Singapore Business Loan Interest Rate Comparison Calculator 2026 — Flat Rate to EIR Effective Interest Rate Converter, DBS vs OCBC vs UOB vs EFS Working Capital Loan vs Fintech Lenders Total Cost Comparison, Monthly Reducing Balance Amortisation Schedule and EnterpriseSG Enterprise Financing Scheme SME Loan Savings Calculator

THE FLAT RATE VS EIR CONFUSION IS THE SINGLE MOST COSTLY MISUNDERSTANDING FOR SINGAPORE SME BORROWERS. HERE IS THE DEFINITIVE EXPLANATION: FLAT RATE (ALSO CALLED NOMINAL OR SIMPLE RATE): Interest is charged on the ORIGINAL principal throughout the entire loan tenure, regardless of how much you have repaid. Example: S$200,000 loan at 5% flat rate for 3 years. Annual interest: S$200,000 x 5% = S$10,000/year. Total interest over 3 years: S$30,000. But this is misleading because by Year 2, you have repaid a significant portion of the principal — the flat rate method charges interest as if you still owe the full S$200,000. EIR (EFFECTIVE INTEREST RATE) — ALSO CALLED REDUCING BALANCE: Interest is charged only on the OUTSTANDING principal balance each month. As you make monthly payments, the principal reduces, and so does the interest charged. Example: Same S$200,000 loan at 5% EIR for 3 years. Total interest is approximately S$16,000 — much less than the flat rate example. THE CRITICAL RATIO: A flat rate of 5% is approximately equivalent to an EIR of 9% to 10% for a 3-year loan. This means if a lender quotes you “5% flat”, the true cost of borrowing is closer to 9% to 10% p.a. in EIR terms. WHY SINGAPORE BANKS MUST QUOTE EIR: Under MAS (Monetary Authority of Singapore) regulations, all banks and financial institutions must quote EIR in their business loan marketing materials. However, some alternative lenders and unlicensed money lenders may only quote flat rates. This calculator converts any flat rate you enter into EIR, so you can always compare on an apples-to-apples basis.

SINGAPORE BUSINESS LOAN RATES IN 2026 VARY BY LENDER, LOAN TYPE, AND BORROWER CREDIT PROFILE. INDICATIVE RANGES AS OF 2026: DBS Business Term Loan: from 7% p.a. EIR (subject to credit assessment). Maximum S$500,000, up to 5 years. No minimum shareholding requirement — open to all Singapore-registered businesses. OCBC Business Term Loan: approximately 8.5% to 10.5% p.a. EIR. Maximum S$700,000, up to 5 years. OCBC Business First Loan (under 3 years old): 8% to 11% p.a. EIR, up to S$100,000. UOB SME Business Loan: up to 7.75% p.a. EIR. Maximum S$800,000 (highest quantum among major banks), up to 5 years. Requires 3 years operating history and 30% local shareholding. Standard Chartered: approximately 8% to 11% p.a. EIR, depending on credit profile. Maybank: approximately 8% to 10% p.a. EIR. Strong for ASEAN-linked businesses. EFS-WCL (Enterprise Financing Scheme Working Capital Loan): indicative 6.5% to 8% p.a. EIR. EnterpriseSG carries 50% to 70% of default risk with participating banks, which compresses rates. Available at DBS, OCBC, UOB, CIMB, Maybank, Standard Chartered, and 10+ other participating institutions. Budget 2026 EFS Enhancements: Effective 1 April 2026, EnterpriseSG announced EFS enhancements. Verify current risk-share percentages and loan caps at enterprisesg.gov.sg. Fintech Lenders: Funding Societies (from ~12% p.a. equivalent), Bizcap (from ~20% to 36% p.a. for bank turn-down cases). IMPORTANT NOTE: These are indicative ranges. The actual rate offered to YOUR business depends on your credit profile, business age, annual turnover, industry, and the specific lender relationship. Always obtain the binding rate from the lender offer letter before committing.

