Business Term Loans in Singapore
In another article we explained the technical aspects of a business loan in general. This article aims to provide more information for Business Term Loans in Singapore’s context to offer more clarity before applying for one.
Related: What is a business loan?
In Singapore, business loans are commonly termed “business term loans” due to its fixed loan period. Business term loans are quite straightforward without too much complexities. More details are as follows:
- They are unsecured loans made out to businesses and companies by banks and financial institutions. “Unsecured” means that the banks and financial institutions do not require any asset as collateral or security.
- As the loan is unsecured, the loan is supported by the financials of the business or company, and required to be backed by the owner(s) or company directors as personal guarantees.
- There is a maximum loan amount of up to S$500,000.
- There is a predefined interest rate (typically 6% to 12% per annum).
- The loan repayment period can be from 1 to 5 years.
- There is a monthly installment payable towards the repayment of the loan amount.
Also note that most banks and financial institutions also charge an administrative fee between 1% to 3%.
Contact us if you need assistance on loan advisory or loan application.