Types of Business Loans in Singapore

Types of Business Loans in Singapore

Businesses always need funds for growth, increment, and other things. There are situations when they have to take loans from banks and financial institutions to achieve the purpose. There are many types of Low Interest Business Loan, which businesses can avail from these institutions like Capitall.

What are business loans?

A business loan can be termed as the amount of money, which businesses use to achieve different goals of the business. Business loans in Singapore are of many types, which include the following

  • Unsecured business loans
  • Equipment loans
  • machine loans

The loans are available at different interest rates. The interest rates also differ based on the financial institution, in which a business owner chooses to get the Low Interest Business Loan.

Types of business loans

Let us now discuss various types of business loans.

Business Term Loan

This is an unsecured loan, which businesses can avail from banks and financial institutions like Capitall. Many banks in the country offer this loan, which includes OSBS, Bank of China Singapore, Maybank, etc. The loan amount that a business can get may go up to S$500,000 and the repayment period for the loan is in the range of one to five years. Interest charged on this type of loan is 7 to 12% per annum. It takes around two weeks for the processing of the application.

SME Working Capital Loan

This loan is suitable for the businesses of small and medium-size. Enterprise Singapore has started the proposal of financing such companies and they can get unsecured business loans. Many banks have started providing this loan but Bank of China Singapore is not on this list. This bank provides loans only to established businesses.

The loan amount that people can get in this loan can go up to S$300,000 and the repayment period is in the range of one year to five years. The rate of interest for this type of loan is between 3.2% and 4.5%. The application for this loan can be processed within two weeks.

SME Micro Loan

The loan is suitable for SMEs in Singapore. They can get loans of small amounts easily. Small businesses can go for this loan. The repayment time for this loan is in the range of one year to five years and the time depends on the amount borrowed. The interest rate is in the range of 3.2% and 4.5%. The application is processed within two weeks.

Startup Business Loan

This type of loan is suitable for those doctors and surgeons who have plans of launching their clinics and practice. The processing time of this loan is two weeks and doctors can get a loan of around S$500,000. This amount is sufficient for launching a clinic. The interest rate of this line is in the range of 4.98% and 6.88% per annum. The borrower can pay the loan in a period of one to five years.

Equipment Financing

Many businesses need various types of equipment for manufacturing and selling. Such companies can go for an equipment financing to purchase the required equipment. The borrowed amount can be repaid based on monthly installments. The loan amount that a company gets is based on the total cost of the equipment. The borrowed amount can be paid in the period one year to five years. The rate of interest is low in this case which is in the range of 1.8% to 2.5%.

Crowdfunding

This is a type, of fundraising system in which people need not take loans from banks or financial institutions. They need to raise capital with the help of individuals. The loan amount that a business can get is around S$5 million. The repayment period for this loan is on year to three years. The interest rate is 12% to 16%. The processing time for this loan is more than the other loans it takes around three weeks for processing.

Marine Offshore Engineering Loan

This loan aims to help the companies to raise funds for the growth of their business. Companies, who want to resolve the problems of cash flow, can take this type of loan. The maximum amount that people can take is S$15 million. The processing time of this loan is three weeks and the interest rate is in the range of 6.75% and 8.25% per annum. People can repay the loan in a period of one year to five years.

Wrapping Up

These are different types of low-interest business loans and businesses can avail of any one of them, which is suitable for their requirement. Some of them are available to low interest and the repayment period is one year to five years.

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