Top Education Loans in Singapore for Students
Singapore is a world-renowned destination for education and employment, with equally high living and tuition costs. Banks and financial institutions offer various education loans with flexible repayment options to help students manage these expenses.
Each bank in Singapore that offers education loans has different loan amounts, interest rates, loan tenures, and repayment periods.
By comparing various available options based on individual financial circumstances, university location, and fee structure, students can find the most appropriate loan to support their studies. Whether studying locally or abroad, this still applies.
Here are five education loans in Singapore for students:
The OCBC's FRANK Education Loan is one of Singapore's widely recognised bank-financed education loans. With a maximum loan amount of S$150,000, a potential for receiving up to 10 times your monthly salary is offered. The loan is available for students studying at approved local private and overseas institutions. An extensive list is provided for guidance. Also, following the application process is simple and easy. At 4.5% (EIR is 5.17%), the FRANK Education Loan offers a competitive interest rate. The loan interest rate is constant regardless of where you study or what institution you attend.
The loan would cost an additional 2.5% as a processing fee. Tailoring their loan to their financial situation and needs is easy for students with three repayment options. The loan can assist in covering the cost of post-secondary education and related fees such as tuition, books, supplies, and living expenses. The monetary constraints no longer trouble the students; they can focus on their studies.
The FRANK Education Loan offers competitive interest rates and flexible repayment options. It helps to achieve students' educational goals without burdening them with exorbitant interest rates. It applies to studying at a local private institution or pursuing education overseas.
Maybank Education Loan offers a competitive interest rate dependent on the Education Loan Board Rate. The current rate is 4.45% per annum (Education Loan Board Rate plus 0.45% added). There is a processing fee of 2.25% of the loan amount or a minimum of S$300, whichever is higher.
Maybank customers whose child enrols in promoted institutions can enjoy a lower interest rate of 4%. This loan is suitable for those pursuing expensive degrees or studying in high-end institutions, as it allows borrowing up to S$200,000 or 8 times your monthly income, whichever is lower, one of the highest loan amounts available. Low-income full-time students with annual incomes of S$18,000 can access education financing.
Maybank's current education loan promotion offers the least expensive option for most students, including those studying overseas or locally. Working students find the bank's education loan attractive due to its lowest minimum income requirement.
The CIMB Education Loan in Singapore provides a convenient and competitive financial aid option to students. The loan can be applied for by Singapore citizens and permanent residents from 16 to 50 with a minimum annual income of S$24,000 as either the principal applicant or guarantor. The loan is not available to foreigners.
With a hassle-free application process, CIMB Education Loan provides the freedom to choose courses at easy and competitive rates.
The CIMB Education Loan offers interest rates up to eight times your monthly salary borrowing capability (up to S$200,000) and a maximum loan tenure of ten years. The loan's annual interest rate is 4.78% (EIR 5.22 - 8.57%) plus an additional 2% processing fee.
CIMB distinguishes its two types of education loans based on their respective repayment schedules. The monthly rest education loan is among the two schemes available, with the second being an interest-servicing repayment scheme. The monthly rest education loan necessitates that the borrowers make monthly repayments. Contrarily, the interest servicing repayment scheme permits solely the payment of interest by borrowers in the study phase and initiation of principal repayment post-graduation.
The approval duration usually lasts from one to two weeks. A viable option for students seeking financial support for their education is the CIMB Education Loan. Both local and overseas students fall under this category.
A POSB Further Study Assist education loan is designed for Singapore students who want to study in local, overseas, or private institutions. The offered competitive interest rate is 4.38% or 5.88%, depending on your University. A processing fee is charged for this loan that offers financial support to students who need help funding their education.
Up to 10 times the combined monthly income of the borrower and their guarantor can be granted as the loan amount. S$160,000 is the maximum limit, however. A repayment period of up to ten years, which best suits the needs of borrowers, can be chosen. Managing finances becomes a lot easier due to this flexible repayment period.
For POSB Further Study Assist, eligibility requires borrowers to be Singapore citizens or Singapore permanent residents aged between 17 and 65 (upon loan maturity). A minimum annual gross income of S$18,000 is required additionally. The loan mandates that a Singapore Citizen or Singapore Permanent Resident act as a guarantor.
The loan is also suitable as an alternative for those requiring a loan amount higher than their eligible credit limit or failing to meet the minimum income eligibility of S$18,000 per annum. The guarantor should belong to the immediate family of the applicant. A previous applicant or guarantor for another POSB student loan cannot be the guarantor.
An affordable option for many, POSB Further Study Assist offers competitive rates to students attending preferred institutions. The students attending other universities may face higher fees and rates, however.
The DBS Study Loan offered by DBS Bank in Singapore is meant to support students financially with their educational expenditures. This loan's key features are its minimum borrowing limit of S$2000 and maximum borrowing limit of S$160,000, with an annual percentage rate (APR) set at 4.38% and processing fee of 2.5%. While studying, there is no interest on the loan. The interest charged after graduation is calculated using a prime rate that averages DBS, OCBC, and UOB. Only loans within 5 years of tenure will be approved. Up to S$3,600 in annual living allowance is offered, along with a subsidy of up to 20% on tuition fees for Singaporean students.
Undergraduates who have received financing of tuition fees from schemes like the Tuition Fee Loan are considered eligible candidates. Enrolment in local polytechnics and taking up similar schemes also make full-time Singapore Citizens or Permanent Residents eligible. After finishing the course, payments start and depend on whether the loan bears interest, determining the repayment duration.