Business Loans In Singapore Comparison

Business loans in Singapore are offered by almost 20+ banks and financial institutions.

Different banks have various criteria, rates and types of loans offered. You don’t have to call up every bank to check their rates and criteria.

Simply use this free online loan assessment tool to compare all SME business loans instantly!

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Types of small business loans:

Temporary Bridging Loan

The Temporary Bridging Loan Programme was introduced, and enhanced in Budget 2020, to help SMEs improve access to financing (up to $3M) and lower the cost of financing, in view of Covid-19’s impact on the economy.

Unsecured Business Term Loan

Most common form of working capital loan. Lump sum principal loan amount usually between $50K to $300K per bank. Repayable via equal monthly installments typically between 3 to 5 years.

SME Working Capital Loan

The SME Working Capital Loan is a government assisted financing scheme launched in June 2016. The scheme has been enhanced following Budget 2020. Maximum financing amount is up to $300K for Singapore SMEs.

Trade Financing

Revolving trade financing credit line to finance inventories or materials purchases from suppliers. Letters of Credit (LC) can be issued to overseas suppliers. Trust Receipts (TR) credit terms between 90-120 days.

Factoring / Receivables Financing

Financier advance 80% to 90% of your customers’ outstanding invoices value. Suitable for SMEs whom serve reputable companies with long credit payment terms.

Property Financing

Mortgage loan to finance purchases of commercial or industrial properties. SMEs can also pledge exiting property to banks for financing facilities. Cheapest form of financing due to collateral nature.

Equipment Financing

To finance purchase of fixed assets such as machinery and equipment. Typically structured as hire purchase or leasing.

SME Micro Loan

The SME Micro Loan is for younger startups or smaller SMEs looking for micro financing up to $100K loan quantum. It has since been superseded by the SME Working Capital Loan.

Which Bank Has Lowest Business Loan Interest Rate?

Different banks and corporate loan products bears different interest rate. A typical business term loan interest rate range between simple interest 3.5% to 7% p.a. (effective interest rate between 6.5% to 13%).

Use our business loan calculator to check indicative monthly installment amount and interest costs.

Business financing criteria and requirements

Minimum annual revenue of $300K

Minimum average daily bank balance of $10K

Operating for 1 year, preferably 2 years

Financing products, interest rates and credit criteria are different across all banks and financial institutions.

You can use a loan assessment tool to check your company’s business loan eligibility and compare best rates.

  • What do banks look for when applying for business loan?

    There are multiple factors and criteria in banks' credit assessment. These are not made public and differs from each bank.

    Common business loan eligibility requirements include age of business, industry nature, revenue, business owner's credit rating, cash flow, profitability ratio amongst other financial indicators. Besides these, there are many other considerations.

    Businesses can apply for business loan online for banks that offer online digital business loan application. Companies can also contact banks directly via their retail channels for enquiries.

    Most banks usually take 2 to 3 weeks to process corporate loan applications. For more complex cases, processing time may take up to a month.

    If you require business financing urgently, you can consider engaging a business loan broker to help with the process. An experienced consultant can help expedite turnaround time due to familiarity with the banks’ credit criteria.

Best bank for business loan in Singapore?

Most Singapore SMEs have a banking account with the 3 local banks due to their wide retail banking network and brand name familiarity.

The 3 local banks are undoubtedly dominant players in Singapore’s SME financing space. With strong branding and sturdy balance sheets, our 3 homegrown banks continue to dominate Asia’s safest banks rankings year after year.

DBS, OCBC & UOB are ranked the top 3 safest banks in Asia respectively for 2021. [1]

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When it comes to applying for a business loan, most SMEs will naturally gravitate towards these 3 banks as well.

How attractive are the 3 local banks SME business loan offerings compared against each other?


We’ve done some research via mystery shopping calls to their respective SME loan departments and quick checks on their websites’ product page. Here are the results we got:

DBS Business Loan

OCBC Business Loan

UOB Business Loan

Maximum Loan amount 500K 500K 350K
Maximum loan repayment period 5 years 5 years 4 years
Interest rate 10.88% p.a. 10.88% p.a. 10.88% p.a.
Processing fee 2% of loan amount 2% of loan amount 2% of loan amount
Early redemption penalty 2.5% 5% 6.88%

Which bank’s business financing should you choose?

