Quick Small Business Loans in Singapore 2025

Small and medium-sized enterprises (SMEs) are the backbone of Singapore's economy, with over 90% of all enterprises on our tiny island being SMEs. It's no wonder that the Ministry of Trade and Industry's Enterprise Singapore has been busy ramping up support for businesses ever since the COVID-19 outbreak.

In 2020, the government announced that they had $1.7 billion drawn from past reserves, to finance loans such as the Temporary Bridging Loan Programme, SME Working Capital Loan as well as the Enterprise Financing Scheme. Some of these loans are still available in 2025, so if you’re shopping for small business loans, don't forget about government-assisted funding.

» LEARN: What is an unsecured business loan?

What are small business loans?

Small business loans are loans that are designed to suit the needs of SMEs and startups. They are flexible and convenient financing solutions, offered without the need for any collateral. Business loans give small businesses the funds they need to support their operations or expand the scope of their business.

Once granted, a business loan may be used at the discretion of the company. Armed with this new capital, business owners are free to use the loan to pay for new equipment, manage employee payroll, carry out research and development, or to carry out any other business purpose.

How do business loans work?

Business loans operate in much the same way as a personal loan. The difference is that the loan is taken by a company, and not by an individual.

As such, there are additional requirements your company will need to meet before your bank or financial institution of choice approves your loan. Some common eligibility requirements include having a certain percentage of local shareholders, a minimum period of business operations and a set group annual turnover sum. As you might expect, the business will need to be registered in Singapore under the Accounting and Corporate Regulatory Authority (ACRA).

» MORE: What are the different types of loans for businesses?

When applying for a business loan, look for one where the loan sum and tenure best suits your organisation's needs. Your lender will then offer you a loan package with an interest rate based on their assessment of your company’s credit risk.

If the terms of the loan meets your business needs, you can choose to formally accept the loan package, and the funds will be disbursed to your company’s account. Thereafter, you will need to repay the loan via fixed monthly instalments throughout the loan tenure.

Types of small business (SME) loans

Business term loans structured around monthly instalment payments are among the most common types of business loans available in Singapore.

However, there are also other types of business loans and commercial financing options that small businesses can tap on. These include:

• Green or sustainable financing loans, which are used by companies to cover the cost of switching to a more sustainable way of operating. One example is OCBC’s Green Loans For SME, which provides funding for clean transportation, energy efficiency and pollution prevention, just to name a few.

• Overdraft business loans. This revolving line of credit loan has no fixed tenure and grants quick access to cash needed for daily business operations. For instance, business owners can take out DBS’s Overdraft Business Loan for an instant cashflow boost. Plus, business owners will only have to pay interest on funds they have utilised.

Types of government-assisted SME loans

In addition to loans provided by banks and financial institutions, there are also government-assisted SME loans, some of which have been enhanced over time. 

• SME Working Capital Loan. This loan gives SMEs access to financing for operational cashflow needs, at S$500,000 over a loan tenure of up to 5 years. A larger risk share of 70% may be assigned to young enterprises, while more established SMEs may get a reduced risk share of 50%.

• SME Fixed Assets Loan. This loan allows for SMEs to finance their investments in local and overseas fixed assets. They can borrow up to S$30 million over 15 years to finance purchase of equipment or machines, for the purposes of automation or upgrading. They may also use the funds for the purchase or construction of factories and business premises.

» LEARN: 5 reasons why successful SMEs take business loans

OCBC Business First Loan 

• Interest rate: 7-11% p.a.

• Loan amount: S$100,000

• Loan term: 1-5 years

DETAILS

Overview:

OCBC positions their Business First Loan as ideal for start-ups, thanks to their lower costs and fast application process. New businesses in operation for at least 6 months are able to apply.

Qualifications:

• ACRA-registered business operating in Singapore for 6 months to 2 years

• At least 30% Singapore Citizen or PR ownership

• At least 1 employee

• More than 50% equity owned by individuals

Time to approval:

• Complete your application under 5 mins via MyInfo Business on SingPass. Get a response within 3 business days. 

Fees and charges:

• Facility fees: 2% of the loan amount, up to a minimum of S$500. Get 60% off facility fees when you apply from now till September 2025

• Early repayment fee: S$0

• Interest rate: 10.88% p.a.

• Loan amount: S$350,000

• Loan term: 1-5 years

DETAILS

Overview:

Need a little bit more capital than just S$100,000? Why not apply for the UOB BizMoney Loan, especially if you already have an UOB business account? Apply for your loan on the UOB SME app for a seamless process.

Qualifications:

• Applicable for Sole Proprietors, Partnerships & Private Limited Companies

• ACRA-Registered and operating in Singapore for at least 1 year

• At least 30% of shareholders must be based in Singapore

Time to approval:

• Within 1 business day

Fees and charges:

• Annual fee: S$500

• Facility rate: 2% of the approved loan amount

• Interest rate: 9.88% p.a.
• Loan amount: S$400,000
• Loan term: 1-5 years

DETAILS

Overview:

CIMB’s BizGrow Loan offers businesses up to S$400,000 in capital and has a competitive interest rate of 9.88% p.a. Unfortunately, CIMB’s eligibility criteria is opaque, so potential applicants will have to contact them directly for more details.

Qualifications:

• Contact CIMB for more information.

Time to approval:

• Hear back from 1 business day.

Fees and charges:

• Contact CIMB for more information

DBS Business Loan

• Interest rate: 7% p.a.

