Education can be quite expensive. You may need a loan to provide the finances that you need to pursue your studies to completion. So, research all available education options for students (part time and full time) to get the best one for your needs.
What Types Of Student Loans Are Available?
Below is a table showing the main education loan options available for students in Singapore:
|Education Loan Type||Interest Rate (per annum- p.a.)||Monthly Repayment (SGD)||Processing Fee||Additional Features|
|DBS Study Loan(Local)
|CIMB Monthly Rest Education Loan (Overseas)
||5.39% EIR 6.75% p.a.||$381.01||2%||
|RHB Monthly Rest Education Loan (Local)
|Maybank Monthly Rest Education Loan (Overseas)
|OCBC FRANK Education Loan
EIR 6.19% p.a.
|CIMB Monthly Rest Education Loan (Local)
EIR 6.75% p.a.
|RHB Monthly Rest Education Loan (Overseas)
|POSB Further Study Assist (Local)
|Maybank Monthly Rest Education Loan (Local)
Do You Qualify For An Education Loan?
If you want a tuition fee loan from a bank, you must be eligible. Here are a few eligibility criteria to get you started:
- You should be 18 – 65 years old. Some lenders will limit you to a maximum of 62 years.
- You may have to bring a co-applicant/sponsor/guarantor aged 21-65 years with you if you are less than 21 years old.they must meet the minimum annual income requirement. This may range from $12,000 to $30,000
- You should either be a Singapore Citizen or Permanent Resident (PR).
What Are Education Loan Tenures Like?
Loan tenure refers to the amount of time a moneylender gives you to repay your loan with interest. Typically, education loan tenures last anywhere from 1 year to 20 years. The lender who provides the education loan and the size affect the tenure.
Are There Any Additional Bank Fees With Education Loans?
Yes, there are. In addition to interest, you may be required to pay:
- Processing fees
- Early repayment penalty
- Late payment fees
- Administration fees
- Cancellation fees
- Loan disbursement fees
What Documents Are Needed To Apply For An Education Loan?
If you intend to apply for a loan to fund your course studies in Singapore or abroad, you will need to present the relevant documents that include:
- A back and front photocopy of your and guarantor’s NRIC (available to PR and any Singapore citizen)
- Copy of the letter of acceptance to the institution you will be attending
- Proof that you are a Singapore citizen or have permanent residence (PR) status
- Proof of your and guarantor’s annual income
- Payment invoice showing your course fees
- Your birth or marriage certificate as proof of relationship with your guarantor
- Your most recent computerized payslip
- The most recent Income Tax Notice of Assessment or CPF statement showing information for the past 6 months
- A filled loan application form
What Is The Lowest Education Loan Interest Rate You Can Get?
Currently, the lowest education loan interest is 4.38% p.a. offered by DBS Study Loans and the POSB Further Study Assist education loans.
What Are The Alternatives?
Alternatives to bank education loans include the CPF education scheme ( for Singapore citizens or PRs). You can use it to pay for your education using your Ordinary Account savings.
However, the government must approve the education institution and course of study.
A personal loan from a licensed moneylender in singapore is also an excellent alternative. It is unsecured and does not restrict you in any way. So you can use it as an education loan.
Why Loan From Licensed Money Lenders?
Here’s why you should consider a loan from licensed moneylender:
Lower interest rate
MinLaw’s guidelines dictate that the maximum interest rate you can be charged for a personal loan is 4%. So, it ends up being a cheaper education loan because the interest is lower.
Short term repayment
The penalty banks impose on early repayments may act as an obstacle to early debt repayment. However, licensed moneylenders don’t impose such harsh penalties. Many of them usually offer discounts to those that pay loans early.
So, you can repay your education loan early. And it will end up costing less.
Short term commitment
You may be forced to make a long-term commitment to pay off your education loan due to the penalties that banks sometimes charge.This forces you to sacrifice your financial dreams for longer. But the flexible repayment plans offered by moneylenders can enable you to overcome that challenge.
Interested in funding your education via a personal loan?
Consider a licensed moneylender as the solution to your education loan problems. Here’s what they offer:
- Personal loans with interest rates ranging from 1% to 4%
- Loans that are available without collateral
- Flexible repayment options that may help reduce your interest rates and
- A decent loan amount that can be up to 6 times your monthly income
- If you are not a Singapore citizen or PR, some moneylenders usually provide foreigner loans
GM Creditz is a licensed moneylender that offers you all of the above advantages. Please feel free to reach out to us to explore how to use our personal loan product to finance your education.
Why I Should Repay My Student Loans As Quickly As Possible
Use your study loan for the purpose it was intended then repay that education loan quickly.
The following are the benefits of repaying your entire loan amount as quickly as possible:
Debt is affecting you
Even when you have a small loan amount, you are also likely to feel stressed. That’s because you owe someone money.
Debt also adds to your financial burdens because most of your income goes into paying off that loan amount. Yet, there is little you can do until you pay it off.
Constant number crunching
If you have an education loan to pay off, you have to crunch the numbers. You must know who you owe, what you have paid off, how much of your income is going toward paying the remaining loan amount, etc. It enables you to live within your means.
However, number crunching can be tedious especially if you have credit cards or home loans to also worry about. So, by paying off your education loan quickly, you end up with less financial work to do each month.
Cost of huge monthly loan installments
When you pay off your debt even if it takes just 1 year, you will need to pay the minimum monthly loan installment set by your lender. This amount is usually in the hundreds of dollars. Bank education loans usually cost much more.
Some of the monthly payments can be over $900! And yet, the average Singaporean household earns S$8, 450 per month. You may have a decent annual income but a large monthly installment will impact your savings.
Realistic Next Actions
Becoming debt-free requires some planning on your part. First, you must sit down and determine what you owe. Then decide on how you can pay it off as quickly as possible. Explore the possibilities. Can you get a second job? Could you take on extra shifts? Can you sell some of the extra stuff you don’t need?
It’s difficult to plan for the future when you have a debt hanging over your head. You may not be able to plan accurately about your savings, wedding, a new home, children, etc. However, if you pay off your education loan, you gain freedom. You will be able to set realistic actions about what to do next with your life.
So, if you want to pursue further education, it’s up to you to find the best student loan Singapore lenders can offer. That means researching all your education loan options and choosing the best one for your needs.
GM Creditz can offer you great loan products with flexible terms. We are a licensed moneylender with a 4.9-star rating on Google. We offer a wide variety of loans with fair terms.