Mobile Drawer
  • Social Media Icon
  • Social Media Icon
  • Social Media Icon

Loan Insurance Scheme (LIS) and LIS+

Companies seeking to access trade finance loans for their growth and expansion needs can tap on the Loan Insurance Scheme (LIS) and LIS+.


The Loan Insurance Scheme (LIS) & LIS+ at a Glance

The LIS helps companies secure trade finance loans from Participating Financial Institutions by insuring the institutions against insolvency risks of the company. Loans are underwritten by commercial insurers and a portion of the insurance premium is supported by the Government. The scheme also comprises the Loan Insurance Scheme Plus (LIS+) whereby the Government underwrites loans that are beyond the capacity of commercial insurers.

  • Inventory / stock financing facility
  • Structured pre-delivery Working Capital
  • Factoring / bill or invoice or accounts receivable discounting with recourse
  • Banker’s Guarantee for contractual fulfilment (not available under LIS+)
Maximum Loan Quantum No maximum quantum S$5 million per borrower group
Premium Rate To be determined by the insurer based on the risk profile of borrower (The government provides premium support of up to 50%) 1.5% p.a. (on the amount insured by the government)



Companies applying for the LIS and LIS+ should meet the following criteria:

Selling to Local Customers (Domestic Trade Facilities)

  • Registered and operating in Singapore
  • 30% local shareholding
  • Group annual sales ≤ S$100m or  group employment size ≤ 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)

Selling to Overseas Customers (Overseas Trade Facilities)

  • Global headquarters1 anchored in Singapore
  • At least 3 strategic business functions2 in Singapore
  • Annual sales turnover of applicant company and its subsidiaries ≤ S$300m for non-trading companies and ≤ S$500 million for trading companies3

1 Global headquarters refer to global management control and decision making functions are based in Singapore. Indicators include global CXOs being based in Singapore, board meetings being held in Singapore, etc.
2 Strategic business functions refer to activities such as banking and finance, marketing and business planning, procurement, logistics, training & personnel management, investment planning / co-ordination, R&D and design, technical support, manufacturing, and other value-added (VA) activities.
3 An entity is considered a trading entity if more than 50% of its turnover is derived from buying and selling goods.

Companies applying for both types of facilities have to meet both set of criteria.

Interested companies may approach any of the following Participating Financial Institutions to apply for the LIS or LIS+.

Participating Financial Institutions Contact
Bibby Financial Services (Singapore) Pte Ltd 6922 5030
CIMB Bank Berhad 6438 7888
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
United Overseas Bank Ltd 1800 2266 121


  1. Check that your business qualifies for the loan.
  2. Consult any of the Participating Financial Institutions for advice and assistance.
  3. Meet with the financial institution with these supporting documents:
  • Business profile from ACRA
  • Audited accounts or certified financial statements
  • Bank statements
  • Personal income tax assessment of owners and directors
  • Other documents as required by your banker or financial institution



  • Obtain an Application Form from the financial institution and compile the required supporting documents for submission.
  • Processing of applications may take 3 weeks or more, depending on the size of the loan and other factors.


  • Pay the insurance premium upon successful application.
  • Receive notification from the financial institution that the loan is ready for use.
  • Keep proper records of repayments.
  • Make repayments on time.

Suggested Reading

Stories to inspire you

Last Updated on : 27 Apr 2016