Microfinance Focus, November 17, 2011: A new pilot business loan scheme, the MicroCredit Business Scheme (MCBS), for low-income Singaporeans is started by POSBank in partnership with the Tote Board and SE Hub. The MCBS will provide unsecured loans of S$5,000 (US$3,900) to S$50,000 to help Singaporeans expand their small businesses.

Applicants to this scheme must be Singaporean, at least 18 years old, and earning less than S$30,000 per year. They must also submit a business plan and attend a complementary business-training program.

The Tote Board, that manages the donation of surplus funds generated from the operations of Singapore Turf Club and Singapore Pools, will seed S$5M to the program, with collected loan repayments funneled back to the scheme for new loans. Representatives from all three organizations and from the wider private or public sector will oversee the MCBS and the administration of loans.

A Loan Management Committee with representatives from POSB, Tote Board, SE Hub that invest and incubates social enterprises, and other private or public sectors will oversee the MCBS. The MCBS will commence on November 18.

POSB managing director and head Koh Kar Siong said: "This flexible scheme is designed to encourage discipline and self-sustenance, whether it is for short-term business initiatives such as selling pastries during festive periods or to fulfill a longer-term business plan such as starting a retail shop."