List of Interest-Free Study Loans in Singapore

Loan Advisor Team
November 26, 2023
Education

It’s no secret that paying for college can be overwhelming. There are different costs to take into account from tuition to books to room and boarding. In fact, College education in Singapore or overseas costs several thousand per year.

Thankfully, there are different ways to fund your University education, whether in Singapore or overseas. One of which is taking out a student loan. It’s one of the most common and reasonable ways to finance your college tuition.

But is there such a thing as interest free student loans? To help you find the best financing, here’s a list of interest free study loan Singapore.

Interest-Free Education-Related Loan

These options will provide you with extra funds while studying. And each option has its own unique features.For full information and alternative options, read more in the next section.

BANK	Loan Coverage	Interest Rate	Processing Fee	Minimum repayment
DBS Study Loan	Up to 25% or up to $200,000 cost living allowance	From 4.38%p.a 0% interest rate throughout the course of the study	2.5% upon loan approval	$100 per month
DBS Tuition Fee Loan	Up to 75% of your subsidized school fee. Does not cover room and boarding fees, purchase of a computer, and personal allowance.	From 4.38%p.a 0% interest rate throughout the course of the study	2.5% upon loan approval	$100 per month
DBS Computer Loan (Applicable only for Ngee Ann Polytechnic)	Up to maximum 75% of tuition fee	Will be prevailing on the first day of each quarter or such other rate as may be determined from time to time. 0% interest rate throughout the course of the study.	2.5% upon loan approval	$100 per month
Frank Tuition Fee Loan	Up to 90% of your subsidized tuition fee.	From 4.5% p.a 0% interest rate throughout the course of the study.	2.5% upon loan approval	$100 per month

DBS Study Loan

Polytechnic
Key Features	Start from 4.38% per annum 0% interest rate throughout the course of the study Covers up to 25% of your subsidized school fee. Or up to $2,000 cost of living allowance If applicable, interest is charged after graduation at an average prime rate of the bank. $100 minimum repayment per month.
Eligibility	You are qualified for this education loan if you are a full-time Singapore Citizen or Permanent Resident diploma polytechnic student and have applied for the following: Tuition Fee Loan Scheme CPF Education Scheme MENDAKI Subsidy Scheme/Loan
Guarantor	Must be 21 to 60 years of age Someone who is not an undischarged bankrupt. For Singaporean students, the Guarantor must be a Singaporean. For Permanent Resident / International Student, the Guarantor must be either a Singaporean or Permanent Resident.
Repayment	Up to 2 years of interest free loan. Repayment will commence after graduation. Up to 5 years repayment period for interest bearing loan.
How to Apply	For more details on how to apply for a Study Loan in Singapore, you can visit the respective institution’s website.

Universities
Key Features	Start from 4.38% per annum 0% interest rate throughout the course of the study Covers up to 20% of your subsidized school fee. Or up to $3,600 yearly cost of living allowance If applicable, interest is charged after graduation at an average prime rate of the bank.
Eligibility	If you are an undergraduate who received tuition financing payable by Singapore Citizens from at least one or a combination of: Tuition Fee Loan CPF Education Loan MENDAKI Tertiary Tuition Grant/Loan A grant/loan from a registered government agency
Guarantor	Must be 21 to 60 years of age Someone who is not an undischarged bankrupt. For Singaporean students, the Guarantor must be a Singaporean. For Permanent Resident / International Student, the Guarantor must be either a Singaporean or Permanent Resident.
Repayment	$100 minimum repayment per month. Repayment of the education loan can also be one lump sum. Up to 5 years for an interest-free loan. Repayment will start after graduation. Up to 20 years repayment period for interest bearing loan. Repayment will start after graduation.
How to Apply	For more details on how to apply for a Study Loan in Singapore, you can visit the respective institution’s website.

DBS Tuition Fee Loan

Polytechnic
Key Features	Start from 4.38% per annum 0% interest rate throughout the course of the study Covers up to 75% of your subsidized school fee. This education loan option does not cover room and boarding fees, purchase of a computer, and personal allowance. Interest is charged after graduation at an average prime rate of the bank. $100 minimum repayment per month. Up to 10 years repayment period. Repayment starts after graduation.
Eligibility	You are eligible for this education loan if you are a full-time subsidized diploma student who is studying in any of the local polytechnics. Additionally, you must not fall into any of the categories below: Students receiving Government / Statutory Board / any school scholarships which cover tuition fees Students receiving a full Tuition Grant from MENDAKI Students using CPF savings for payment of 100% of the subsidized tuition fees. Lastly, there is no income requirement and age restriction to be eligible for this education loan.
Guarantor	Must be 21 to 60 years of age Someone who is not an undischarged bankrupt. For Singaporean students, the Guarantor must be a Singaporean. For Permanent Resident / International Student, the Guarantor must be either a Singaporean or Permanent Resident.
Repayment	Up to 10 years repayment period Repayment will start no later than 2 years after completing the course study. $100 minimum repayment per month Repayment of the education loan can also be one lump sum.
How to Apply	Get the application form and offer letter from the respective polytechnics and fill it up. Together with the guarantor, bring the following to any of the DBS branches: Application Form Offer letter NRIC / Passport of student and guarantor

