1 Fullerton Credit Pte Ltd is a licensed moneylender (License No. 100/2023) listed in the Registry of Moneylenders, under the Ministry of Law in Singapore.

The Best Business Loans in Singapore With Low Interest Rates 2024

Best business loan interest rates in Singapore

With the COVID-19 pandemic forcing businesses to shut their doors for extended time periods, many startups and small businesses are struggling right now more than ever before. 

Virtually every business in Singapore is facing imminent costs combined with working capital shortages and an unforeseen hit to their annual turnover – and personal loans aren’t always the answer.

During difficult times such as these, it’s more important than ever to secure lower interest rates and simpler application process requirements from business loans – as well as low redemption penalties and fees. 

Let’s look at some of the best SME loans and other alternative financing options with a good effective interest rate available right now.

What SME Loan options are available in Singapore?

Finding the best SME loans in Singapore isn’t always as straightforward as visiting local banks and looking for who offers lower interest rates. The information presented in advertisements doesn’t always tell the full story – and there’s always a chance you’ll find a more suitable financial product elsewhere. 

The best SME business loans can usually be borrowed:

  • From banks 

Traditional Singaporean banks offer competitive rates on anything from a standard unsecured business term loan to more specialized startup business loans and SME micro loan options. 

Often you can access financing without pledging any fixed assets as collateral, then simply pay interest on what you’ve borrowed over a pre-agreed repayment period. 

You can usually borrow for up to five years, but banks will only make their financial products available to businesses that have been in action for a certain time and are meeting strict revenue targets. This could be bad news if you’re a new business.

  • From Singapore monetary authority government schemes 

It’s not uncommon for small businesses to apply for a SME Working Capital loan via a government scheme that works in partnership with banks. 

For example, Singapore-registered SMEs that are at least 30% owned by permanent residents can access business financing of up to $1 million per borrower. 

This incredibly useful loan amount can be paid back within one to five years. However, government-assisted loans and monetary authority-backed schemes often have strict eligibility criteria.

  • From licensed moneylenders and other financial institutions

If your business needs to borrow money fast, but you’re worried that banks might turn you down for an unsecured business loan, or that you don’t meet the criteria for a Singapore government assisted loan, licensed moneylenders might just be your best bet. 

If your business has been active for over one year and is turning over more than $60,000, you can borrow SME loans or various other loan options with a good effective interest rate and an attractive max. loan amount of up to $200,000 from moneylenders and other financial institutions.

Best bank SME Business Loans in 2024

Name of loan Max. loan amount Loan tenure Interest rate and fees Eligibility  Where to apply
OCBC Business First $100,000 Up to 4 years Dependent on banks assessment  Must be registered in Singapore for 6-24 months

Must be owned locally (at least 30%)

Must have max. annual turnover of $1 million or max. group employment size of 10 employees

Guarantor with $30,000 min. income required

UOB SME Loan $100,000 Up to 3 years Dependent on banks assessment Must be registered in Singapore for 12 months

Must be owned locally (at least 30%, with 50% equity owned by individual shareholders)

Must have max. annual turnover of $100 million or max. 200 employees

DBS Digital Business Loan $200,000 Up to 5 years Dependent on banks assessment Must be registered in Singapore

Must be owned locally (at least 30%)

Standard Chartered Business Instalment Loan $300,000 Up to 3 years Interest rate up to 11% per annum

Default fee of $100

Must be registered in Singapore min. 36 months

Must be owned locally (at least 30%)

Must have min. annual turnover of $750,000

Standard Chartered 
MayBank Business Term Loan $500,000 Up to 5 years Dependent on banks assessment Must be registered in Singapore min. 36 months

Must be owned locally (at least 30%)

Must have min. annual turnover of $300,000

UOB BizMoney Loan $350,000 Up to 5 years Interest rate up to 10.88% per annum

Annual processing fee of $500

Facility rate processing fee of 2%

Must be registered in Singapore min. 36 months

Must be physically present in the country


Government-assisted loan schemes: SME Working Capital Loan and Temporary Bridging Loan

Singapore government support schemes aimed at start ups and small businesses who are struggling during the pandemic have been on the increase of late under the Solidarity Budget. 

If you need a business loan to help cover your daily operations, there’s a chance you might be eligible for an SME Working Capital or Temporary Bridging loan – two superb financing options aimed at those small businesses worst hit by COVID-19. These fixed term loans offer the following benefits:

  • Businesses can defer their payments during the first 12 months of their repayment period to better manage cash flow in the short-term
  • Unlike other loan options, the risk share is held 90% by Enterprise Singapore, meaning businesses are more likely to receive approval from banks participating in these schemes
  • Interest rates are capped at a very favourable 5% per annum on Temporary Bridging Loans

Best SME loans up to $200,000

Not every small business in Singapore will be eligible for government-backed support, but fortunately banks and moneylenders offer plenty of financial product options to assist with struggling business’ needs. If you require an unsecured business loan up to $200,000, you might want to consider the following:

  • UOB SME Loan 

This popular business loan lets you borrow up to a maximum loan amount of $100,000 for up to 3 years – perfect for plugging those short-term gaps in your finances. 

