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Apply NowDBS’s business term loan is designed to support businesses looking for flexible financing solutions. As one of Singapore’s leading financial institutions, DBS offers this loan product to meet the varied financial needs of small and medium enterprises (SMEs). The loan offers a competitive interest rate of 6% per annum, making it an attractive option for business owners seeking cost-effective financing.
The banks business term loan provides financing for a wide range of business purposes, including working capital, equipment purchases or business expansion. With a maximum loan amount of $500,000, businesses can access the funds they need to achieve their goals. Repayment terms are flexible, with a maximum tenure of 4 years, allowing businesses to choose a repayment schedule that aligns with their cash flow situation.
The loan comes with a 1% processing fee, which is deducted from the loan amount. There are no annual fees. However, there is a penalty fee of 2% for late repayments, ensuring businesses maintain timely payments. While the loan offers an affordable interest rate, the total amount payable can vary depending on the loan term, amount and repayment schedule.
Overall, DBS’s business term loan offers a solid financial product for businesses in need of reliable financing options with competitive terms. Businesses should consider factors such as the 2% penalty fee for late repayments and the 1% processing fee when evaluating the loan.
When considering DBS’s business term loan, several key factors should be taken into account to ensure it aligns with your business’s financial needs.
Interest Rate
The loan comes with an annual interest rate of 6%, offering competitive rates compared to other business financing options. This rate is fixed for the loan tenure, allowing businesses to plan their repayments with clarity and avoid surprises due to fluctuating rates.
Loan Amount and Tenure
DBS Bank offers a loan amount up to $500,000, providing businesses with the flexibility to borrow what they need for their growth or operational requirements. The loan tenure can be as long as 4 years, with businesses having the option to tailor their repayment schedule based on their cash flow, reducing the strain on daily operations.
Repayment Schedule
With a monthly installment of $1,887.12 for a loan amount of $100,000 over a 5-year tenure, businesses can plan their finances with certainty. The longer the loan tenure, the lower the monthly repayment, though it may result in higher overall interest payments.
Processing Fee and Fees
A 1% processing fee is charged on the approved loan amount, which is a one-time fee deducted at the outset. Importantly, there are no annual fees, making this a cost-effective option for businesses looking to avoid additional ongoing charges. However, late repayments incur a 2% penalty fee, emphasizing the importance of timely payments to avoid unnecessary costs.
Minimum Requirements
Unlike many other loan products, DBS Bank’s Business Term Loan has no minimum income requirement, which is advantageous for startups or small businesses. However, businesses must meet a minimum annual turnover of $200,000 and have been in operation for at least 1 year, ensuring the applicant has a stable financial history.
Loan Impact on Business Growth
DBS Bank’s Business Term Loan is an ideal choice for businesses that require substantial funding without a significant strain on cash flow, given the flexible terms and competitive rates. The loan’s structure, with no annual fees and manageable processing costs, allows businesses to focus more on growth rather than financial pressures.
DBS Bank’s Business Term Loan is designed to be transparent and cost-effective, with clear fees associated with the loan process. Here’s a breakdown of the key fees to consider:
| Lender | Annual Interest Rate | Processing Fee | Annual Fee | Monthly Repayment |
|---|---|---|---|---|
| Anext | 7%-10% | 1% or S$200 | No | $2,970.18 |
| DBS | 7% | 1% | No | $2,970.18 |
| Maybank | 7%-10% | 1-2% | No | $2,970.18 |
| OCBC | 7% | 1-2% | No | $2,970.18 |
| Orix | 8.5 % | 1-2% | No | $3,077.48 |
| Ethoz | 7-10% | 1.25% | One time off $1,500 Commitement Fee | $2,970.18 |
| Funding Societies | 9.6 % | 4% | No | $3,157.61 |
| SCB | 9.00 % | 1-3% | $288 | $3,113.75 |
* Rates Updated 12 Jan 2026 - Loan Amount Example S$150,000 In 5 Years
DBS’ bsuiness term loan is available to a wide range of businesses in Singapore. However, there are specific eligibility criteria that businesses must meet to apply for this loan:
Visit ROSHI’s business loan comparison page and navigate to DBS business term loan listing. Use the application link to be directed to DBS’s official digital application portal.
As part of the application, businesses will need to provide certain documentation to support their financial health and ensure they meet the eligibility criteria. Key documents include:
– Business Registration Information: To verify your company’s incorporation and track record.
– Financial Statements: Most recent audited financial statements to show your company’s financial health.
– Income Tax Notice of Assessment (NOA): For businesses with higher loan amounts, this document helps demonstrate revenue and profitability.
– Proof of Turnover: Documentation showing your business’s annual turnover (minimum $200,000).
– Bank Statements: Recent bank statements may be required to confirm your business’s cash flow.
Additionally, DBS’s SingPass platform will be used to verify business details, such as ownership and financial records, to speed up the approval process.
Once you’ve submitted the required documents, DBS will assess your application. In most cases, the approval process is quick and businesses can expect to receive confirmation of their loan application within 1-2 business days.
Once your loan is approved, DBS will disburse the funds directly into your business bank account. The funds will typically be transferred within 5 business days from the approval date. The loan amount can be used for various purposes, including working capital, business expansion or purchasing equipment.
After approval, businesses will be required to sign the loan agreement. This step finalizes the terms and conditions of the loan, including the loan amount, interest rate, repayment schedule and any other relevant terms. Once the agreement is signed, the loan will be officially disbursed.
The loan comes with a 6% annual interest rate, which is competitive within the market. This makes it an affordable option for businesses seeking financial support.
Businesses can access financing up to $500,000, which allows for significant funding depending on the needs of the business. This flexibility ensures that the loan can cater to both small and large businesses.
There are no annual fees, which helps businesses avoid ongoing costs and makes the loan more cost-effective compared to other financial products that may charge recurring fees.
The application process is straightforward, with minimal documentation required. Businesses can apply online via DBS or ROSHI, making the loan application process fast and convenient.
The loan has a lock-in period, which means that businesses may face penalties or restrictions if they wish to repay the loan early.
Businesses must have a minimum annual turnover of $200,000 to qualify for the loan, which may exclude some smaller businesses that are still in their early stages of growth.
