Loan Insurance Scheme (LIS) - Trade Finance | OCBC Business Banking SG

LOAN INSURANCE SCHEME

Government-backed short term trade financing

Why you will love this

Tap on the government risk-sharing schemes to help you obtain trade financing

Get 80% subsidy for your Loan Insurance Scheme (LIS) insurance premiums until 31 March 2021

Enjoy 1 year coverage on your trade finance facilities

Who can apply

At least 30% Singaporean and/or Singapore PR shareholding

Registered and operating in Singapore

Group annual sales of up to S$100 million or maximum employment size of 200 employees

In line with Resilience Budget 2020, premium subsidies for the Loan Insurance Scheme is now enhanced to 80%.

How it works

Step 1

Approach OCBC for trade finance facilities

Step 2

If applicable, OCBC will apply for insurance cover under LIS, as part of the trade finance facility application process.

Step 3

Once approved, OCBC will be able to extend trade financing to you under the LIS scheme.

Step 4

If your loan is beyond the capacity of LIS insurers, the Enterprise Financing Scheme - Trade loan, can potentially cover your loan.
Features and benefits

Low insurance premium

80% subsidy (increased from 50%) for your LIS insurance premium until 31 March 2021.

1 year coverage

LIS will provide 1 year coverage for your trade finance facilities.

Fees and charges

Insurance premium for 1 year coverage will be charged.
The insurance premium will vary according to the trade finance facility size requested and your risk profile.


Ways to apply

Enquire about the Loan Insurance Scheme today

FAQS
Common questions
What trade finance products are eligible for the Loan Insurance Scheme (LIS)?
Borrowers can apply for the LIS to secure short-term trade financing for the purpose of:
  • Inventory/ stock financing facility
  • Structured pre-delivery working capital
  • Factoring/ bill or invoice or accounts receivable discounting with recourse
  • Overseas Working Capital Loan
  • Banker's Guarantee
What are the Loan Insurance Scheme eligibility requirements for borrowers?
  • Borrower must be incorporated and operating in Singapore

  • Borrower must have at least 30% local shareholdings

  • Borrower's group annual sales turnover must not be more than S$100million; or

  • Borrower group employment size must not be more than 200 workers

What is the maximum facility limit that can be approved?

Under LIS, the facility limit depends on your risk profile. The maximum limit under EFS Trade is S$10 million per Borrower Group.

How is the insurance premium determined?

The insurance premium will vary according to the trade finance facility size requested as well as your risk profile.

What is the Enterprise Financing Scheme - Trade Loan (EFS Trade) and how is it different from the Loan Insurance Scheme (LIS)?
EFS Trade compliments the current LIS by insuring loans which are beyond the capacity of current LIS insurers. The eligibility criteria of EFS Trade is as follows:
  • Borrower must be incorporated and operating in Singapore
  • Borrower must have at least 30% local shareholdings
  • Borrower's group annual sales turnover must not be more than S$500million
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