- February 17, 2020
- Posted by: avantconsulting
- Category: Uncategorized
What are the current bank loan rates and which banks you should choose – For many of us, one of the first places we think of to get a loan is a bank. Education loans, car loans, housing loans and more – banks, with the extensive list of generous disbursements that they offer, seem to be the quintessential solution to our financial woes. Similarly, business owners here also rely significantly on the banking sector to finance whatever kind of investments their businesses need.
Different loans serve different purposes – all loans have seen their fair share of wooers. Yet here in world-class financial hub Singapore, Unsecured Business Term Loans have emerged as the all-time favourite loan amongst business owners. Being collateral-free in nature, these loans offer much flexibility to borrowers, possibly explaining why they are so popular.
Therefore chances are, if you are going to approach a bank for a loan, it’s going to be an Unsecured Business Term Loan. But with there being so many banks in Singapore offering so different rates, it’s going to be difficult for you, dear reader, to immediately know which particular bank package to go for.
So after some rigorous research, we have done up a data table detailing the various features of the Unsecured Business Term Loans offered by the various banking institutions in Singapore. Now you have (all) the details you would ever need for a loan at your fingertips. (Note: The list of banks is not meant to be exhaustive in any way)
Table of Comparison of Unsecured Business Term Loans of Banks in Singapore
|Product Name||Max. Loan Amt||Max. Loan Tenor||Interest Rate||Bank Processing Fee||Early Repayment Penalty||Min. Years in Business||Min. Business Revenue|
|DBS SME Banking Business Term Loan||S$500K||5 years||10.88% p.a||2% of loan amount||2.5% of loan amount prepaid||Unknown||Unknown|
|OCBC Business Banking Business Term Loan||S$500K||5 years||10.88% p.a||2% of loan amount||Unknown||2 years||Unknown|
|UOB Business Loan||S$550K||5 years||10.88% p.a||Unknown||Unknown||3 years||Unknown|
|Standard Chartered Business Installment Loan||S$300K||5 years||Up to 11% p.a||2% of loan amount (1% if eligible)||3% of loan amount prepaid||3 years (5 years if construction)||S$500K to S$750K (must fulfil credit risk grading if under S$750K)|
|Citibusiness Unsecured Business Loan||S$350K||4 years||Unknown||2% of loan amount||3% of loan amount prepaid||3 years||S$500K to S$750K (must fulfil credit risk grading if under S$750K)|
|Maybank Business Term Loan||S$500K||5 years||Up to 10.88% p.a||Up to 2% of loan amount||2%||2 years||S$300K|
|RHB SME Business Loan||S$400K||5 years||Unknown||Unknown||Unknown||Unknown||Unknown|
Disclaimer: The material and information contained above are for general information purposes only. Whilst Avant Consulting makes every attempt to ensure the accuracy and reliability of the information contained above, this information should not be relied upon as a substitute for formal advice from the respective aforementioned banks. Avant Consulting makes no representations or warranties of any kind, express or implied about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services or related graphics contained above for any purpose.
Other Considerations To Look At!
Sure, interest rates, tenor and quantum are the primary concerns that a prospective borrower may have about a loan, but there are also other aspects of a bank loan to look at before you sign that loan contract! Here are some final tips we have for you:
- Type of Industry
Each bank has its own individual palate for the types of businesses it is going to support financially. Some banks may be more inclined to lend money to businesses in specific sectors, while others may be less inclined to do so. Firms in the marine and offshore industry, for example, may find it more difficult to seek a loan from banks in recent times due to the sector’s slowdown.
So the moral of the story is: Don’t ever give up if you end up getting rejected by one bank! Other banks may still be willing to offer you a loan; it’s not the end of the world yet!
- A Little Caveat On The Maximum Quantum…
While UOB’s maximum loan quantum of S$550K stands out that of its counterparts, it is worth noting that in most cases, bank do not grant borrowers the maximum loan quantum available! Only those with superior financial backgrounds (or any other trump cards) would be given the maximum loan quantum, so don’t get too excited when you see juicy loan amounts!
- Your Credit Rating
Banks are at the end of the day, still profit-making entities, and are equally fearful of making losses as you are. The last thing they want to see is a borrower defaulting on his / her payments. So for banks to offer better loan packages, a more favourable credit score really is necessary. It’s certainly difficult to build up a good credit score in a short period of time, so be sure to start from small!
- Plan B
In the last-case scenario, if the banks are unable to provide you with satisfactory loan packages, some alternatives like peer-to-peer crowdfunding and other financial institutions are available for you to consider. If all these still fail to work, you can turn to private investors or lenders as well. Trust us, eventually, you will find the loan that is good and right for you.