SME Micro Loan

What is a SME Micro Loan?

The SME Micro Loan by Enterprise Singapore is a long term, low interest small business loan that was launched to help small and medium sized enterprises get greater access to SME loans in Singapore.

Enterprise Singapore is a government related agency that provides grants and SME financing schemes to small medium enterprises (SMEs) in an effort to spur growth and development amongst small businesses in Singapore. While Enterprise Singapore does not lend out any money, they serve to bear up to 70% of all loan default risks from the banks and financial institutions.

The SME Micro Loan scheme, which is a small business loan program in Singapore, is targeted at businesses that are relatively younger and smaller. If conditions are met, an SME may take up to $100,000, which is payable over a 5 year repayment period.

For businesses that have been in operations for less than 3 years, Enterprise Singapore stands in as a guarantor for up to 70% of the credit risk. This would open up the micro loan to emerging businesses that are usually seen to have higher default risks. Emerging businesses make up 90% of all local enterprises.

To qualify, businesses must be registered and operating in Singapore. They must have a minimum of 30% local shareholding. Annual sales should be less than S$1 million or employed less than 10 workers. Group annual sales must be less than $100 million or group employment size must not be more than 200.

Latest Update On SME Micro Loan (2022)

As of Febraury 2022, the SME Micro Loan is no longer being issued by most banks and financial institutions. This was in part because of new and better business loan programmes that were launched by Enterprise Singapore to help companies tide through the Covid crisis.

Instead of the SME Micro Loan, companies are encouraged to go for either the Temporary Bridging Loan or the SME Working Capital Loan, which offer lower interest rates and significantly higher loan quantums.

If you are unsure of which business loan to apply for, feel free to get in touch with us and we will be more than happy to answer your queries. Let us help you to get the best SME loan for your company.

Get Funded Today To Grow Your Business!


  • Loan Amount: Up to $100,000
  • Interest Rate: 2.5% – 3.% p.a.
  • Repayment Period: 1 – 4 years


To qualify for the SME Micro Loan, your company must meet the following criteria:

  • Registered and operating in Singapore for at least 2 years
  • At least 30% local shareholding
  • Company turnover at least $150,000; and no more than $100 million
  • Total employment size not exceeding 200

Required Documents for Application

To apply for the SME Working Capital Loan, here are the documents that you will need to prepare:

  • NRIC or passport copy of company directors
  • Income tax Notice of Assessment of directors for the last 2 years
  • Company financial statements for the last 2 years
  • Bank statements for the last 6 months
  • ACRA Bizfile



General FAQ

What is SME Micro Loan?

It is a small business loan for SMEs, with a loan quantum of up to $100k.

What is SME Micro Loan interest rate?

Between 2.5% - 3% per annum.

Who is eligible for SME Micro Loan?

Companies registered and operating in Singapore with at least 30% local shareholding. Annual revenue should not exceed $1 million, with maximum of up to 10 employees.