What You Need To Know When Getting An Education Loan in Singapore

Books with piggy bank

All Singaporean parents want the best for their child education. Still, it is undeniable that the country’s educational system — while one of the best in the world — is quite costly for the average Singaporean. The truth is this: Singaporean education is expensive enough for families to take a massive cut for education fees on their budgets.

It even gets to a point where some families take on multiple jobs or take out bank financing to supplement the increasing educational costs for a study loan in Singapore. Fortunately, public education is “free,” which means Singaporeans need only pay for “miscellaneous fees.”

These are about 30-50% of a private school’s fees and the uniform, transportation, and school materials the school will require. Therefore, education loan services from banks, money lenders, and other financial institutions are invaluable in supplementing the educational needs of families.

However, not all Singaporeans agree that education is still as crucial as before when it comes to making a living.

College students discussing

College Education Will Always Remain Important

You’ll sometimes hear people say you don’t need a college education nowadays. Their reason is that you can learn virtually everything through YouTube and the Internet. Additionally, forums, social media groups, and dedicated online communities can teach you without any cost.

It’s reasonable for people to think that paid education isn’t too beneficial, primarily if the same individuals use the Internet to teach without paying for anything. However, private university and college bachelor and graduate degrees are still focused and streamlined programs that allow the university and the entire country to recognize the intelligence, emotional, social, and adversarial quotient that students possess.

While students might learn so much from the Internet, its wide array of programs and lack of focused courses make the factors we mentioned earlier challenging to measure.

Singapore College Graduation

Community Colleges Are Still Excellent Institutions

Many students will find private Singaporean colleges expensively prohibitive with many unable to afford even taking out a study loan. Singapore community colleges, however, remain an excellent choice with lower tuition fees and shorter graduation periods than their college counterparts. Most also have equal job opportunities once they enter the market.

Furthermore, if you plan to study at a private college later for focused education, then community college records will help you get admittance into a college. For less or virtually no payment at all thanks to scholarships, the courses give you a greatly-recognized educational achievement or standing

Student loan

Are All Students Eligible for an Education Loan?

Every Singaporean has a right to obtain an education loan to get into private and community colleges. However, all students must comply with the loan application requirements of banks and financial institutions. Once you’ve accomplished all the requirements for your loan application, you can have the entire loan payment for your bachelor’s degree.

However, make it a point to do well and study hard. Failing subjects during a semester will mean an additional semester or year that will need new financing and a new student loan. Singapore education loans only provide for four-year courses, and if your course goes beyond five, you will have problems if you fail to do well in school.

Box with a thick


You have plenty of questions as to how you can qualify for education loans as a student. Online, blogs tell you that you need to have a small business to prove your income if your parents cannot support you. Other tips posts tell you that you need part-time work to succeed with loan applications with banks.

  • Here are the baseline requirements for most banks, money lenders, and financial institutions:
  • You are aged 21-62 years old
  • You can prove you are earning a minimum income of S$12,000 and above per year through documentation or
  • Your sponsor can generate the minimum repayment amount and above per year
  • You have two sponsors
  • You have a guarantor that earns a minimum income of S$30,000 per year or higher

True enough, the requirements can be troublesome, especially for students who pay for their education fees themselves. However, undergrad students can apply for numerous part-time jobs, including data entry, elementary and high-school tutors, entry-level business processing outsource services, and others, if they’re looking for earning or additional funding opportunities.

Additional Fees

If you’re working with banks for your education loan, you’ll often pay a 2% total loan amount processing fee. However, they deduct this processing fee upon the total of your loan repayments. Other bank fees include full prepayment penalties up to 1% of your original loan amount and partial prepayment penalties of the same percentage on your prepaid amount.

If you decide to cancel your loan application, you’ll need to pay 1% of the original loan amount. The penalty only applies once you’ve signed the letter of offer, and it has been processed. Lastly, disbursement costs vary between every bank. However, make sure to ask for it, especially if you are budgeting everything involving your financing.

Length of Course/College Tenure

Community colleges have short 1-2 year programs that prepare you for real-world occupations or give you better mileage when taking entrance exams into private universities. However, most banks, money lenders, and financial institutions allow you to pay from 1-10 years.

Most banks and even money lender educational loans from Loan Advisor is enough to pay for your community college fees, which can include your uniform, transportation, living quarters, and student supply needs. It’s easy and quick as long as you fulfill all the requirements we mentioned above.

If a bank grants you a loan for a four-year course, they’ll allow you to pay for your education loans after 1-10 years. If you fail a semester, your educational loan repayment costs increase as well. It’s best to put your mindset towards doing well in school to shorten your course tenure and only pay the original education loan amount as long as you pay on time to avoid inflating interest rate charges.

Interest Rates

Similar to worldwide rates, banks in Singapore have from 4-10% interest rates and beyond for unsecured educational loans. However, if you’re still an undergrad, most banks will waive your payments until you have graduated and landed on your first job. Some banks are lenient, offering you the lowest annual percentage rate relative to your current income.

