OCBC aims to provide social loans to 10,000 women entrepreneurs by 2030, up from 2,000 now

[SINGAPORE] OCBC has set a target of providing social loans to 10,000 women entrepreneurs in four markets by 2030 under its Women Unlimited programme, it said on Wednesday (Sep 17).

This compares to the more than 2,000 women-owned small and medium-sized enterprises (SMEs) in the region that had received social loan commitments totalling close to S$600 million as of June.

Launched in Singapore in April 2024, the Women Unlimited programme offers financing of up to S$100,000 for women-led startups within their first two years of incorporation, with processing fees waived.

The initiative was extended to Hong Kong and Malaysia in April and August this year, respectively. In Indonesia, a similar programme called Women Warriors has been in place since 2020.

The loans aim to promote the socioeconomic advancement of women in the economy and strengthen the growth and resilience of women-owned businesses.

In Singapore, loan commitments to women-owned SMEs grew by more than 20 per cent year on year in the first year of the programme.

Currently, one in three of OCBC’s SME customers in the four markets are women-owned. In Singapore, the proportion is 36 per cent.

OCBC’s data indicates that women generally take up fewer loans than men, resulting in lower revenue growth in their initial years, said Linus Goh, head of global commercial banking at OCBC, at a media briefing.

Women-owned SMEs in Singapore typically record about 30 per cent lower sales turnover growth in their first three years, compared to SMEs owned by men, the bank’s data showed.

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However, those that obtained financing were able to narrow the gap, said Iris Ng, head of emerging business, global commercial banking at OCBC.

Asked about the targeted cumulative loan commitment figure for 2030, she said the bank was more focused on the number of women-owned businesses it supports, as that would have a larger impact.

“The loan value is secondary,” she said.

Goh added that the loan quantum would vary by market. In Indonesia, for an example, where many micro-entrepreneurs are active, the loans tend to be smaller than in Singapore or Hong Kong.

Wednesday’s media briefing was his final one before his retirement on Sep 30, after 21 years at the bank.

Two women entrepreneurs who have tapped the programme shared their experiences at the briefing.

Jlynn Chen, founder of The Powder Shampoo, said the loan enabled her to expand into overseas markets such as the Philippines. The company is on track to double its customer base by the end of 2025, with revenue growth of 150 per cent projected in 2026.

“It’s been very exciting,” she said. “We get a lot of encouraging reviews from customers globally, and it really helps the team – and myself especially – to keep going forward.”

Yasmin Sim, co-founder of The Plattering Co, used the loan to set up a halal-certified central kitchen. The company now expects to expand its customer base by 1.5 times and triple its revenue by 2027.

“When the (OCBC) relationship manager reached out, it was very timely, because we were actually in the midst of expanding the kitchen,” she said. “With this financing… we had more courage to really scale at ease.”