SME Micro Loan: Your Key To Success

What is SME Micro Loan?

Want to know more about the SME Micro Loan?

You’ve come to the right place. 

More than just plain information, we’ll tell you exactly how to get approved EASILY.

But let’s save that for later…

…Let’s start with the fun stuff – Definitions!

The SME Micro Loan is a government initiated financing scheme to help small and medium sized enterprises in Singapore get better access to business financing.

These small businesses will be able to get an unsecured business loan of up to S$100,000. The interest rates are low from 3% simple interest rate without any penalties for early repayment.ZThe

sme working capital loan

SME WCL at a Glance

Under the Enterprise Financing Scheme (EFS), Enterprise Singapore (formerly SPRING Singapore) stands in as a guarantor for 50% of the business loan default risk. SMEs may apply for up to S$300,000 with a 5-year repayment period.

The SME Working Capital Loan in Singapore is a business loan facility that provides SMEs with additional funds for daily operations. Business owners usually take up working capital loans in challenging times, or when they want to expand the business.

  • Loan Amount: Up to S$300K
  • Loan Term: 1 – 5 years
  • Interest Rates: 6.5% – 7.5% p.a.

The Pros and Cons


  • Fast access to funds
  • Interest based on reducing balance
  • No early redemption penalty


  • Up to S$300k only
  • Personal guarantee from Director(s)

How To Qualify For SME Working Capital Loan?

Securing an SME Working Capital Loan is not an easy task…

Question is, how do you get one?

Contrary to what most think, even small and newer businesses can qualify for the SME working capital loan.

The most essential criteria for assessments is the financial strength of the company:

SME Working Capital Loans are for businesses with healthy revenues and relatively strong cash flows.

While it is not a business loan that you can simply apply for and expect to receive the funds in a few days, it is a loan that you can use to grow your business at very low interest rates.

You may find difficulty in obtaining an SME loan if your company is too young or if your personal credit score is not healthy. Understandably, Enterprise SPRING Singapore and the banks are extending a loan to your business because they see you as a reliable borrower.

What Documents Do I Need To Apply?

Here are the documents that you will need to prepare in order to apply for the Enterprise Singapore loan:

  • Bank Statements
  • Profit & Loss Statements
  • Balance Sheet
  • Income Tax Returns
  • Identification Card (NRIC) / Copy of Passport

Enterprise Singapore Financing Scheme: How Does It Work?

All small business owners want to know how to qualify for an SME working capital loan.

Being the cheapest source of funds in the SME financing industry, this SME loan is a sitting pot of gold when it comes to expanding your business economically.

Isn’t it impossible to qualify for it?

At Capable Loans, we’ve helped hundreds of small businesses to get the SME loans they need. With all the successful business loans that we have obtained, we’re confident that we can help you to secure the funding that you need.

When you understand how the business loan works and what the qualifying requirements are, you’ll know if an SME Working Capital Loan is the best source of financing for your business…

…Otherwise, we’ll be happy to guide you to other alternative sources of SME financing.

Let’s get started.

SPRING working capital loan

FAQ on SME Working Capital Loan

SPRING Singapore is a government associated entity set up to to help small and medium businesses in Singapore to get better knowledge on available grants, and to get greater access to small business loans.

Let’s take our attention to the latter.

A common misconception about the SME working capital loans is that SPRING issues loans to companies.

The truth is that SPRING does not lend any money to businesses. So where exactly does the working capital loan come from?

An SME working capital loan will always come from a bank or lender that participates in the SPRING government assisted financing scheme. SPRING guarantees up to 50% of the loans disbursed from the banks, so as to encourage the financial institutions to lend to small businesses.

In simple terms, there is less risk for lenders because SPRING backs up a significant portion of the banks’ credit exposure.

Because of this assurance, more banks are willing to participate in lending to small and medium companies. The participant financial institutions are able to cater to a wider range of companies without having to bend over backwards.

How does this all relate to you?

While a working capital loan is cost-effective, we all know that the banks can be very slow.

With most of the banks, applying for an SME loan can be a very long and troublesome process. Most lenders want to review the financial strength of the business and your credit score, and some might even request for collateral to be put up.

Despite the guarantee from SPRING, many small businesses still do not qualify for the working capital loan. And of those that do, the process could take many weeks or months.

On a brighter note, the low interest rates and long repayment terms certainly make it worth waiting for.

So then, what comes next? What is an application like?

Here we go:

If you wish to apply for an SME working capital loan, you can expect to go through a very detailed process. You’ll need to provide the relevant documents like company bank statements, profit and loss statements, balance sheets, and information on your personal credit worthiness.

The banks always look forward to applicants with good credit history, sufficient cash flow, and strong revenues. As a business owner and director of the company, your credit history and repayment patterns are very important to the banks.

What’s the cost of funds for your business?

How much will a working capital loan cost?

Well, the cost will depend on which lender you go to. Here are the general processing fees, interest rates, and repayment terms of the SME Working Capital Loan.

Fees: 1 – 1.5% of the approved loan amount

Interest: Rates range over 3.2 – 4.5% per annum

Repayment: Loan repayment terms depend on the loan amount, financial strength of the business, and many other factors, but the maximum loan tenure is 5 years.

As for the repayment schedule: like all other business loans, you can expect to be making monthly repayments.

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About Capable Group

Capable Group is a comparison platform for business loans in Singapore. As the leading aggregator of corporate loans and business financing solutions, we will help you to get the best SME loan to grow your business. We work with multiple banks and accredited financial institutions to provide you with the latest financial products and interest rates.

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Quick Jump To…

At a Glance

Pros & Cons

Who Can Qualify?


How It Works

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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.

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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


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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


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Fast access to funds

No early repayment penalties

Low Interest Rates

Up to S$100,000 only

Monthly repayments

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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

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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.

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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.”


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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.

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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.

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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.

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