However, your business must be at least 12 months old to qualify for this loan. You’ll also need a max turnover of $100 million, 200 employees or less and for 50% of your company’s equity to be held by individuals, with 30% locally-owned.

  • OCBC Business First Loan

If you need a slightly longer loan tenure, OCBC will let you borrow that same $100,000 for up to 4 years. You’ll need at least one guarantor, who should be a Singaporean or permanent resident with an anyou haveme of $30,000 or more. 

However, the plus side of this guarantor requirement is that there are no documents required of you as a business owner to apply.

  • DBS Digital Business Loan 

If your financing needs are greater than $100,000, the latest information presented by DBS suggest they will let you borrow double that amount for up to 5 years with their Digital Bank Loan – with no collateral required. Your business premises will need to be located here in Singapore and owned 30% locally. 

In some cases, you might be able to pay interest only during your first 12 months of borrowing, as this loan is offered under the COVID-19 Resilience Budget. 

Best SME loans up to $500,000

If you need a little more than $200,000 to cover those mounting monthly salary or trade financing costs, there are plenty of banks and moneylenders out there willing to offer a maximum loan amount of up to $500,000. Here are some of the best on the market:

  • Standard Chartered Business Instalment Loan

If your business has been active in Singapore for three years or more, has a minimum annual turnover of $750,000 and is 50% owned by permanent residents, you could be eligible for a Standard Chartered Business Instalment Loan. 

Expect to borrow between an indicative range of $70,000 to $300,000 for up to three years without the need for any collateral.

  • UOB BizMoney Loan

Private limited companies, partnerships and proprietorships can all apply for a UOB BizMoney Loan of up to $350,000 so long as they meet the eligibility criteria. You’ll need to have been operational for three years or more, and you’ll be expected to pay a $500 annual processing fee for the privilege of securing effective interest rates of 10.88% per annum over a period of up to five years. 

There’s also a 2% facility processing fee – so watch out for this if you choose this loan option.

  • Maybank Business Term Loan 

If you need a working capital loan boost, Maybank’s Business Term Loan is probably one of the best loans that meets your needs in Singapore, as you can borrow up to $500,000 over five years to fuel your business’ finances. 

That said, you’ll need a very healthy annual turnover of $300,000 or more to apply – and your company must be owned 30% locally and at least three years old.

Best SME alternative financing options

Licensed moneylenders offer fast and easy loans in Singapore with straightforward application processes and flexible terms. Here are some of the top business loan features you can expect when applying for a moneylender business loan with 1 Fullerton Credit:

Business loan features Eligibility and terms
Fast approval within one hour or less Business must have been operational for one year
Unsecured loans available Min. annual turnover of $60,000 required
Borrow up to $200,000 NRIC, Income Tax statements, business assets, bank statements and other documents required
Flexible repayment plans available Still available to borrowers with bad credit
Interest rates capped at 4% per month Higher amounts might be available with proposed guarantor or collateral 

What financing factors could affect my application? 

The three most important factors that could affect an applicant company and their loan application include:

  • Track record 

The average turnover, performance, borrowing history and individuals’ credit scores could all have an impact on the business loan interest rates you are able to secure.

  • Business ownership 

Most banks and some moneylenders may require a certain percentage of your business to be owned here in Singapore.

  • Credit score 

Individual business owners’ and shareholders’ credit scores can affect business financing, too. This is particularly true when applying for SME loans with banks, but not so much with moneylenders or other financial institutions.

What is the business loan interest rate in Singapore? 

Business loan interest rates will always differ between different banks and moneylenders, so it’s important to shop around to get the best interest rate to suit your needs. On average, business loan interest rates can range anywhere from 9-12% on an unsecured loan, or 2-8% on other types of financing.

Which bank offers the lowest business loan interest rate? 

Finding the best business loan Singapore interest rate isn’t always easy, especially when most banks will grant a unique interest rate based on an assessment of the applicant company. If you need $200,000 or less, we’d recommend the UOB SME Loan, the OCBC Business First Loan or the DBS Digital Business Loan. If you need $500,000 or more, check out other financial institutions, or our suggestions above.

What is an unsecured business loan? 

An unsecured loan is any type of loan that doesn’t require collateral and isn’t linked to any of your fixed assets as a business borrower.

Where should I apply if I need a business loan urgently? 

If you need your business loan application to be approved quickly, licensed moneylenders like 1 Fullerton Credit will always be your best bet. Small business loans will be approved within the day with most moneylenders.

Conclusion – Finding the best business loans in Singapore

Applying for a business loan is almost similar to applying for personal loans. You’ll need to decide on a suitable loan amount, whether you need an unsecured business term loan or if you’re willing to offer collateral, and what interest rate meets your needs. With so many loan options available, you’ll also need to decide whether you want:

  • A bank loan

Which can offer great interest rates, flexible tenures and revolving facilities, but most banks have strict financing eligibility criteria

  • A government-backed loan 

Which offers lower risk share to banks and compounding periods of low or no interest

  • A moneylender loan

Which can offer faster approvals in just a few business days, good interest rates and flexible term loans

Here at 1 Fullerton Credit, we offer competitive business loans of up to $200,000 with flexible repayment tenures and great terms. Get access to your perfect working capital loan, micro loans, standard business loan or other types of financing today in three easy steps with 1 Fullerton Credit now!

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