Micro Loan Programme
Posted by admin on Dec 12, 2008
Very small businesses can get loans of up to S$100,000.
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More funding and bigger Government share of loan default for Micro Loan from 1 December 2008 to 30 November 2009 to help businesses during the economic downturn. Find out more about the changes. |
For who?
Your business qualifies as long as:
- you are registered or incorporated in Singapore
- 30% - 100% of your shareholding is local
- you have 0 - 10 employees
In addition,
- your company’s group fixed assets must be between S$0 - 15 million*
- your group employment size must be between 0 - 200 workers (for services sector)*
*Computed on a group basis. Where 20% - 100% of your shares are owned by other companies, the total value of your fixed assets and employees is calculated three levels up. Where your company owns 51% - 100% of another company (subsidiary), your subsidiary’s fixed assets and employees will also be added to the computation.
For what?
You can use the loan to:
- fund the daily operations of your business
- automate and upgrade your factory and equipment
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Types of loans
- Working Capital Loan#
- Machinery Term Loan/Machinery Hire Purchase
#Loan can be structured as a term loan of up to 4 years.
Interest rates and re-payment
- It is a fixed interest financing programme.
Things to note:
- Micro Loan is a loan for smaller businesses offered under Local Enterprise Finance Scheme (LEFS).
- Your combined loan exposure for Micro Loans cannot exceed S$100,000.
Facts & figures
- S$720 million worth of loans have been extended to 3,500 companies under the Micro Loan, Local Enterprise Finance Scheme (LEFS) and Loan Insurance Scheme (LIS) from 1 January 2007 - 31 December 2007.
Source: SPRING Singapore, Annual Report 2007/2008. - S$326 million worth of loans have been extended to 10,000 companies under Micro Loan from 2002 - 2006.
Source: SPRING Singapore, Enterprise Today, January - February 2007.
Changes from 1 December 2008 - 30 November 2009
|
Existing |
Revised |
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Maximum loan amount |
S$50,000 |
S$100,000 |
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Risk sharing of loan default |
Government: 50% |
Government: 80% |
PFI: Participating Financial Institution
Participating Financial Institutions
- DBS Bank Limited
- GE Commercial Financing (Singapore) Ltd
- Hong Leong Finance Limited
- IFS Capital Limited
- Indian Bank
- Maybank
- ORIX Leasing Singapore Ltd
- Oversea-Chinese Banking Corporation Limited
- RHB Bank
- Sing Investments & Finance Limited
- Singapura Finance Limited
- Standard Chartered Bank
- The Hongkong and Shanghai Banking Corporation Limited
- United Overseas Bank Limited
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