Best SME Business Loan for Small Businesses 2023

Compare and choose the best loan from top financial institutions

With over 150 financial institutions in Singapore offering attractive loans, finding the best SME business loan to suit your needs is quite a daunting task. Treat Instant Loan as an online "match-making" facility; it searches for your perfect SME Singapore business loan by sifting through the most suitable SME loans available.

Check out Singapore's top financial institutions offering business loans in Singapore.


Easy application process


High approval rates


Low repayment fees & rates

Get the Best SME Business Loan in Singapore today!​

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Our Top Picks of financial institutions in Singapore

Best Bank

Citibank Singapore



What we like:

As one of the best-known banking giants in Singapore, Citibank has a tried-and-tested reputation. This bank consistently gets excellent reviews across the internet, as its loan application method is straightforward and hassle-free, and it offers a lower than the average interest rate on most of its loans.


  • Excellent variety of business loans available
  • Straightforward application process
  • Interest rates often as low as 6.25%
  • Established reputation
  • Unsecured loans available up to $350k

Mindful tips:

  • Excellent variety of business loans available
  • Straightforward application process
  • Interest rates often as low as 6.25%

Financing Loan Amount

Min $50k

Interest Rate

6.25% - 15%


$750k Annual Turnover,Recent 6 months Bank Statement

How Instant Loan helps SME?

Instant Loan helps SME business owners focus on what matters most: growing their business. Let us handle the leg work and nitty-gritty of finding the best business loan in Singapore to suit you. Simply submit a form and get up to three quotes from Singapore's top financial institutions.

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Business Loan FAQ

Startups and small businesses require huge capital to fund their facilities, equipment, and initial employee number. If you haven't any money set aside to start your dream venture, then a business loan will bring you great and immediate benefit. Business loans almost have the same terms as personal loans but offer bigger amounts, higher interest rates, and longer loan tenors.

What are the types of business loans available?

There are a lot of banks and financial institutions in Singapore that make it easy to find the best business and company financing available for businesses and companies. We've listed all of them for you at below.

  • Unsecured Business Term Loan

    The usual financing that startup and small business owners receive from banks. These are lump-sum principal loans that provide business owners S $50,000- S $300,000 with loan tenor reaching up to 3 years to 5 years.

  • SME Working Capital Loan

    These special loans are helpful for small and medium enterprises (SMEs) in need of government-subsidized financing with low interest and a possible maximum of S $1 million in financing for Singapore-owned/stake-held SMEs

  • Trade Financing

    These function like credit lines but solely function to purchase materials and supplies from manufacturers and trusted vendors. Only highly-trusted businesses can receive trade financing privileges.

  • Receivables Financing

    SMEs with exceptional financial conduct and credit scores can use receivables financing, which allows them to advance 90% of their customer's outstanding invoices. The financial institution will receive the payments once customers and clients pay their invoice.

  • Property Financing

    Special loans that function like mortgages but gives SMEs optimal flexibility in terms of the repayment period and loan tenors.

  • Temporary Bridging Loan

    A special loan program the Singapore government launches during emergency situations where significant or complete economic stoppage and closures happen.

  • Microloans (SME)

    Sometimes, startups and small businesses just need funds for financial boost. However, they can't afford to pay a high S $50,000 financing minimum with unsecured business term loans. SME Microloans make it possible to finance smaller values, which can reach a maximum of S $100,000 with flexible payment terms and loan tenor.

Customers borrowing from banks can apply for financing and receive their results within 30-60 days. Due to the high number of business loan applications bank departments review regularly, it takes much time to evaluate business loan applications.

Financial institutions and credit unions have the same timeline of 30-60 days to complete their evaluation and provide final loan results for their customers. On the other hand, they have less stringent requirements than banks.

Financial institutions can release your unsecured SME business loan in less than 3 working days. Once you fulfill all your requirements, financial institution will give your MSE business loan application result and release your financing on the same day.

Your credit score is the biggest basis of banks and financial institutions in making a decision regarding your SME loan application. However, credit scores are just one part of your credit report, which matters highly if you compare it to a single section. If your credit report shows you to have a good history with previous financing, no overdue balance, and adequate activities in the last few months, you’re greatly qualified to obtain a SME business loan.

A credit score range of 1911-2000 from CBS gives you a risk grade of AA, which is considered a client with the lowest likelihood of defaulting on a SME business loan. Here’s the complete CBS chart for your reference.

Score Range Risk Grade Default  Probability
Minimum Maximum
1911-2000 AA 0.00% 0.27%
1844-1910 BB 0.27% 0.67%
1825-1843 CC 0.67% 0.88%
1813-1824 DD 0.88% 1.03%
1782-1812 EE 1.03% 1.58%
1755-1781 FF 1.58% 2.28%
1724-1754 GG 2.28% 3.46%
1000-1723 HH 3.46% 100%


Additionally, keep in mind that bank or financial institution loan approval depends on the other proprietors’ credit scores and the stability of your average yearly turnaround. Furthermore, your business expansion plan feasibility plays a huge role too.

Specialized “stimulation” loans, such as microloans, SME working capital loans, and other government-subsidized financing, have lower interest rates than other SME business loans. The low interest rate of 2.5-3% per annum addition to your funds is thanks to government collateral and taxpayer money shouldering part of the debt.

However, secured business term loans have a flat interest rate of 2.25% with the same loan tenors as government-subsidized ones with 1-5 years repayment period. On the other hand, the minimum amount of payment is S$100,000, which is a large sum for many startups and SMEs.

Not at all! If you can pass all the requirements of banks and financial institutions, especially with a trustworthy credit score, it’s quick and easy to get your SME loan approved. However, you’ll need to wait for longer to get your SME loan application results.

Good debt is financing that you can manage and contributes to your business’ growth. On the other hand, bad debt is a high-interest loan that drives you deep into debt. 

Time and opportunity are resources that no institution can provide to you. However, if you have accessible cash on hand, you can take advantage of an opportunity with a swift decision-making process. Singapore business loans make it easier to make these decisions and ensure they remain manageable. Doing so contributes greatly to your future endeavors’ success.

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