THE ENTERPRISE FINANCING SCHEME (EFS) IS AN ENTEPRISG SINGAPORE UMBRELLA PROGRAMME WHERE THE GOVERNMENT SHARES THE DEFAULT RISK OF QUALIFYING SME LOANS WITH PARTICIPATING FINANCIAL INSTITUTIONS. HOW EFS LOWERS YOUR LOAN RATE: When a bank lends to an SME, part of the credit risk is that the SME may default. Normally, the bank prices this risk into the interest rate. Under EFS, EnterpriseSG absorbs 50% to 70% of the default risk alongside the participating bank. With less risk exposure, the bank can offer lower interest rates. The savings to the borrower: typically 0.5% to 1.5% p.a. lower EIR compared to a standard commercial bank loan for the same profile. EFS PRODUCT TYPES: SME Working Capital Loan (EFS-WCL): For daily operations, payroll, inventory, rent. Maximum S$500,000. Up to 5 years. SME Fixed Assets Loan (EFS-FAL): For equipment, machinery, and property. Maximum S$30 million. Trade Loan (EFS-TL): For international trade financing. Project Loan: For specific business projects. Venture Debt: For tech startups. Green Loan: For sustainability-related investments. EFS ELIGIBILITY REQUIREMENTS: Registered and operating in Singapore. At least 30% shareholding held by Singapore Citizens or PRs (this is the key restriction — pure foreign-owned companies do NOT qualify). Group annual sales turnover at or below S$500 million OR group employment size at or below 200 employees. Budget 2026 EFS ENHANCEMENTS (from 1 April 2026): Verify current parameters at enterprisesg.gov.sg as the government announced enhancements as part of Budget 2026 strategy for SME support. HOW TO APPLY FOR EFS: You do NOT apply to EnterpriseSG directly. You apply to any participating bank (DBS, OCBC, UOB, CIMB, Maybank, Standard Chartered, and 10+ others). The bank assesses your application and if eligible, processes it under the EFS umbrella. The government risk-share is automatic — the bank handles the EFS mechanics for you.

THE MONTHLY REPAYMENT FOR A SINGAPORE BUSINESS LOAN USES THE STANDARD ANNUITY FORMULA BASED ON THE EFFECTIVE INTEREST RATE (EIR) AND MONTHLY REDUCING BALANCE METHOD. THE FORMULA: Monthly Payment = P x r / (1 — (1+r)^-n). Where: P = Principal loan amount. r = Monthly interest rate = Annual EIR / 12. n = Total number of monthly payments (loan tenure in months). WORKED EXAMPLE: S$300,000 loan at 8% p.a. EIR for 5 years (60 months). Monthly rate = 8% / 12 = 0.6667% per month. Monthly Payment = 300,000 x 0.006667 / (1 – (1.006667)^-60). Monthly Payment = 300,000 x 0.006667 / 0.3304. Monthly Payment = approximately S$6,083 per month. Total payments over 60 months: S$6,083 x 60 = S$365,000. Total interest paid: S$365,000 – S$300,000 = S$65,000. THE REDUCING BALANCE PRINCIPLE: In Month 1, a large proportion of the S$6,083 payment services interest (S$300,000 x 0.6667% = S$2,000 interest). Only S$4,083 reduces the principal. By Month 50, the outstanding balance has fallen to approximately S$65,000, so interest in that month is only S$433 — most of the S$6,083 payment reduces principal. This is why early repayment of a Singapore business loan (if permitted without penalty) saves significantly on interest costs. THE DIFFERENCE FROM FLAT RATE: A flat rate calculation would give: S$300,000 x 8% x 5 years = S$120,000 total interest — nearly double the actual EIR interest of S$65,000. This illustrates why you should never compare a flat-rate quote directly to an EIR quote without conversion.

