Fees
SourceOCBC's published Working Capital Loan terms: a facility fee of 1.5% of the approved amount, minimum S$500, charged in addition to the effective interest rate. Read 17 August 2026.
Scheme reference
Every figure here is computedThe table below runs in your browser from the same tested code as our calculator. Change the rate and tenure and it recalculates.
A small loan is not a small version of a big loan.
Facility fees usually have a minimum. Once your loan is small enough that the minimum bites instead of the percentage, you are paying a fixed cost out of a smaller sum, and the real rate climbs fast. This is the part of a quote that nobody points at.
- S$10,000
- 16.74%
- Flat
- 9.85%
Because 1.5% of S$33,333 is exactly S$500. Borrow less than that and the minimum governs, so the fee stops shrinking with the loan.
| Amount | Fee | You receive | Real cost |
|---|
The counterintuitive half
Above the threshold, the real cost stops depending on how much you borrow. A percentage fee scales with the loan, so the rate you truly pay on S$200,000 is the same as on S$1,000,000. All the damage from a minimum fee lands on the smallest borrowers, which is usually whoever can least afford it.
The same fee hurts more on a short loan
A facility fee is charged once, at the start. Annualising it spreads that one payment across the tenure, so a shorter loan carries more of it in each year and the quoted rate sits further from the truth. Below is the same S$10,000 facility at the rate you entered, over five tenures.
| Tenure | Real cost | Quote understates by |
|---|---|---|
| 12 months | 16.74% | 9.74% |
| 24 months | 12.12% | 5.12% |
| 36 months | 10.50% | 3.50% |
| 48 months | 9.67% | 2.67% |
| 60 months | 9.17% | 2.17% |
The instinct runs the other way. Shortening a business loan to pay less interest is sound on the interest, and it can be badly wrong on the annualised cost once a fixed fee is in the deal. Both things are true at once, which is why the quoted rate cannot settle it and the total you hand over can.
What this does and does not tell you
It tells you the arithmetic of one published fee structure. It does not tell you what any Singapore bank will offer you, and we are not suggesting one lender over another. Fee structures differ, some are negotiable, and a fee is only one line of an offer. The point is narrower than advice: ask what the fee is and whether it has a minimum, before you compare two quotes on their headline rates.
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