Education is costly, and you might need a study loan for your further studies. But if there is anything in the world worth spending on, this is it. I’m sure most of us dreaded studying one point or another in our lives, and maybe you still do. However, if you are reading this article right now, you probably understand how important it is. Education is an investment in yourself, and if you promise to be dedicated and disciplined, then investing in yourself is the best thing you can do.
Here are some of the best study loans you can get in Singapore:
OCBC FRANK Education Loan (4.5% Interest)
This education loan has the lowest interest rate and covers degree & post-graduate programmes at local private or overseas institutions (AU, NZ, US and UK). The maximum loan amount is impressive, up to S$150,000 or 10X your monthly income (whichever is lower) and you can repay the loan for up to 8 years.
Pre-Requisites:
• Citizenship Status: Singapore Citizen or PR
• Age: 17 years old and above
• Employment Eligibility:
Salaried Employee, Variable Income/Commission Based Earner, Self Employed
• Minimum Annual Income:
Annual income S$24,000 and above (individual or with joint applicant)
• Guarantor / Collateral:
Guarantor required if the applicant is not working or loan amount cannot be supported by applicant’s income. Guarantor must be 21 – 60 years old
• Loan Amount: Up to S$150,000 or 10X your monthly income
Features:
• Minimum Loan Amount: $1,000
• Maximum Loan Amount: $150,000
• Max Loan Tenure: 8 years
• Interest Rate: 4.5%
• Approval Duration: 1 – 2 weeks
| Loan Tenure | Applied interest rate (yearly) | Effective interest rate (for illustration only as EIR will vary with loan amount and tenure) | |||
|---|---|---|---|---|---|
| STANDARD | GRADUATED | GRADUATED PLUS | |||
| 1 year | 4.50% p.a. | 9.25% | - | - | |
| 2 years | 4.50% p.a. | 6.99% | - | - | |
| 3 years | 4.50% p.a. | 6.19% | 5.56% | - | |
| 4 years | 4.50% p.a. | 5.79% | 5.39% | 5.28% | |
| 5 years | 4.50% p.a. | 5.54% | 5.27% | 5.19% | |
| 6 years | 4.50% p.a. | 5.38% | 5.18% | 5.12% | |
| 7 years | 4.50% p.a. | 5.26% | 5.11% | 5.06% | |
| 8 years | 4.50% p.a. | 5.17% | 5.06% | 5.01% | |
POSB Further Study Assist (Exclusive Promotion 4.38%)
POSB has an exclusive promotion of only 4.38% (preferential rate is at 4.60%) at the moment, which makes it the lowest interest rate for study loans. However, this exclusive promotion is only available for selected institutions that include almost all local schools (universities and polytechnics) as well as some international private institutions. Otherwise, the interest rate is 5.88%. The maximum loan on this, however, is rather limited at only $80,000. The full list can be found in the link below.
Pre-Requisites:
• Citizenship Status: Singapore Citizen or PR
• Age: 17-50 years old
• Employment Eligibility:
Salaried Employee, Variable Income/Commission Based Earner, Self Employed
• Minimum Annual Income:
Annual income S$18,000 and above for applicant and $24,000 for Guarantor
Guarantor / Collateral:
Guarantor required if the applicant is not working or loan amount cannot be supported by applicant’s income. The guarantor must be 21 – 55 years old and be an immediate family member.
• Loan Amount:
6x the combined monthly income of you and your guarantor (max.S$80,000).
Features:
• Minimum Loan Amount: $2,000
• Maximum Loan Amount: $80,000
• Max Loan Tenure: 5 years
• Interest Rate: 4.6% / 5.88%
Full Info: https://www.posb.com.sg/personal/loans/education-loans/posb-further-study-assist
| Loan Tenure | Interest Rate(p.a.)1 |
|---|---|
| 1-year | 5.88% |
| 2-year | 5.88% |
| 3-year | 5.88% |
| 4-year | 5.88% |
| 5-year | 5.88% |
RHB Education Loan (4.78% Local, 4.88% Overseas)
Although this education loan requires you to be 21 and above, you don’t necessarily have to meet this requirement. With RHB Loan, you can have a family member or even a non-related person sign this with you as a Joint Applicant. If you don’t meet the minimum annual income of $12,000, no problem, this is most definitely understandable as many students study full time. As long as you have a joint applicant that meets the requirements, you are good to go. However, do note that this education loan has to be for a minimum of $3000.
