DBS floats SORA-pegged business property loan for SMEs

SME business property owners can borrow up to 80% of their property value.

DBS has launched Singapore’s first business property mortgage loan that references the Singapore Overnight Rate Average (SORA), according to a press release.

The SORA-pegged Business Property Loan covers all property loan types, DBS said. It is specifically tailored for small and medium enterprises (SMEs) looking to finance their commercial and industrial properties.

SME business property owners can borrow up to 80% of their property value and choose to stretch their repayment tenor to up to 25 years.

Interest rates on the SORA-pegged Business Property Loan will be based on the 3-Month Compounded SORA published by the Monetary Authority of Singapore (MAS), as well as an applicable margin.

Joyce Tee, Group Head of SME Banking at DBS, noted that whilst demand for new business property purchases has dropped, they have observed a sustained interest amongst SMEs for property refinancing solutions amid the challenging economic outlook.

“With the industry moving towards a phased discontinuation of SIBOR and adoption of SORA, we are now giving business property owners the option of taking up a SORA-pegged package ahead of time to save them the hassle of repapering their loans down the road,” Tee said.

The loan is available beginning 3 September.

Also Read

ESR-LOGOS secures $225m and JPY15.5b sustainability-linked term loans

Singapore leads SEA in FinTech funding

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit