Check official terms: Loan rates, eligibility, and scheme details change frequently. Verify current terms with your lender and at enterprisesg.gov.sg before applying.
Choosing the right business loan option Singapore financial institutions offer mean matching your funding need — working capital, expansion, or cash-flow management — to the right product and lender. This guide covers the top business loans Singapore SMEs offer in 2026, what to compare, and how to choose.
Quick Summary
- Best overall: DBS Business Term Loan — up to S$500,000, flexible tenure, fully digital application via DBS BusinessClass. (Verify rates at dbs.com.sg)
- Best government-assisted: Enterprise Singapore EFS Working Capital Loan — up to S$500,000 at subsidised rates, risk co-shared with the government. (As of April 2026 — verify at enterprisesg.gov.sg)
- Best for startups and young businesses: OCBC Business First Loan — up to S$100,000, no collateral, designed for businesses operating 6 months to 2 years. (Verify at ocbc.com)
- Best unsecured fixed-term option: UOB BizMoney — up to S$350,000, no collateral, fixed rate at 10.88% p.a., tenures of 1–5 years. (Verify at uob.com.sg)
- Key stat: Singapore had 356,600 SMEs in 2024, representing approximately 99% of all enterprises. (Ministry of Manpower, March 2026)
“Access to financing is one of the most critical enablers for SMEs to grow, innovate, and internationalise.” — Enterprise Singapore
Comparison Table (Last updated: April 2026 — verify current rates with each lender before applying)
| Lender | Product | Max Amount | Best For | Key Requirement | Trade-Off |
| DBS | Business Term Loan | S$500,000 | Established SMEs, expansion | Min. 2 yrs operating | Requires strong credit profile |
| Enterprise Singapore | EFS Working Capital Loan | S$500,000 | Subsidised-rate borrowing | ≥30% local shareholding; sales ≤S$100M or ≤200 employees | Applied via bank, not directly |
| OCBC | Business First Loan | S$100,000 | Startups and young businesses (6 months–2 yrs) | Operating 6 months–2 years | Lower cap; not for established SMEs |
| UOB | BizMoney | S$350,000 | Unsecured fixed-term working capital | Min. 2 yrs operating | Fixed term, not revolving |
How to Choose a Business Loan in Singapore
- Match loan type to purpose: Working capital, equipment, trade finance, and expansion each suit different products — confirm the right type before applying
- Compare EIR, not flat rate: The Effective Interest Rate (EIR) includes fees and gives a true cost comparison across lenders
- Check government scheme eligibility: Enterprise Singapore’s EFS lowers rates for eligible SMEs — group annual sales ≤S$100M or ≤200 employees for the Working Capital Loan; verify at enterprisesg.gov.sg
- Confirm eligibility requirements: Most bank SME loans require at least 2 years of operating history, Singapore registration, and ≥30% local ownership — except OCBC Business First, which targets businesses aged 6 months to 2 years
- Verification: Confirm all current rates, fees, and scheme availability directly with your lender before committing
The 4 Best Business Loans in Singapore
#1 DBS Business Term Loan
One-line verdict: Singapore’s strongest all-round SME term loan — up to S$500,000 with a fully digital application and flexible tenure. (Verify current rates at dbs.com.sg — April 2026)
Best for: Established SMEs funding expansion, equipment, or working capital.
Quick Facts:
- Loan amount: Up to S$500,000 (verify at dbs.com.sg)
- Application: Digital via DBS BusinessClass
- EFS-eligible businesses can combine with government risk-sharing through DBS for better rates
- Last verified: April 2026
Why it made the list:
- Full digital application reduces turnaround versus branch-only lenders
- EFS-eligible businesses can access government risk-sharing through DBS, reducing effective borrowing costs
Trade-offs:
- Strong credit profile required — early-stage businesses may not qualify
- Indicative rates not publicly listed; personalised quote required
Learn more: DBS Business Term Loan Singapore
#2 Enterprise Singapore EFS Working Capital Loan
One-line verdict: The best subsidised option for eligible Singapore SMEs — government risk-sharing cuts effective borrowing costs below standard commercial rates. (Verify at enterprisesg.gov.sg — April 2026)
Best for: SMEs that qualify for government assistance and want lower rates than standard commercial products.
