UOB approves $4b in loans to mid-sized firms under government-assisted loan scheme

United Overseas Bank (UOB) has approved $4 billion in loans to mid-sized firms under the Temporary Bridging Loan Programme, it said on Tuesday (May 5).

The loans are going to clients in sectors that have been hit hard by the Covid-19 pandemic, including construction, retail and hospitality.

Banks here have provided financing help to small and medium-sized enterprises (SME) in various ways, including deferment of some interest payments.

They have also tapped a Monetary Authority of Singapore (MAS) facility for Enterprise Singapore loans that lend at an interest rate of 0.1 per cent.

The Government is taking a 90 per cent risk share on loan schemes overseen by Enterprise Singapore, such as the Temporary Bridging Loan Programme and the SME Working Capital Loan, for applications initiated between April 8, 2020, and March 31, 2021.

UOB noted that the $4 billion of loans were extended to mid-sized firms from April 8 to April 30.

The application process has been digitalised so customers get the funds in about a week.

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