Prerequisites
• Citizenship Status: Singapore Citizen or PR
• Age Requirement: 21 – 62 years old
• Minimum Annual Income: $12,000
• Guarantor / Collateral:
Guarantor required if loan amount cannot be supported by main and joint applicant’s income. Minimum annual income of S$30,000 for Guarantor.Must be an immediate family member
Features
• Minimum Loan Amount: $3,000
• Maximum Loan Amount: Up to 6 times monthly income, capped at $100,000
• Max Loan Tenure: 10 years
• Interest Rate: 4.78% – Local, 4.88% – Overseas
• Approval Duration: 1 – 2 weeks
Repayment Options
1. Standard Repayment – basic scheme where you pay your monthly installments (principal and interest) once your loan is disbursed.
2. Graduated Repayment – pay only interest for the loan disbursed until completion of your studies, monthly installments will commence thereafter.
3. Deferred Repayment (for full-time local study only) – pay your monthly installments only after completion of your studies; no payment is required during your study period.
| Tenure | Standard | Graduated^ | Deferred^ | ||
|---|---|---|---|---|---|
| During Study Period | After Study Period | During Study Period | After Study Period | ||
| 1 year | 8.50% | 5.55% | 6.09% | 5.52% | 5.98% |
| 2 years | 6.73% | 5.38% | 5.81% | 5.36% | 5.72% |
| 3 years | 6.11% | 5.28% | 5.62% | 5.26% | 5.55% |
| 4 years | 5.80% | 5.21% | 5.49% | 5.20% | 5.44% |
| 5 years | 5.60% | 5.17% | 5.40% | 5.15% | 5.35% |
| 6 years | 5.48% | 5.13% | 5.33% | 5.12% | 5.29% |
| 7 years | 5.39% | 5.10% | 5.27% | 5.09% | 5.24% |
| 8 years | 5.32% | 5.08% | 5.23% | 5.07% | 5.20% |
| 9 years | 5.26% | 5.06% | 5.19% | 5.05% | 5.16% |
| 10 years | 5.22% | 5.05% | 5.16% | 5.04% | 5.14% |
Maybank Monthly Rest Education Loan (from 4.5%)
This education loan is available for students seeking to expand their education both locally or abroad. It has a decent interest rate and what is impressive is the huge maximum loanable sum of $200,000.
• Citizenship Status: Singapore Citizen or PR
• Age Requirement 18 – 65 years old
• Employment Eligibility:
Salaried Employee, Variable Income/Commission Based Earner, Self Employed
• Minimum Annual Income: S$18,000 p.a. (for local part-time studies only)
• Guarantor / Collateral:
Full-time studies – Guarantor(s) are required at all times, a maximum of 2 Guarantors are allowed for deriving loan amount.Part-time studies – Guarantors are required only when the student’s income is less than S$18,000p.a.
Up to 2 guarantors may be provided to determine the loan quantum.Guarantor must be 21 – 65 years old (Must not be bankrupt) upon loan maturity. Singapore Citizen or Singapore PR only and have a minimum income of $30,000 per annum.One of the guarantor(s) must be a spouse, parent, parent-in-law, sibling or legal guardian
Features
• Minimum Loan Amount: $5,000
• Maximum Loan Amount: $200,000
• Max Loan Tenure: 8 years
• Interest Rate: 4.78%
• Approval Duration: 1 – 2 weeks
There are 3 repayment options for this loan.
• Interest Servicing Scheme
Pay only interest, for up to 3 years or till the end of your course, whichever is earlier. Standard monthly instalments (principal + interest), will commence thereafter.
• Partial Repayment Scheme
Pay partial instalments for up to 3 years or till the end of your course, whichever is earlier. Standard monthly instalments (principal + interest), will commence thereafter
• Standard Repayment Scheme
Pay your monthly instalments (principal + interest), once your loan is disbursed.
CIMB Monthly Rest Education Loan
This education loan has a significantly higher interest rate than the rest. However it has a rather high maximum loan amount of $200,000 and a long repayment period of 10 years, but I doubt you would like to drag your repayment that long. Nevertheless, here is a breakdown of the loan.
Prerequisites
• Citizenship Status: Singapore Citizen or PR
• Age Requirement: 16 – 50 years old
• Employment Eligibility
Salaried Employee, Variable Income/Commission Based Earner, Self Employed
• Minimum Annual Income
Minimum annual income of S$24,000 for Principal Applicant
• Guarantor / Collateral
Minimum annual income of S$24,000 for Guarantor. Must be an immediate family member
Features
• Minimum Loan Amount: $1,000
• Maximum Loan Amount: $200,000
• Max Loan Tenure: 10 years
• Interest Rate: 5.5%
• Approval Duration
1 – 2 weeks
| Tenure | Standard Effective Interest Rate | Interest Service Repayment* |
|---|---|---|
| 1 year | 9.18% | Course of study First 4 years: CIMB Prime Rate + 0.49% p.a.^ |
| 2 years | 7.38% | |
| 3 years | 6.75% | |
| 4 years | 6.42% | |
| 5 years | 6.23% | 6.44% |
| 6 years | 6.10% | 6.34% |
| 7 years | 6.00% | 6.27% |
| 8 years | 5.93% | 6.21% |
| 9 years | 5.88% | 6.15% |
| 10 years | 5.83% | 6.11% |
Interest Service Repayment*
• Repay only the Interest during the course of study (“Interest Servicing Period”) and the Principal and Interest of the loan thereafter.
