FAQ for Goverment Assissted Loan


  • Max Loan Quantum: S$100,000
  • Repayment up to 4 years
  • SME Eligibility Criteria

          1. Registered and operating in Singapore

          2. At least 30% local shareholding

          3. Group annual sales of ≤ S$100M or group employment size of ≤ 200



  • Max Loan Quantum: S$300,000
  • Repayment up to 5 years
  • SME Eligibility Criteria

          1. Registered and operating in Singapore

          2. At least 30% local shareholding

          3. Group annual sales of ≤ S$100M or group employment size of ≤ 200

  •  Spring Singapore will co-share 50% of loan default risks with PFIs and SMEs.

Yes, you can. Potentially SMEs can apply for both schemes and get a maximum approval quantum limit of S$400,000 subject to bank assessment of your company financial standing.

The interest rate is at 6.75% effective but do note that interest rates are subject to PFIs' discretion as they will do their own risk assessment and determine the final interest rates chargeable to the borrower.

One of the key features of the above scheme is there is no repayment penalty for partial or full redemption of the loan within the approved tenor. The borrower will only need to serve a one month notice period for partial or full redemption to PFIs.

PFIs will charge a 1-2% processing fee and some might charge an annual fee, thus do check with the PFIs before applying for the scheme.

Typically, PFIs business term loan have higher interest rates and carry a lock in period i.e. any partial or full redemption of the loan within the loan tenor will incur a repayment penalty while SME ML & WCL does not have any repayment penalty.

Most PFIs business term loans will require ≥ 2- 3 years old incorporated company to be eligible for their loan while for SME ML & WCL, some PFIs will even accept ≤ 1-year company for the application.

No. With the Co-Risk sharing scheme PFIs will be more inclined to take in more loan exposure to a certain extent, but that does not necessarily mean a lenient risk assessment.  PFIs will still approve applicants within their own credit parameters and comfort levels; although credit parameters can differ among PFIs, their main assessments are still based on company Financial Reports, Bank Statements and Individual Directors’ declared income assessments.

Most PFIs will require the standard documents listed below for processing:

  • Latest 6 months company’s operating account
  • Latest 2 years company audited/ management report
  • Latest 2 years notice of assessment of directors/shareholders
  • Photocopy of directors/shareholders NRIC (front and back)

Some may ask for additional documents such as the company’s debtor aging list, corporate Notice Of Assessment, GST tax filing, etc.

Under these schemes, SMEs can borrow up to S$100,000 (SME ML) and S$300,000 (SME WCL).

Every PFI have their own credit exposure considerations and have an internal maximum loan guideline. As such, they might not approve loaning the full amount under these schemes. In the event that an SME needs more than the approved amount for their working capital needs, it can apply to other PFIs for the remaining ‘balance’ of the loan limit.

Do note that at the point of application with another PFI, the borrower will have to declare their SME Spring Loan exposure so that there will not be a double booking of limit with Spring Singapore. For instance, if an SME took up a S$100,000 SME ML and also qualify for SME WCL, the secondary PFI must then apply under SME WCL for the PFIs.

SMEs can also do a ‘top-up’ of existing SME ML/WCL with PFIs after 6 months to a 1-year servicing of the loan.

Different PFIs have different credit criteria; an unsuccessful application from one PFI does not mean straight rejection by other PFIs. But the rule of thumb is SMEs can apply from the same PFIs who rejected their initial application after 6 months.

Applications may possibly be rejected due to the following reasons:

  1. Poor credit bureau standing of the guarantor of the application
  2. Loss making company
  3. Negative net-worth company
  4. Poor repayment conduct of existing personal or business loan facility with the applicant lender
  5. Poor mid/end month balance sighted

All business term loans will require the company’s director and shareholder to be the personal guarantor. As per MAS notice 645 TDSR (Total Debt Servicing Ratio) guideline, 20% of the monthly repayment instalment for any relevant credit facility which the borrower is a guarantor of will be factored into the TDSR calculation.

Depending on the PFIs, approval can take as fast as a week or as slow as a month.

After the PFI’s own credit approval, they will check with Spring Singapore again for the latter’s approval and it will typically take 3-5 working days for Spring Singapore to respond.

Once the green light is given by Spring Singapore, the borrower can then sign the offer letter and thereafter it will usually take 3-5 working days for the funds to be disbursed.

Yes, of course. Besides applying by yourself, you can engage us to act as a middleman between you and potential lenders. We understand the daunting task of going through the whole rigorous process of documents submission and numerous Q&As for a company to take up a business term loan. Our job is to work on your behalf and with several PFIs to find the best business term loan lenders who best fit your needs with the lowest rates. We have a well-developed stable of lenders we work with, making your life easier. We are like your company loan concierge; we do all the legwork for you, negotiate terms, and make the approval magic happen. All for a nominal fee, of course.