Student Education Loans Singapore

Singapore is considered as one of the popular places for pursuing higher education studies. Education system in Singapore is highly flexible providing the students with maximum advantages. Majority of the students opt for the facility of student education loans for Singapore for availing higher studies. Singapore student education loans are defined as really helpful in case of higher level of educational degrees.

Why Students Education Loan

Managing Expenses: It is rightly said that education is actually the most significant investment that cannot be hampered because of any sort of financial crisis. So, in this context, we can say that educational loan is the most useful way for managing the huge expenses of education, which is constantly rising. Students’ loans are offered for assisting the students in payment of professional educational fees.

Affordable : One of the wonderful aspects about the student educational loan is that they usually carry low interest rates as compared to other types of loans.

Financial Aid : The maximum amount of loan actually depends on the college years of the student. So, it doesn’t mater whether you are an undergraduate or post-graduate student, you can get loan in all cases. ‘Financial aid’ is the term that can appositely define what student loan actually is.

Companies Offering Educational Loans

Student loan in Singapore offers a range of extended repayment and postponement options. In Singapore there are a number of government as well as private lenders who offer educational loans to the students. Before you select any lender, it is always advised to compare the services, interest rates and other facilities offered by the companies. Some of the companies offering educational loans in Singapore are as follows; just have a look at them –

Name of the Company	Interest Rates	Requirements	Application Procedure	Services and Incentives
Maybank Education Loan	4.88% (per annum)	Nationality – Singaporean, Age – 21 to 60 years, Minimum annual income criteria – S$30,000	Download and send the completed application form.	Flexible and easy repayment options, Highest loan amount available, attractive interest rates
Citibank Educational Loan	Competitive interest rate and the top tier students will enjoy a reduced interest rate of 0.5%	Age – 21 to 55 years. Nationality – Permanent resident of Singapore.	Download the application form and send it along with all the relevant documents as mentioned in the application form.	Maximum loan amount available
RHB Bank Edu Loan	4.88% (annually)	Age – 21 to 62 years, Nationality – Singaporean, Annual income certificate, Educational institution’s letter of acceptance	Students can apply online	Highest loan amount offered, lower interest rates, easy repayment options
TCC Credit Cooperative	4.50%, it differs as per the loan plans and programs	Proof of income, educational institution’s letter of offer, income proof letter.	Students need to apply online	Easy repayment facility
OCBC Education Loan	6.5% (per annum)	Age – 21 to 55 years, Nationality – Singaporean, Minimum annual income – S$24,000	Download and print the application form. Send the completed form along with all the necessary documents. Students can also apply online	Competitive interest rate, highest amount of loan available to the students, attractive loan tenure

An education loan is a type of financial aid provided by banks or other finance institutes to a candidate, who must repay the amount with an interest within a stipulated period of time.

Eligibility to apply for an education loan in Singapore:

A candidate cannot apply for two loans from different financial institutes or banks for the same course of study
The documents required to apply for an education loan in Singapore are: 1.Letter of acceptance issued by the education institute where the candidate will pursue studies stating the total fee structure, the type of course and the duration of the course
2.A completed and duly signed application form issued by the financial institute from where the loan will be taken
3.A self employed applicant must submit a notice of assessment issued by the income tax department of his country
4.A salaried employee must submit copies of computerized pay slips of the last six months of service
An applicant must be minimum 18 years of age to qualify as main applicant of the education loan. For students below 18 years, one immediate family member will qualify as main applicant.
Some providers of education loan in Singapore will demand a Singapore citizen or Singaporean Permanent Resident card
One or two guarantors are required for all applicants of education loan. Among the two, one guarantor has to be an immediate family member. The guarantors must be minimum 21 years of age. Their annual incomes must be more than $ 84,000.
The loan tenure varies between 1 to 10 years post education, between which the loan amount has to be repaid
If a loan application is approved, two percent from that amount will be deducted by the financial institute that the candidate has applied to as processing fee. This amount is deducted during the first disbursement of the loan.

Some of the providers of Education Loan in Singapore:

Listed below are the financial institutions and banks of Singapore that provide assistance in the form of education loans to students and their parents:

Citibank Ready Credit Line
TCC Credit Cooperative
DEW Credit Cooperative (provides loans to female candidates only)
POSB Study Loan
RHB Bank Edu Loan (this has been named the best education loan provided by Singapore in the Edupoll of 2011)
Maybank Education Loan
Mendaki Study Loan (provides loans to the Malay community only)
NTUC Thrift and Loan Cooperative
HSBC study Loan
SINDA Study Awards
CPF approved Education Scheme
CDAC Education Loan

Different Categories of Education Loans in Singapore:

1. Student Loans – loans provided by federal governments which have a low rate of interest and do not require collateral or credit checks are called student loans.
2. Parent Loans – when dependent students use their parents’ money to supplement their education package, the assistance is known as parent loan.
3. Private Student Loans or Alternative Student Loans – when a student loan becomes insufficient for supporting education expenses, families take the help of private student loans, through which lenders offer more money that can be repaid over a flexible time period.
4. Consolidation Loan – when the student loan and the parent loan are combined to form a bigger loan taken from one lender it is called a consolidation loan. This loan is used to pay off balances of other loans.
5. Peer – to – Peer Education Loans – also known as Social Loan, this is a new type of education loan in Singapore where microfinance is lent between individuals.

Last Updated On: 22 March 2013

Disclaimer: The data provided here is based on the facts and research using available sources. As the data is made available on "as is" basis and subject to change anytime. This website shall not be liable for any discrepancy found in the data on our site and actual figures.