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Micro Loan Programme (MLP)

Micro Loan Programme (MLP) - Revised enhancements.
Click here for the Press Release.
Click here for the changes with effect from 1 Feb 2010.

Overview

Loans of up to $100,000 for local SMEs with 10 or less employees. Government default risk sharing increased from 80% to 90% and loan quantum has increased from $50K to $100K.

Use of Funds For daily operations or for automating and
upgrading factory and equipment
Maximum Loan Quantum $100,000
Interest Rate * Minimum 5% interest rate for loan tenure of 4 years and below.
* Subject to Participating Financial Institutions’ assessments of risks involved.

Criteria

You may apply for a Micro Loan if your company meets these criteria :

  • registered or incorporated in Singapore
  • employ 10 or less employees
  • at least 30% of your shareholding is local
  • your company’s group fixed assets are below $15 million
  • your company’s group has no more than 200 employees (for companies in the services sector)
  • Checking up to three levels for corporate shareholders holding 20% or more of the total shareholding in the company and one level down, where the company holds more than 50% of the shareholding in a subsidiary company.

Participating Financial Institutions

Banks

Contact Numbers

DBS Bank Limited 1800 222 2200
The Hongkong and Shanghai Banking Corporation Limited 6216 9000
Indian Bank 6309 4379
Maybank 6550 7888
Oversea-Chinese Banking Corporation Limited 6538 1111
RHB Bank 6323 2001
Standard Chartered Bank 1800 743 3000
The Bank of East Asia, Limited 6602 7702
United Overseas Bank Limited 1800 2266 121

Finance Company

Contact Numbers

Hong Leong Finance Limited 6415 9640

Other Financial Institutions

Contact Numbers

IFS Capital Limited 6270 7711
GE Commercial Financing (Singapore) Ltd 6226 3822
ORIX Capital Ltd  6510 7295 
ORIX Leasing Singapore Ltd 6339 3622
^ Please note that Micro Loan may be subject to banks' credit approval

How to apply?

Before you apply

  1. Ensure that your business qualifies for the loan.
  2. Consult your banker or one of the Micro Loan 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 Micro Loan

  1. Download the application form and the application form guide. 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. Receive funds from the bank or financial institution.
  2. Keep proper records of repayments. Repayments start 1 month after disbursement of the loan.
  3. Ensure you make repayments on time.

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Need Assistance?

Contact EnterpriseOne

Hotline : (65) 6898 1800
Email : enterpriseone@spring.gov.sg
Last Modified Date :16 Jul 2010