UOB offers $200,000 pre-approved loans to small businesses

The bank has approved three times more loans in March compared to January.

United Overseas Bank (UOB) today announced that it will be offering pre-approved loans of up to $200,000 to help ease the short-term liquidity woes of small businesses impacted by the COVID-19 pandemic, the bank announced.

The collateral-free loan is intended to help small businesses, which make up two in three of all small- and medium-sized enterprises in Singapore, especially those from hard-hit sectors such as retail and food and beverage, said UOB.

The bank has approved three times more loans to small businesses in March as compared to January, said Lawrence Loh, head of group business banking in UOB.

The pre-approved loan will be offered to UOB’s small business customers with a good repayment track record and at least a 12-month borrowing relationship with the bank. UOB will contact all eligible customers for the pre-approved loan by the end of the week.

To receive their funds as quickly as two business days, UOB customers only need to authenticate their company information through MyInfo Business or to submit details such as their company name and their contact number, the bank said.

Small businesses which take up the pre-approved loan will also have the option to service only the interest on their loan until 31 December 2020.