If your loan application gets approved, you and your sponsors (who might be your parents or guardian if you’re not borrowing alone) must read every part of its terms and conditions. Most Singaporeans have incurred huge penalties through interest because they failed to understand the terms and conditions involved with their education loan.

Terms and Conditions

Some banks and money lenders allow you to pay the loan Singapore once you’ve graduated and started your first job. For others, your sponsors or yourself need to provide their income details, and once approved, you’ll receive your financing in no time. Your education loan’s terms and conditions vary from one bank to another.

Read them in full detail; in doing so, you’ll avoid any penalties or miscalculations in your budget. Use the Internet to explain specific phrases and conditions you find yourself confused. Then, make notes about every clause to make sure you fully comprehend your agreement with your bank before you sign.

Putting money in graduation hat

Financial Institutions Offering Education Loans

Singapore has numerous financial institutions that offer education loans for students. Charitable organizations, some labor unions, and even universities offer a full stipend for Singaporean students they deem worthy of studying and contributing to the country. Here is a list of all financial institutions you can apply for an education loan.


Singapore’s banks are open for all students to take out an education loan. However, they’re the most stringent when it comes to requirements. Banks will ask for the student’s latest academic background. While there is no set ground for the right grades, the banks significantly consider these factors.

Then, the institutions will ask for the student’s course. Banks will only honor accredited courses that are of high demand to help the country’s productivity. Doing this ensures banks will receive repayment of the bank personal loan once the student graduates.

As we’ve mentioned above, they will ask the student to provide proof of income. Their parents’ or legal guardians’ combined income will improve their chances of the loan application. Approval might take eight weeks at maximum.

Banks have specialized loans for community colleges, training seminars, and short diploma courses too.  Be wary that bank interest rates can rise from 4-10%

Money lenders

Singapore’s money lenders registered with the Registry of Moneylenders under the oversight of the Ministry of Law are trustworthy and dependable financial institutions. While they can only offer modest sums, they’re capable of financing your education per semester.

However, reliable money lenders will release your money upon your enrollment period. On the other hand, the payment terms depend on your money lender’s conditions. Most lenders allow you to pay for your financing after you’ve landed your first job after graduation.

Charitable Organizations

We Make Scholars grants scholarships for students who intend to take bachelor’s and master’s degrees in different universities, such as Nanyang Academy of Fine Arts, Management Development Institute of Singapore, London School of Business and Finance, and other universities.

BrightSparks provides the same opportunities for an education loan for students and offers a significant number of schools and universities for students. the Ministry of Education offers its own scholarships for qualified students as well.

Keep in mind that charitable and government organizations that offer educational loans do not let you pay money. Instead, you will render a specific number of years in service, the maximum being ten years or more. If you’re ready to give back to your organization, then it’s worth applying for a scholarship with a charitable organization.

University Scholarships

Alternatively, universities across Singapore value education and your knowledge’s contribution to the overall quality of its educational institution. Similar to charitable organizations, university scholarships require you to apply and pass qualifying examinations.

Only ones with the highest marks in aspects that are important (which might measure your intellectual, emotional, and other aspects of your capabilities) will become eligible to become the school’s scholars.

Some Affordable Educational Institutions in Singapore


College Graduation

Singapore’s foremost university has just as many foreign students as it has Singaporeans. While it is exceedingly affordable, NUS is very selective of students with the financial capacity to enroll and scholars who wish to study in the school. However, if you do pass through the brutal preliminaries, your tuition fee is only S$29,000 per semester.

Singapore University of Technology and Design

Singapore University of Technology and Design

More affordable than NUS, the University of Technology and Design is similarly selective of students who can enroll in its institution. If you do get in, your enrollment per semester is only S$26,000, and you get to study in technology  and design courses that the University collaborates with America’s MIT

SMU Singapore

Singapore Management Authority

Like the Singapore University of Technology and Design, Singapore Management University is in partnership with Wharton Business School. Once again, similar to the latter, it is quite selective of students who can enroll and study within its premises. If you do get in, you only deal with S$17,500 per semester on academic fees.

Who Can Help Me If I Can’t Pay Back My Education Loan?

Singapore’s registered money lenders can help you pay back education loans from banks. Because they’re high-interest, money lenders can pay for them ultimately. Then, as part of their debt consolidation services, you will only pay an amount regularly with low-interest rates increasing per year, which makes your finances much more manageable, allows your repayment period to be much shorter.

For example, a debt consolidation repayment is subject only to 4% interest at maximum. However, if you leave your education loan with your bank unpaid, it is subject to 5-10% interest, which makes it more expensive and unmanageable.

Advanced Learning Doesn’t Have To Be Troublesome

Education is the right of every individual. A student’s right to finance their education with excellent financial services from banks, money lenders, charitable organizations, and other institutions is just as important as well. By following these tips, anyone who wishes to achieve a bachelor, master, or doctorate degree can do so safely.

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