SME Micro Loan (2020)

What is SME Micro Loan?

The SME Micro Loan by Enterprise Singapore is a long term, low interest small business loan that was launched to help small and medium sized enterprises get greater access to SME loans in Singapore.

Enterprise Singapore is a government related agency that provides grants and SME financing schemes to small medium enterprises (SMEs) in an effort to spur growth and development amongst small businesses in Singapore. While Enterprise Singapore does not lend out any money, they serve to bear 50% of all loan default risks.

The SME Micro Loan scheme, which is a small business loan program in Singapore, is targeted at businesses that are relatively younger and smaller. If conditions are met, an SME may take up to $100,000, which is payable over a 4 year tenure.

For businesses that have been in operations for less than 3 years, Enterprise Singapore stands in as a guarantor for up to 50% of the credit 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 $100 million or group employment size must not be more than 200.


  • Loan Amount: Up to $100,000
  • Repayment Period: 1 to 5 years
  • Interest Rate: 3.2 – 4.5% p.a.

Eligibility Criteria

To qualify for the SME Micro Loan, your company should meeting the following criteria:

  • Registered and operating in Singapore for at least 6 months.
  • At least 30% local shareholding.
  • Company turnover at least S$300,000; and no more than S$100 million.
  • Total employment size not exceeding 200.

Required Documents for Application

At last, just a few documents that you will need to prepare:

  • NRIC or passport copy of company directors
  • Income tax Notice of Assessment of directors for the last 2 years
  • Company financial statements for the last 2 years
  • Bank statements for the last 6 months

General FAQ

Why should I get an SME Micro Loan?

With low interest rates and a tenure of up to 5 years, the SME Micro Loan is the most popular and cost effective financing for small businesses. 

How to qualify for SME Micro Loan?

Banks determine if a business is eligible based on a few criteria — revenue, cash flow, age of company, existing credit exposure.

Most banks maintain a list of industries that they avoid lending to, which is subject to change, depending on the economic outlook of the particular industry. As long as your business does not fall into any of the industries on the list, your company is eligible to apply for the loan, albeit still subject to the credit approval of the banks.

Generally, most financial institutions and banks consider applicant companies to be qualified for the SME loan if they have been operating for at least 6 months, have a revenue of at least S$300,000, maintain strong cash flow, and do not have too many existing business loans. It also helps significantly if the director of the business has a healthy credit history.