A Beginner’s Guide To The Best Overseas Study Loan In Singapor
Textbooks, tuition, and living expenses – those things are not cheap. Overseas, it costs every student an average of $25,707 per year to study. That’s over S$102,800 in a span of 4 years. Unless your parents will fund 100% of your studies, you should assess the best overseas study loan in Singapore so you will know what to apply for.
In this guide, we will focus on the best study loan options for international students.
Here at OMY, you will discover the following:
- What Is An Education Loan?
- Here’s What to Keep In Mind When Choosing An Overseas Study Loan in Singapore
- The Best Overseas Study Loan in Singapore
- What Are Your Other Options Aside from Overseas Study Loan in Singapore?
What Is An Education Loan?
With over 23,000 students from Singapore studying abroad, it’s important for banks and other financial establishments to offer education loans for abroad studies.
An education loan is a type of loan that is designed to assist students with educational expenses. These best study loan options can be used for both local and overseas studies.
Here’s What To Keep In Mind When Choosing An Overseas Study Loan In Singapore
We’ve gathered the top things you should consider when choosing student loans for studying abroad.
You should ensure that the loan amount can cover a huge chunk of your studies abroad. This amount should be at the very least equal to the tuition fee, so you can make the most out of it. If you’re applying for a small loan amount, make sure you have enough money to cover huge education-related fees such as your accommodation and tuition fees.
It is also important to consider loan tenure. The longer the tenure, the higher the interest over time. The shorter the term, the less interest you will pay over time. It is also crucial to consider the impact of your future income on your repayment schedule.
You should also check the interest rate. The higher the interest rate, the more you will be paying.
Also keep in mind that there are criteria to be eligible for your study loan. Eligibility does not just apply to you, but also your guarantor (if applicable). With the criteria in place, the lender can determine if you are a responsible borrower.
Fees And Charges
When you are choosing your loan, remember that you need to factor in other costs such as fees and charges on top of the interest rate since this cost can easily accumulate.
Another thing to think about is the application process. You want to make sure that you are not wasting any time, so choose a loan provider with an intuitive application process and easy access to customer services.
The Best Overseas Study Loan In Singapore
Here are our top choices for the best bank loans for students studying abroad. Don’t have time to read this article? Take a look at the table below to examine each international student loan side by side.
|Overseas Study Loan in Singapore||Interest Rate (per annum)||Loan Amount||Loan Tenure||Processing Fee|
|OCBC Frank Education Loan||4.5%||10 times your monthly income or up to S$150,000 (whichever is lower)||Up to 8 years||2.5%|
|DBS Further Study Assist||4.3%||10x the combined monthly income of you and your guarantor, with a maximum of S$160,000||Up to 10 years||2.5%|
|CIMB Education Loan||4.78%||8x your monthly income or S$200,000, whichever is lower||Up to 10 years||2%|
|Maybank Education Loan||4.45% + 0.45% for Education Loan Board Rate||8x your monthly income or S$200,000, whichever is lower||Up to 10 years||2.25% (minimum of S$300)|
|Crawfor Personal Loan||Nominal interest starts at 1.8%||If annual income is less than S$20,000, you can borrow up to S$3,000
If annual is more than S$20,000, you can borrow up to 6x your monthly salary
|To be assessed by Crawfort||No data|
OCBC Frank Education Loan
Perfect for students who are looking for the best study loan, the OCBC Frank Education Loan can be used for both abroad and local studies. With this loan, you can enjoy a low interest rate of only 4.5% per year (EIR 5.17%).
You can loan up to 10 times your monthly income or up to S$150,000 (whichever is lower), and you may also choose from three flexible repayment options with up to 8 years of tenure.
For this loan, there is a 2.5% processing fee for the approved loan amount. This is applicable upon the disbursement of your overseas study loan in Singapore.
Here is the list of overseas institutions that qualify for this loan.
For this international student loan in Singapore, you can choose from 3 repayment options to suit your needs perfectly.
First is Standard where you pay monthly instalments (principal and interest) once the loan is disbursed.
You may also choose to pay only interest while studying and start paying principal and interest after graduation.
Lastly, you can choose Graduated Plus, where you will pay only interest while studying and one year upon graduating. For this option, you need to pay the principal and interest 2 years after graduating. For the Graduated and Graduated Plus, the loan tenure already includes the period of your studies.
Main applicant (student)
- 17 years old and above
For joint applicants:
- The main applicant should be below 21 years old, maximum of 65 years upon loan maturity
- Required for overseas education
- Income: Main applicant with no income and Joint applicant with at least S$24,000 per annum OR main applicant with at least S$12,000 per annum and Joint applicant with at least S$12,000 per annum
DBS Further Study Assist
It’s no secret that DBS loans are some of the best in the country, especially when it comes to low-interest rates.
The DBS Further Study Assist Loan is another great option if you are looking for bank loans for students studying abroad. With its low interest rate of only 4.38% per annum, you’ll be able to save more over time.
