UOB : Loan Insurance Scheme

Enjoy peace of mind with the Loan Insurance Scheme (LIS) and the accompanying complementary programme LIS+, where default risk is insured. Under these schemes, risks are co-shared with 75% risk borne by the insurers*, thus lowering any default risk.

Under LIS, the sponsors (IE Singapore & SPRING Singapore) provide premium support of 50% while you pay for the remaining 50%.

Under LIS+, the sponsors will charge an insurance premium of 1.5%p.a. for the amount insured by the sponsors.

UOB Business Banking facilities allowed under LIS:

Types of Loan Facilities	Domestic Trade Facilities	Overseas Trade Facilities
Inventory / Stock Financing	Yes	Yes
Bill or Invoice or accounts receivable discounting with recourse	Yes	Yes

*The insurer under the LIS scheme for UOB is United Overseas Insurance Limited. Insurers for LIS+ are Standards, Productivity and Innovation Board (SPRING) Singapore & International Enterprise (IE) Singapore

For domestic trade facilities
If your company's goods are sold domestically within Singapore, it will need to fulfil the domestic trade facilities criteria:
- Your company will need to have at least 30% local shareholding (i.e. shareholders are either Singaporeans or Singapore Permanent Residents)
- Your company fixed assets must not exceed S$15m on a group basis
- Your company group employment size must not exceed 200 workers if it falls under the service industry
For overseas trade facilities
If your company's goods are exported and sold overseas (i.e. for non-domestic consumption), it will need to fulfil the overseas trade facilities criteria:
- Your company must be Singapore-based (i.e. registered with Accounting and Corporate Regulatory Authority); and
- Your company must have at least three strategic business functions in Singapore. Strategic business functions are defined as:
  - Banking and financial;
  - Marketing and business planning;
  - Procurement/logistics;
  - Training and personnel management;
  - Investment planning/coordination;
  - R&D;
  - Technical support and manufacturing
- Your company's group turnover must not exceed S$500m for Trading Companies^{^†} / S$300m for Non-Trading Companies
^†Your company will be considered a trading company if more than 50% of turnover comes from buying and selling goods
Both domestic trade facilities and overseas trade facilities
If your company's goods are sold both domestically and overseas, it will have to meet both sets of criteria as described above.

To sign up now, just follow these three easy steps:

Business Banking

What are your needs?

Loan Insurance Scheme