- Business Guide: Key Employment Terms (KETs) for Employee Contracts in Singapore
- The Ultimate Guide To Interning In Singapore: How To Find The Best Internships, Get Fair Pay, And Maximize Your Learning Journey
- Unlock the Potential of Your Unpaid Invoices with OCBC Short-Term Invoice Financing
- Comprehensive Guide: How to Obtain a Garnishee Order and Protect Your Rights
- Complete Guide To WhatsApp In-App Payments For Singapore-Based Users
- What You Need To Know Before Applying For A Business Term Loan
- Make Sure Your Voice is Heard - How to Create a Valid Will in Singapore
- Complete Guide For Foreigner Opening Bank Account In Singapore
- Guide to Start-Up Business Loans in Singapore 2023 Edition
- SME Guide To Employer Of Record Services In Singapore
COVID-19: OCBC to disburse S$1b in government-assisted SME loans to small businesses by June 30
Article originally posted on The Business Times.
OCBC on Monday, 20th April 2020, said it expects the amount of government-assisted loans it lends out to small businesses to hit S$1 billion by June 30, fully utilising the support given by the Monetary Authority of Singapore (MAS) under its low-cost Singapore-dollar facility.
Its expected loan amount of S$1 billion will exceed the total government-assisted loans disbursed to the same customer segment during the 2008-2009 global financial crisis.
Cost savings from MAS' facility will be completely passed on to customers, by bringing the interest rate of the government-assisted temporary bridging loan to 2-3 per cent, said the bank in a statement.
OCBC's rates stood at around 6 per cent at the start of the year. Further cost savings will be derived from the waiver of the bank’s loan processing fees. With a loan approval period of two days and disbursement of funds within a week, the bank said it seeks to quickly address the pressing cash flow needs of small businesses affected by the novel coronavirus outbreak.
OCBC said it registered a spike in the volume of applications for relief measures in the last two months by more than 10 times, as the financial strain arising from the current "circuit breaker" period added to an already challenging situation. The manufacturing, construction, trading and distribution, and services businesses are increasingly turning to the bank for support, it added.
Close to 1,000 small businesses have asked for deferment of principal payments on unsecured and secured SME loans. For the larger SMEs with turnover above S$20 million, the bank has seen a similar surge in requests for funding relief, and the amount to this segment of SMEs has also exceeded the support given during the global financial crisis.
These loans are part of OCBC's virus relief package rolled out to help businesses amid the virus outbreak. The bank said it has digitalised the process and simplified the loan requirements for existing customers. Where hardcopies of documents were required before, electronic copies with digital signatures are now accepted during this circuit breaker period.
OCBC head of global commercial banking Linus Goh said: "In reaching out to our small business customers over the past three months, we have seen how they have had to adapt to cope with the new challenges and have been very responsive to the initiatives to relieve the stress on their operating cash flow from the loan moratoriums as well as the new ESG (Enterprise Singapore) loans.
"We will ensure that no SME with a viable business model hit by Covid-19 is turned away."
Not sure whether your company can be qualified for bank loans or alternative lending? Try our A.I assisted loan, and Smart Towkay team will send you a lending report within 24 hours' time. With the lending report, we aggregate and recommend the highest chance of approval be it with BANKS / FINANCIAL INSTITUTIONS or Alternative lenders like Peer to Peer Lenders or even B2B lender!
Got a Question?
WhatsApp Us, Our Friendly Team will get back to you asap :)
Share with us your thoughts by leaving a comment below!
Stay updated with the latest business news and help one another become Smarter Towkays. Subscribe to our Newsletter now!