In this piece, we will examine the procedure for applying for an SME loan in Singapore is. Also, we will discuss the documents required to apply for a loan and the types of the institution giving them are.
What is the procedure to apply for an SME loan in Singapore?
SME loans are known to be one of the most popular loans not only in Singapore but in other countries also. Not only Singapore but other countries also have SMEs and also startups in them. They are also doing all they can get so that they can support these startups and the SMEs in the market. This is the common reason as to why the government is trying to make the SME a big business. They are trying to do this because they want that the SME should grow in the market, and this will also help the government. If the SME does well in the market, then it will increase the economy of the country. Given below is the list of steps that you can use to apply for an SME loan in Singapore.
- Apply online or go to the branch
You can apply for an SME loan either online, which is on their website or a financial institution. Or else, if they don’t have an online website, you can go to any of their branches and apply for an SME loan. Just like personal loan, you may borrow money online instantly for business loan.
- First call from the institution
After you submit all the documentation and everything, you need to wait. You will get a call from the institution to confirm all the different documents that you have submitted.
- Document submission
After you get the first call, you will need to take all the documents and submit them again.
- Second call from the institution
The call will be taken after all the documents have been submitted. They do this call so that they can confirm with the borrower the documents they have submitted.
- Process for approval
Then you will have to wait for the manager to read your application and wait for the approval.
- Presentation of business loan
After the loan has been approved, the RM will make the loan plans and then give them to the borrower to choose from.
- Site visit
The people from the bank or a financial institution where you are taking the loan will come to your office. They will check the kind of business you have and its reputation then they will decide to sanction the loan or not.
- Sign documents
You will have to go to their office and then read and sign all the documents carefully.
After the approval and signing, you will have to wait for the funds to be transferred to your account.
What are the documents that need to be submitted?
There are many different kinds of documents that are needed by the bank or the institution. These documents are very important and are verified thoroughly before disbursing the loan to people. Please make sure to get genuine and authentic documents for approval. Given below is the list of 5 main documents that you need to process the loan further.
- ACRA business profile
The bank or the institution will need all the business documents from the borrower. They need to provide an accounts copy and the address copy to them.
- Last two years notice of directors
They will need a written and signed notice from the directors that say to take an SME loan.
- Latest CBS report
The CBS report is the thing where you can view the company’s financing and other things. It contains everything from credit rating to loans taken in the past details.
- Last two years financial statement
The bank and the institution will need their last two years’ financial statement to check its credibility.
- Latest bank statement
You will need the last six months’ bank statement of the business and submit it.
What are the institutions in Singapore that give SME loans?
Given below is the list of some institutions that give SME loan in Singapore to businesses.
These are the large financial institution which is available in every country of the world. But there are many banks in Singapore because it is known as the business capital of the world.
- Non-bank financial institution
These are not the institution which is registered on a financial basis, and these are regulated under Minlaw.
- Peer to peer lending
This is the lending in which one person can take the money they want from another person. They will have to conduct this kind of transaction face to face with each other.
- Private lender
These are the people who are registered under Minlaw, and they are not with any banks. They give loans to the SME without taking any kind of collateral.