Loan Insurance Scheme

Loan Insurance Scheme (LIS) is used to insure your loans against default risk.

Overview
The insurance premiums will be co-shared between the government and your enterprise. LIS+ is a complementary programme to LIS, where the government will co-share in the risk of new loans which are beyond the capacity of current LIS insurers for a one-year period.

Summary of LIS+ enhancement

Use of Funds	Secured working capital (e.g. against receivables)
Maximum Loan Quantum	Up to S$15 million per borrower group
Eligible Companies	All companies
Interest Rate	Subject to interest rate offered by Participating Financial Institutions The interest rate charged throughout the tenure of loans will be either fixed or floating, depending on the option which best suits your business needs
Insurance Premium	LIS 0.45% of loan amount (this is after 90% government subsidy) LIS+ 1% p.a. on amount insured by government .

Loan Facilities
LIS supports both domestic and export-oriented loan facilities.

Types of Loan Facilities	Domestic Facilities	Export-Oriented Facilities
Inventory/Stock Financing	Yes	Yes
Structured Pre-delivery Working Capital (including Revolving Working Capital)	Yes	Yes
Factoring/Bill or Invoice or accounts receivable discounting with recourse	Yes	Yes

Criteria
You may apply for the LIS Scheme if your company meets these criteria:

For domestic facilities

At least 30% of your shareholding is local

For export-oriented facilities

Singapore-based;
Presence of at least 3 strategic business functions in Singapore . Strategic business functions refer to activities such as banking & financial; marketing & business planning; procurement/logistics; training & personnel management; investment planning/coordination; R&D; technical support and manufacturing.

For companies applying for both domestic and export facilities, you will have to meet both set of criteria as described above.

Find out more at IE Singapore's website (link to www.iesingapore.gov.sg)

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