Updated July 14, 2025
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Terms & Conditions
Annual Interest Rate
Max Loan Amount
Processing Fee
OCBC offers a reliable business term loan for small and medium-sized enterprises (SMEs) in Singapore. With a competitive interest rate of 7.5% per annum and flexible loan options, this financing solution is ideal for businesses seeking to expand or manage working capital. The loan amount can go up to S$500,000, catering to a wide range of business needs.
The business term loan is designed with attractive repayment terms, offering a maximum loan tenure of 5 years, allowing businesses to manage their cash flow efficiently. The monthly installment for a S$100,000 loan over 5 years is approximately S$2,003.79, with a total payable amount of S$120,227.69, including interest.
One key feature of this loan is the processing fee, which ranges from 1% to 2%, depending on the specifics of the loan. There is no annual fee associated with this loan, providing additional value for businesses looking for straightforward and cost-effective financing. However, a lock-in period does apply, which is an important consideration for borrowers.
It’s also worth noting that the loan requires a minimum annual turnover of S$250,000 and a minimum of 2 years of incorporation, which ensures that it is available to businesses with a stable operational history.
In summary, OCBC’s business term loan offers a well-rounded and competitive financing option for businesses looking to fund their growth and operational needs, with clear and manageable terms.
When considering OCBC’s business term loan, several key factors should be taken into account to ensure it aligns with your business’s needs:
Interest Rates
The loan offers a competitive annual interest rate of 7.5%, which remains fixed throughout the loan tenure. This rate provides businesses with predictable repayment schedules.
Loan Amount
Businesses can access loan amounts ranging from S$1,000 to S$500,000. This flexibility allows companies of varying sizes to secure the necessary capital for growth, with the upper limit catering to larger businesses with more extensive funding needs.
Repayment Terms
The maximum loan tenure is 5 years, offering sufficient time for businesses to manage their cash flow effectively. Monthly installments are manageable, with a monthly payment of approximately S$2,003.79 for a loan of S$100,000 over 5 years.
Processing Fees
The loan comes with a processing fee ranging from 1% to 2% of the approved loan amount. This fee ensures that the application and approval process is streamlined, though it is important for businesses to factor this into their total loan cost.
Lock-In Period
A lock-in period applies, meaning that businesses are committed to the loan for a specified initial duration. This condition may affect your decision if flexibility in repayment is a priority for your business.
Processing Fee
The processing fee for this loan ranges from 1% to 2% of the approved loan amount. This fee is deducted from the total loan value and helps cover the cost of loan processing. Depending on the loan amount and conditions, this fee may vary, so it’s important to clarify the exact percentage when applying.
Penalty Fee for Late Payment
If a business fails to make timely repayments, a penalty fee of 6.88% of the overdue amount will be charged. This fee encourages businesses to stay on top of their payments and avoid accumulating additional costs. It is crucial to maintain a consistent payment schedule to prevent this fee from being applied.
Annual Fee
Notably, OCBC does not charge any annual fees for the business term loan, which helps reduce the overall cost of borrowing. This feature makes it a more cost-effective option for businesses compared to loans with recurring annual fees.
Lock-In Period
Although there is no direct fee associated with the lock-in period, it is an important consideration for businesses that may need flexibility in their repayment schedule. The lock-in period limits early repayment options without incurring penalties, so businesses should factor this into their financial planning.
| Lender | Annual Interest Rate | Processing Fee | Annual Fee | Monthly Repayment |
|---|---|---|---|---|
| Anext | 7% | 1% or S$200 whichever is higher | $0 | $2,970.18 |
| DBS | 6% | 1% | no | $2,899.92 |
| Maybank | 7% | 1-2% | $2,970.18 | |
| OCBC | 7.5 % | 1-2% | no | $3,005.69 |
| Orix | 8.5 % | 1-2% | no | $3,077.48 |
| Ethoz | 9 % | 1.25% | One time off $1,500 Commitement Fee | $3,113.75 |
| Funding Societies | 9.6 % | 7% | $3,157.61 | |
| SCB | 10.88 % | 1-3% | $288 | $3,252.39 |
* Rates Updated 14 Jul 2025 - Loan Amount Example S$150,000 In 5 Years
To qualify for OCBC’s business term loan, businesses must meet certain criteria designed to ensure the loan is accessible to those with a stable financial foundation:
Minimum Annual Turnover
The business must have a minimum annual turnover of S$250,000. This requirement ensures that the loan is available to businesses with a sufficient revenue base to manage repayment effectively.
Years of Incorporation
Only businesses that have been incorporated for at least 2 years are eligible for this loan. This criterion helps OCBC assess the stability and longevity of the business before extending financing.
Type of Business
The loan is available to registered businesses in Singapore, including sole proprietorships, partnerships, and private limited companies. The eligibility extends to businesses across various industries as long as they meet the minimum turnover and incorporation requirements.
Creditworthiness
While specific credit score details are not mentioned, businesses must demonstrate good creditworthiness. This is typically assessed through the business’s financial health, past repayment behavior, and other financial indicators.
Ownership and Control
The business must have a clear ownership structure, with the primary applicant being the key decision-maker or authorized representative.
Start your loan application journey with our quick online application multistep form—it takes just 30 seconds to complete. Our advanced technology and expert loan specialists work together to match you with suitable options on our platform
Our team will reach out requesting the following necessary documents: company registration information, bank statements, financial reports and your IC/FIN details.
Our dedicated customer success team will carefully examine your application, contacting you if any additional information is required. Once we’ve verified your details, we’ll begin the process of matching you with appropriate lenders and loan options.
Compare loan offers in real-time through your application dashboard. Our customer success team is available to discuss loan details.
Once you’ve agreed on the loan terms and signed the contract, you’ll receive a copy of the agreement. This document will outline your monthly payment schedule. Your funds will then be disbursed either in cash or via bank transfer.
The loan offers a fixed annual interest rate of 7.5%, providing businesses with predictable repayment amounts over the loan term.
The loan application process is relatively swift, with businesses typically receiving approval and loan disbursement within a short timeframe after application.
Businesses can access up to S$500,000, which caters to both small and medium-sized enterprises, allowing them to scale their operations or manage cash flow.
The loan offers a maximum tenure of 5 years, providing ample time for businesses to manage their cash flow and make affordable monthly payments (e.g., S$2,003.79 per month for a S$100,000 loan).
A 6.88% penalty fee is applied for late payments, which could significantly increase the cost of borrowing if repayments are not made on time.
The loan requires a minimum annual turnover of S$250,000 and at least 2 years of incorporation, meaning it may not be accessible to newer or smaller businesses.
