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Loan Insurance Scheme (LIS) and LIS+
Helps Singapore-based companies to secure working capital and trade financing facilities by providing private insurance against default risks

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options for SMEs

SMEs welcome customised loan packages

The Loan Insurance Scheme (LIS) insures your loans against default risks. The insurance premiums will be co-shared between the government and your enterprise. LIS+ is a complementary programme to LIS, where the government will co-share in the risk of new loans which are beyond the capacity of current LIS insurers for a one-year period.

You can apply for the Loan Insurance Scheme if your company meets the following criteria :

For domestic facilities
  • at least 30% of your shareholding is local
For export-oriented facilities
  • Singapore-based;
     
  • Presence of at least 3 strategic business functions in Singapore. Strategic business functions refer to activities such as banking & financial; marketing & business planning; procurement/logistics; training & personnel management; investment planning/coordination; R&D; technical support and manufacturing.
For companies applying for both domestic and export facilities, you will have to meet both set of criteria as described above. 

Loan Facilities

LIS supports both domestic and export-oriented loan facilities.

Types of Loan Facilities

Domestic Facilities

Export-Oriented Facilities

Inventory/Stock Financing

Yes

Yes

Structured Pre-delivery Working Capital (including Revolving Working Capital)

Yes

Yes

Factoring/Bill or Invoice or accounts receivable discounting with recourse

Yes

Yes



   
 





 



Interest Rates 

The interest rate charged throughout the tenure of loans will be either fixed or floating depending on which option best suits your business needs. 

Use of LIS Loans

  • establish a viable business
  • support establishment of inventory storage and distribution hub
  • expand existing manufacturing capacity
  • diversify into other product lines and capabilities
  • augment working capital needs
  • expand trading into new markets
  • broaden distribution channels
  • support and fund their majority owned overseas subsidiaries


 

Previous


Enhancements
(Valid for one year with effect from 1 February 2009)

Source of Funds

Financial Institution

No change

Use of Funds

Secured working capital (e.g. against receivables)

No change

Maximum Loan Quantum

No limit but insurer has veto rights over $1 million

Up to $15 million per borrower group

Eligible Companies

All companies

All companies

Risk Share

Insurer : 75%

PFI1 : 25%

Government will insure loans beyond the LIS insurers’ capacities under LIS+.

Government : 75%

PFI1 : 25%

Insurance Premium 1.5% p.a.

 LIS
No change (1.5% p.a with 90% government subsidy)

LIS+
0.5% p.a. (on amount insured by government)

1 PFI: Participating Financial Institution


Application Procedure

Apply at any of these participating financial institutions:

Participating Financial Institutions

Contact Numbers

DBS Bank Limited 1800 222 2200
GE Commercial Financing (Singapore) Ltd 6226 3822
The Hongkong and Shanghai Banking Corporation Limited 6216 9000
Hong Leong Finance Limited 6415 9640
Maybank 6292 4237
Oversea-Chinese Banking Corporation Limited 6538 1111
Standard Chartered Bank 1800 743 3000
The Bank of East Asia, Limited 6224 1334
United Overseas Bank Limited 1800 2266 121








 











How-To Guide

Apply For Loan Insurance Scheme (LIS)

For help on financial advice, please click here.


For more information on government assistance programmes, please contact the EnterpriseOne hotline at Tel : (65) 6898 1800 or email enterpriseone@spring.gov.sg.

Current Selection
Loan Insurance Scheme (LIS) and LIS+
- How to apply?


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Last updated on 06 May 2009
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