Education Loan for Studying in Singapore: Everything You Need to Know
Home to some of the best universities in the world, Singapore is considered every student's dream destination. Today, students opting to study abroad look for more than top universities. Parameters have shifted from quality education to what the country as a whole has to offer to the student for the money being shelled out. Singapore as a country ranks among the favourites for students looking to study abroad as it provides, quality education, holistic growth, value for money, safety and security and above all a chance to work in the country once the student has completed his education. A diverse nation, Singapore excels in what it has to offer to its international students – historical past, vibrant culture, picturesque tourist attractions and delectable cuisine. Singapore is a potpourri of all that is enjoyable. In this article, we will discuss the eligibility and process of applying for an education loan, and the list of documents required for getting the student loan to pursue higher studies in Singapore.
The government of Singapore takes its Education Sector seriously which is clearly reflected in its modern infrastructure perfectly blended with quality education. Often termed the business hub of Asia, Singapore has over 80,000 foreign students enrolled at various public and private universities and institutions and adds over 26% of Indian students every year to its international student wing. Once students have been able to zero in on Singapore, as their destination of choice for further studies, their next big question is how to go about the application procedure and managing the required funds for the same. Read: Studying Abroad attracts tax collected at source (TCS) of 0.5 and 5%
Top Universities in Singapore
- National University of Singapore
- Singapore University of Technology and Design
- SIM University
- Singapore Management University
- Nanyang Technological University
Eligibility guidelines to apply for an Education Loan to study in Singapore
It is important for students to understand the eligibility guidelines and qualify the same, to be able to apply to their preferred money lending institution/bank for the Education Loan. The Education Loan eligibility criteria vary for different banks. However, some common factors that are taken into account by all money-lending institutions include:
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- The student should have successfully secured admission to a professional course from a recognized Institution/University abroad with documents to prove the same.
- The student (borrower) is required to be an Indian Citizen.
- The applicant should be above 18 years of age to be able to apply for an Education Loan. Students below 18 are required to apply for the loan co-jointly with their parents.
- The applicant should always check that the university/college is recognized by the concerned authorities. Banks grant a loan for recognized educational institutions.
Also read: SBI Education Loan for Study Abroad: Ultimate Guide
Understanding the Cost of Education in Singapore
Once a student decides to study abroad, there would be a lot of factors that would start looking important and cost money. Broadly, the cost of studying in Singapore would include:
- Tuition Fees
- Food and Accommodation
- Books and Stationery
- Medical Insurance
- Visa Application
- Personal Expenses
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Applying for an Education Loan
With the latest technological innovation, applying for an Education Loan has come a long way. However, there are various factors that students and their families (borrowers) should carefully comprehend before selecting their preferred loan institution. First-time students are advised to be closely in touch with their student coordinators abroad to be able to get an actual figure that they would require for the entire duration of stay in Singapore. After receiving the admission, students should estimate the amount they would self-finance and the amount they would borrow as a loan. With Banking and Non-Banking Intuitions introducing lucrative schemes, all year round, borrowers should do thorough research of the market before settling in on their choice. Factors that should determine their preferred loan institution are:
- The interest rate offered by the Bank
- The processing fee that would be levied
- Expenses covered under the Education Loan
- Time taken to process the loan
- Repayment terms and duration
Once the borrower has decided on a bank, he would have to apply through the appropriate channel for his loan to be sanctioned.
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Expenses covered under the loan include
Apart from tuition and accommodation fees, the loan would extend to costs incurred on travel, study tours, and project work during the entire duration of the academic year in Singapore. Apart from this, it would also include the purchase of books, laptop, stationery and other reasonable expenses that would be required to successfully complete the course.
The bank is your next hurdle and they would require a number of documents from you to sanction the loan amount whether in part or full. The documents primarily include but not limited to:
- Academic documents of the student
- Proof of University admission
- Proof of residence of the student (borrower) and guarantor
- Statement of borrowers Bank accounts
- A legit guarantee against the loan amount
Loan Application Guidelines Applicable to Most Nationalized Banks
- Students from India who have secured admission to selected educational institutions for higher studies in Singapore are eligible to apply for Education Loan.
- The minimum loan amount students can apply is SGD 20,000 and the maximum is up to 100% of the student’s (borrowers) tuition fees.
- The Moratorium Period (defined as the grace period after the completion of the course) is 6 months before students are required to start repaying the loan amount. The student under no circumstance is required to repay the amount during the tenure of the course.
- Once the Moratorium Period is over students are given a minimum of 1 year and a maximum of 5 years to repay the loan. However, under no circumstances should the loan term exceed 10 years.
- The Student / Education Loan Interest Rate varies for different banks.
Note: The above guidelines are only relevant to SBI. Kindly go through the rules and regulations of your Bank carefully before applying for the loan.
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Holding an overall experience of 5 years, Anumika Bahukhandi has worked in the field of Journalism as a reporter/journalist, feature writer, and senior sub-editor with renowned media houses. She has been associated ... Read Full Bio