Comparing SME Business Loans: DBS, Maybank, OCBC and UOB

Key Takeaways

• Small businesses often need funding for expansion, working capital, and investments in growth or operations.
• Some banks that offer business loans in Singapore include DBS, Maybank, OCBC, and UOB.
• Interest rates are an important factor when choosing a business loan because they affect borrowing costs, repayment risk, and long-term affordability.
• Besides bank business loans, businesses can also consider SME grants, crowdfunding platforms, and hire purchase financing.
• Choosing the right business loan is important, and SMEs can consider fast, unsecured financing options like Holistic Enterprise for working capital or business expansion needs.

Does your business need more money to grow, operate or simply maintain reliable cash flow? Taking out a business loan is one way to obtain the money you need to meet your SME’s goals, and it can be a stepping stone towards seizing opportunities for growth, evolving with the times and staying a step ahead of the competition. It’s also a way to buttress existing operations and productivity, ensuring that your business can perform at its best.

In this article, we will examine and compare four of the most well-known SME business loans in Singapore.

Overview of SME Business Loans

SME business loans in Singapore are targeted at helping small and medium businesses access the cash they need in an easy, flexible manner.

The loans are structured to serve common business needs, such as operational costs, cash flow for day-to-day needs or working capital for expansion and growth.

Business owners should know why they are taking out a loan before applying for one. Not only does this help them select the best loan product for their needs, but the loan provider may also evaluate their goals when deciding on the loan’s viability and the terms.

Importance of Securing a Business Loan for Small Businesses

Small businesses often have access only to limited funding due to their scale. There are some common situations in which a small business might require access to additional cash, such as:

a) Expansion

Access to funding can help a small business expand. For instance, a business might wish to grow its range of products and services, start operating in overseas markets, or invest more heavily in marketing. Expansion can also involve boosting production capacity or hiring more staff.

b) Working Capital

Access to a healthy amount of working capital is necessary for a business to function smoothly and ride out slow periods. These funds enable the business to operate normally, pay salaries, fulfil customer orders and take advantage of opportunities while staying resilient in the face of unexpected expenses.

c) Investing

Businesses may wish to invest in new equipment, machinery, property, technology or infrastructure. They may also wish to invest in boosting their brand image through marketing or other branding efforts.

DBS Business Loan

Features of DBS Business Loan

The DBS Business Loan is open to all businesses seeking operational cash flow or to support business growth, with no collateral required. The loan is stackable with government-assisted loans.

The maximum loan amount is S$500,000, with a loan tenure of 1 to 5 years. Interest rates start from 7% p.a.

For eligible applicants, DBS can also provide the government-assisted SME Working Capital Loan, which offers up to S$300,000 worth of working capital.

For loan amounts of up to S$50,000, new borrowers with DBS do not need to present any documents when applying. Loans of up to S$50,000 also benefit from lower processing fees.

Interest Rates and Terms

• Maximum loan amount: S$500,000
• Loan tenure: 1 to 5 years
• Indicative interest rate: 7% to 11% p.a.

Who Can Apply?

All Singapore-registered businesses.

Applicants will need a guarantor.

Application Process for DBS Business Loan

You can apply online.

If you select ACRA or MyInfo Business when applying via the above link, most of the required documents can be retrieved online.

However, if DBS is not your business’s main bank, DBS may ask on a case-by-case basis for additional documents, such as:

• Financial statements for the last 2 years, or
• Latest 3 bank statements

Maybank Business Term Loan

Features of Maybank Business Term Loan

The Maybank Business Term Loan is aimed at businesses looking for working capital, with no collateral required.

It offers up to S$500,000 in working capital financing, to be repaid over a period of up to 5 years.

Interest Rates and Terms

• Maximum loan amount: S$500,000
• Loan tenure: 1 to 5 years
• Indicative interest rate: Depends on the bank’s risk assessment

Who Can Apply?

Singapore-registered businesses established for at least 2 years, with at least 30% local shareholding.

Application Process for Maybank Business Term Loan

Submit the following to Maybank:

• SME Business Consent Form
• Financial statements for the last 2 years
• Bank statements for the last 6 months
• Notice of Assessment (NOA) of guarantor(s) for the last 2 years
• Photocopy of NRIC of guarantor(s)

OCBC Business Term Loan

Features of OCBC Business Term Loan

The OCBC Business Term Loan is a collateral-free loan for SMEs, with a maximum loan amount of up to S$700,000.

There are no early repayment charges, and the bank is also offering 50% off facility fees until 31 January 2027, making the loan more cost-effective.

Interest Rates and Terms

• Maximum loan amount: S$700,000
• Loan tenure: 1 to 5 years
• Indicative interest rate: 7.75% to 11% p.a.

Who Can Apply?

Singapore-registered businesses established for at least 2 years, with at least 30% owned by Singaporeans/Permanent Residents.

