Businesses that require urgent access to funding to stay afloat during the Covid-19 outbreak can take up pre-approved loans of up to S$200,000 ($140,000) and only service the interest until December 31.
UOB has announced collateral-free loans to help small and medium enterprises, especially those from hard-hit sectors such as retail and food and beverage, gain access to much-needed funds quickly.
According to a statement on Tuesday, this will be offered to customers with a good repayment track record and at least a 12-month borrowing relationship with the bank, and the funds will be available in two business days.
UOB said that as a result of the Covid-19 outbreak, it has seen more customers who are seeking loans to provide their businesses with liquidity, citing a threefold increase in loan approvals from January to March this year.
The reality is that small businesses already operate on tight cash flow and do not have the liquidity to withstand the prolonged economic shock that is expected from the Covid-19 pandemic. As such, they require urgent access to funding in order to stay afloat, said Lawrence Loh, head of group business banking, UOB.