The Singapore education system is one of the best in the world, attracting students from around the globe.
But what should you consider if you are planning to study abroad? How will your student loans work?
Some of us might want to experience life abroad. More experiences will be gained when we study overseas.
There are overseas education loans to help you! This guide will answer all these questions and more.
Factors To Consider When Applying For A Student Loan
Studying overseas is a huge decision to make. Before you settle for a study financing option, consider the following:
Each financing option has its eligibility criteria. Find out whether you qualify for a student loan before you send in your application.
The loan amount and tenure
Find out the loan amount and tenure of your preferred option. You may need to research how much of your tuition fees they will cover through repayment terms and tenure. Consider whether you will be able to fulfill the repayment terms.
The rate of interest will vary from one financier to the other. Compare the interest rates and choose the most favourable one. Find out when the loan and interest are due.
Large financial institutions such as Lending Bee have flexible overseas education loans for students who want to study overseas. There are fewer restrictions!
Fees and charges
Consider all the fees you will incur to process the student loan. Fees such as processing fees, and legal and cancellation fees vary from one financier to the other.
Penalties for defaulting on loans
It’s crucial to find out what kind of penalties you will get in case you repay the loan late or postpone payments. Postponing may attract higher interest rates from lenders. Avoid lenders with punitive interest for late repayment or prepayment.
Best Education Loan Rates (DBS, OCBC, Maybank, CIMB)
An education loan is designed to help students pay for their university studies. Which banks in Singapore offer overseas education loans? How can you apply for a study loan in Singapore?
If you are thinking of applying for an education loan to further your studies, here are our best bets.
TL;DR: Best Education Loans In Singapore
|Package||Interest Rate||Processing Fees||Loan Tenure||Maximum Loan Amount||Eligibility|
|DBS Further Assist||4.38% p. a||2.5% processing fees||Up to 10 years to repay the loan||S$ 160,000||Minimum annual gross income of S$ 18,000 for the borrower and S$ 24,000 for the guarantor|
|Frank by OCBC||4.5%(EIR is 5.17% P.a)||2.5% processing fees||Up to 8 years to repay the loan.||S$ 150, 000 or ten times your salary (whichever is lower)||Minimum annual gross income of S$ 24,000 for the borrower|
|Maybank Student Loan||4.45p.a||Up to 10 years to repay the loan||S$ 200,000 or 8x times your monthly income (whichever is lower)||Minimum annual gross income of S$ 18,000 for the borrower and S$ 30,000 for a guarantor.|
|CIMB Student Loan||4.78% p.a(EIR 5.22% p.a)||2% processing fees||Up to 10 years to repay the loan||S$ 200,000 or 8x times your monthly income (whichever is lower)||Minimum annual gross income of S$ 24,000 for the borrower and S$ 24,000 for a guarantor|
|Lending Bee Overseas Education Loan||1-4%||<10% processing fees||Up to 36 months (negotiable)||$300,000 or 6x times your monthly income||Proof of income, at least 18 years old and above.|
The OCBC Frank Education loan
The frank loan from OCBC Bank offers students the chance to pursue their dreams at a local or overseas university.
With OCBC, a student can get a loan amount equal to ten times their income and enjoy rates of 4.5% (EIR 5.16 per year). You can choose to repay the loan and interest while studying or pay interest while studying and the principal once you complete your studies.
DBS Bank student loan
DBS offers student loans at an interest rate of 4.38% with a flexible repayment period. The bank further offers assistance loans for students up to S$ 160, 000, or ten times your income.
Maybank monthly rest education loan
Maybank offers a maximum loan amount of up to S$200,000 or six times the borrower’s income. It’s the best choice for those who need more money to study overseas. They offer an interest rate of 4.45% and up to 8 years to repay the loan. In addition to the loan, they provide financing for education-related expenses.
If you need a longer tenure to pay for your education, then visit CIMB Bank and apply for their study loan.
CIMB offers interest-servicing loans for students at a rate of 4.78% (EIR 5.22% p.a). During the study period, the student is required to pay for interest only.
What Are The Alternatives To Bank Overseas Study Loans?
What if banks reject your study loan application?
Not to worry, Singaporeans can also fund their education through other alternative means. Here are the main alternatives available to Singaporeans.
Licensed money lenders
Licensed money is an excellent alternative for anyone who does not have access to bank loans. They offer loans with the following features:
- Loan with a limit
- An interest rate of up to 4%
- Loan tenure of 3 years or more.
- Singaporeans over the age of 18 are eligible.
- There is no credit score requirement.
Apply for an overseas education loan in minutes here!
Top performers can qualify for scholarships awarded by several institutions.
To get the scholarship, you need to perform exemplarily academically and in other areas.
How Can I Fund My University Education?
You can fund your university education through:
- Education loans / study loans
- Your savings
- Parents’ CPF (for local universities such as NUS, NTU, SMU, SUSS, SIT and SUTD)
Why Should I Study At A University Overseas?
Studying overseas not only provides one with a quality education but is also a source of opportunities. You will gain precious experience that you can never get locally.
If you are wondering whether to dive in, here is why you should take the chance.1.
1. Career opportunities
Graduates with international education are considered to be better at their jobs than local ones. An international degree gives you a broader career opportunity as compared to a local one.
2. Personal development
International students experience a different learning environment from the one they are used to, and they need to adapt. Although it can overwhelm you at first, with time it becomes easier and better. Such an environment will help you grow and explore.
3. Hone your skills
When you study abroad, you probably have to learn a new language or skill. The overseas university will help you develop your skills.
4. Get to see the world
Leaving your home country to study overseas gives you a chance to see other parts of the world and what they are about. You get to see new customs and activities.
5. Experience living with housemates
This is something you’ll probably never experience in Singapore. While you’re studying overseas, you’ll likely have to share a house with fellow housemates.
You’ll gain independence and know how to take care of yourself.
Hint: doing chores!
Top Ten Universities To Study Overseas At (Australia, UK, New Zealand)
Singapore citizens looking to study abroad are spoilt for choice. These are some of the most prestigious universities students can enroll in.
Top 10 universities to study overseas
Singapore citizens looking to study abroad are spoilt for choice. Here are some of the most prestigious universities students can enroll in.
1. University of Birmingham in the UK
2. University of Auckland in New Zealand
3. The University of Melbourne in Australia
4. The University of Sydney in Australia
5. The University of Queensland Australia
6. The University of Manchester in the UK
7. The University of Edinburgh in the Uk
8. University of Southampton in the UK
9. RMIT University in Australia
10. Murdoch University in Australia
There you have it!
Our top recommendations for the best overseas student loans and overseas universities!
Why Should You Get An Overseas Education Loan?
Why should you apply for a study loan to study overseas?
University is probably a once-in-a-lifetime experience for many of us. There’s no better way to gain life experiences than going through a fantastic and fruitful university education.
While it may be expensive to study tertiary education overseas, do not let money issues hinder you.
Lending Bee offers flexible overseas education study loans that can be used for any university and any course. Take some time to do your research and figure out what will work best for you.
About Lending Bee
In a volatile, uncertain, complex and ambiguous world, you can count on one thing – your partner in credit, Lending Bee. Just like an industrious bee, we are committed to helping each and every customer access credit – quickly, easily and seamlessly.