Loan Insurance Scheme

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Types of Loans

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.

As per the latest Budget announcement, the Singapore Government will provide 80% subsidy for the loan insurance premium. Additionally, under the Enterprise Financing Scheme (EFS), the maximum loan quantum of EFS-Trade Loan is S$10 million, with the government’s risk-share at 90%.

 

The financing facilities include the following:

Loan TypeMaximum Quantum FinancedMaximum Repayment Period
Inventory / Stock Financing Facility Up to 100% of the Purchase Price 1 year
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 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  
ParametersLIS5Enterprise Financing Scheme (EFS) Trade
Maximum facility limit you may borrow Subject to the maximum capacity of the Underwriters for the Borrower S$10 million
Risk share Private insurer: 75%
UOB: 25%
Government: 90%
UOB: 10%

Eligibility

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* pp

    *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 alicant'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:
    1. AT least 50 % of applicant's board of directors are Singaporeans/Permanent Residents; and
    2. The control and management of the applicant's ultimate corporate parent (Parent company) is exercised in Singapore; and
    3. The CRO of the Parent company, responsible for the global decision of group are based in Singapore; and
    4. 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.

 

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