Interest Free Study Loan Singapore

4 Interest-Free Study Loans in Singapore (2021)

For many countries in the world, obtaining a degree will help individuals compete in a highly competitive workforce. Especially in Singapore, graduating from a university will give you a competitive edge. On top of that, it also provides you with the right tools and perspectives needed for critical thinking.

However, education in Singapore is expensive. Thankfully, students can apply for an education loan to finance their university education. Below is a list of interest-free study loan Singapore, plus additional options to support your university education financially.

4 Interest-Free Study Loans in Singapore (2021)

Bank Institution Maximum Loan Amount Maximum Loan Tenure Minimum Monthly Repayment
DBS Study Loan Polytechnic Up to 25% of the subsidized tuition fee or up to S$2,000 annual living allowance 2 years S$100
University Up to 20% of the subsidized tuition fee or up to S$3,600 annual living allowance 5 years S$100
DBS Tuition Fee Loan Polytechnic Up to 75% of the subsidized tuition fee 10 years S$100
University Up to 90% of the subsidized tuition fee 20 years S$100
DBS Computer Loan Ngee Ann Polytechnic   24 months S$100
Frank Tuition Fee Loan   Up to 90% of tuition fee 2 years S$100

 

  1. DBS Study Loan (interest-free during the course of study)

Polytechnic 

  • Key Features
    • Interest-free during the course of the study
    • Up to 25% of the subsidized tuition fees payable by Singapore students or up to S$2,000 annual living allowance
    • Up to 2 years for an interest-free loan. Repayment will start after course completion
    • S$100 minimum monthly repayment
  • Eligibility
    • All full-time Singaporean or Permanent Residents diploma students studying in any of the local polytechnics are eligible if they have taken up the following schemes:
      • Tuition Fee Loan Scheme
      • CPF Education Loan Scheme
      • MENDAKI Tertiary Tuition Fee Subsidy/Loan

For the full eligibility requirements to apply for a Study Loan, please refer to the institution’s website for more details

  • Guarantor
    • Aged from 21 to 60 years old
    • Is not an undischarged bankrupt

For the full criteria for guarantor, please refer to the institution’s website for more details

  • Repayment
    • Up to 5 years repayment period for interest-bearing loan
    • Up to 2 years for an interest-free loan. Repayment will start after course completion
    • S$100 minimum monthly repayment
  • How To Apply
    • Please refer to the institution’s website for application.

University

  • Key Features
    • Interest-free during the course of the study
    • Up to 20% of the subsidized tuition fees payable by Singapore students or up to S$3,600 annual living allowance
    • Up to 5 years for an interest-free loan. Repayment will start after course completion
    • S$100 minimum monthly repayment
  • Eligibility
    • Undergraduates who have received financing of the tuition fee payable by Singapore Citizens from at least one or a combination of the following:
      • Tuition Fee Loans
      • CPF Education Loan
      • MENDAKI Tertiary Tuition Fee Subsidy/Loan
      • Scholarship/Grant
      • A fee subsidy/loan from a registered government agency

For the full eligibility requirements to apply for an education loan, please refer to the institution’s website for more details

  • Guarantor
    • Aged from 21 to 60 years old
    • Is not an undischarged bankrupt
Student Guarantor
Singaporean Singaporean
Permanent Resident Singaporean / Permanent Resident
International Singaporean / Permanent Resident / International

 

  • Repayment
    • Up to 20 years repayment period for interest-bearing loan
    • Up to 5 years for an interest-free loan. Repayment will start after course completion
    • Repayment will start no later than 6 months after graduation
    • Repayment of the loan can be in one lump sum or by equal monthly installments of S$100.
  • How To Apply
    • Please refer to the institution’s website for application.
  1. DBS Tuition fee loan (interest-free during the course of study)

