Secure loans by getting them insured against default. The Government will subsidise part of the insurance premium.

For who?

• If you are seeking domestic facilities, your business qualifies as long as 30% - 100% of your shareholding is local.
  
  
• If you are seeking export-oriented facilities, your business qualifies as long as:
  
  
  • you are incorporated in Singapore
  • you have a presence of at least 3 strategic business functions in Singapore<sup>#
    
    #</sup>The strategic business functions may include:
    
    • banking and financial
    • marketing and business planning
    • procurement / logistics
    • training and personnel management
    • investment planning / coordination
    • research and development (R&D) and design
    • technical support 
    • manufacturing
      
      
• Businesses applying for both domestic and export facilities must meet both set of criteria.

For what?

• You can use the loan to:
  
  
  • establish a viable new business
  • set up an inventory storage and distribution hub
  • expand existing manufacturing capacity
  • diversify into other product lines and capabilities
  • increase working capital
  • expand into new markets
  • broaden distribution channels

Types of loans

• LIS supports both domestic and export-oriented loan facilities.
  
  

  Types of Loan Facilities	Maximum Quantum of Financing
  Inventory / Stock Financing1	Up to 100% of the purchase price.
  Structured Pre-delivery Working Capital (including Revolving Working Capital)2	Up to 100% of Letters of Credit or Confirmed Sales Order, except for Revolving Working Capital facility which shall not exceed 20% of the total facilities given under this category.
  Factoring / Bill or Invoice or Accounts Receivable Discounting with Recourse	Up to 100% of invoice value.

  
  1.  Any disbursement under this facility must be made directly by the participating financial institutions to the vendors or suppliers of the borrowers. The purchase price includes cost of goods, freight charges, insurance and import duties.
  
  2.  This facility must relate to specific sales, purchase orders and/or letters of credit from the borrower's customers. A revolving working capital facility does not need to relate to any specific sales and/or purchase order and/or letters of credit from the Borrower's customers albeit related to underlying trade transactions.

Interest rates and re-payment

• Interest rates, repayment structures and collateral requirements will be determined by the participating financial institutions.
  
  
• Loan repayment period is up to 1 year.

Insurance premium

• For LIS, 0.45% of premium is payable upon approval of your loan.
  
  
• For Loan Insurance Scheme Plus (LIS+), 1% of premium is payable upon approval of your loan.

Things to note

• LIS can only be used for new loans and not for existing ones.
  
  
• LIS+ was introduced on 1 February 2009 as part of the Special Risk Sharing Initiative by the Government.
  
  It complements LIS by having the Government insure loans that are beyond the capacity of current LIS insurers for a one-year period.

Changes from 1 February 2010 - 31 January 2011

	Existing	Revised
Insurance premium for LIS	0.15%	0.45%
Insurance premium for LIS+	0.5%	1%

See:	• Changes to LIS from 1 December 2008 to 31 January 2011 (PDF) • Changes to LIS+ from 1 February 2009 to 31 January 2011 (PDF)

1. DBS Bank Limited
2. GE Commercial Financing (Singapore) Ltd
3. Hong Leong Finance Ltd
4. Maybank
5. Oversea-Chinese Banking Corporation Limited
6. Standard Chartered Bank
7. The Bank of East Asia, Limited
8. The Hongkong and Shanghai Banking Corporation Limited
9. United Overseas Bank Limited

For more info

Loan Insurance Scheme (LIS) and LIS+
SPRING Singapore

Loan Insurance Scheme and Loan Insurance Scheme Plus 
International Enterprise (IE) Singapore