Micro Loan


Government Assisted Financing
by SPRING Singapore

Quick Jump To…

At a Glance

Pros & Cons

Who Can Qualify?


How It Works

[icon_box border=”1″ title=”What is an SME Micro Loan?” image=”2604″]

A micro loan is very much like the usual business term loan, only that the maximum amount is capped at S$100,000, with a repayment period of up to 5 years.


[icon_box border=”1″ title=”How Do I Qualify?” image=”2605″]

  1. 6 months in business
  2. 30% local shareholding
  3. Business registered and operating in Singapore

Disclaimer: These are general qualifications. Other information might be considered during your application.


[icon_box border=”1″ title=”How Do I Apply?” image=”2606″]

The SME Micro Loans have to be applied through the business banking lenders who have been approved by SPRING Singapore. All relevant documents have to be prepared for submissions in order to get an approval.

Apply Here for an SME Micro Loan


SME Micro Loan at a Glance

SME Micro Loan, a government assisted financing scheme is a project by the government with the intention to aid SMEs with funding.

With the SME Micro Loan, businesses will have access of up to $100,000 to expand. The interest rates are low from 3% simple interest rate without any penalties for early repayment.

[icon_box border=”0″ title=”Maximum Loan Amount” image=”2619″]

Up to S$100,000


[icon_box border=”0″ title=”Loan Term” image=”2623″]

Up to 5 years


[icon_box border=”0″ title=”Interest Rates” image=”2624″]

3.2 – 4.5% per annum


[icon_box border=”0″ title=”Speed” image=”2625″]

2 – 3 weeks


The Pros and Cons

Fast access to funds

No early repayment penalties

Low Interest Rates

Up to S$100,000 only

Monthly repayments

Apply for the Best
"SME Micro Loan"
with Capable Loans Today!

Compare All Loan Types...

Loan Type


Interest Rates

Working Capital Loan

2 – 3 weeks

3.2 – 4.5% per annum

Personal Loan for Business

3 – 7 days

4.4 – 6.88% per annum

Trade Financing

2 – 4 weeks

2.3 – 2.8% per annum

Equipment Financing

2 – 3 weeks

2.8 – 3.2% per annum


1 – 3 weeks

12 – 16% per annum

Business Term Loan

2 – 3 weeks

5 – 7% per annum

Short-Term Loan

1 – 2 weeks

7.8 – 12% per annum

Who Qualifies for an SME Micro Loan?

What types of businesses are most suitable for the SME Micro Loans in Singapore?

Similar to startup business loans, the micro loan is generally for companies that are younger and smaller in operations.

While the maximum loan amount can go up to S$100K, the final approved amount and repayment period  are decided by the credit department of each lender. It is typically dependent on the financial strength of the business and the credit history of the directors.

What Documents Do I Need to Apply?

Bank Statements

Profit & Loss Statements

Balance Sheet

Income Tax Returns

Identification Card (NRIC) / Copy of Passport


“The SME Micro Loan is a great source of business financing because of its attractive interest rates and long repayment period.”


See What Loans You Qualify For

What is the SME Micro Loan?

SME Micro Loan is a government assisted financing scheme for small businesses or start-ups in Singapore. As the name suggests, it is catered towards local SMEs that need financing for daily operational expenditure or to use the capital to purchase equipment. It is very similar to a working capital loan; however, because of its long repayment terms and low interest rates, micro loans are a better option especially for smaller businesses. If conditions are met, an SME may take up to $100,000, which is payable over a 4 year tenure.

If your business has been in operations for less than 3 years, SPRING stands in as a guarantor for 70% of the loan default risk. This would open up the micro loan to emerging businesses that are usually seen to have high default risk. Emerging businesses make up 90% of all local enterprises.

To qualify, businesses must be registered and operating in Singapore. They must have a minimum of 30% local shareholding. Annual sales should be less than S$1 million or employed less than 10 workers. Group annual sales must be less than S$100 million or group employment size must not be more than 200.

How to get a Micro Loan?

One of the safeguards of the SME Micro Loan is that the applicant entity has to be at least 6 months old, and in active operations. If you happen to be starting up a business, or are in urgent need of funds to commence on a  project, it is likely that the thought of obtaining the funds is still the only thing that you can focus on. While there may be many other alternative sources of funding, the SME Micro Loan is still the most sought after. It was structured to be a helping hand to SMEs that were going through a dry season, and therefore, was specifically tailored to be generous, long term, and very affordable.

Till now, the SME Micro Loan is still the most popular as it is the most cost effective financing for small businesses. This should also mean that the number of applications for the SPRING loans must be overwhelming, which could make the application process a little longer. Either ways, before jumping into a loan commitment, ensure that you have already seen and understood all the other available products, so as to choose the right product for your business.

How to Qualify For the SME Micro Loan?

While the conditions and requirements to qualify for the SME Micro Loan varies from bank to bank, there are a few general requirements that are consistent. The banks determine if a business is eligible depending on the yearly revenues, cash flow strength, and the age of the company. From time to time, the banks have a list of industries that they avoid lending to, but this list varies from season to season, and from bank to bank. As long as your business does not fall into any of the industries on the list, then your company is eligible to apply for the SME Micro Loan, albeit still subject to the credit approval of the banks.

The lending institutions and banks that are tied up with SPRING Singapore, typically consider applicant companies to be qualified for the loans if they have been in operations for at least 6 months, pulled in a revenue of at least $300,000 over the last year, have strong cash flows, and are profitable. It also helps significantly if the directors of the business have a healthy credit history.

Ready To Grow Your Business?

It’s FREE – $0 Upfront Cost, No Obligation