• Interest Servicing Period will be determined by the duration of the course provided that the Interest Servicing Period shall not exceed 4 years. The Interest Servicing Period will be rounded up to the next 6 month mark, e.g. if the course is 3 years and 7 months, the Interest Servicing Period will be 4 years.
• Repayment of Principal + Interest will start at the end of the Interest Servicing Period.
Conclusion:
Which loan is right for you? There is no perfect loan, but factor your own circumstances in terms of interest rate, age, loan tenure and maximum loan amount and you should have a good idea. Usually loans with higher tenures and maximum amounts come with a higher interest rate as well, no surprise there. Make sure you make the right choice. Education is a costly endeavour, but if you work and and make it worth your while. these loans won’t mean a thing once you make it.
| Study loan | Pre-Requisites | Features | Applied interest rate (yearly) |
|---|---|---|---|
| OCBC FRANK Education Loan | Citizenship Status : Singapore Citizen or PR Age: 17 years old and above Employment Eligibility: Salaried Employee, Variable Income/Commission Based Earner, Self Employed Minimum Annual Income: Annual income S$24,000 and above (individual or with joint applicant) Guarantor / Collateral: Guarantor required if the applicant is not working or loan amount cannot be supported by applicant's income. Guarantor must be 21 - 60 years old Loan Amount: Up to S$150,000 or 10X your monthly income | Minimum Loan Amount: $1,000 Maximum Loan Amount: $150,000 Max Loan Tenure: 8 years Interest Rate: 4.5% Approval Duration: 1 - 2 weeks | 4.50% p.a. |
| POSB Further Study Assist | Citizenship Status: Singapore Citizen or PR Age: 17-50 years old Employment Eligibility: Salaried Employee, Variable Income/Commission Based Earner, Self Employed Minimum Annual Income: Annual income S$18,000 and above for applicant and $24,000 for Guarantor Guarantor / Collateral: Guarantor required if the applicant is not working or loan amount cannot be supported by applicant's income. Guarantor must be 21 - 55 years old and be an immediate family member. Loan Amount: 6x the combined monthly income of you and your guarantor (max.S$80,000). | Minimum Loan Amount: $2,000 Maximum Loan Amount: $80,000 Max Loan Tenure: 5 years Interest Rate: 4.6% / 5.88% | 5.88% |
| RHB Education Loan | Citizenship Status: Singapore Citizen or PR Age Requirement: 21 - 62 years old Minimum Annual Income: $12,000 Guarantor / Collateral: Guarantor required if loan amount cannot be supported by main and joint applicant's income. Minimum annual income of S$30,000 for Guarantor.Must be an immediate family member. | Minimum Loan Amount: $3,000 Maximum Loan Amount: Up to 6 times monthly income, capped at $100,000 Max Loan Tenure: 10 years Interest Rate: 4.78% - Local, 4.88% - Overseas Approval Duration: 1 - 2 weeks | 4.78% - Local, 4.88% - Overseas |
| Maybank Monthly Rest Education Loan | Citizenship Status: Singapore Citizen or PR Age Requirement 18 - 65 years old Employment Eligibility: Salaried Employee, Variable Income/Commission Based Earner, Self Employed Minimum Annual Income: S$18,000 p.a. (for local part-time studies only) Guarantor / Collateral: Full-time studies - Guarantor(s) are required at all times, a maximum of 2 Guarantors are allowed for deriving loan amount.Part-time studies - Guarantors are required only when the student’s income is less than S$18,000p.a. | Minimum Loan Amount: $5,000 Maximum Loan Amount: $200,000 Max Loan Tenure: 8 years Interest Rate: 4.78% Approval Duration: 1 - 2 weeks | 4.78% |
| CIMB Monthly Rest Education Loan | Citizenship Status: Singapore Citizen or PR Age Requirement: 16 - 50 years old Employment Eligibility Salaried Employee, Variable Income/Commission Based Earner, Self Employed Minimum Annual Income Minimum annual income of S$24,000 for Principal Applicant Guarantor / Collateral Minimum annual income of S$24,000 for Guarantor. Must be an immediate family member | Minimum Loan Amount: $1,000 Maximum Loan Amount: $200,000 Max Loan Tenure: 10 years Interest Rate: 5.39% Approval Duration 1 - 2 weeks | 5.39% |