Loan Insurance Scheme
The Loan Insurance Scheme 5 (LIS 5) provides an alternative access to funding for local enterprises through the use of loan insurance. Under this scheme, the Bank can help local enterprises package attractive loan facilities to meet their working capital and expansion needs.
For each application, the total insurance premium is to be determined by the insurer based on the profile of borrower (Singapore Government provides premium support of 50%).
Types of Loans
The financing facilities include the following:
|Loan Type||Maximum Quantum Financed||Maximum Repayment Period|
|Inventory / Stock Financing Facility||Up to 100% of the Purchase Price||
|Structured Pre-delivery Working Capital Facility||Up to 100% of Letters of Credit received or of Confirmed Sales Order|
|Accounts Receivable Financing Facility||Up to 100% of Invoice Value|
|Banker's Guarantee(Tied to Project Financing)||Up to 100% of Banker's Guarantee Value|
|Overseas Working Capital Loans Support Facilities via Standby Letter of Credit||Up to 100% of the SBLC or credit facilities made by UOB through its inter-branch cover letter|
You may apply for LIS 5 if your company meets the following criteria:
Facilities for Domestic trade (Sales to Local Customers)
- Registered and operating in Singapore
- At least 30% local shareholding
- Company's Group Annual Sales of not more than S$100 million OR
Company's Group Employment Size of not more than 200 workers*
*Annual sales turnover and employment size will be computed on a group basis.
Group referring to the applicant, all corporate shareholders owning more than 50% of the shareholding in the applicant and its subsequent parents, and the applicant's subsidiaries of which the applicant owns more than 50% of shareholding.
Facilities for Export trade (Sales to Overseas Customers)
- Based in Singapore with at least 3 strategic business functions
i) Banking, Financial and Treasury Functions
ii) Marketing/ Business Planning/ Development or/ and Sales Management Functions
iii) Sourcing/ Procurement or Distribution/ Logistics/ Shipping Function
iv) Coporate Training and Personnel Management Functions
v) Investment Planning or/ and Coordination Functions
vi) Research & Development or Design Functions
vii) Technical Support Functions
viii) Manufacturing Functions
- Turnover of applicant company and its subsidiaries must not exceed S$300 million for Non-Trading Companies and S$500 million for Trading Companies
Global Headquarter(HQ)** anchored in Singapore
** Global HQ is defined by:
- AT least 50 % of applicant's board of directors are Singaporeans/Permanent Residents; and
- The control and management of the applicant's ultimate corporate parent (Parent company) is exercised in Singapore; and
- The CRO of the Parent company, responsible for the global decision of group are based in Singapore; and
- The Parent company's board of directors meetings are held in Singapore.
For companies applying for both domestic and export facilities, you will have to meet both set of criteria as described above.
All Terms and conditions must apply.
- Call us at 1800 226 6121
- Contact us