Polytechnic

  • Key Features
    • Interest-free during the course of the study
    • Up to 75% of the subsidized tuition fee
    • Up to 10 years repayment period. Repayment starts after course completion.
    • S$100 minimum monthly repayment
  • Eligibility
    • All full-time subsidized diploma students studying in any of the local polytechnics are eligible. The student must not fall into any of the categories below:
      • Receiving any Government / Statutory Board / any school scholarships which cover tuition fee
      • Receiving full Tuition Fee Subsidy from MENDAKI
      • Using CPF savings for payment of 100% of the subsidized tuition fee
    • There is no income requirement and age restriction
  • Guarantor
    • Aged from 21 to 60 years old
    • Is not an undischarged bankrupt
Student Guarantor
Singaporean Singaporean
Permanent Resident Singaporean / Permanent Resident
International Singaporean / Permanent Resident / International

 

  • Repayment
    • Up to 10 years repayment period.
    • Repayment starts after course completion.
    • S$100 minimum monthly repayment
  • How To Apply
    • Fill up the application form and letter of offer
    • Together with a guarantor, bring the following documents:
      • Application Form
      • Letter of Offer
      • NRIC / Passport of both the student and guarantor

University

  • Key Features
    • Interest-free during the course of the study
    • Up to 90% of the subsidized tuition fees
    • Up to 20 years repayment period. Repayment starts after course completion.
    • S$100 minimum monthly repayment
  • Eligibility
    • All students studying in any of the local universities or NIE are eligible. The student must not fall into any of the categories below:
      • Receiving any Government / Statutory Board / any school scholarships which cover tuition fees
      • Receiving full Tuition Fee Subsidy from MENDAKI
      • Using CPF savings for payment of 100% of the subsidized tuition fees
      • Students on self-funded courses
      • Non-Singaporean / Permanent Resident students who are paying full fees
      • There is no income requirement and age restriction
  • Guarantor
    • Aged from 21 to 60 years old
    • Is not an undischarged bankrupt
Student Guarantor
Singaporean Singaporean
Permanent Resident Singaporean / Permanent Resident
International Singaporean / Permanent Resident / International

 

  • Repayment
    • Up to 20 years repayment period.
    • Repayment starts after course completion.
    • S$100 minimum monthly repayment
  • How To Apply
    • Fill up the application form and letter of offer
    • Together with a guarantor, bring the following documents:
      • Application Form
      • Letter of Offer
      • NRIC / Passport of both the student and guarantor
  1. DBS Computer loan (interest-free)

Polytechnic

  • Key Features
    • Interest-free during the course of the study
    • Up to 24 months repayment period. Repayment starts after course completion.
    • S$100 minimum monthly repayment
  • Eligibility
    • Applicable only for Ngee Ann Polytechnic

For the full eligibility requirements to apply for a Computer Loan, please refer to the institution’s website for more details

  • Guarantor
    • Aged from 21 to 60 years old
    • Is not an undischarged bankrupt
Student Guarantor
Singaporean Singaporean
Permanent Resident Singaporean / Permanent Resident
International Singaporean / Permanent Resident

 

  • Repayment
    • Up to 24 months repayment period.
    • Repayment starts after course completion.
    • S$100 minimum monthly repayment
  •  How To Apply

    • Please refer to the institution’s website to apply.
  1. Frank Tuition Fee Loan (interest-free during the course of study)

  • Key Features
    • Interest-free during the course of the study
    • Up to 90% of the student’s tuition fees
    • Up to 2 years repayment period. Repayment starts after course completion
    • Flexible repayment scheme with a S$100 minimum monthly repayment.

  • Eligibility
    • NUS/NTU Students:
      • Full-time undergraduate or postgraduates must be in:
        • Full-time undergraduate or postgraduate degree program or
        • Graduate research program or
        • Full-time MSE MOE subsidized program

Postgraduates must check their respective institution’s website to ensure the eligibility of their program.

  • Part-time undergraduates must be:
    • Singaporean
    • Pursuing your 1st undergraduate degree part-time and
    • Pursuing part-time course due to financial reasons

Part-time undergraduates must check their respective institutions for eligibility.

