For small and medium-sized enterprises (‘SMEs’), it is common to experience changes in business direction, which can lead some to find themselves with larger-than-needed loans due to traditional bulk disbursements. Having a business credit line generally gives the flexibility to adjust to business needs and get the right amount of funding without long lock-ins.
First look | Mari Business Loan (Credit Line) - Standby Credit Line
MariBank has designed their loan product as a Standby Credit Line, to give SMEs ready cash for their business needs. As the name suggests, this is a Standby Credit Line that SMEs can draw upon whenever they need that extra working capital to manage any sudden order surges or help to finance urgent payments.Let’s take a look at some of the features below:
Features:
- Up to S$200,0001 Standby Credit Line
- No processing fee, account fees and early repayment fees
- Interest Rates: From 0.5% simple interest per month (EIR from 8.98% p.a.)2
- Repayment Periods: Option for 3, 6, 9 or 12 months
With the range of benefits, having a competitive interest on a Standby Credit Line with no early repayment cost - Mari Business Loan (Credit Line) is definitely an attractive financing option for your working capital needs.Comparison | How does a Business Credit Line compare to an Overdraft Facility?
Overdrafts are best for quick, short-term borrowing directly linked to your checking account, often with higher fees and interest rates.
Mari Business Loan (Credit Line) on the other hand offers more flexibility with the ability to borrow and repay over time, usually with lower interest rates and fees but potentially more structured requirements for access.
Let’s take a look at a comparison table below:
| Mari Business Loan (Credit Line) | Business overdraft facility |
| | |
Processing fee / facility fee | | | | |
| | | | |
| 0.5% simple interest per month | | | |
| | | | |
| | | | |
| | Anytime (Subject to available Credit Limit) | | Anytime (Subject to available Credit Limit) |
| | Principal + Interest monthly instalments | | |
Table 1: Comparison of Mari Business Loan (Credit Line) vs. other Bank’s Business Overdraft Facility.
While Mari Business Loan (Credit Line) still offers competitive interest rates in the market, its standout advantage is the absence of processing and annual fees, which significantly reduces the overall cost as highlighted above. This benefit is particularly valuable for businesses who need funds on an ad hoc basis, as it allows for more flexible financial planning.
While both Mari Business Loan (Credit Line) and overdraft facilities have similar drawdown availability and no early repayment fees, Mari Business Loan (Credit Line) eliminates account opening fees, further enhancing cost savings.
It essentially provides a convenient Standby Credit Line to manage short term liquidity gaps you may encounter, making it a cost competitive advantage when it comes to similar credit facilities.
Eligibility | So who can apply for a Mari Business Loan (Credit Line)?
1 Subject to Terms and Conditions Governing Mari Business Loan (Credit Line).
2 The interest rate indicated is the lowest published rate and may differ from what is offered to you. We will inform you of the interest, and corresponding monthly instalment applicable via the MariBank app at the time of each loan drawdown request. Effective interest rate is calculated based on a 3 month loan tenor.
3 May be subject to any terms and conditions imposed as well as pricing mechanisms adopted by other banks. Information is accurate as at the date of publication.
Deposits Insurance Scheme
Singapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S$100,000 in aggregate per depositor per Scheme member by law. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.
