DBS to offer third round of COVID-19 liquidity relief packages

DBS announced on 3 April that it will introduce a third round of liquidity relief measures to help individuals and SMEs impacted by the COVID-19 pandemic. These measures closely follow the guidelines as set out in the relief package for borrowers announced by the Monetary Authority of Singapore on 31 March 2020.

Helping SMEs alleviate cashflow woes

DBS has amped up its cash flow support for SMEs through its Digital Business Loan, which has seen healthy interest since its launch on 26 February 2020. As of 7 April 2020, the quantum of its Digital Business Loan is now SGD 200,000, double the upsized SGD 100,000 quantum announced on 3 April 2020, and four times the original quantum of SGD 50,000 when the relief measure was first introduced on 26 February 2020.

This will grant SMEs hassle-free access to additional working capital to weather the economic storm. Further, SME clients will only need to service interest for the first 12 months, up from the original three-month interest servicing period announced on 26 February 2020.

DBS will go one step further to support SMEs and waive all processing fees, usually pegged at 1% of the loan quantum associated with this loan.

Additionally, SMEs refinancing their commercial property loans with the bank from mid-April 2020 will enjoy a nine-month principal repayment moratorium, subject to meeting certain eligibility criteria. This means that customers will only need to service interest during these nine months, affording SMEs greater cash flow flexibility.

The processing fee waiver for the upsized Digital Business Loan and nine-month principal repayment moratorium for refinanced commercial property loans are above and beyond government relief measures that were announced on 31 March 2020.

These include allowing SMEs banking with DBS to choose to defer principal payments on all secured term loans up to 31 December 2020, subject to eligibility. SMEs will also be able to extend the tenure of their loans by up to the corresponding principal deferment period if they wish. This relief will be available to SMEs that are not more than 90 days past due as of 6 April 2020.

Said DBS Singapore Country Head Shee Tse Koon: “We remain steadfast in our commitment to standing by our customers and believe that our new round of liquidity relief measures will help alleviate some of the challenges individuals may face in managing their cash flows.”

“We are also providing SMEs with swift, hassle-free access to additional working capital. Amid the uncertainty engendered by the COVID-19 pandemic, we hope these measures will help ease some of the financial concerns on our customers’ minds,” he concluded.