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 Type||Maximum Quantum Financed||Maximum 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|
|Parameters||LIS5||Enterprise 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%