How Foreign Students Can Get Study Loan In Singapore

How Foreign Students Can Get Study Loan In Singapore

Home to some of the top universities in the Singapore, is considered to be every student’s dream destination. In modern days, students looking forward to pursuing degrees from abroad look for more than top universities. The parameters have shifted from education quality to what the country as a whole can offer to students for shelling out their money. Hence, Singapore stands to be a top-favourite among students looking forward to pursuing higher education as it provides holistic growth, value for money, safety, security, and ample employment opportunities apart from providing an outstanding education.

Like most foreign educational destinations- pursuing degrees from Singapore too can be incredibly expensive. This compels most students to take a student loan.

If you are one of those students who is looking forward to pursuing your education from a vibrant country like Singapore and thinking of taking students loan, then reading this blog will put you miles ahead. In this blog, we will highlight certain significant facts like eligibility, list of documents required, and education loan application process in Singapore.

Keep reading to know more.

Eligibility Criteria For Education Loan In Singapore

A general set of eligibility criteria has been formulated for international students to abide by to take education loan in Singapore. Certain banks or universities can revise them while granting the loan to students. However, here is a quick eligibility criterion, you need to know if you are aiming to pursue higher degrees in Singapore:

• Any student applying for a study loan in Singaporeshould be a minimum of 21 years of age or above.
• The PCI or Per Capita Income of the borrower must be between a minimum of $12,000 to $30,000.
• It is essential for a student himself, a parent, or a relative to act as the sponsor of the loan to acquire the loan.
• If you fail to repay your loan, your guarantor will be responsible for the loan payment.
• The annual income of your guarantor should be a minimum of $30,000 for him to qualify.
• Loan repayment commences 6-12 months after course completion.

In case you are planning to take over-seas education loans in Singapore, it is always wise to go thoroughly through the loan criteria of the particular university or certain courses you are looking forward to pursuing.

Banks in Singapore that provide Educational Loans to students

We understand, as a student, it can be incredibly challenging to cough up the money for your education.  Most students end up spending a fortune in the process of completing their education. On average, a foreign student may incur a cost of more than $80,000 to complete a four-year degree in Singapore.

To ease this burden of yours, numerous banks are lined up to provide you with the best student loan for education in Singapore. Let’s have a look at some of the exemplary educational loans in Singapore:

1. OCBC Bank provides Frank Education Loan and Frank Tuition Fee Loan
2. DBS provides study loan, tuition fee loan, and computer loan
3. POSB offers further study assist loan
4. MayBank offers Maybank Education Loan for overseas as well as local studies
5. CIMB offers a CIMB education loan that incorporates tuition fees, accommodation, textbooks, and computer equipment.

Benefits of Availing Educational Loans In Singapore

With the cost of education rising every year in Singapore, it is becoming challenging for students to cover their education expenses on their own. Students are left with no other sensible options than to avail student loan in Singapore to chase their dream. Unlike a personal loan, students can avail of more benefits on taking an educational loan.

The benefits and advantages may differ from one bank to another. Let’s have a look at some of the common benefits you are entitled to when you opt for education loan in Singapore:

• The interest rates are comparatively lower than other loans
• The processing fee is small
• One can avail flexible loan tenures
• Educational loans are given for students at a wide range of overseas and local institution
• Numerous banks offer Additional finance facilities in Singapore.

Factors you should keep in mind while taking the educational loan

Once you determine to take the educational loan in Singapore, remember most banks in Singapore will provide you with the option of repaying the loan only after you complete the education. However, you must remember that there are other charges or fees involved in the loan.

Therefore, before taking any study loan in Singapore, you must compare the following components from multiple banks to determine the best option that suits your requirement:

• Interest Rate
• Processing Fee
• Loan Tenure
• The maximum and minimum loan amount that can be taken
• Age criteria
• The educational institutions covered
• Late payment fee
• Early loan pre-closure fee

Types of Loans A Foreign Student Can Avail In Singapore

If you are planning to enrol in an institution for pursuing higher studies in Singapore and do not have an idea of the types of loans, no need to panic. To help you out, we have provided a brief overview of the different types of educational loan you can avail: 

• Flat Rate Loan- In this type of loan, you will have a fixed rate of interest. The banks calculate the rate on the total amount of the loan at the very beginning.
• Monthly Rate Loan-  For this type of loan, the interest rate is not fixed. It varies each month,depending upon the balance remaining after each monthly repayment of the loan.
• Long Term Loan- This type of loan covers your complete tuition fee, and is offered by both educational institutions as well as banks. To be eligible for availing this type of loan, you need to be enrolled in a full-time course. For availing this kind of loan, it is crucial to have a guarantor.
• Interest-Free Loans- Some public universities and polytechnics in Singapore offer interest-free study loanin Singapore through their own DBS, OCBC, and UOB. These loans are typically quite cheap and do not charge interest or require repayment until after graduation.

Documents required to apply for Educational Loan in Singapore

The bank is your next hurdle in acquiring your education loan. They would require several important documents from you to sanction the loan amount. Here is a list of documents that are primarily needed but not limited:

• Academic documents of the student
• Proof of the University Admission
• Proof of residence of the borrower and the guarantor
• Statement of borrower’s bank accounts
• A  legit guarantee against the loan amount

Parting words,

We hope our comprehensive guide on availing education loans in Singapore will help you out greatly. Save this to the bookmark tab on your laptop so that you can find all the information on study loans when you are in dire need of it. No need to worry anymore. With this detailed post, you would be more than prepared to apply for an educational loan in any bank or institution in Singapore. Here’s wishing all the luck, mate!

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