OCBC takes big stake in micro-loan market
Companies as young as six months, and which meet the bank's criteria, can get up to S$100,000 in loans.
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OCBC has taken significant market share in a micro-loan scheme where the government covers most of the risk involved in the loans, a senior banker told The Business Times.
Called the OCBC Business First Loan, the scheme, which comes under Spring Singapore's Micro Loan Progamme, was launched in April last year. Tailored to a more cautious market, it offers new loans that are linked to the size of contracts that companies sign up for.
The collateral-free loan is given to companies - even young startups - with the government taking up 70 per cent of the risk of lending. The risk-sharing proportion was upped in 2014 from half.
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