Possibly, you are familiar with OCBC’s Business First Loan if you are the proprietor of a company. It is one of the loans easier for freshly established small and medium-sized businesses to qualify for in terms of entrance points.
Conditions for eligibility for OCBC ibanking business loan
- Companies that are both based in Singapore and registered there
- Businesses that have been open for between six months and two years
- A minimum of 30 percent of the shares must be owned by citizens or permanent residents of Singapore;
- No more than 10people working for the company.
- A yearly revenue that does not exceed one million Singapore dollars.
You get to take advantage of “attractive interest rates,” which results in cheaper overall costs.
- The loan can be repaid in installments over 4 years.
- You don’t need documents to apply in this location because you can use MyInfo.
- If you apply for a loan online, you will find out the status of your application within “minutes.”
You will require at least one reliable person to sign on as a guarantor for your loan.
- The individual’s age must fall between 21 and 62 years old, and they must be a citizen or permanent resident of Singapore.
Additionally, the guarantor must have an annual income of at least S$30,000.
In conclusion, there are many obstacles in the way of new entrants into the loan ecosystem, and there are valid reasons for this. Banks are solely interested in how successful an organization has been up to this point; they do not consider how promising a young organization may be in the future.
In this regard, the business loan ocbc deserves praise for reducing entrance barriers for new small and medium-sized enterprises (SMEs). Before applying for a loan, most financial institutions demand that businesses have been operating for at least two years.
The fact that new owners of SMEs do not have to wait two years before applying for a loan should come as nothing less than a huge comfort to those individuals. After all, there is a significant gap between the duration of two years and six months!
Despite this, the terms and conditions stipulate that “All types of loan applications are subject to approval by the Bank at its sole discretion,” which is an appropriate provision, particularly given the current economic scenario.
An unsecured loan does not necessitate the use of collateral, and the bank will want an alternate form of security: the guarantor.
This protects the interests of the bank, as the owner of a small or medium-sized enterprise (SME) may have little or no records to present regarding his company’s financial performance.
In conclusion, in the event that your application for a loan is accepted, you will have up to four years to repay the debt, which is an amount that appears to be pretty manageable. If you need a business loan, check out OCBC now.