loan insurance

Loan Insurance Scheme

Grow your business with us

Loan Insurance Scheme

Grow your business with us

At a Glance

The Loan Insurance Scheme (LIS) is a government risk-sharing scheme that helps SMEs to obtain trade financing from DBS Bank.



As announced at the Supplementary Budget 2020, support for the LIS insurance premium will be increased to 80% (from 50%) until 31 March 2021.

Features & Benefits

Loan types

Maximum financing amount

Inventory / stock financing

100% of the purchase price

Structured pre-delivery working capital

100% of Letter of Credit or Letter of Confirmed Sales Order

Accounts Receivable financing  Up to 100% of invoice value
Overseas Working Capital Loan  Up to 100% of aggregate amount of overseas trade related working capital loans granted by financial institutions outside of Singapore

Note: Interest rates, repayment, and collaterals depend on the business risk profile.


LIS parameters


Enterprise Financing Scheme (EFS) Trade*

Maximum Loan Quantum

Subject to the maximum capacity of the Underwriters for the Borrower

S$10 million

*EFS Trade compliments the current LIS by insuring loans which are beyond the capacity of current LIS insurers.

How to Apply

Apply Now


Please call us at:

  • 1800 222 2200 (if you are in Singapore)
  • +65 6222 2200 (if overseas)


LIS (For domestic trade facilities)

  • Incorporated and operating in Singapore
  • At least 30% local shareholding
  • Company's group annual sales of not more than S$100 million OR company's group employment size of not more than 200 employees

LIS (For overseas trade facilities)

  • Incorporated and operating in Singapore with at least 3 strategic business functions*
  • Turnover of applicant's company and its subsidiaries must not exceed S$300 million for Non-Trading Companies and S$500 million for Trading Companies

*Your business must have at least 3 strategic business functions in Singapore: Banking & financial, Marketing & business planning, Procurement, Logistics, Training & personnel management, Investment planning/coordination, R&D and design, Technical support for manufacturing.

What is the maximum facility limit that can be approved?

Under LIS5, the facility limit depends on your risk profile. The maximum limit under EFS Trade is S$10 million per Borrower Group.

What will my insurance premium be?

Premiums vary from case-to-case, depending on your risk profile.

When do I need to pay the premium?

The premium for LIS is equivalent to 1-year coverage. You will only pay after you have accepted the facility.

Is the insurance premium refundable?

No. Once the premium has been paid, it is non-refundable, even if the facility is not utilised.