Singapore’s international-level educational standards make it one of the prime countries to study in Asia. However, an international-quality educational system can become extremely costly, forcing poorer Singaporeans to take on college loans even for public universities.
Singaporeans aren’t limited to government loans. Bank loans are excellent alternatives that offer flexible payment terms. Because economic conditions change yearly, banks can afford to lower their interest rates and processing fees.
This year, the best study loans are once again different than those in 2020. Before applying for any of the loans we’ve listed, we highly recommend reading through the entire post to ensure you have a smooth experience.
Things To Consider When Applying for Study Loans
A study loan Singapore is essential if you want to enroll in local universities. However, some banks offer overseas education loans for promising students.
Both local and overseas education loans require proper budgeting and risk assessment before you apply for them. They’re beneficial financial products until their interest rates start to balloon and spiral out of control, leaving benefactors and students in deep debt and requiring consolidation.
Before you apply, make sure you’ve taken note of the following:
- Interest Rate
Bank study loan interest rates often have an average 4-5% yearly charge from the remaining loan amount. For a S $20,000 education loan payable in five years, your average monthly repayment will total at S $370 – S $390 at most inclusive of interest rates until the loan term’s end.
- Repayment Period
A good rule to have with an education loan and other financial products is to pay as early as possible if there’s no early repayment fee. However, if early payment penalties do exist, it’s best to choose the shortest loan term possible.
The only drawback of shorter loan terms is the higher monthly payments. Therefore, estimate how much you can pay your education loan fees monthly. In doing so, you can prioritize paying less interest or stretching it out to the maximum loan term possible while paying higher interest.
- Loan Amount
A loan amount of S $20,000 is enough to enroll in Singapore’s top local universities. However, overseas education can cost much more than local schools. Banks can accommodate higher loan amounts but grant them to borrowers with high credit scores and qualified income.
Government-funded and subsidized education loans are mostly for local schools and universities. Therefore, your possible government-funded loan amount is in the range of S $20,000-S $30,000.
Best Study Loans in Singapore 2022
This year, OCBC ‘s FRANK Education Loan takes the best spot because of its local, overseas, and graduate studies financing. However, nothing parallels POSB and Maybank’s offerings in their respective categories. We’ll talk more about each financial product after this handy reference table.
|Type of Education Loan||Interest Rate (annual)||Loan tenure||Processing Fee||Additional Features|
|4.38%||Up to 10 years||2.5%||Minimum Loan Amount: S $ 2,000
Up to 6x your monthly salary (Maximum: S $ 80,000)
Zero Early Payment and Cancellation Fees
Late Payment Fee: S $ 30
|4.45%||Up to 10 years||S$200||Applicant (student-local part-time studies) : Minimum S$18,000 annual income
Guarantor (if required) : Minimum S$30,000 annual income
Maximum: Up to 8x your monthly salary or up to S $ 200k
Adjustable repayment options
Delayed payment fee: 3% + interest rate, minimum S $ 30
Partial Repayment Penalty: 1% on prepaid sum
Full Repayment Penalty: 1% on prepaid sum
(Local, Overseas, Graduated)
|4.5%||Up to 8 years||2.5%||Minimum: S $ 1,000
Up to 10x your monthly salary or up to S $ 150k
3 Flexible repayment options to suit your needs
Best Promotion: Maybank Education Loan
Currently, Maybank Education Loan has one of the best promotional rates in Singapore. At 4.45% yearly interest with a loan tenure of up to 10 years, it’s one of the most affordable education loans available in the country.
The promo rate is available for a limited time only, which can benefit students looking to borrow up to S $200,000 or eight times the borrower’s monthly income. If you plan to study locally or overseas, Maybank’s Education Loan promo rate is something you should use to your advantage.
Best Local School Funding: OCBC FRANK Education Loan – Local
OCBC FRANK Education Loan for Local Singapore Schools is not on promotion even if it provides a useful 4.5% yearly interest rate with an 8-year loan tenure. Plus, its processing fee is quite great considering it matches Maybank’s offer nearly at 2.5% processing fee. OCBC Frank’s list of supported local schools is vast, including Amity Global Business School, Aventis School of Management, James Cook Australia Institute of Higher Learning, and more from this list.
Best Foreign School Funding: OCBC FRANK Education Loan – Overseas
We’ll say it from this point: OCBC FRANK Education Loan has taken about three seats in this list because of its promotion-level interest rate, processing fee, and partial and early repayment costs at 1% of the total education loan amount. While studying overseas in 2022 seems impossible due to the current health situation, OCBC FRANK can get you on the enrollment list of Australia’s University of Melbourne, Sydney, and Queensland, UK’s University of Oxford, Cambridge, and Edinburgh, and everything else you wouldn’t expect from this complete overseas school list.
