UOB Loan

UOB bank in Singapore and Malaysia offers a different type of business loan that helps small business owners to expand their business and finance their day-to-day tasks. UOB mainly offers three types of loans, depending upon the nature of your business.  You can apply for any of them.

  • UOB BizMoney.
  • SME Working Capital Loan.
  • SME Micro Loan. 

You can use this money to finance your inventories, purchases from suppliers, and pay employees’ salaries. Some times you use this money to extend your business by getting a new place or by getting your assets like machines. Whatever your need is UOB is never going to ask you how you are going to spend this money. Let’s take a look at those amazing business loan details.

UOB BizMoney:

UOB BizMoney is a business loan for small business owners or entrepreneurs, who wants to grow their company or start a new business respectively. It involves no collateral and comes with a higher borrowing amount.  It required some documents and eligibility criteria that need to be met. As it involves no collateral you need a guarantee from your business stakeholders or directors. Usually, it takes 5 working days to get your loan approved.

UOB BizMoney involves the following terms and conditions.

Eligibility Criteria:

You need to fulfill the following requirements in order to get a business loan. Your business’s minimum annual turnover should be around RM 300000. Your company must be operating for 2 years or more. Your company should be registered in Malaysia/ Singapore. 51 % the company’s shareholders should be Malaysian or Singaporean.

Interest Rates & Monthly Repayment:

Bank’s interest rate based on the amount of loan amount and the tenure period. Through UOB Business Loan you can borrow $500000- $100000.  On this amount loan period would be 5 years and the interest rate are 6.48% p.a. UOB bank’s repayment method is easy you just need to pay RM 3317 per month.

Processing Fees Charges:

Processing fees depend on the amount of loan. For a small amount of loan, there is no processing fee but when the amount is large UOB charges you S$288 or 2% of the total loan amount. 

SME Working Capital Loan:

Many entrepreneurs face difficulties in accessing working capital loan to fund their small business. UOB’s SME working capital business loan is a scheme for entrepreneurs to meet their working capital requirements and fixed asset purchase. If you are looking for funds UOB bank covered your needs at competitive rates. Money transferred into your bank account in 48 hours.

UOB SME working capital loan involves the following terms & Conditions.

Eligibility Criteria:

You need to meet the following requirements to get SME working capital loan. Your business’s minimum annual turnover should be RM 150000. Your company’s age should be for 3 years. Your company should be registered in Singapore and 51% of directors and shareholders should be Singaporean/ Malaysian.

Interest rates & Monthly Repayments:

As you are familiar with the bank’s interest rates polices. Mainly the interest rate depends on the loan amount and the tenure period. SME working loan capitals has the longest financing period of up to 7 years. You can borrow the amount ranging from S$300000- S$750000.  The interest rate is 7.5 p.a. The monthly repayment is not fixed it can vary and depends upon the loan amount. Normally it is RM 5104.17 per month.

Processing Fees & Charges:

SME working capital loans always charge you processing fee. To stamp your documents UOB charges you RM 10 and another remaining processing fee is S$288 or 3% of the total loan amount.

SME Micro Loan:

SME Micro Loan is a financing scheme assisted by the government of Singapore to help local SMEs. You can access S$100000 to manage your daily business operation and cash flow. There are many financial institutes that are working on this scheme. UOB offers SME Micro loans on simple terms and at very low-interest rates as compared to other banks. They give a response to your request in 24 hours.  To get SME Micro loan you have to qualify their criteria.

Eligibility Criteria:

You should be operating your business for a minimum 1 year. Your company should be registered and operating in Singapore and minimum annual turnover should be S$ 1 million or must have at least 10 employees working in the company. Your company has at least 30% of the local shareholding. 

Interest rates & Monthly Repayments:

SME Micro loan’s interest rate depends on the loan amount and tenure period. You can borrow up to S$100000 at 3.88% interest rate. And the tenure period is 4 years. Monthly repayments are easy i-e RM 4661 per month.

Processing Fees Charges:

Processing fees can vary from S$200- S$250 or 1% of the total loan amount. For documentation verification and other processing, UOB charges RM 10.  

About UOB Business Loan:

You have seen UOB business loan is bundled loan facilities that combine UOB BizMoney, SME Working Capital Loan, and SME Micro Loan. The purpose of UOB business loan is to provide additional funds to small business owners to expand their business. For instance, a business owner wants to automate his factory’s machines so that production could be doubled and the company makes more revenue. UOB has a solution to all problems. But to get the Business loan you must have few things in common like you should be in business for at least one year, your company’s 30% stakeholders should be Singaporean, and your company’s annual sales should be S$1 million. UOB will borrow you up to S$ 550,000 with an 8% maximum interest rate. And you will have to return this money in 5 years.

But it is preferred, before getting a loan to ensure that you really need a loan. Sometimes companies get a loan and could not return it at the time which put their business in even worst conditions.

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