  • NIE Students:
    • BA/BSc (Education) student teachers who don’t receive salary, stipend, and whose fees are not paid by MOE
    • Candidates enrolled in the following full-time research programs:
      • Doctor of Philosophy
      • Master of Arts (by research)
      • Master of Science (by research)
    • Candidates enrolled in the following full-time subsidized coursework programs:
      • Master of Arts (Applied Linguistics)
      • Master of Arts (all specializations)
      • Master of Science (Exercise & Sports Studies)
      • Master of Science (Life Sciences)
  • Guarantor
    • Aged from 21 to 60 years old
    • Someone how is not bankrupt
  • Repayment
    • Up to 2 years repayment period.
    • Loan repayments start after course completion
    • Flexible repayment schemes with a minimum monthly installment of S$100
  • How To Apply
    • Fill up the application form and go to any OCBC branch.
    • You must come with your guarantor.
    • Bring all the supporting documents necessary.

Coins with graduation hats

Do I Have Other Options?

  • Government-funded MOE & CPF

Before reaching out to banks for an education loan, you must first consider alternative options, such as government-funded MOE & CPF.

The CPF Education Scheme allows you to use your parents’ CPF to finance the full fees of your chosen course. The repayment period for this education loan will commence after your course completion or when you terminate your studies – whichever happens first.

With the MOE Tuition Fee Loan, you can borrow up to 90% of your course fees. It is interest-free throughout your study. You can apply for this education loan if you’re enrolled in a local public university except for NAFA and Lasalle.

Aside from these options, there are also public universities and polytechnics in Singapore that provide an education loan of their own through DBS, OCBC, and UOB.

Need more education loan options?

Other banks also offer student loans but with interest rates. Take a look at this list to compare the best education loan offered by the top banks.

Which Education Loan Should You Choose?

As you can see from the extensive list above, there are plenty of student loans in Singapore. And each education loan offers different terms and conditions. Here are a few things to take into account:

  • Loan Tenure: This is the duration of the education loan. It can be different depending on the institution as well as the type of loan. That said, consider whether you can afford to keep paying the minimum monthly loan repayments throughout the said duration.
  • Minimum Monthly Repayment: You must also consider the minimum monthly payment you need to pay. From the list above, most banks require you to pay at least S$100 per month.
  • Interest Rate: Of course, the lower the interest rate, the better. That said, it’s best to compare education loan interest rates. You can do so with the help of a loan comparison tool.

Some banks offer an interest-free education loan throughout the course of study. This means if you successfully repay the loan right after graduation, you will not incur any interest at all.

  • Loan Repayments Schedule: Another factor to consider when choosing an education loan is the repayment schedule. When do you need to repay the loan? Some institutions require you to pay back the loan once you’ve completed the course.
  • Other Fees: Typically, institutions charge a 2% processing fee. This is usually deducted from the principal education loan amount. They may also charge other fees, so it’s best to ask questions before signing any agreement.

Moneylenders Personal Loan Can Also Help To Cover Education-Related Expenses

If for some reason you don’t qualify for a government-funded or bank education loan, you may want to consider the assistance of a licensed money lender in Singapore.

You can take out a personal loan to cover education-related expenses. A personal loan can be used for anything you need, for instance:

  • School fees
  • Dormitory rent fees
  • Food allowance
  • And more

But how much can you borrow?

Typically, licensed money lenders offer up to 6 times your monthly salary. However, the maximum principal loan amount may vary between lenders. Lastly, the maximum interest rate that money lenders can charge is 4%.

That said, it’s best to compare your options before choosing a personal loan plan.

Conclusion

Key Takeaways:

  • There are interest free student loans in Singapore. This type of education loan is interest-free during the course of the study and can cover up to 90% of your subsidized tuition fee.
  • With an interest-free education loan, you will not incur interest if you can repay the loan right after graduation.
  • There are education loans where you start paying after course completion.
  • Another viable option is to take out a personal loan from a licensed money lender to cover education-related expenses.

Even when you choose to study at a local public university in Singapore, you’ll still be paying a hefty sum. That said, it’s best to know your education loan options.

Use a loan comparison website, like Instant Loan, to compare the best education loan packages available. Shop around and apply for the best education loan here to make a smart financial decision when it comes to your education-related needs.

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