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#
#The strategic business functions may include:
- 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.
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
Participating Financial Institutions
- DBS Bank Limited
- GE Commercial Financing (Singapore) Ltd
- Hong Leong Finance Ltd
- Maybank
- Oversea-Chinese Banking Corporation Limited
- Standard Chartered Bank
- The Bank of East Asia, Limited
- The Hongkong and Shanghai Banking Corporation Limited
- 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