Universities
Key Features	Start from 4.38% per annum 0% interest rate throughout the course of the study Covers up to 90% of your subsidized tuition fee. This education loan does not cover room and boarding fees, purchase of a computer, and personal allowance. Interest is charged after graduation at an average prime rate of the bank. $100 minimum repayment per month. Up to 20 years repayment period. Repayment starts after graduation.
Eligibility	All students studying in any of the local universities or NIE are eligible for this loan if they do not fall into any category below: Students receiving any Government / Statutory Board / any school scholarships which cover tuition fees Students receiving full Tuition Fee Subsidy from MENDAKI Students using CPF savings for payment of 100% of the subsidized tuition fees Students on self-funded courses Non Singapore Citizen/Permanent Resident students who are paying full fees (not eligible for any Tuition Fee Grant) There is no income requirement and age restriction.
Guarantor	Must be 21 to 60 years of age Someone who is not an undischarged bankrupt. For Singaporean students, the Guarantor must be a Singaporean. For Permanent Resident / International Student, the Guarantor must be either a Singaporean or Permanent Resident.
Repayment	Up to 20 years repayment period Repayment will start no later than 2 years after completing the course study. $100 minimum repayment per month Repayment of the education loan can also be one lump sum.
How to Apply	Get the application form and offer letter from the respective polytechnics and fill it up. Together with the guarantor, bring the following to any of the DBS branches: Application Form Offer letter NRIC / Passport of student and guarantor

DBS Computer Loan

Polytechnic (Applicable only for Ngee Ann Polytechnic)
Key Features	Up to maximum 75% of tuition fee 0% interest rate throughout the course of the study Up to 24 months repayment period. Repayment starts after graduation. $100 minimum repayment per month
Eligibility	This loan option is only applicable for Ngee Ann Polytechnic students.
Guarantor	Must be 21 to 60 years of age Someone who is not an undischarged bankrupt. For Singaporean students, the Guarantor must be a Singaporean. For Permanent Resident / International Student, the Guarantor must be either a Singaporean or Permanent Resident.
Repayment	Up to 24 months repayment period $100 minimum repayment per month Repayment of the education loan can also be one lump sum.
How to Apply	Please refer to the institution’s website for full details on how to apply.

OCBC Frank Tuition Fee Loan

Polytechnic (Applicable only for Nee Ann Polytechnic
Key Features	Start from 4.5% per annum 0% interest rate throughout the course of the study. Covers up to 90% of your subsidized tuition fee. $100 minimum repayment per month.
Eligibility	For NUS/NTU
Eligibility	You’re eligible for the Frank Education Loan if you’re a full-time undergraduate and postgraduate. You must be in: Full-time undergraduate and postgraduate degree program or Graduate research program or Full-time MSE MOE subsidized program If you’re a part-time undergraduate, you must be: Singapore citizen Pursuing your 1st undergraduate degree part-time Pursuing a part-time course due to ﬁnancial reasons
	For NIE
	You’re qualified for the Frank Education Loan if you’re a BA/BSc (Education) student teacher who does not receive salary, allowance, and whose fees are not paid by MOE. If you’re enrolled in the following full-time research programs: Doctor of Philosophy Master of Arts (by research) Master of Science (by research) If you’re enrolled in the following full-time subsidized coursework program: Master of Arts (Applied Linguistics) Master of Arts (all specializations) Master of Science (Exercise & Sports Studies) Master of Science (Life Sciences)
Guarantor	Must be 21 to 60 years of age Someone who is not an undischarged bankrupt. For Singaporean students, the Guarantor must be a Singaporean. For Permanent Resident / International Student, the Guarantor must be either a Singaporean or Permanent Resident.
Repayment	Flexible repayment options. $100 minimum loan repayments per month.
How to Apply	Fill up the Frank education loan application and go to any OCBC branch. You must come with your guarantor.

Do I Have Other Options?

1.Government-Funded MOE & CPF

With the CPF Education Scheme, you can use your parents’ CPF to pay for your course fees. The repayment period will start after you graduate. Or when you stop studying.

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

Additionally, some public universities and polytechnics in Singapore also provide a loan of their own through DBS, OCBC, and UOB.

2. Moneylenders Personal Loan

Another option to cover education-related expenses is to take out a personal loan in Singapore. Choose the best moneylender and find the right loan option that suits your needs.

Which Education Loan Should You Choose?

1. Interest rate while you’re studying vs. after you graduate

Interest rates vary depending on which institution you choose. So do your own research. Check whether the institution will charge an interest rate while you’re studying. Or if they start charging after course completion.

2. Start of repayment

When do you need to start repaying the education loan? Gather details about the repayment period and if they have a minimum repayment fee per month. Or if you can pay for the loan in one lump sum.

3. Are there processing fees?

Typically, there’s a 2% processing fee. This is usually deducted from the first disbursement. But it’s best to confirm with your loan provider. Additionally, ask if there are other fees such as disbursement fees and cancellation fees.

4. Early repayment penalties.

What if you want to pay the education loan early? Paying off your loan early can help you save interest in the long run. So ask the loan provider if you need to pay a repayment penalty.

5. Loan tenure

This is the total duration of your loan. And it can differ depending on the institution as well as the type of loan. That said, take into account whether you can afford to pay the minimum fee per month for a fixed time period.

6. Minimum repayment per month

Aside from the loan tenure, you must also consider the minimum monthly loan repayments. Can you afford to pay, say $100, per month?

7. Interest after you graduate

If the loan scheme you’re considering charges interest after graduation, is the interest reasonable? Compare which option will help save you more money.

Conclusion

When choosing a study loan, it helps to have all the necessary details. Don’t apply for the first interest free study loan scheme you find.

That said, compare different education loans. The Loan Advisor is the best place to find comparisons between student loans in Singapore. Plus they also provide up to 3 loan quotes from top licensed moneylenders in Singapore. Gather as many details as you can. In doing so, you can make an informed choice.

Learn more about Licensed Money Lender Borrowing Guide in Singapore.