The Singapore government realizes that small and medium sized businesses are an integral part of the economy, helping it grow fast. These businesses often find it difficult to get a loan from conventional sources like banks and moneylenders or the interest rates are very high. Since getting finance at a reasonable rate is essential for helping the business grow , the Singapore government has launched the SME Micro loan scheme through which the government is providing financial assistance to the small and medium enterprises (SME). For owners of SME who require funds urgently, taking a secure microloan is a much better financial decision compared to the other loan options like personal or business loans.
The SME-micro loan provides the funds which the business will require for its regular expenses. The interest rate for this short term loan is also usually lower. CompareSing, one of the top financial comparison websites helps business owners find the best micro loan option for the business, after comparing the various micro loan options available. They also help the business in applying for a micro loan in Singapore, explaining the terms and conditions, comparing the documents required, so that the business gets the best possible deal.
Micro loan application process
Since the government is providing assistance for the micro loan, it has specified that only eligible businesses can get the loan. So unlike business and personal loans which are available to all businesses, the micro loan eligibility criteria are clearly defined. At least 30% of the business should be owned locally, the business should have less than ten employees, and the annual turnover of the business should be less than Singapore $ one million. If the business meets this criteria, it will be able to apply for the micro loan, filling the application form.
The application processing time for the micro loan will vary. In some cases, it will take at least four weeks for the application to get processed. There may be delays if additional information is required from the business, or financial documents are required. Since Comparesing has many years experience in loan application and processing, they can help business owners ensure that their loan application is processed faster, providing expert advice. They will also guide the business owner to fill the form properly, with required documents, so that the application for the micro loan is approved.
Interest rate for Micro loan
Comparesing offers a free service for comparing the various micro loan options available to business owners, the advantages and disadvantages of these options. Complete details of each offer for a microloan will be provided. After the business decides on which financial institution in Singapore he will use to get a micro loan, the actual interest rates for the loan will depend on the credit and risk assessment for the business. Typically the final interest rate for the micro loan is 6.8 to 8.75% depending on the loan duration and other factors. Hence the business owner should compare each loan offer carefully and take the right decision to get the finance his company requires for growth.