Best Education Loans 2022 | Top Education Loans in Singapore

Education Loans | Loans

A strong university education, whether in Singapore or elsewhere, pays off in the long run. However, in the short run, this investment is not inexpensive. It can be difficult to sift through the broad internet for the best education loans in Singapore. After all, not everyone is fortunate enough to continue their education without having to worry about finances. We tell you about the best education loans 2022 in Singapore. 

Aside from the CPF Education Loan Scheme and the MOE Tuition Fee Loan, incoming university students should consider a bank education loan.

Best Education Loans 2022

CIMB Education Loan 

Students who want to enroll in ‘higher end’ courses and get the most out of their education should look into the CIMB Education Loan. Aside from a large loan amount of S$200,000, it features one of the lowest processing fees at 2% of the loan amount – all with no hidden expenses or fees. CIMB’s education loan is also flexible in that students can select between standard and interest servicing schemes; the latter requires students to pay only the interest while studying, with the principal amount (plus interest) repaid after graduation.

The maximum loan term is ten years, which is slightly longer than its college loan counterparts. Consider your alternatives carefully because you may end up paying a lot more in interest for longer terms.

POSB Study Assistance Loan

If you anticipate paying off your loan early, POSB Further Study Assist has the lowest penalty cost. It does not charge a penalty fee for early loan payback, but other banks may charge up to 1% of the prepaid amount. This is ideal for those who do not want to be locked in for the entire loan term. For example, if you get a high-paying job right after college, you could pay off your loan sooner and save money on interest.

Students who want to study at any of the recognized institutions will be delighted to learn that the POSB Further Study Assist now offers the lowest interest rate in the market at 4.38 percent per annum. However, remember to account for the 2.5 percent processing charge while calculating the best loan option for you! POSB’s school loan interest rates are calculated on a declining balance rate basis rather than a flat rate. This means that the interest rate is determined each month based on the loan balance. The highest loan limit for POSB Further Study Assist is S$160,000, or 10 times your monthly income.

Education Loan from Maybank – Best Education Loans 2022

If you require a large loan amount to study abroad at a famous university or to acquire your Masters, Maybank’s Monthly Rest Education Loan can help. It has a maximum loan amount of S$200,000, or eight times the borrower’s monthly income, making it an excellent choice for people in need of a substantial study loan. Most student loans have a ceiling of S$80,000 to S$150,000 in Singapore.

The processing cost is 2% of the loan amount, and part-time students earning at least S$18,000 per year are eligible to apply as principle. Maybank additionally provides three loan repayment options:  Interest Servicing Scheme, Partial Repayment Scheme, and Standard Repayment Scheme. Maybank’s education loan has a term of up to ten years and an appealing interest rate of 4.45 percent per annum for both domestic and international courses.
Maybank also offers additional financing for education-related expenses such as room and board, computer equipment, and books.

OCBC FRANK Loan

If you want to study knowing that you won’t be burdened with excessive interest rates even if your institution isn’t one of the most well-known, the OCBC FRANK Education Loan should pique your curiosity. Students studying locally or abroad can apply for the OCBC FRANK Education Loan. It has a long list of accredited local private institutions as well as international organizations. It also helps that the OCBC FRANK Education Loan has a reasonable interest rate of 4.5 percent p.a. for both domestic and international courses.

The loan also includes three flexible payment options: normal repayment (pay monthly installments of principal plus interest as soon as your loan is approved), graduated repayment (pay just interest while studying, with the remainder due after graduation), and Graduated Plus (pay only the interest over the course of your studies until one year after graduation). The processing charge for the OCBC FRANK Education Loan is 2.5 percent. The maximum loan amount is S$150,000 for loan terms ranging from one to eight years.

How much money can I borrow from a bank for an education loan?

The maximum amount you can borrow from the bank is determined by your monthly income, your guarantor’s monthly income, or the combined monthly income of you and your guarantee. Banks in Singapore currently allow you to borrow up to S$150,000 to S$200,000 for an education loan, or up to 8X or 10X the monthly income considered.

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