Fixed Assets

Equipment Financing Loan

Businesses can seek financing of up to 90% and tenor up to 5 years.

Equipment Financing


Equipment Financing Loan Features
Loan AmountUp to 90%* of the purchase price or valuation (whichever is lower)
Loan TenorUp to 5 years**



Why choose DBS Equipment Financing?

  • Ease your cash flow with predetermined instalments that meet your needs
  • Control your costs with competitive interest rates
  • Facilitate overseas purchases by bundling with our Trade and FX services 


How does hire purchase differ from a term loan?

Hire purchase differs from a term loan in several ways. The table below illustrates the key differences.


Hire Purchase

Term Loan

Ownership of goods

Starts once the final instalment has been paid

Starts from the day you receive the loan

Interest rate

Usually flat-rate

Usually floating-rate

Documentation of terms

In an HP Agreement governed under HP Act or HP Common Law

In a loan agreement and DBS takes a charge over the goods

Registration of legal interest

DBS registers as an HP owner with the HP Association and/or Asset Financing and Leasing Association of Singapore

DBS registers with ACRA

Legal fees and stamp duty


Stamp duty applies. Legal fees may apply.

What are the different types of interest rates used?

We offer both flat and fixed interest rate packages for Equipment Financing loans. However, you may also apply for interest rate that are pegged to DBS Prime Rate or ABS SIBOR.

Can I make full prepayment on the outstanding amount and if so do you charge a fee?

Full prepayment is allowed and simply constitutes early termination of the hire purchase agreement. A nominal prepayment fee may be applicable, and we do require written notice one month prior to termination for equipment bought under hire purchase. No written notice is required for commercial vehicles.

Do I have to insure the goods financed under hire purchase?

Yes, if you finance equipment with hire purchase you are required to take out an all-risks insurance policy up its prevailing market value. Similarly, commercial vehicles bought through hire purchase require a comprehensive insurance policy up to the prevailing market value.

Does the bank finance machinery located overseas?

Yes. Please refer to our Internationalisation Finance Scheme page for more information.

Speak to our RM
Speak to our RM

Need an indicative interest rate for your loan?

Speak to a DBS Relationship Manager now