Education is quite expensive and a study loan is always crucial in helping you further your studies. Education is a worthy investment and a study loan can help you get to your desired level in no time.

Where to Apply for Education Loans

CPF Education Scheme

The CPF education scheme is a loan scheme that enables you to use your CPS savings from your Ordinary Account (OA) to pay subsidized tuition fees for your education.

The CPF scheme only covers subsidized diploma/ degree courses that are offered full-time in AEIs ( Approved Educational Institutions).

Who Is Eligible for the CPF Loan?

There are some eligibility criteria that you must meet if you wish to access the CPF loan;

  • You are using your CPF ordinary account to pay tuition fees for yourself or your family
  • You have made sufficient Ordinary Account savings to pay for the tuition fees for you or your family (Spouse, children, or relatives)
  • The course you want to pursue is a subsidized and registered full-time diploma/ degree course in an Approved Education Institution (AEI).

Unless the student is a foreigner, there is no need for a guarantor when applying to the CPF Education Scheme.

Features of the CPF Education Scheme

Loan Amount: The CPF education scheme allows you to use your Ordinary Account balance or 40% of your cumulative savings, whichever is lower. You can use your OA savings to pay 100% tuition fees for yourself, your spouse/ children, and your siblings.

However, if you are paying tuition fees for your relatives, here is a percentage of the OA savings that you can use;

  • 10%- For relatives studying in a university
  • 25%- For relatives studying in a polytechnic or pursuing a technical Engineer Diplom (TED), or a Technical Diploma in Culinary Arts at Institute of Technical Education (ITE)
  • 50%- For relatives enrolled in an art college

The student can then consider the Tuition Fee Loan (MOE) to cater for their remaining tuition fee needs.

Interest Rate: The CPF interest rate is 2.5% per annum. The loan interest is calculated monthly and the interest rates are adjusted quarterly. See the current OA interest rates here

Repayment Period: The CPF Education Scheme allows a maximum loan tenure of 12 years.

MOE Tuition Fee Loan

MOE Tuition fee loan is an education loan from banks that is offered by the government to assist students in taking care of their tuition fees. It is available for students from autonomous universities, and polytechnics who need to cover a percentage of their tuition fee.

The loan covers up to 75% of subsidized fees payable by polytechnic students and up to 90% of the fees payable by university students.

Who Is Eligible for the MOE Tuition Fee Loan

Eligibility criteria for diploma students:

  • The student should be a permanent resident in Singapore or a Singapore citizen pursuing a full-time diploma course in a local polytechnic
  • A student must have already taken a maximum loan from the Tuition Fee Loan Scheme or other fee subsidies and loans that cover a maximum of 75% of tuition fees
  • Should have a gross monthly per capita of $2700 or lower

Eligibility criteria for undergraduate students

  • The student should either be an international student, permanent resident (PR), or Singaporean citizen (SC)
  • The student must first take up a maximum loan from the Tuition Fee Loan scheme ar any other loans and fee subsidies that cater for 90% of the payable tuition fees
  • The student must have a gross per capita monthly income of $2,700 or less for SCs and PRs or $ 1,200 or lower for international students

Features of the MOE Tuition Fee Loan

Loan Amount: MOE tuition fee loan covers a $2,000 per year living allowance for polytechnic students and a maximum of 25% of the subsidized fees. For University students, the tuition fee loan also covers a yearly living allowance of $3,600 and up to 10% of the subsidized Singapore citizen fees

Interest rate: MOE Tuition Fee Loan interest rate is 4.75%. However, the loan is interest-free for students with a monthly household per capita income of $950 or lower. For students with a monthly household per capita of $951-$2700, the loan is interest-free and only starts to accrue interest after graduation.

Repayment Period: MOE Tuition Fee Loan has a maximum repayment period of 10 years for polytechnic students and a maximum of 20 years for university loans. For any loan that attracts interest, the maximum repayment period is 5 years for the polytechnic level and 20 years for university students.

Interest-free loans offered to polytechnic students have a maximum repayment period of 2 years, while the loans offered to university students have a maximum repayment period of 5 years.

Education Loans from Banks/ Financial Institutions

Top education loans being offered by banks

1. DBS

Dbs

Monthly Interest rate: The monthly interest rate is free during the study period, and is charged at 4.38% per annum.

Maximum loan amount: The maximum loan amount offered to overseas university students is up to 90%. For the polytechnic and college students, the maximum loan amount is 75% of the tuition fee.

Does the loan cover tuition fees? Yes. The loan provides a tuition subsidy of 25% for overseas students and up to 90% of the subsidized tuition fees for Singapore students.

Does the loan cover living expenses? The loan does not cover any living, personal allowance, purchase of computer, or hostel fees for overseas polytechnic or university students.

Processing fee: DBS processing fee for study loans offered to overseas students is 2.5%

Loan tenure: The loan tenure for overseas university students is a maximum of 20 years, and repayment should start in no more than 2 years after completion of studies. For overseas polytechnic students, the maximum loan repayment period is 10 years and should start in no more than 2 years after course completion.

Maximum no. of guarantors: For overseas, you only need 1 guarantor who can be of any nationality

2. POSB

Posb

Monthly Interest Rate: The POSB interest rates are quite high at 4.38% for students studying in preferred schools and 5.88% for students in other universities. Repayment of the Further Study Assist loan begins 1 month after loan disbursement.

