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OCBC Business First Loan Review
Your company could get a loan of up to S$100,000.
If you’re looking for financing for your business, you might want to consider a Business First Loan from OCBC. You can apply quickly for this flexible loan – that doesn’t require an asset as security – of up to S$100,000. The repayments can be deducted from your nominated business account, and you can also pay back your loan early without penalty.
Compare OCBC Business Loans
Read on to find out more about OCBC Business First Loan, including the key eligibility requirements.
How does a Business First Loan from OCBC work?
You can get a OCBC Business First Loan in four straightforward steps:
1. Apply online. You’ll first be asked the loan amount required and your preferred prepayment term. There are no face-to-face meetings needed, and you’re under no obligation to take the loan.
2. Add information via MyInfo (SingPass) or MyInfo Business (CorpPass), with no documents required. Alternatively, if you’re choosing a manual document upload then you’ll need your NRIC, a letter of consent and a Notice of Assessment.
3. The verification process is completed with speed, and OCBC will contact you within one business day about your application.
4. Once your loan is approved (typically within three weeks), your funds will be transferred to your business account.
Features of an OCBC Business First Loan
- Simple application process. Go paperless by using MyInfo (SingPass) to apply and you’ll get the fastest decision; you could get pre-approval within a day.
- No collateral needed. With this hassle-free loan, you won’t have to offer an asset to borrow against (but you will need a guarantor).
- No hidden fees or charges. You’ll be given an interest rate when you apply. There’s no early repayment fee with this provider, meaning you could avoid extra charges if you pay off your loan more quickly. A 0.88% set-up charge is applicable to this loan – however, this is reduced to 0.88% if you apply online.
- Repayment term. This provider typically offers loans of up to four years. Your repayments will be scheduled according to your business needs and your budget.
Am I eligible for a Business First Loan from OCBC?
Before you apply for a business loan, make sure you meet all the eligibility requirements. One of the main criteria for OCBC loans is to have sufficient income for repaying the loan. Besides this, a reasonable credit history is a necessity. Plus, you’ll need to meet the following requirements in order to qualify:
- Your company will need to be between six months and two years old.
- It must be at least 30% Singaporean owned (or Singaporean Permanent Resident).
- You will need at least one guarantor, who must be Singaporean or a Singaporen PR, aged between 21 and 62 and with
a minimum income of S$30,000 per annum.
How much will a OCBC Business First Loan cost?
- Interest rates. The interest rates vary according to the type of loan and the risk involved. However, these loans are generally calculated monthly.
- Establishment fee. This fee of at least 0.88% will be added onto the amount you owe at the beginning of the loan term.
- Prepayment. These loans do not carry a prepayment charge, meaning you can pay the loans early to save on interest.
- Other fees and charges. These loans do not carry any other hidden fees or charges which end up reducing the overall burden of the loan. It’s still crucial you read the full terms and conditions so you are aware of all the charges you could face.
How to apply for a Business First Loan with OCBC
Once you’re ready to submit your business loan application, follow the simple online process via OCBC’s website.
Step 1: Apply online. This takes just seconds and doesn’t come with any obligations attached.
Step 2: Verify your personal information. The verification process is quick via MyInfo and it is possible to be pre-approved within one business day.
Step 3: Payment of funds. If your application gets approved, the funds will be transferred to the nominated bank account.
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