SGDLoan.com – A loan from commercial bank is one of the most widely used financial instruments in Singapore for individuals and businesses seeking funding.
Whether it’s to buy a commercial vehicle, expand company operations, or meet urgent capital needs, these loans play a key role in keeping the economic wheel turning.
Singapore’s banking sector is known for its stability, regulatory integrity, and pro-business stance. This makes it a highly attractive environment for accessing structured financing through commercial banks.
However, the process of selecting the right type of loan, understanding the terms, and meeting eligibility criteria can feel complex.
In this article, we’ll guide you through the various types of loans available, focus on commercial vehicle loan options, present real business examples, compare practices in Qatar, and offer tips to strengthen your application.
Understanding What a Loan from a Commercial Bank Means
Securing a loan from commercial bank involves borrowing a sum of money from a licensed financial institution under agreed terms of repayment and interest.
These banks act as intermediaries between surplus and deficit units—helping depositors earn interest, while providing funds to borrowers who need them.
Commercial loans can come in many forms and serve a wide range of objectives, depending on the nature and scale of your financial needs.
Common Types of Commercial Bank Loans
Each type of loan has unique features, target users, and specific documentation requirements. Below is a breakdown:
- Personal Loans
Often unsecured and based on personal income and credit rating. These are ideal for short-term cash flow needs such as medical expenses, education, or major purchases. - Business Loans
Designed to provide operational cash flow, fund expansion, purchase inventory, or improve infrastructure. These loans are often tailored with flexible repayment periods. - Commercial Vehicle Loans
Specifically used to finance the purchase of vans, trucks, buses, and other transport used in the course of business. They are often partially secured by the vehicle itself. - Equipment & Machinery Loans
Allow businesses to purchase essential tools and machines without upfront capital investment. Typically offered with extended tenures and competitive interest rates. - Green Loans
These are sustainability-linked loans provided for green-certified buildings or environmental projects. A growing number of developers and corporates in Singapore are utilising green financing to meet ESG goals.
Benefits of Taking a Commercial Bank Loan
Taking a loan from commercial bank offers several key advantages that cannot be overlooked:
- Access to substantial capital for large-scale business or personal projects.
- Better rates and terms compared to alternative lenders or peer-to-peer platforms.
- Structured repayment plans tailored to cash flow cycles.
- Opportunity to build credit history and gain financial credibility.
Commercial Vehicle Loan Singapore: Options, Benefits, and Eligibility
For companies operating in sectors like logistics, delivery, construction, or mobile services, owning a reliable fleet is a necessity rather than a luxury.
A commercial vehicle loan Singapore plan helps businesses acquire new or used commercial vehicles without draining their working capital.
Overview of Leading Providers in Singapore
Here’s a comparative table of leading commercial vehicle loan options available in the market:
| Provider | Maximum Financing | Repayment Period | Notable Features |
|---|---|---|---|
| DBS Bank | Up to 90% | Up to 7 years | EV incentives, quick processing, tailored for SMEs |
| UOB | 100% for new vehicles | Up to 7 years | Flat monthly repayments, funds disbursed in one business day |
| Maybank | Subject to valuation | Up to 7 years | Structured for Singapore-registered businesses |
| Tokyo Century Leasing | Up to 90% | Up to 7 years | Competitive 3.28% rate, applicable to used vehicles as well |
General Eligibility Criteria
To qualify for a commercial vehicle loan Singapore, businesses must generally meet the following requirements:
- Be a registered and active business in Singapore.
- Directors or major shareholders aged between 21 and 65.
- Demonstrate ability to repay based on existing income or financial track record.
- Provide a personal guarantee if the business is newly incorporated or has limited trading history.
Required Documents for Application
Each financial institution may ask for slightly different paperwork, but common documents include:
- Duly completed loan application form.
- Last 3 months of company bank statements.
- Purchase agreement or invoice of the intended vehicle.
- Vehicle registration or log card.
- Notice of Assessment (past two years).
- CPF contribution history (12 months).
- Clear photocopy of the guarantor’s NRIC or identification.
Such documentation helps the bank assess both the business and the individual’s ability to service the loan responsibly.