Maximum loan amount: Maximum loan amount is up to 10 times the combined

monthly income, or a maximum of $80,000 for preferred institutions, and 8 times the combined monthly income, or a maximum of $80,000 for overseas students studying in other universities.

Does the loan cover tuition fees? Yes

Does the loan cover living expenses? No

Processing Fees: POSB offers loans to overseas students with a processing fee of 2%-3%

Loan Tenure: The maximum repayment period for POSB Further Study Assist loan for preferred institutions is 10 years, while that of students in other universities is 5 years.

Maximum no. of guarantors: POSB requires that you have only 1 guarantor.

3. OCBC

Monthly interest rate: The OCBC Frank Education Loan has a standard interest rate of 4.5%. T

Maximum loan amount: The maximum loan amount offered is up to 10 times your monthly income, or a maximum of $150,000.

Does the loan cover tuition fees? Yes.

Does the loan cover living expenses? No

Processing Fee: OCBC offers overseas student loans with a processing fee of 2.5%.

Loan tenure: The maximum loan repayment period for the Frank Education Loan is enure is 8 years

Maximum number of guarantors: You only need 1 guarantor to acquire an OCBC Frank Education Loan

4. MayBank

Maybank

Monthly interest rate: Interest rate for the Maybank Monthly Rest Education Loan for overseas students attracts an interest of 4.45% per annum.

Maximum loan amount: You can borrow up to 8 times your monthly salary or a maximum of 200,000 (Whichever is lower)

Does the loan cover tuition fees? Yes, the loan covers tuition fees

Does the loan cover living expenses? Maybank provides additional financing for other education related expenses

Processing fee: This loan attract a 1.5% processing fee

Loan tenure: The maximum loan tenure for the Monthly Rest Education Loan is 8 years

Maximum number of guarantors: A maximum of 2 guarantors are allowed to acquire the laon. One of the guarantors has to be a close relative to the student.

5. CIMB

Cimb

Monthly interest rate: The CIMB Monthly Rest Education loan for overseas students attracts 5.39% per annum interest rate.

Maximum loan amount: CIMB overseas student loan allows borrowing of upto 8 times your monthly salary or a maximum of $200,000.

Does the loan cover tuition fees? Yes

Does the loan cover living expenses? No

Processing fee: Upon approval for the loan, CIMB charges a 2% processing fee

Loan tenure: The maximum Monthly Rest Education loan from CIMB loan tenure is 10 years

Maximum number of guarantors: Only 1 guarantor allowed and must be a close family member

Comparison of Bank’s Education Loans

DBS Study Loan

Dbs

Per Month
$371.77
Studies Interest Rate (p.a) Processing fee (Approved loan)
Local 4.38% 2.5%
POSB Further Study Assist

Posb

Per Month
$371.77
Studies Interest Rate (p.a) Processing fee (Approved loan)
Local 4.38% 2%-3%
OCBC FRANK Education Loan

Ocbc

Per Month
$372.86
Studies Interest Rate (p.a) Processing fee (Approved loan)
Local 4.5% 2.5%
Maybank Monthly Rest Education Loan

Maybank

Per Month
$372.41
Studies Interest Rate (p.a) Processing fee (Approved loan)
Overseas 4.45% 1.5%
CIMB Monthly Rest Education Loan

Cimb

Per Month
$381.01
Studies Interest Rate (p.a) Processing fee (Approved loan)
Overseas 5.39% 2%

Alternative Option: Using Personal Loan to Fund Your Overseas Education

You can always use an unsecured personal loan to help you fund your education. With access up to 6 times your monthly income and low interest rates, a personal loan can help you immensely in funding your education.

Features of personal loans include;

  • Low interest rates from 1%-4%
  • Efficient borrowing and loan processing experience
  • Access to unsecured loans
  • Acess to up to 6 times your monthly income
  • Flexible loan tenures

If you are keen on funding your studies through a Singapore personal loan, check out our options on Fortune Credit.

With excellent and friendly staff, and the lowest industry rates, Fortune Credit will help you finance your education with one of our efficiently processed personal loans.

Eligibility criteria

  • You should be at least 18 years old
  • You should have a minimum monthly income of $2,000 for foreigners

Requirements For Overseas Students

  • A passport
  • Work permit
  • Proof of employment ( through an employment letter)
  • A payslip for the recent three months
  • SingPass
  • Proof of income through bank statements
  • Proof or residence

Steps to Apply for a Personal Loan

Step 1: Call Fortune Credit or simply utilize online application for a personal loan

Step 2: Visit Fortune Credit’s office for a one-on-one consultation on the terms and conditions

Step 3: Receive the laon amount as soon as you sign an agreement.

Which Is the Best Study Loan for Oversea Students?

It depends on several factors such as the interest rate, the maximum loan tenure, and the maximum loan amount.

Opt for government-funded loans if you qualify for a subsidy or other grants that go toward helping you settle your tuition fees. You can also go for a government loan if you need a loan with a long loan tenure

Go for a bank loan if you do not have access to subsidized tuition fees, or if you are pursuing a course that is not approved for subsidized tuition fees. You can also opt for a bank loan if you are taking a course from an institution that is not pre approved for subsidized tuition fees.

Take a loan from a moneylender if you do not satisfy the eligibility criteria for accessing education loans such as; age, minimum wage, or if your course does not qualify for an education loan.