Singapore is a small country, but it has some of the best universities for those who consider studying. However, you might not be able to afford a tuition fee at the institutions. That’s where education loans come in.
An education loan in Singapore is just as it sounds: a loan amount borrowed to offset tuition fees. There are different ways to acquire such cash, all of which will be discussed in this article. Read on to learn how to get the best education loans as a Singapore citizen.
Types of Education Loan
There are various tuition fee loan options available in Singapore, and they include:
- Secured education loan
- Unsecured education loan
Secured Education Loans
Getting these loans to study requires pledging an asset as collateral. The collateral depends on the borrower and the lender issuing the student loan. Real estate, land with clear boundaries, bank deposits, government bonds, and other similar assets are the most common types of collateral that lenders will accept.
You can get a secured loan from any financial institution, including most banks like DBS OCBC and UOB. A study loan is also obtainable from a credit union or even an online licensed money lender. There are a few things to keep in mind when comparing secured loans, including
- What assets must be put up as collateral?
- Whether or not the interest rate on the loan is set to fluctuate
- Costs imposed by the lending institution, such as application fees and a late payment fee
- The minimum loan amount and loan tenure
- The maximum loan amount and the standard repayment method
- Requirements for the loan’s interest rate, like your monthly income and annual income
You can estimate the total cost of a secured loan by comparing loan rates and terms from multiple lenders. Use a secured loan calculator online to get ballpark figures for your monthly payments and the total amount of interest you’ll pay.
Unsecured Education Loans
Unsecured education loans for study in Singapore do not require a loan indemnity. This implies that students are not needed to provide collateral to obtain an education loan. Students are given loans based on their academic profile and the financial profile of their co-applicant.
Unsecured loans have stricter credit score requirements than secured loans. However, borrowers with poor credit may still be approved for a loan if they can offer a cosigner. If a borrower cannot pay the interest-bearing loan, a cosigner agrees to do so on their behalf. When getting an unsecured cash advance for a subsidised tuition fee, here are some things to keep in mind:
- Your credit score
- If there is an early repayment fee
- The repayment period and processing fee
- If the loans are only accessible to Singapore citizens
- The approved loan amount
Getting an Approved Loan Amount for Tuition From Banks
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Students looking for subsidized tuition fees at their local public university can get loans from a bank. A good example of such educational cash advances is OCBC’s frank education loan.
With this option, eligible students can take out as much as 10x their monthly income or up to S$150,ooo. This cash advance has an interest rate of 4.5% and three loan repayment options. You can also get an interest-free loan which is a tuition fee loan with monthly payments as low as S$100.
How to Apply for a Loan at a Bank
Applying for a student bank loan is a no-brainer. However, you must first consider if you’re qualified for such cash advances. The eligibility requirement varies from one financial institution to another, and could include the following:
- Are you a citizen or a permanent resident?
- Academic record
- Your university level
- Are you one of the part-time students?
- Age
- The course you’re studying and course duration
On that note, ensure to read through the terms surrounding the cash advance before applying. If you don’t meet any of the institution’s criteria, your application is unnecessary. However, if you’re eligible, you can get the form for applying and fill out the necessary details. If you’re considered for the cash advance, the institution will inform you.
Getting an Education Loan from a Moneylender
You can also get a study loan from an online moneylender. These loan options are best if you don’t meet all the requirements of a financial institution. Like banks, they offer different cash advances, so it’s left for you to choose which you prefer.
Where is the Best Place to get an Education Loan – Banks or Moneylenders
Getting a study loan from a bank for local and overseas studies is possible. However, there are tons of factors you must meet. Once you don’t meet the specified criteria, the financial institution doesn’t consider you for the cash advance.
That’s why getting an education loan from an online moneylender like i-Credit is an excellent option. i-Credit offers study loans of up to $3,000. Even if you don’t have a top-notch credit score, you can still get educational loans with attractive interest rates. Plus, flexible monthly repayment plans that you can easily cover.
How to Apply at iCredit
If you’re interested in personal loans with a low-interest rate and a flexible repayment plan, apply at i-Credit. We offer an instant loan without documents for students, so you won’t need to submit a lot of information. With this fund, you can handle your tuition and start paying at a later date. To apply for an education loan, simply visit the site and fill out the application form.
FAQ
What is an interest free loan?
An interest free loan is one that doesn’t require you to pay additional money to the borrowed capital upon return. This means that you pay back the exact amount you borrowed from the lender. Such cash advance options are difficult to find, and there are a plethora of requirements preceding them.
Does my monthly income affect a tuition fee loan tenure?
Your monthly income can determine how much money you get from the lender. The education loan amount will then determine the repayment period.