Real Commercial Loan Examples in Singapore
To better understand how a loan from commercial bank supports businesses, consider these real-world examples of how companies utilised commercial financing to achieve growth:
- Atome Financial, a popular fintech company, secured an $80 million credit facility arranged by BlackRock and InnoVen Capital. This capital was used to enhance their Buy Now Pay Later (BNPL) offerings across Southeast Asia and build strategic alliances.
- SingTel, Singapore’s largest telecom provider, raised S$643 million through a green loan syndication to develop a new 58-megawatt data centre. This initiative was backed by several major banks including DBS, OCBC, and Standard Chartered.
- GuocoLand, a prominent property developer, obtained over S$1.24 billion in green financing for multiple development projects, including Lentor Hills Residences and Midtown Modern. This underscores the banking sector’s growing commitment to sustainable urban development.
These examples reflect not only the availability of large-scale financing options but also how businesses align their objectives with environmental and social governance through green lending.
How to Get Loan from Commercial Bank Qatar
For entrepreneurs and businesses with operations or interests in the Middle East, understanding how to get loan from commercial bank Qatar can open up opportunities for cross-border financial planning.
The Commercial Bank of Qatar offers diverse financing solutions tailored to support local SMEs and corporates:
Loan Options Available in Qatar
- Term Loans
Provided for short, medium, or long durations depending on the borrower’s need. These are suitable for asset purchases or business expansion. - Project Finance
Commonly used in sectors like real estate, infrastructure, and utilities. Structured as milestone-based disbursements during project phases. - Vehicle Loans
Help companies finance the acquisition or upgrading of commercial-use vehicles. Generally secured by the vehicle itself. - Supply Chain Finance
Supports the purchase of inventory or raw materials. It enhances cash flow by ensuring timely payments to suppliers. - Export-Import Finance
Covers working capital needed to fulfill international trade orders. Available in conventional and Islamic banking structures.
Application Process in Qatar
- Choose the type of financing suited to your business activity.
- Prepare documentation such as trade license, financials, and credit reports.
- Apply either online via the bank’s portal or visit a commercial branch.
- Loan officers assess eligibility, collateral (if any), and risk.
- Once approved, funds are credited to the account within a few working days.
Many commercial banks in Qatar offer English-language support and relationship managers, which makes the application process more accessible to foreign-owned companies as well.
Tips to Secure a Loan from Commercial Bank Successfully
Whether you’re in Singapore or Qatar, being well-prepared increases your chances of loan approval. Here are some crucial tips that can help you secure a loan from commercial bank:
- Maintain a Solid Credit History
Keep personal and business credit scores healthy by paying debts on time and minimising defaults or bounced payments. - Organise Financial Documents
Updated profit and loss statements, balance sheets, and tax records reflect stability and financial discipline. - Be Transparent with Purpose
Clearly outline what the funds will be used for, how they align with your business goals, and how you plan to repay them. - Shop Around Before Committing
Compare offerings from multiple institutions. Tools like MoneySmart.sg and SingSaver help you compare interest rates, tenure, and approval times. - Seek Professional Help if Needed
Financial consultants or SME loan specialists can provide guidance tailored to your industry, risk profile, and specific funding needs.
Differences Between Secured and Unsecured Loans
When seeking a loan from commercial bank, it’s essential to understand the difference between secured and unsecured lending. These two forms impact interest rates, approval criteria, and risk level.
- Secured Loans
Backed by collateral like property, vehicles, or equipment. Typically offer lower interest rates due to reduced lender risk. Common in vehicle and property financing. - Unsecured Loans
Do not require collateral but rely heavily on the borrower’s creditworthiness. Interest rates tend to be higher, and loan amounts may be smaller.
The choice between the two depends on your business’s asset base and comfort level with risk exposure.
Conclusion: Unlocking Opportunities with Commercial Bank Loans
A loan from commercial bank is more than just borrowed money—it’s a strategic financial tool that enables businesses to operate, grow, and compete effectively.
From acquiring vehicles and funding new projects to boosting cash flow and expanding into new markets, commercial loans can make a significant difference when managed responsibly.
With Singapore’s strong banking network and Qatar’s growing financial sector, there are ample opportunities for local and international entrepreneurs alike to tap into structured financing.
Whether you’re buying your first delivery van, launching a green-certified office tower, or exporting products overseas, the right commercial loan could be your key to success.