All 3 banks SME business loan product features are very similar. They are also priced almost identically with all 3 banks’ corporate loan interest rate starting from 10.88% p.a. EIR. The banks might also run periodic promotions where slightly lower rates are offered.

How much SME business loan can your business get?

UOB business loan features are less attractive with the maximum quantum of $350K compared to both DBS and OCBC at $500K. Maximum repayment period is similar across all 3 banks at 5 years.

P.S. Although all 3 banks publish their maximum loan quantum, do note in our experience, it’s not easy to qualify for their maximum limit. Most borrowers, in our opinion, will not be offered the maximum amount unless financials and all credit aspects are exceedingly strong.

The above figures are for reference only. Although financing product features are similar, do note that all 3 banks have different internal credit criteria.

For example:

OCBC’s business term loan will require the applicant company to be registered for minimum 2 years while UOB will require minimum 3 years of incorporation.

There are other multiple credit criteria that differ between the 3 banks, including age limit of director, industry nature of business, minimum revenue requirements etc…

Aside from our 3 local banks, there are about 20+ different banks, financial institutions and alternative financiers that offer working capital loan financing for SMEs.

To help you navigate the different credit criteria of all financiers, you can easily compare all banks’ SME loans with a free online business loan assessment and see all your funding options instantly!

Disclaimer: Linkflow Capital Pte Ltd does not purport to represent any of the 3 local banks in any manner. We are not able to guarantee the accuracy of the information presented here in perpetual as the banks might adjust their product features over time. All information on the 3 local banks business loan products presented in this article were obtained in September 2021 via their respective websites or calls to hotline. The information presented here is not meant to be relied on solely. If in doubt, please verify information again with the respective banks business loan department or seek professional help.

Startup business loan in Singapore

If you’ve just established a new business and sourcing for a startup business loan in Singapore, you might be disappointed. Few banks offer unsecured business loan to new company with no operational track record.

Most banks require borrowers to have minimum 2 to 3 years operational history before considering a business loan application.

If your business is operational for at least 1 year with decent cash flow, a competent SME business loan consultant might be able to source alternative financing options for you. But do expect financing options to be limited for a start.

Most banks deem the risk of failure is too high for new start ups. For entrepreneurs targeting to get a loan to start a business, do consider other funding channels instead.

Personal loans from banks, personal savings or funds from family and friends are common sources of startup capital. If you are a tech startup with potential to scale fast, private equity financing, angel investors and venture capital are also appropriate channels.

Business loan with bad credit?

Is it possible to qualify for a corporate loan with bad credit history?

If the business owner has poor credit rating due to past defaults or late payments on personal credit facilities, it definitely affects the company’s financing approval chances.

If your credit rating is bad due to poor payment conduct of credit cards, car loan or home loan etc you might like to try improving your credit rating first before applying for business financing.

Depending on how adverse your credit history is, you might still be able to remedy it by clearing off all your outstanding dues. It is advisable to only apply for a business loan after you have sorted out your personal credit issues.

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Frequently Asked Questions

Business loan interest rates ranges from 7% to 13% p.a. effective rate. Rates are usually calculated on principal monthly reducing basis.

Most banks are not able to finance new startup or extend business loan to an individual to start a business. Your business must be minimally 6 months to 1 year old to apply for loans.

Most banks will require latest 6 months bank statements, latest 2 years financial report, AR and AP ageing list, director’s NOA, list of existing banking facilities and GST returns (if applicable).

Applications typically takes between 2 to 3 weeks to be processed once all required documents are in good order. For marginal or complicated cases, it could take up to 4 weeks for processing.

There are 20+ banks providing SME financing. Every one of them have different credit criteria and risk appetite. There is no best bank, only the most suitable bank, which criteria happen to fit your company’s profile.

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