Maybank Education Loan

Maybank Education Loan Review: Best for Part-time Students with High Tuition fee

With the current education promotion of Maybank for their education loan, it can be considered to be the cheapest option for those studying local and overseas. Individuals who wish to further their educational attainment can loan up to $2000,000. There are also special rates for students who attend Maybank’s preferred educational institution, if not, you will find lower rates with other banks. Know more on how education loan work in Singapore here.

Key features

  • The ability to borrow up to 8x your monthly salary capped at $200,000.
  • Flexible repayment options wherein you can have the loan tenure of 5 to 8 years.
  • You can opt to repay your education loan for up to 8 years.

 

Pros and Cons

Pros

  • High financing amount – Maybank might have one of the maximum loan amounts available in the market. You can loan 8x your monthly income or up to $200.000
  • Affordable rates with select institutions – Given the high loan amount, you would want to consider enrolling to their preferred institution before you apply for your Maybank education loan. You can have an interest rate of 4.45% per annum with a 2% processing fee.

Cons

  • Default high rates – The previously given figures for the interest rate and the processing fee would be significantly higher if you were not to enroll into their preferred education institution. 

 

What makes Maybank Education Loan Stand Out

Given the option, you are not limited to the available options of where to enroll. With the maximum loan amount of $200,000, you can get into universities despite their high tuition fees. The option to study overseas will now start to be an achievable goal.

Interest Rate Processing Fee Maximum Loan Amount
Maybank Monthly Rest Education Loan 4.45% 2% 8x monthly income, up to $200,000
CIMB Monthly Rest Education Loan 5.39% 2.5% 8x monthly income, up to $200,000
OCBC FRANK Education Loan 4.5% 2.5% 10x monthly income, up to $150,000
POSB Further Study Assist 4.38% 2.5% 10x monthly income, up to $160,000
DBS Study Loan 4.38% 2.5% 10x monthly income, up to $160,000

 

Maybank education loan is also keeping part-time students in mind as its education loan only requires $18,000 annual income to apply, the lowest requirement considering other banks in Singapore. Some financial institutions may offer the same but it is not available to a wide variety of borrowers.

In the likes of POSB, their education loan tends to be a tad more expensive and may not be in favor of students under 21 years of age without a guarantor.

 

Overview of the payment scheme

To give you an overview, here is an example computation for the total cost of your Maybank education loan, may it be local or study overseas.  This table will be based on the standard payment and an assuming loan of $25,000 including the fees.

Tenure Processing Fee Interest Rate Monthly Payment Total Cost
5 Years 2% 4.45% $466 $3,430
6 Years 2% 4.45% $396 $4,302
7 Years 2% 4.45% $347 $4,642
8 Years 2% 4.45% $310 $$5,259

The computation for the graduated payment structure is somewhat different as the prepayment of the principal is deferred until the interest servicing loan has been completed. 

 

Tenure Processing Fee Interest Rate Monthly Payment During Studies Monthly Payment After Studies Total Cost
5 Years 2% 4.45% $93 $1,091 $5,023
6 Years 2% 4.45% $93 743 $6,095
7 Years 2% 4.45% $93 $570 $6,185
8 Years 2% 4.45% $93 $466 $6,778

Please note that for the graduated payment structure, the assumed loan is $25,000 for a 3-year interest  that includes the impact of fees and promotion. 

 

Who can apply and what will you need?

Eligibility

  • The Applicant and the guarantor should be a Singapore citizen or a Singapore Permanent Resident
  • Applicants should be at least 18 years old or not exceeding 65 years old upon loan maturity
  • Part-time students can apply for an education loan with a minimum income of $18,000 annually
  • The guarantor should have a minimum annual income of $30,000 for  local studies and $60,000 for education overseas

Required documents

  • Duly accomplished application form
  • National Registration Identity Card for both the borrower and the guarantor
  • Latest computerised payslip
  • CPF Statement of Account for the last 6 months
  • Latest income tax notice of assessment
  • Proof of course fee
  • Acceptance letter from the university
  • For self-employed individuals, you will be needing your income tax notice of assessment from the last 2 years

 

Fees and charges

To minimize your potentially high fees and charges, always consider to check whether the institution you are attending is one of Maybank’s preferred universities, may it be locally or studies overseas.

Late Payment Fee 3.% above prescribed rate (minimum $30)
Processing Fee 2%
Early Repayment Fee 1% of loan prepaid
Cancellation Fee 1% of undrawn amount

 

You are already paying for the interest rates of your loan; knowing these other fees and charges, it is best to stick to the remainder of your repayment period to pay additional on your loan’s total cost. If interested, click here to find out interest free study loans in Singapore. 

 

Two female graduates

Some few important reminders

  • Updated Singpass – Before you apply for your Maybank education loan, be sure to update your personal details on your Singpass
  • Application timeframe – Application for education loan, once started, should be completed within 5 calendar days from the date of application. Otherwise, it would be considered a new application.
  • Save your progress – As you process the application for your Maybank education loan, make sure to save your progress as you go.
  • Recommended browser – Maybank recommends to use the Google Chrome browser as you process your education loan.
  • Application turnaround – Even with your updated Singpass, the application form will still take around 10 minutes to be completed. All communication regarding the application to your education loan will be communicated via email and mailing address.
  • Up to date notification – All notifications regarding your education loan will be coursed via your Singapore-registered mobile number and email.

 

Conclusion

Maybank education loan has the potential to give you a huge amount of loan for financing even the highest of tuition fees from universities. You can also enjoy lesser interest rates and other charges if you study in one of their preferred institutions. Cut down on additional payment on top of your total cost, find the option for you and follow it religiously.

Here is a quick rundown of what you can expect.

  • You loan a minimum loan amount of $5,000 or 8x your monthly income up to $200,000.
  • Education loans with Maybank have a flexible repayment period allowing your loan tenure to last for 8 years.
  • If you enter Maybank’s preferred institutions, you can enjoy a 4.45% interest and a 2% processing fee along with your high loan amount ceiling.

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