Loan Insurance Scheme (LIS) and LIS+
 
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 Loan Insurance Scheme (LIS) and LIS+

Overview

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.

Summary of LIS and LIS+


Use of Funds Secured working capital (e.g. against receivables)
Maximum Loan Quantum LIS
No maximum loan quantum

LIS+
S$5 million per borrower group
Premium Rate and Interest Rate (and loan tenure) LIS
To be determined by the insurer based on the risk profile of borrower (Singapore Government provides premium support of 50%).

LIS+
1.5% p.a. (on amount insured by government)


The interest rate charged throughout the tenure of loans will be either fixed or
floating, depending on the option which best suits your business needs.
* PFI: Participating Financial Institution

Loan Facilities


LIS supports both domestic trade and overseas trade facilities.

Types of Loan Facilities

Domestic Trade Facilities

Overseas Trade 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

Overseas Working Capital Loans Support Facilities via Standby Letter of Credit or credit facilities made by Lender through its inter-branch cover letter (Only for above listed facilities)

No

Yes

Banker's Guarantee (Tied to Project Financing)

Yes

Yes


Criteria

You may apply for the LIS Scheme if your company meets these criteria :

Facilities for Sales to Local Customers

  • registered and operating in Singapore
  • at least 30% local shareholding;
  • company's group annual sales of not more than $100 million or company's group employment size not more than 200 workers*
* Annual sales turnover and employment size will be computed on a group basis.
(i.e All levels up for corporate shareholders holding >50% of total shareholding of the applicant company and any subsequent corporate parents, and subsidiaries all levels down)

Facilities for Sales to Overseas Customers

For sales to overseas customers :
  • based in Singapore with at least 3 strategic business functions
  • turnover of Applicant Company and its subsidiaries must not exceed $300 million for Non-Trading Companies and $500 million for Trading Companies

For companies applying for both types of facilities, you will have to meet both set of criteria as described above.

List of Participating Financial Institutions (PFI)

Banks

Contact Numbers

Bibby Financial Services (Singapore) Pte Ltd 6922 5030
DBS Bank Ltd 1800 222 2200
Hong Leong Finance Ltd 1800 3388 338
Malayan Banking Berhad 1800 629 2265
Oversea-Chinese Banking Corporation Ltd 6538 1111
RHB Bank Berhad 1800 323 0100
Standard Chartered Bank 1800 743 3000
The Bank of East Asia Ltd 6602 7848 /
6602 7849
The Hongkong and Shanghai Banking Corporation Ltd 1800 216 9008 /
6216 9008
United Overseas Bank Ltd 1800 2266 121

How to apply?

Before you apply

  1. Ensure that your business qualifies for the loan.
  2. Consult your banker or one of the LIS Participating Financial Institutions. They will be able to give you professional advice and also assist your application.
  3. Prepare the supporting documents if your bank requires them :
    • a copy of your business profile from ACRA
    • audited accounts or certified financial statements
    • bank statements
    • personal income tax assessment of owners and directors
  4. Meet with your banker or financial institution. Bring the supporting documents for the meeting.

Applying for LIS

  1. Obtain an Application Form from your banker or financial institution. Find out from the lender what supporting documents you need to attach.
  2. Submit the Application Form with the supporting documents.
  3. Wait 3 weeks for the bank or financial institution to reply. Processing of applications may be longer depending on the size of the loan and other factors.

Upon successful application

  1. Pay 50% of the insurance premium.
  2. Receive funds from the bank or financial institution.
  3. Keep proper records of repayments. Repayments start 1 month after disbursement of the loan.
  4. Ensure you make repayments on time.
Need Assistance?

Contact EnterpriseOne

Hotline : (65) 6898 1800
Email :
enterpriseone@spring.gov.sg
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Last Modified Date :13 Jun 2014