Banks to reduce borrowing interest rates for SMEs under MAS, Enterprise Singapore initiative

Local banks said they can offer business loans of up to four percentage points lower, thanks to a move by the central bank and Enterprise Singapore offering loans at 0.1% interest for eligible loans. The Temporary Bridging Loan Programme and the SME Working Capital Loan were enhanced to help firms with short-term cash flow needs and working capital gaps. These loans usually have a tenure of about five years and firms have to pay about 6% interest. As announced in the Solidarity Budget, government risk-share of the two loan schemes was increased to 90%. DBS, UOB and OCBC said this will help reduce interest rates to between 2% and 3%. Subscribe to our channel here: cna.asia/youtubesub Subscribe to our news service on Telegram: cna.asia/telegram Follow us: CNA: cna.asia CNA Lifestyle: www.cnalifestyle.com Facebook: www.facebook.com/channelnewsasia Instagram: www.instagram.com/channelnewsasia Twitter: www.twitter.com/channelnewsasia

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