• Loan amount: S$500,000

• Loan term: 1-5 years

DETAILS

Overview:

Open to all businesses registered in Singapore, the DBS Business Loan is also stackable with government-assisted loans so you can free up even more capital. You also get a discount on processing fees when you apply online.

Qualifications:

• Business registered in Singapore under ACRA.

Time to approval:

• Complete your application within 5 minutes when you apply online. 

Fees and charges:

• Processing fee: 0.6% of the approved loan amount.

• Early repayment fee: 2.5% of the principal amount prepaid. (If prepayment is made within 2 years of the loan’s disbursement date.)

• Interest rate: 9-15% p.a.
• Loan amount: S$500,000.
• Loan term: 1-5 years.

DETAILS

Overview:

A flexible loan quantum of S$70,000-500,000 and a simplified application process make the Standard Chartered Business Instalment Loan stand out from the rest. However, the bank’s interest rates could be more transparent.

Qualifications:

• Open to Sole Proprietors, Partnerships & Private Limited Companies.

• ACRA-registered business.

• 50% or more shareholdings held by Singapore Citizens/PRs.

• Business must be in operation for a minimum of 3 years.

• Turnover of at least S$750,000.

Time to approval:

• Contact Standard Chartered Bank for more information.

Fees and charges:

• Annual fee: 2% of the approved loan amount or a minimum of S$400 for your 1st year. S$100 for subsequent years.

• Default fee: S$100

• Early repayment fee: 5% of the outstanding loan amount for repayments made within the first 12 months from the date of disbursement. 3% of the outstanding loan amount if repayment was made later, with 1 month’s prior written notice.

• Interest rate: 7-11% p.a.
• Loan amount: S$700,000
• Loan term: 1-5 years

DETAILS

Overview:

Unlike the OCBC Business First Loan, the OCBC Business Term Loan is for established businesses who have been in operation for at least 2 years. This means you’ll be able to loan up to S$700,000, which is 7 times higher than the maximum loan amount for the OCBC Business First Loan!

Qualifications:

• Your company must be locally incorporated for a minimum of 2 years

• At least 30% of company ownership by Singapore Citizens/ PRs

Time to approval:

• Complete your application in less than 5 minutes when you apply via MyInfo Business.

Fees and charges:

• Facility fee: 1.5% of the approved loan amount (Minimum S$500)

• Early repayment fee: S$0

• Interest rate: Determined by participating FIs
• Loan amount: S$500,000
• Loan term: 1-5 years

DETAILS

Overview:

The SME Working Capital Loan was permanently raised from S$300,000 to S$500,000 in 2024, allowing businesses more flexibility to meet operational and cashflow needs. With 15 participating banks and financial institutions to choose from, you’ll surely find one with terms that meets your requirements. 

Qualifications:

• ACRA-registered business entity operating in Singapore.
• At least 30% local equity held directly or indirectly by SG citizens or PRs.
• Group Annual Sales Turnover cannot exceed S$500 million.
• Group revenue of up to S$100 million or a total workforce of 200 employees.

Time to approval:

• Varies according to financial institutions

Fees and charges:

• Varies according to financial institutions

• Interest rate: Determined by participating FIs
• Loan amount: S$30 million 
• Loan term: 15 years

DETAILS

Overview:

Meant to help SMEs finance investments in local and overseas fixed assets, companies can tap on the SME Fixed Assets Loan to offset purchases of equipment for automation and upgrading, or construction projects. It is currently being offered by 11 participating banks and financial institutions. 

Qualifications:

• ACRA-registered business entity operating in Singapore.
• At least 30% local equity held directly or indirectly by SG citizens or PRs.
• Group Annual Sales Turnover cannot exceed S$500 million.
• Group revenue of up to S$100 million or a total workforce of 200 employees.

Time to approval:

• Varies according to financial institutions

Fees and charges:

• Varies according to financial institutions

Fees and charges

Small business term loans come with fees and charges that add to the overall cost of your loan. They may also vary from loan to loan, even for identical products offered by the same bank. One such example is Standard Chartered's Business Instalment Loan, where the Effective Interest Rate (EIR) for each loan can vary.

All financial institutions impose late payment or default fees. While nobody wants to default on their loans, it's worth noting down these fees to make sure you are able to pay the fees in case the worst should happen. Also look out for processing fees, annual fees and early repayment fees.

Affordability

Loan affordability refers to the ease with which you are able to make monthly repayments. It is determined by loan tenure and interest rate.

Generally, the longer your loan, the more interest you will accumulate—which results in a larger repayment sum. Despite this, some companies may opt for longer loan tenures to benefit from smaller monthly repayment amounts. Do weigh both options carefully to see which one will benefit your organisation more in the long run.

» LEARN: Should you use a business or personal loan to start a business?

With an optimal loan tenure and interest rate, your company should be able to comfortably pay off the loan each month. Prioritise loan terms that won't impact your company's finances even during slowdowns.

This will help your organisation to avoid late fees, escalating interest rates and perhaps even lengthened tenures altogether. After all, paying out of pocket would defeat the purpose of getting a small business loan in the first place.

Personal loans may seem like a tempting option for some business owners, but they may only be of limited assistance.

This is because personal loan sums are usually much smaller. Only people who have an annual income of S$120,000 or more are able to borrow 10x of their monthly income, versus the 4-6x that applies for people with lower incomes. Viewed this way, even the most generous of personal loans can only hope to match up to the tiniest of business loans.

In addition, you will be personally liable for a personal loan, which means you will have to repay the loan even if your business fails. In contrast, business owners are generally not held liable for company debts unless they have co-signed the business loan as a guarantor.

»  Compare Personal Loans