From 6 April 2020, DBS customers can apply to defer mortgage repayment and obtain a lower interest on unsecured credit. The bank is helping SMEs alleviate cashflow woes. This is the third round of liquidity relief measures to help individuals and SMEs impacted by the COVID-19 pandemic.
For Individuals
Individuals can enjoy deferred mortgage repayment and lower interest on unsecured credit. They can defer their home loan principal and interest payments till December 2020 and avoid late payment interest with no impact to the Credit Bureau records.
Those with outstanding balances accrued on credit cards and/or DBS Cashline can also apply to convert their balances into a term loan of up to five years, with effective interest rate capped at 7.96% and no penalty for early repayment.
These are in addition to relief measures rolled out by the bank in February 2020 including Free 30-day COVID-19 insurance coverage in partnership with Chubb Insurance Singapore Limited, six month principal repayment moratorium for mortgage loans, contact tracing for customers who use their cards for street hail fares with ComfortDelGro via the ‘TRACE’ promo ode and a S$2 discount as well as free online supplementary classes in partnership with 88Tuition for primary and secondary students.
For SMEs
DBS is offering a Digital Business Loan to SMEs since 26 February 2020. From 6 April 2020, SMEs can apply online for a collateral-free loan of up to S$100,000, double the previous quantum of S$50,000. SME clients who only need to service interest for the first 12 months, up from original three-month interest servicing period announced on 26 February 2020. DBS will waive all processing fees, usually pegged at 1% of the loan quantum associated with this loan.
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 which DBS will be introducing on 6 April 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.
DBS’s previous Relief Measures for SMEs include:
- Six-month principal repayment moratorium for SME property loans
- Extension of import facilities of up to 60 days to act as immediate cash flow support
- F&B Digital Relief Package supported by the Infocomm Media Development Authority and Enterprise Singapore that features e-commerce and digital marketing solutions to help SMEs tap new income streams by building their online presence in just three days
To obtain more information on DBS’ latest COVID-19 relief measures from 6 April 2020 onwards, individuals can visit https://www.dbs.com.sg/personal/support-covid-community. More details on DBS’ relief measures for SMEs can be found at: https://www.dbs.com.sg/sme/covid-19-relief-measures.page.
Relief Package to Help F&B Businesses Tap New Income Streams
On 25 March 2020, DBS offered a suite of digital solutions to support some 8,000 F&B services establishments impacted by the the tightened safe distancing measures mandated by the government then.
DBS worked with two homegrown technology startups Oddle and FirstCom to offer F&B businesses the ability to set up online food ordering sites in just three business days.
DBS’ F&B digital relief package is supported by Infocomm Media Development Authority and Enterprise Singapore. It aims to help F&B businesses go online to create new income streams for them in the increasing need for takeaway and delivery meals.
Oddle
Oddle establishes a branded e-menu with integrated shopping cart, order management and payment gateways in as few as three business days. Oddle will ease the onboarding process to their F&B platform by providing training and a social media kit for merchants to further power online sales through digital marketing tools.
DBS’ F&B customers need only pay a preferential rate for these services, as compared to commission rates of as high as 30% on other industry digital platforms. Additionally, Oddle will also allow F&B SMEs the option to integrate with Oddle’s preferred logistics partners who may want to ride on the growing preference for on-demand food delivery. Oddle’s system currently powers over 3,000 F&B brands, including Soup Restaurant, Arnold’s Fried Chicken and A-One F&B.
DBS’ F&B customers pay a preferential rate for these services as compared to commission rates that are as high as 30% on other industry digital platforms. Oddle also allows F&B SMEs the option to integrate with its preferred logistics partners. Oddle’s system currently powers over 3,000 F&B brands including Soup Restaurant, Arnold’s Fried Chicken and A-One F&B.
FirstCom
FirstCom help DBS’ F&B customers who already have an online presence to amplify their digital marketing efforts by offering merchants preferential rates fo digital marketing services, which includes setting up and managing businesses’ social media presence on Facebook and Instagram. FirstCom helps brands new to ecommerce set up a digital presence in less than five working days.
FirstCom will also integrate DBS’ digital merchant collections solution, DBS Max, as a payments and collections option in their respective ecommerce solutions. DBS will absorb the set-up costs for DBS Max and waive Merchant Discount Rates for six months for FirstCom customers adopting DBS Max. FirstCom has served over 4,500 SME clients to date and has powered the digital marketing efforts of Singapore’s National Day Parade since 2017.
DBS has been proactively engaging its F&B clients on how they can access DBS’ F&B digital relief package. More details can be found at https://www.dbs.com.sg/sme/covid-19-relief-measures/fb-digital-relief-package
DBS’ F&B digital relief package comes on the back of two rounds of relief measures to address cash flow challenges faced by the SME community. These liquidity relief measures include a six-month principal repayment moratorium for SME property loans announced on 13 February, and a collateral-free Digital Business Loan of up to SGD 50,000 disbursed within 24 hours of loan acceptance announced on 26 February.