SINGAPORE BUSINESS LOAN APPLICATIONS REQUIRE A STANDARD SET OF DOCUMENTS ACROSS MOST BANKS AND FINANCIAL INSTITUTIONS. THE CORE DOCUMENT CHECKLIST FOR 2026: COMPANY DOCUMENTS: ACRA BizFile+ business profile (less than 6 months old). Memorandum and Articles of Association (M&AA) or Constitution. Register of shareholders and directors. CorpPass access (for online applications). FINANCIAL DOCUMENTS: Latest 2 to 3 years audited financial statements (Income Statement and Balance Sheet). If less than 3 years operating: Latest management accounts accepted by some banks. Latest 6 months bank statements (all business bank accounts). Latest GST returns or IRAS income tax assessments. DIRECTOR DOCUMENTS: NRIC (Singapore IC) or passport for all directors and major shareholders. Latest 6 to 12 months personal bank statements of directors (for smaller unsecured loans). BUSINESS-SPECIFIC (where applicable): Latest debtors and creditors aging report. Signed sales contracts, purchase orders, or invoices (for trade financing). Property valuation report (for secured loans). For startup loans (under 2 years): Many banks require a business plan and financial projections. DBS QUICK FINANCE EXCEPTION: For DBS business account holders seeking up to S$50,000, DBS Quick Finance can approve with no documents at all — assessment is based on DBS account transaction history. FINTECH LENDER REQUIREMENTS: Generally much lighter documentation — typically 6 months of bank statements, ACRA BizFile, and directors NRIC. No audited accounts required. This is why fintechs can approve in 3 to 5 days vs 2 to 4 weeks for traditional banks.

SINGAPORE BUSINESS LOANS ARE AVAILABLE FROM TWO BROAD CATEGORIES OF LENDERS WITH VERY DIFFERENT RISK-REWARD PROFILES IN 2026. BANK LOANS (DBS, OCBC, UOB, CIMB, MAYBANK, STANDARD CHARTERED): Interest rates: 7% to 11% p.a. EIR (lower with EFS government risk-sharing). Maximum loan: S$300,000 to S$800,000 unsecured. Tenure: Up to 5 years. Approval timeline: 2 to 4 weeks. Requirements: 2 to 3 years operating history, good credit score, audited financials, 30% local shareholding for EFS. Best for: Established SMEs with clean financial records who want the lowest borrowing cost. FINTECH AND ALTERNATIVE LENDERS (FUNDING SOCIETIES, BIZCAP, JENFI, MINTEREST, VALIDUS): Interest rates: 12% to 36% p.a. equivalent EIR (much higher). Maximum loan: S$50,000 to S$500,000. Tenure: 3 months to 3 years (shorter). Approval timeline: 24 hours to 5 days. Requirements: As little as 6 months operating history, cash flow focus, some lenders do not require personal guarantees. Best for: SMEs that need fast capital, newer businesses, or those rejected by traditional banks. THE COST OF SPEED: For a S$200,000 loan over 2 years: Bank at 8%: Total interest ~S$17,000. Fintech at 18%: Total interest ~S$39,000. The convenience premium for fintech: S$22,000 in extra interest over 2 years. STRATEGY: Always try bank EFS-WCL first. If rejected, try standard bank. If rejected again, approach fintech as a bridge while building credit history for future bank applications. Using a fintech loan to establish trading history and then refinancing to a bank loan can be cost-effective over a 2 to 3 year period.

YES — BUT OPTIONS ARE MORE LIMITED AND RATES ARE HIGHER FOR BUSINESSES UNDER 2 YEARS OLD IN SINGAPORE. OPTIONS FOR SINGAPORE STARTUPS (UNDER 2 YEARS): OCBC BUSINESS FIRST LOAN: Accepts businesses operating for as little as 6 months. Maximum S$100,000. Interest rates: 8% to 11% p.a. EIR (higher than standard OCBC rates for older businesses). Requires minimum revenue of S$500,000 annually. One of the few traditional bank options for very young businesses. DBS QUICK FINANCE: Available to new DBS business account customers for up to S$50,000. No documentation required. Rapid approval. Rate not publicly disclosed upfront. FINTECH LENDERS (FUNDING SOCIETIES, GXS CAPITAL, VALIDUS): Typically accept businesses from 6 to 12 months old. Revenue-based assessment focuses on current cash flow rather than credit history. Faster approval but higher rates (12% to 24% p.a. equivalent EIR). EFS-WCL (GOVERNMENT-BACKED): Technically available to businesses aged 6 months and above, but in practice most participating banks add their own internal credit criteria requiring 2 to 3 years operating history for EFS applications. Check directly with each participating bank. GOVERNMENT GRANTS AS ALTERNATIVE: For startups under 2 years, government grants (PSG, EDG, StartupSG) may be more appropriate than loans for technology investment. PSG covers 50% of qualifying software costs without repayment. PSG is not a loan — it does not add debt to your balance sheet. PERSONAL LOANS AS BRIDGE: Directors with strong personal credit may use personal loans (at lower rates than business loans) to fund early business operations, particularly in the first year. MAS-regulated personal loan rates start from approximately 6% to 8% p.a. EIR for well-qualified individuals.