Quick Facts:
- Loan amount: Up to S$500,000
- Eligibility: Singapore-registered; ≥30% local shareholding; group annual sales ≤S$100M or ≤200 employees
- Apply through a participating financial institution (DBS, OCBC, UOB, and others)
- Last verified: April 2026
Why it made the list:
- Government co-shares credit risk, making banks more willing to lend at lower rates
- Accessible through multiple major banks — no need to switch your existing banking relationship
Trade-offs:
- No direct application to Enterprise Singapore; each bank’s own lending criteria still apply
- Scheme terms can change — always verify current status at enterprisesg.gov.sg before applying
#3 OCBC Business First Loan
One-line verdict: Fast, collateral-free working capital up to S$100,000 specifically designed for businesses operating between 6 months and 2 years. (Verify at ocbc.com — April 2026)
Best for: Startups and young SMEs (operating 6 months–2 years) needing quick, unsecured access to working capital.
Quick Facts:
- Loan amount: Up to S$100,000 (verify at ocbc.com)
- Collateral: Not required
- Eligibility: Business operating between 6 months and 2 years; Singapore-registered; ≥30% local ownership
- Last verified: April 2026
Why it made the list:
- One of very few bank products targeting businesses under 2 years old — fills the gap where most SME loans exclude young businesses
- No collateral lowers the barrier for asset-light and early-stage SMEs
Trade-offs:
- S$100,000 cap limits usefulness for larger capital needs
- Unsecured loans typically carry higher interest rates than secured or government-assisted options
#4 UOB BizMoney
One-line verdict: An unsecured fixed-term business loan up to S$350,000 at 10.88% p.a., with tenures of 1–5 years — no collateral required. (Verify at uob.com.sg — April 2026)
Best for: Established SMEs needing a straightforward unsecured term loan without pledging assets.
Quick Facts:
- Loan amount: Up to S$350,000 (verify at uob.com.sg)
- Interest rate: 10.88% p.a. (fixed)
- Tenure: 1–5 years; no collateral required
- Last verified: April 2026
Why it made the list:
- Higher unsecured loan cap than OCBC Business First — suitable for more substantial working capital needs
- Fixed rate and fixed tenure give predictable monthly repayments for budgeting
Trade-offs:
- Fixed term structure — not suitable if you need a revolving or draw-down facility
- Interest rate of 10.88% p.a. is higher than government-assisted EFS options
Best for Use Cases
- Expansion or capital expenditure → DBS Business Term Loan
- Subsidised government-assisted rates → Enterprise Singapore EFS-WCL via DBS, OCBC, or UOB
- Young or startup businesses (6 months–2 years) → OCBC Business First Loan
- Unsecured fixed-term working capital, larger amount → UOB BizMoney
- Digital-first application → DBS Business Term Loan via DBS BusinessClass
FAQs
What is the minimum requirement for a business loan in Singapore?
Most bank SME loans require at least 2 years of operating history, Singapore registration, and ≥30% local ownership. OCBC Business First is an exception, targeting businesses operating 6 months to 2 years. Verify eligibility directly with each lender before applying.
What is the Enterprise Financing Scheme (EFS) Working Capital Loan?
The EFS-WCL is an Enterprise Singapore initiative offering up to S$500,000 for SMEs with group annual sales ≤S$100M or ≤200 employees. The government co-shares credit risk with participating banks, resulting in lower borrowing costs. (As of April 2026 — verify at enterprisesg.gov.sg)
Can new businesses get a business loan in Singapore?
The OCBC Business First Loan is specifically designed for businesses operating between 6 months and 2 years. Most other bank products require at least 2 years of operating history. Early-stage startups should also check Enterprise Singapore’s startup-specific financing schemes.
How do I apply for a DBS Business Term Loan?
Applications can be submitted digitally through DBS BusinessClass. Visit dbs.com.sg/sme or contact the DBS SME banking team for a personalised quote and current rates.
What is the difference between a term loan and a revolving facility?
A term loan (like DBS Business Term Loan or UOB BizMoney) provides a fixed lump sum repaid over a set tenure. A revolving facility provides a reusable credit line where repaid funds become available again. (Confirm product structures with your lender.)
References
- DBS Singapore. (April 2026). Business Term Loan. https://www.dbs.com.sg/sme/financing/working-capital/business-term-loan
- Enterprise Singapore. (April 2026). EFS — Working Capital Loan. https://www.enterprisesg.gov.sg/financial-support/enterprise-financing-scheme—sme-working-capital
- OCBC Singapore. (April 2026). Business First Loan. https://www.ocbc.com/business-banking/smes/loans/business-first-loan
- UOB Singapore. (April 2026). BizMoney. https://www.uob.com.sg/business/finance/uob-bizmoney.page
- Ministry of Manpower Singapore. (March 3, 2026). Written Answer to PQ on Distribution of SMEs. https://www.mom.gov.sg/newsroom/parliament-questions-and-replies/2026/0303-written-answer-to-pq-on-distribution-of-smes
