Get The Best Education Loan Interest Rates for 2020 Now!

What types of education loans are available?

With an education loan, you can finance your tuition fees so you can focus on studying and doing better in the classroom.

You can choose from a flat rate or Monthly Rest option. Flat rates are fixed throughout the loan tenure whereas Monthly Rest varies from month to month but generally tend to be lower. Some banks also allow you to borrow to cover your accommodation and daily living expenses overseas.

Do you qualify for an education loan?

Here are some qualifying criteria you must fulfill in order to qualify for a study loan:

• You need to be a Singaporean/PR aged 21-62
• You must have a minimum income of $12,000 p.a.
• Your parents or a sponsor can apply for a loan (for you)
• You can file a joint application with 2 or more sponsors
• Your loan guarantor (if applicable) must have a minimum income of $30,000 p.a.

What are education loan tenures like?

The tenures for education loans vary, ranging from 1 to 10 years. Some bank allow you to defer your repayment until after you have completed your studies.

Depending on the bank, you can also get free insurance with your loan offering coverage for accidental death or permanent disability for the duration of the loan repayment period.

Are there any additional bank fees with education loans?

Yes. You’ll need to pay a processing fee of about 2% on the loan amount that will be deducted from the loan’s first disbursement.

Some other fees you can expect from an education loan include:

• Full prepayment penalty of 1% on the original loan amount
• Partial prepayment penalty of 1% of the prepaid amount
• Cancellation fee of 1% of the original amount if you cancel the loan after signing the letter of offer
• Disbursement fee that may vary according to the mode of payment

What documents are needed to apply for an education loan?

These are the documents needed to submit to the banks for a education loan application:

• If you are a salaried employee, you’ll need your latest e-statement, or your CPF contribution history statement for the last 12 months, or your latest Income Tax Notice of Assessment
• If you are self employed, you’ll need your latest 2 years of Income Tax Notices of Assessment
• Letter of Acceptance from the education institution stating your course, course duration, and the total course fee
• Completed application signed by the applicant(s)

What is the lowest education loan interest rate you can get?

Banks revise their education loan rates from time to time. Education Loan rates usually range from 3%-6% per annum. Check MoneySmart.sg for the latest education loan interest rates across all banks offering education loans.