SINGAPORE SMES CAN ACCESS SUBSTANTIAL UNSECURED BUSINESS LOANS WITHOUT PLEDGING ANY ASSETS AS COLLATERAL IN 2026. MAXIMUM UNSECURED LOAN AMOUNTS BY LENDER: DBS Business Term Loan: Up to S$500,000 (from 7% p.a. EIR). No collateral. Open to all Singapore-registered businesses. OCBC Business Term Loan: Up to S$700,000 (highest unsecured quantum from a major Singapore bank). OCBC Business First Loan (startups): Up to S$100,000 unsecured. UOB SME Business Loan: Up to S$800,000 (highest quantum unsecured from any major bank). Standard Chartered SME Loan: Up to S$500,000. EFS Working Capital Loan: Up to S$500,000 via any participating bank. Funding Societies: Up to S$500,000 (revenue-based, no traditional collateral required). IMPORTANT DISTINCTION — PERSONAL GUARANTEE VS COLLATERAL: Most Singapore unsecured business loans still require a PERSONAL GUARANTEE from directors or majority shareholders. This means if the business defaults, directors are personally liable. A personal guarantee is NOT the same as physical collateral (property, equipment). Revenue-based financing (Jenfi): Does NOT require a personal guarantee — repayments are linked to revenue percentage instead. But rates are correspondingly higher. SECURED BUSINESS LOANS (WITH COLLATERAL): If you have commercial property, industrial equipment, or other business assets to pledge, secured loans offer much higher loan amounts (S$1 million to S$20 million) at lower interest rates (5% to 7% p.a. EIR). The DBS Business Property Loan and OCBC business mortgage products are available for property-backed financing.

SORA (SINGAPORE OVERNIGHT RATE AVERAGE) IS THE KEY BENCHMARK RATE THAT UNDERLIES VARIABLE-RATE BUSINESS LOANS IN SINGAPORE, REPLACING THE OLD SIBOR RATE WHICH WAS FULLY PHASED OUT BY 2024. WHAT IS SORA: SORA is published daily by the Monetary Authority of Singapore (MAS) and represents the volume-weighted average rate of borrowing transactions in the Singapore overnight interbank market. 3-month Compounded SORA: the most commonly used reference rate for business loans and mortgages, calculated as the compounded average of daily SORA over a 3-month period. HOW SORA AFFECTS BUSINESS LOANS: Variable-rate business loans are priced as SORA + bank margin. If 3-month Compounded SORA is 3.5% and the bank charges a 4.5% margin, your total rate is 8% p.a. The bank margin reflects the bank cost of capital, credit risk assessment, and operating costs. FIXED VS SORA-LINKED RATES: Most unsecured Singapore business term loans offer fixed EIR rates rather than SORA-linked rates. This gives borrowers certainty over their monthly payments. SORA-linked pricing is more common in: Business property loans (commercial mortgages). Revolving credit facilities and overdraft lines. Trade financing facilities. SORA IN 2026: As of mid-2026, SORA has been lower than peak 2023 to 2024 levels, reflecting the global interest rate environment after the period of elevated rates. However, bank margins on business loans have remained relatively stable, meaning business loan EIR rates have not fallen proportionally with SORA. Fixed-rate bank business loans remain the majority product for Singapore SME term financing in 2026.

