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 |
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DBS Tuition Fee Loan
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DBS Computer Loan
Polytechnic (Applicable only for Ngee Ann Polytechnic) | |
Key Features |
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Eligibility |
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Guarantor |
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Repayment |
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How to Apply | Please refer to the institution’s website for full details on how to apply. |
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 |
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 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 |
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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) |
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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.
- Singapore Polytechnic
- Nanyang Polytechnic
- Ngee Ann Polytechnic
- Temasek Polytechnic
- Republic Polytechnic
- Singapore Institute of Technology
- National University of Singapore
- Nanyang Technological University
- SIM University
- Singapore University of Technology and Design
- Singapore Management University
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.