DBS SME Loan Review: What Makes the Bank Stand Out?

DBS SME Loan Review: What Makes the Bank Stand Out?

Good for

  • Small businesses with solid financial & operational records

Bad for

  • Businesses with limited experience and revenue

Editor's Rating

4.5/5.0

DBS is the largest bank in Singapore and one of the most trusted lenders. It also offers a wide range of business loans with competitive rates and features. If your business requires funding for anything from working capital to funding the purchase of new equipment, this bank may be a good fit for your company.

Summary of DBS Small Business Loans
Competitive interest rates
Wide range of financing options for all types of business
Loan Tenures of up to 7 years

Table of Contents

What Makes DBS Stand Out to SMEs

One of the most established lenders in Singapore, DBS offers some of the most competitive rates for its small business loan products. The bank offers 12 different SME financing options ranging from business term loans to equipment financing. This is very helpful for businesses that may benefit from a specific loan (e.g. asset purchase loan) or require to obtain several types of funding. Additionally, while the interest rates for most business loans are highly dependent on the specifics of the prospective borrower, DBS tends to advertise rates that are among the most competitive in Singapore.

Highlights of DBS SME Loans

Loan Type

Max. PrincipalInterest Rates fromMax. Tenure
Business Term LoanS$500,00010.88%5 years
SME Working Capital LoanS$300,0007.00%5 years
SME Micro LoanS$100,0007.00%4 years
Equipment Financing LoanUp to 90% of equipment priceUnknown5 years
Business Property LoanS$5,000,000UnknownUnknown
Local Enterprise Finance SchemeS$15,000,0004.25%4-7 years

Despite the advantages of borrowing from DBS, their loans may not be the most suitable options for all businesses. For example, some startups or other new and small businesses may be better off attempting to obtain funding from other lenders, which usually have less strict borrowing requirements. With that said, it may be worthwhile to contact DBS enquire about your eligibility before ruling them out.

Other Charges and Fees

DBS charges a processing fee for each of its business loans. This fee tends to range from S$500 to 2% of the total loan amount. Unlike other lenders, DBS does not typically charge annual fees for its business loans. With that said, you should always carefully check the terms and conditions of your loan to ensure that you understand the fee structure and are prepared for the total cost of your loan.

Who Can Borrow: Eligibility Criteria

While DBS does not publish full eligibility criteria for small business loan applicants on its website, banks typically require that businesses meet a operational history requirement, revenue requirement or both. In order to be eligible for the DBS Business Property Loan, SMEs must own commercial property.

How to Apply: Application Process

Consider this if your SME has a strong record and may be eligible for a traditional business loan

Maximum Financing Amount S$500,000
Fees > of S$500 or 2%
Interest Rate From 10.88% p.a.
Eligibility Requirement Unknown

In order to apply for a business loan from DBS, applicants must fill out a form online. This application process can take as little as 5 minutes. The bank's application allows businesses registered with MyInfo Business to enter their CorpPass in order to easily retrieve required business and personal information for the application.

Examples of Required Application Information

  • Contact information
  • Purpose of the loan
  • Existing business debt
  • Net income/profit

Comments and Questions