SINGAPORE BUSINESS LOAN PROCESSING FEES ARE CHARGED BY MOST LENDERS TO COVER THEIR CREDIT ASSESSMENT, LEGAL, AND ADMINISTRATIVE COSTS. TYPICAL PROCESSING FEE STRUCTURE: Bank loans: 1% to 2% of the approved loan amount, payable upfront or deducted from the disbursed amount. DBS: Minimum S$500 processing fee (so for loans below S$50,000, the effective fee rate is above 1%). OCBC: Typically 1% of loan amount. UOB: Typically 1% to 1.5% of loan amount. Fintech lenders: 1.5% to 3% of loan amount (higher than banks). SPECIFIC EXAMPLES: S$200,000 loan at 1% processing fee = S$2,000 fee. S$200,000 loan at 2% processing fee = S$4,000 fee. This S$2,000 difference matters when comparing lenders with similar rates but different fee structures. HOW PROCESSING FEES AFFECT TRUE BORROWING COST: Processing fees are a one-time upfront cost that increases your total cost of borrowing. For a S$200,000 loan at 8% EIR over 3 years: Total interest: approximately S$25,500. Processing fee at 1%: S$2,000. Total cost: S$27,500. Processing fee at 2%: S$4,000. Total cost: S$29,500. The difference in processing fee alone adds S$2,000 to your total cost — equivalent to 0.33% in additional effective annual cost for a 3-year loan. WAIVER CAMPAIGNS: Banks occasionally run processing fee waiver promotions. DBS offered a S$888 cashback on Business Term Loans in early 2026. OCBC has periodic fee waiver campaigns for new-to-bank business customers. MoneySmart and other comparison platforms may offer exclusive processing fee waivers when you apply through their links. Always check for current promotions before applying.

YES — SINGAPORE BUSINESSES WITH CREDIT CHALLENGES CAN STILL ACCESS BUSINESS LOANS, BUT THE OPTIONS NARROW AND RATES INCREASE AS CREDIT QUALITY DETERIORATES. UNDERSTANDING SINGAPORE BUSINESS CREDIT: Credit Bureau Singapore (CBS): Records credit history for individuals (including directors). ACRA business filings also reflect financial health. Banks review both the company financial statements AND the personal credit of directors. A director with a poor personal credit history significantly reduces business loan approval chances at traditional banks. CREDIT CHALLENGES AND SOLUTIONS: LATE PAYMENTS OR DEFAULTS ON EXISTING LOANS: Traditional banks (DBS, OCBC, UOB) will likely decline. Fintech lenders like Bizcap and Validus focus on current cash flow rather than historical credit defaults. If the business is generating consistent revenue, fintech lenders may approve at rates of 18% to 36% p.a. INSUFFICIENT OPERATING HISTORY: EFS or startup loan programmes. Revenue-based financing (Jenfi or similar) does not require credit history. LOW REVENUE OR SMALL BUSINESS SIZE: Licensed moneylenders (regulated under MAS): Maximum loan of S$200,000 for businesses. Higher rates but accessible for smaller companies. MAS caps the interest rate licensed moneylenders can charge. IMPROVING YOUR CREDIT PROFILE: Maintain consistent salary payments to employees via GIRO (banks see this positively). Keep bank account in credit for 6+ months before applying. Ensure all director personal credit cards and loans are current. Apply for smaller amounts initially to build a bank relationship. Pay government bills (taxes, GST) on time as IRAS non-compliance signals poor governance. BUILD CREDIT HISTORY STRATEGY: Some Singapore SMEs deliberately take a small Funding Societies loan (even at higher rates), repay it perfectly, then leverage this track record for a DBS or OCBC application 12 months later at lower rates.

