Loan Insurance Scheme (LIS) and LIS+

Overview  Criteria  Participating Financial Institutions  How to apply?

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+ enhancement

Use of Funds	Secured working capital (e.g. against receivables)
Maximum Loan Quantum	Up to $15 million per borrower group
Eligible Companies	All companies
Interest Rate (and loan tenure)	LIS No change (1.5% p.a with 90% government subsidy) LIS+ 0.5% 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 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

Criteria

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

Participating Financial Institutions

Banks	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	6602 7702
United Overseas Bank Limited	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

5. Obtain an Application Form from your banker or financial institution. Find out from the lender what supporting documents you need to attach.
6. Submit the Application Form with the supporting documents.
7. 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

8. Pay 50% of the insurance premium.
9. Receive funds from the bank or financial institution.
10. Keep proper records of repayments. Repayments start 1 month after disbursement of the loan.
11. Ensure you make repayments on time.