UOB extends $2.83b in loans to mid-sized enterprises

The bank also tapped MAS SGD Facility to help clients access funds at lower interest rates.

United Overseas Bank (UOB) has approved $2.83b in loans under the Temporary Bridging Loan Programme (TBLP), according to an announcement. This follows after the government increased its risk-share of such loans to 90%.

The loans were extended to the bank’s mid-sized enterprise clients in sectors which have been hard hit by the COVID-19 pandemic, especially for businesses under construction, consumer staples, retail and hospitality sectors.

To help its clients access funding at lower interest rates, UOB has also tapped the Monetary Authority of Singapore’s SGD Facility for Enterprise Singapore (ESG) loans. UOB claims to be the first bank to access the facility and is passing on the funding cost savings in full to its clients.

The bank also assured that it has digitised the entire loan application process for clients to receive their funds in about a week.

In addition to helping its clients tap funding under the government-assisted schemes, the bank also rolled out a $3b relief assistance for those affected by the pandemic. The measures include allowing affected businesses to rework their principal repayments and to service only their loan interest for up to one year, as well as offering financing liquidity against mortgage security.