A PERSONAL GUARANTEE (PG) IS A LEGAL CONTRACT WHERE A DIRECTOR OR SHAREHOLDER OF A COMPANY PERSONALLY GUARANTEES TO REPAY THE BUSINESS LOAN IF THE COMPANY DEFAULTS. ALMOST ALL SINGAPORE UNSECURED BUSINESS LOANS REQUIRE A PERSONAL GUARANTEE. HERE IS WHAT YOU NEED TO KNOW: WHO PROVIDES THE PERSONAL GUARANTEE: Typically required from all directors and shareholders holding 20% or more of the company. For a 3-director company where each holds 33.3%, all three directors typically sign the personal guarantee jointly and severally (meaning each director is 100% liable for the full loan, not just their 33.3% share). WHAT PERSONAL GUARANTEE MEANS IN PRACTICE: If Pte Ltd Co defaults on a S$200,000 loan, the bank can pursue EACH director personally for the full S$200,000 — their personal assets (savings, CPF OA if applicable, property) may be at risk. This is why business loan defaults can have devastating personal financial consequences for Singapore SME directors. LENDERS THAT DO NOT REQUIRE PERSONAL GUARANTEE: Jenfi (revenue-based financing): repayments are a percentage of revenue, no PG required. Some trade financing products: secured by the underlying invoice or goods. Government grants (PSG, EDG, SFEC): not loans, no repayment required. REDUCING PERSONAL GUARANTEE EXPOSURE: Secured loan against company property reduces reliance on personal guarantee. Keeping personal and business finances cleanly separated (important for limiting PG risk). Consider business insurance products that cover loan repayments in case of director incapacitation. LEGAL ADVICE: Before signing any personal guarantee for a business loan, understand the full implications. Consult a Singapore lawyer for complex or large-amount guarantees. Guarantee terms can sometimes be negotiated, particularly for established businesses with strong financials.

SINGAPORE BUSINESS LOAN APPROVAL TIMELINES VARY SIGNIFICANTLY BETWEEN TRADITIONAL BANKS AND FINTECH LENDERS IN 2026. TRADITIONAL BANK TIMELINES: DBS Business Term Loan (standard): 2 to 4 weeks from complete document submission. DBS Quick Finance (up to S$50,000, existing DBS customers): Often same-day or 1 to 2 business days. OCBC Business Term Loan: 2 to 3 weeks. OCBC Business First Loan (online application): 3 to 5 business days. UOB eBusiness application: 2 to 3 weeks. EFS-WCL applications: Add approximately 1 to 2 weeks for EnterpriseSG credit check processing alongside the bank assessment. Typical total for EFS: 3 to 5 weeks. FINTECH LENDER TIMELINES: Funding Societies: 1 to 5 business days (average ~3 days). Bizcap: 24 to 48 hours in some cases. GXS Capital: 2 to 3 business days. Validus: 3 to 5 business days. WHAT CAUSES BANK DELAYS: Incomplete documentation: The most common delay cause. Ensure ALL required documents are provided upfront. Internal credit committee review: Large loan amounts above S$300,000 typically require credit committee approval, adding 1 to 2 weeks. Collateral valuation: If property collateral is involved, independent valuation takes 1 to 2 weeks. EFS processing: EnterpriseSG credit assessment runs parallel to the bank assessment, adding time. HOW TO SPEED UP BANK APPROVAL: Use CorpPass and MyInfo Business for digital applications (eliminates manual document submission). Apply only to banks where you already have an operating account (existing relationship speeds assessment). Prepare all documents in advance per the bank checklist before submitting. Apply to multiple banks simultaneously to increase chances without waiting for sequential rejections.

SINGAPORE BUSINESS FINANCING IS DIVIDED INTO SEVERAL DISTINCT PRODUCT TYPES SERVING DIFFERENT BUSINESS NEEDS. HERE IS THE KEY DISTINCTION: SME WORKING CAPITAL LOAN (WCL) — DAILY OPERATIONS: Purpose: Fund day-to-day business operations — payroll, inventory, rent, utilities, accounts receivable gaps. Typical amount: S$50,000 to S$500,000. Tenure: 1 to 5 years. Structure: Fixed monthly repayment. Government scheme: EFS-WCL provides government risk-sharing and improves approval chances. Best for: Businesses with temporary cash flow gaps, seasonal businesses, rapid growth requiring working capital. BUSINESS TERM LOAN — EXPANSION: Purpose: Fund business expansion, new equipment (without property as collateral), renovation, hiring, marketing investment. Typical amount: S$100,000 to S$800,000. Tenure: 1 to 5 years. Structure: Fixed monthly repayment, similar to WCL. Best for: Businesses investing in specific growth initiatives with identifiable revenue returns. EQUIPMENT FINANCING / SME FIXED ASSETS LOAN: Purpose: Finance specific equipment, machinery, vehicles, or technology assets. The asset itself often serves as partial collateral. Typical amount: S$50,000 to S$5 million. Tenure: Up to 7 to 10 years (longer than WCL). Interest: Often lower than unsecured WCL because the asset reduces lender risk. Government scheme: EFS Fixed Assets Loan with EnterpriseSG risk-sharing. TRADE FINANCING: Purpose: Bridge the cash flow gap between when inventory or goods are purchased and when payment is received from customers. Products include: Invoice financing, letters of credit, banker guarantees, supply chain financing. Tenure: Usually 30 to 180 days (very short-term revolving). Interest: Often quoted as a monthly rate (0.5% to 2% per month). Government scheme: EFS Trade Loan. OVERDRAFT FACILITY: Revolving credit with a set limit. Interest charged only on the drawn amount. Ideal for businesses with fluctuating cash flow. Annual review and potentially variable interest rates (often SORA + margin).