Best Low-Income Funding: Maybank Education Loan
It’s always a requirement with banks to have enough income and job stability to secure an education loan in Singapore. However, if your job stability is solid, but your income isn’t within other banks’ minimums, Maybank Education Loan wins, among others. Singapore has a huge population of working students personally financing their education needs. A guarantor or borrower only needs S $30,000 to get up to eight times their financing, reaching a total of S $200,000.
Lowest Penalty Fees: POSB Further Study Assist
POSB’s study loan offer has far lower income requirements than Maybank’s offer. However, S $24,000 annual for an S $80,000 maximum loan amount allows students to select less than the total number of Singaporean schools available in the country. However, POSB Further Study Assist is useful because of its great low penalty fees. Working students can conveniently pay partial and full early payments with zero processing fees. Plus, if they miss a repayment date, POSB will forgive a month or two, too.
Best Interest-First Study Loan: OCBC FRANK Education Loan – Graduated
To avoid ballooning education loans, borrowers should take any option allowing them to pay for the entire interest first. Mortgages often have this option, but OCBC FRANK Education Loan supplies it too. In doing so, OCBC FRANK takes another spot in this list for an excellent study loan because benefactors and students can pay for their interest total first and the principal later. Doing this helps borrowers tackle small interest payments while they or their beneficiaries are studying and pay for the principal in fixed amounts in the future. While the effective interest rate (EIR) is at 5% above, it’s still a modest addition to the risk lenders take with student loans.
Government-Funded Study Loans
Private institutions can offer so much in the way of education loans. However, the Singapore government subsidy still supplies an excellent selection of financial products for the country’s students. You can use four government-subsidized loans. Their main benefit: subsidy allows banks to take higher risks because the state will pay and handle any borrower misgivings. Learn more about them below.
Anyone in Singapore earning less than S $2,700 per month can apply for a MOE Study Loan. However, borrowers have to be Singapore citizens taking up polytechnic courses and have maximized the MOE Tuition Fee Loan (which we’ll discuss later). International students taking up government-subsidized courses regardless of school can use the MOE Study Loan, too.
Full-time students studying polytechnic courses at any Singapore educational institution can use the MOE Tuition Fee Loan scheme. The government can pay 75% of the course fees of any polytechnic course student, which they can pay later. On the other hand, autonomous university students can get up to 90% course financing from Singapore’s government under the Tuition Fee Loan scheme.
A retiree can finance a student’s education using their CPF Ordinary Account. The CPF automatically approves self-funded courses but will review CPF use for children or student educational fee use. Beneficiaries studying full-time at CPF-approved educational institutions are the only ones who can use the CPF Education Loan scheme.
All undergraduates eligible for and have maximized the MOE Tuition Fee loan can use the NUS Study Loan. Benefactors and guarantors must be earning a minimum of S $1,200 – S $2,7000 to use NUS’ subsidized loans. The loan covers about 10-20% of the student’s tuition fees, including a $3,600 student living allowance per year.
How to Choose The Best Study Loan?
Study loans are useful if benefactors and students fully understand the education loan’s terms and conditions. Always remember, each loan has its selection of approved educational institutions and loan coverage. Only bank education loans can completely pay for your tuition fees.
- Take Note Of The Study Loan’s Features: Interest rates, processing fees, penalties for partial or early payments, and other crucial details.
- Debtor Income and Job Stability: Benefactors, guarantors, and working students must greatly consider their existing income and job stability for long-term payments and not just to fulfill the loan requirements.
- Beneficiary’s Academic Focus: A good student is worth the effort of an education loan application. Assess the beneficiary’s focus and long-term academic and post-academic plans.
Alternatives to Study Loans: Use Licensed Moneylenders
Poor credit is an automatic basis for loan application rejection from many banks. However, you can always use a licensed moneylender’s loan service for all your needs. You won’t need to fulfill credit score requirements, and you get your money within the same day after passing your requirements.
Personal Loan Benefits
- Same-Day Loan Release: Licensed moneylenders can release up to six times your monthly salary within the same day after submitting and fulfilling all their requirements.
- No High Credit Score Required: If you had bad dealings with banks in the past, licensed moneylenders will review but never heavily consider your credit score.
- Fully Licensed and Regulated Service: All licensed moneylenders operate under the Ministry of Law and Registry of Moneylenders’ guidance and terms.
Choosing Between Bank, Government and Licensed Moneylender Loans
There are pros and cons to all Singapore study loans. Here’s a convenient list for each one.
- Convenient if you’re using any bank
- Higher loan amounts
- Can choose almost any school
- 100% tuition funding
- Beneficial promos
- Interest-first options
- High interest rates and penalties
- Limited to polytechnic schools
- Does not cover 100% tuition fees
- Student living allowances
- Forgiving penalties
- Tons of manual paperwork
- Six months salary loan
- Loan application approval within an hour
- Easy requirements
- Friendly terms and interest rates
- Regulated and legal service
Applying for a loan has never been easier with 365 Credit Solutions the best licensed moneylender in Singapore. With our years of experience providing the best personal loan services, you can get six times your monthly salary for education loans or any purpose! Visit our website today and apply for a loan now!