You may apply for up to 10x the combined monthly income of you and your guarantor, with a maximum of S$160,000. It also has a long repayment period of up to 10 years. This way, you can focus on your studies more. The processing fee for this loan is 2.5% of the loan amount. It also has a late payment fee of S$30.
- 17 to 65 years old upon loan maturity
- Minimum annual gross income of S$18,000
- 21 to 65 years old upon loan maturity
- Minimum annual gross income of S$24,000
- Must be an immediate family member
CIMB Education Loan
If your priority is to look for an education loan with a long tenure, the CIMB Education Loan is an incredible choice. This overseas study loan in Singapore has interest rates starting at 4.78% per annum (EIR 5.22%), with a loan tenure of up to 10 years. It also has a high loan amount limit of S$200,000 or 8x your monthly income, whichever is lower.
One of the features that make this education loan for abroad studies stand out is its interest servicing scheme, where you only need to pay for the interest on your loan during the course of your education.
This will be determined by the duration of your course, although it will not exceed 4 years. This period will also be rounded up to the next 6-month mark. For example, if the course is 2 years and 8 months, the interest servicing period will be 3 years.
This student loans for studying abroad option comes with no hidden fees or charges. The processing charge is only 2%, which is one of the lowest in the market.
- If the applicant is below 21 years old
- If the applicant does not meet the minimum income requirement of S$2,000 per month
- If the loan requested is more than 8 times the applicant’s monthly income
- If the applicant will take up the Interest Servicing Scheme
- If the applicant will pursue full-time studies
Maybank Education Loan
With the Maybank Education Loan, you can pursue your dreams of studying in a different country. This education loan for abroad studies offers attractive interest rates from 4.45% per annum, plus 0.45% per annum for Education Loan Board Rate. You may apply for a repayment period of up to 10 years.
This loan is a must-consider for people who want to borrow a huge amount since it allows you to apply for a loan amount of up to 8 times your monthly income, or up to S$200,000, whichever is lower. This loan is extremely helpful if you need additional financing for your accommodation overseas, books, and other school-related expenses.
The processing fee for this loan is 2.25% of the full loan amount or a minimum of S$300. This is payable upon your acceptance of the Letter of Offer.
- Must be 18-65 years old
- Must be 21-65 years old
- Must have a minimum annual income of S$30,000
Click here to apply for this overseas study loan in Singapore.
Crawfort Personal Loan
If you don’t meet the eligibility requirements of banks, particularly when it comes to the annual income requirement, you can turn to a licensed moneylender such as Crawfort.
With Crawfort, you can get your loan approved in just 8 minutes.
More From OMY: Best Personal Loan in Singapore (Fast Approval and Low Interest Rates)
Although this education loan for abroad studies may not be able to fully pay for your education abroad, it’s a great option if you need money urgently to cover additional school-related expenses.
If your annual income is less than S$20,000, you can borrow up to S$3,000. Those with an annual income of at least S$20,000 can borrow up to 6x of their monthly income. The amount will be determined by your ability to repay your loan as well. The nominal interest rates start at only 1.8% per annum.
A processing fee will be deducted upfront from each overseas study loan in Singapore (no data on the website as to how much), and there is a S$60 fee on overdue payments.
- 21 to 65 years old
- If income is less than S$20,000, loan amount is only up to S$3,000
- If income is more than S$20,000, loan amount is up to 6 times your monthly income
If you want to apply for the Crawfort Personal Loan, visit this page.
What Are Your Other Options Aside From Overseas Study Loan In Singapore?
With the help of the options below, you can decrease the overall cost of your overseas education.
Studying abroad does not have to cost you a fortune if you plan well. There are so many free universities you can study in that offer free tuition. All it takes is a simple Google search. For example, in the US, here are some of the most popular free universities:
- Barclay College (KS)
- College of the Ozarks
- Curtis Institute of Music
- City University of New York
- State of Washington Universities
In the UK:
- University of Plymouth
- University of Cambridge.
- The University of West Of Scotland
- University of Suffolk
- University of Cumbria
- University of South Australia
- Central Queensland University
- Victoria University
- Bond University
- University of Notre Dame Australia
- RMIT University
Grants, bursaries, and scholarships
Scholarships are one of the best financial supports that you can get to study in another country. These are usually offered for students with academic potential and athletes.
There are also grants and bursaries that you can take advantage of to help pay for your study abroad. Just make sure to apply in advance.
If you are interested in working while studying abroad, check with your university of choice. They may have part-time jobs you can apply for to help you ease the financial burden of your education.
A Word From OMY
Reviewing your options for the best overseas study loan in Singapore should not be taken lightly. Make sure to carefully weigh all your options, including the loan tenure, interest, and eligibility, to help you narrow down your choices. If you plan well, you’ll be able to experience this once in a lifetime opportunity.
More From OMY: Secured Vs. Unsecured Loan: What Should You Choose?