for the last two years, and front and back photocopies of guarantors’ NRICs.

How to apply: Fill up the Request for Call Back form. Or SMS to 79898 in this format: BIZTL <NAME> <NRIC>, after which a Business Development Manager will contact you shortly.

Other loan options: Try the SME Working Capital Loan, which offers up to S$300,000 with a repayment period of up to 5 years, with no need for collaterals. Or go for the Temporary Bridging Loan, which offers up to S$3 million with a repayment period of up to 5 years, with no need for collaterals.

For working capital, opt for an overdraft, business term financing-i,  or overdraft-i.

There are also loan solutions for SMEs looking for fixed assets loans or government assistance schemes.

4. OCBC Bank

Name of loan: OCBC SME Working Capital Loan

Who can apply: Companies incorporated in Singapore that have been operating for at least two years. They must also have at least 30% local shareholding, group annual sales of up to S$100 million, and a group employment size of no more than 200 employees.

What it entails: This collateral-free SME business loan offers a loan amount of up to S$300,000 to be repaid over 5 years, as well as 50% off your facility fees when you apply online. The funds are disbursed in full at the start and there are no early redemption fees.  

What you need to do: You can WhatsApp the bank at +65 9021 8880 or call 1800-BIZLOAN (1800-2495626). Read the terms and conditions here.

How to apply: Apply here. It takes less than five minutes if you apply via MyInfo or MyInfo Business. If you apply online by 31st August, 2021, you can enjoy 80% off your facility fee (up to $800).

Other loan options: Newly set up businesses between six months to two years old with at least 30% local shareholding, with no more than S$1 million annual turnover and no more than 10 employees, can apply for the OCBC Business First Loan.

Or check out the Temporary Bridging Loan, which offers 70% risk share by the government and up to S$3 million, with the interest rate capped at 5% per annum.

All information correct at time of publishing. However, information and promotions stated are subject to change at the discretion of the banks. Please contact the respective bank directly if you have any queries or require any clarification.

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

Belinda loves thinking about random stuff, and collecting useless bits of facts and trivia. She often roots for the underdog, and believes the world needs more happy endings.

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