THE HEADLINE INTEREST RATE IS ONLY ONE COMPONENT OF THE TRUE COST OF A SINGAPORE BUSINESS LOAN. A COMPREHENSIVE COST COMPARISON REQUIRES EVALUATING FIVE FACTORS: (1) EIR (EFFECTIVE INTEREST RATE): The fundamental metric. Always compare loans on EIR, never on flat rate. A 6% flat rate is NOT cheaper than an 8% EIR — the flat rate is approximately equivalent to 10% to 11% EIR for a 3-year loan. This calculator does this conversion automatically. (2) PROCESSING FEE: A 1% fee on a S$300,000 loan is S$3,000 upfront. A lender offering 7.5% EIR with 2% fee may be more expensive than one offering 8% EIR with 1% fee — depending on loan tenure and amount. Always model total cost (interest + fee) not just rate. (3) TOTAL INTEREST OVER LOAN TENURE: Two loans with the same monthly payment but different tenures have very different total costs. A S$200,000 loan at 8% EIR for 5 years costs approximately S$43,000 in total interest. The same loan for 3 years costs approximately S$25,000 in total interest — saving S$18,000 by repaying faster. (4) PREPAYMENT PENALTY: Some Singapore business loans charge a prepayment penalty if you repay early (typically 1% to 3% of outstanding balance). If you plan to refinance or repay early, factor this into your comparison. A loan with no prepayment penalty has higher effective value than one with strict lock-in terms. (5) FLEXIBILITY FEATURES: Repayment holiday (deferral option), top-up facility, and revolving conversion options have real financial value that a simple rate comparison misses. This calculator shows total cost (interest + processing fee) for all 6 lenders simultaneously — the only Singapore business loan tool that enables true total-cost comparison.

THIS IS THE ONLY SINGAPORE BUSINESS LOAN CALCULATOR THAT SOLVES THE FIVE MOST CRITICAL GAPS IN EXISTING SINGAPORE LOAN COMPARISON TOOLS. GAP 1 — FLAT RATE TO EIR CONVERSION: Most Singapore loan calculators only work with EIR. This calculator has a built-in flat rate to EIR converter using the Newton-Raphson iterative method — so if a lender quotes you “5% flat”, you can instantly see this is approximately “9% to 10% EIR” and compare fairly against bank offers. GAP 2 — MULTI-LENDER TOTAL COST COMPARISON: Every existing Singapore tool shows calculations for ONE loan at a time. This calculator shows the total cost (interest + processing fee) for 6 lenders simultaneously — DBS, DBS EFS, OCBC, UOB, Funding Societies, and Bizcap — ranked by total cost. The potential saving between the cheapest and most expensive option is shown explicitly. GAP 3 — MONTHLY AMORTISATION SCHEDULE: No other Singapore business loan calculator shows the month-by-month amortisation table (how much of each payment is interest vs principal, and the declining balance). This schedule is critical for understanding when it becomes financially advantageous to prepay. GAP 4 — EFS VS STANDARD RATE: Explicitly models the EFS-WCL option (government-backed with EnterpriseSG risk-sharing) alongside standard commercial bank loans, so SMEs can see the interest saving from qualifying for EFS. GAP 5 — BRANDED PDF REPORT: Generates a full PDF with the amortisation schedule and multi-lender comparison table suitable for CFO sign-off or board discussion — something no other Singapore business loan calculator provides.