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DBS offers SMEs bridging finance to support government grant schemes
DBS Bank is offering small and medium enterprises (SMEs) collateral-free business capabilities loans in support of government grant schemes, it said on Tuesday.
According to the bank, these loans are specifically designed for those SMEs which have successfully applied for government grants. The loans can then be used to cover the SMEs' expenses incurred before the grant reimbursement from the respective schemes.
SMEs will also get access to preferential interest rates, as well as annual and early pre-payment fee waivers, the bank said.
"With the economic outlook getting tougher, we hope that the new DBS capabilities loan will be a cost-effective way to help alleviate the strain on SMEs' cash flows, thereby encouraging them to embrace innovation and grow new sources of revenue," said Joyce Tee, regional head of SME banking at DBS Bank.
From March 15 to June 30, 2016, the bank will also waive the S$1,000 processing fee for all applications.