Application Process for OCBC Business Term Loan

You can apply online, using MyInfo Business to supply most of the required information, and furnish the following, where applicable:

• Profit and loss statement and balance sheet for the last 2 years (for Pte Ltd/LLP with turnover of over S$5 million)
• Bank statement for the latest 6 months (for non-OCBC account holders)
• ID documents of all non-Singaporean/PR guarantors (if not available through MyInfo Business or SingPass authentication)
• Guarantor’s NOA for the last 2 years (if not available through MyInfo Business or SingPass authentication)

UOB Business Loan

Features of UOB Business Loan

The UOB Business Loan is a collateral-free loan for SMEs looking for additional working capital, or to expand, automate or upgrade. The maximum loan amount is S$800,000.

It is a bundled loan which, where applicable, can combine the government-assisted SME Working Capital Loan of up to S$500,000 with the UOB BizMoney unsecured loan of up to S$350,000.

Businesses need only to have operated in Singapore for one year before qualifying for this loan, making it suitable for start-ups.

Interest Rates and Terms

• Maximum loan amount: S$800,000
• Loan tenure: 1 to 5 years
• Indicative interest rate: 7% to 10.88% p.a.

Who Can Apply?

Sole Proprietors, Partnerships or Private Limited Companies registered and operating in Singapore for at least one year, with at least 30% local shareholding.

For Companies, group annual sales must not exceed S$100 million. Alternatively, Companies must not have a group employment size of more than 200.

Application Process for UOB Business Loan

You can apply online using MyInfo Business with the following:

• Details of existing business loan types and amounts
• Bank statements of the main operating accounts for the last 6 months
• Buyer and supplier name and country (For trading/wholesale entities)
• Memorandum and Articles (for Private Limited Company)
• Partnership Agreement letter (For Partnerships with Agreement)

Comparison: DBS vs Maybank vs OCBC vs UOB Business Loan

Why Compare Business Loan Interest Rates in Singapore?

Interest rates are a key factor to consider when selecting a business loan.

They are a major cost of taking out a loan, and should be taken into account along with the fees charged by the loan provider. Selecting a loan with a competitive interest rate can result in significant cost savings over time.

Lower interest rates also lower the risk of loan default, which can protect a business’s credit score. A poor credit score can affect chances of approval and make it more difficult to secure loans later on.

Interest rates change from time to time, and a bank offering the most attractive interest rates today might no longer be as competitive tomorrow. As such, it is important that any comparisons be kept up to date.

Current Market Trends

Singapore’s interest rates have been trending downwards for a good part of early 2026, and analysts predict they will bottom out in the second quarter of 2026 due to expected US Federal Reserve rate cuts.

A low-interest environment can be favourable for SMEs hoping to pursue growth, increase headcount, invest and innovate.

How SME Business Loan Rates Affect SMEs

Interest paid to a bank, along with loan repayments, makes up a significant part of an SME’s costs. A higher interest rate translates into higher loan repayments, which can affect the business’s margin, increase cash flow pressure and ultimately affect profitability.

What Other Financing Tools Can SMEs Explore?

Other than turning to traditional business loans, SMEs can consider the following options:

#1 Alternative Business loans

Instead of turning to the usual banks and financial institutions, SMEs can also consider private lenders, which can often offer more flexible funding solutions.

For instance, Holistic Enterprise offers short-term working capital loans of up to 12 months, ideal for businesses seeking shorter loan tenures than those offered by banks.

#2 SME Grants

The Singapore government offers numerous business grants, such as the Productivity Solutions Grant, which encourages the adoption of selected digital solutions and tools to boost productivity, and the Enterprise Development Grant, which helps businesses expand overseas.

#3 Crowdfunding Platforms

Crowdfunding platforms such as Kickstarter and Indiegogo can help businesses secure funding for new project ideas.

#4 Hire Purchase

If you are looking to acquire an asset, a hire purchase arrangement can enable you to pay in instalments while letting you take possession of and use it immediately.

Conclusion

A business loan can be the gateway to a stronger, more competitive business, but it is important to select the right one for your SME’s needs.

For SMEs aiming for additional working capital or business expansion, an unsecured business loan from a business loan specialist like Holistic Enterprise is a quick and convenient solution.

Holistic Enterprise offers a short-term working capital loan of up to 12 months’ tenure, as well as a business expansion loan that can be approved in just 4 to 6 working days. You can apply for both loans online in minutes.

Check out Holistic Enterprise’s blog for more useful resources for SMEs in Singapore, such as:

• Our comprehensive guide for the best SME loans, eligibility criteria, and a comparison of top lenders, including bank and digital options.
• The top corporate bank accounts in Singapore: After securing your business loan, managing your cash flow effectively is the next step. Read this article to compare the best corporate accounts, including multi-currency options from both traditional banks and fintechs, helping you choose the right home for your funds.
• Registering for a sole proprietorship in Singapore: For if you are thinking of starting out solo and exploring a business loan for your new venture. This step-by-step guide covers everything from ACRA registration to tax filing.