SME Loan Insurance Scheme | Business Trade Banking | DBS SME Banking

Loan Insurance Scheme

Name: Loan Insurance Scheme
Brand: DBS SME Banking

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.

Subsidy

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	LIS	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

Please call us at:

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

FAQs

Eligibility

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.