If practical considerations such as lack of money are keeping you away from higher studies, you may love what we have to say here. We’ll introduce you to the benefits of the FRANK Education Loan from OCBC. This OCBC loan is available to all eligible and meritorious candidates who wish to pursue their studies at a local private educational institute of repute or an overseas institute of eminence.
You could borrow up to 10x your monthly income with this loan and enjoy flat rates as low as 4.5% p.a. You can also choose from 3 flexible repayment options as per your convenience. The loan tenure can go up to 8 years. In the next section, we’ll focus on the features of this education loan.
Here are some of the most prominent features of this OCBC loan:
Maximum Loan Amount: You can borrow up to 10x your earnings in a single month, subject to a cap of S$150,000.
Flexible Tenure Options: You can choose from 3 flexible repayment schemes. The longest tenure available is 8 years.
Attractive Interest Rate: The flat interest rate on this OCBC loan starts from 4.5% p.a. The effective interest rate will vary depending on the repayment option that you have chosen. The bank uses the monthly rest method to compute the flat rate of interest for this loan.
Students From a Wide Range of Universities Can Apply: Whether you’re planning to apply at a local private university or at a higher seat of learning abroad, you can get a loan that’s suitable for you. Check with the bank to learn more about the universities that are accepted.
The following are the repayment options that you’ll find:
Standard Repayment Scheme: Under this scheme, payment must begin as soon as your loan is granted and disbursed. The payments will include principal and accrued interest charges.
Graduated Repayment Scheme: Under this scheme, you’ll have to pay the interest only as long as you’re studying. After graduation, your payments will be used to pay for the principal as well as interest amount. The period of study will be considered a part of the loan tenure under this scheme.
Graduated Plus Repayment Scheme: If you opt for this scheme, you’ll have to pay only the interest on the loan through the duration of your course and 1 year after you graduate. Starting from the third year after you graduate, payments will be used to settle interest charges as well as the principal. The loan tenure will include the duration of your chosen programme.
Here’s what you should know about interest rates that apply on FRANK Education Loan:
|Applied Interest Rate||Starts from 4.5% p.a.|
|Effective Interest Rate||Standard: 5.17% p.a. Graduated: 5.06% p.a. Graduated Plus: 5.01% p.a.|
Let us consider the following example:
Let us assume that you have a monthly income of S$3,000 and you have borrowed S$30,000 with this loan (=10x your monthly income). If you choose the Graduated payment plan, your interest charges in a year would be S$1,518 (=5.06/100x30,000).
[Disclaimer: The numbers used in this example are for illustrative purposes only. The result shown here may bear no resemblance with actual results.]
Some of the fees and charges that might apply to your loan are:
Here is what you should do at every stage:
Submit Your Application
The loan process starts with submission of your application. The turnaround time could go up to 7 business days. You’ll receive a letter from the bank upon successful approval.
Send the Bank the Disbursement Authorisation Form
This form has to be signed and sent back to the bank. You should send it before your school fees become due. The bank will then send you a cashier’s order. This order can be used to pay your course fees. As per your preference, the bank will make a one-time disbursement or send money every semester. The form should reach the bank well before time. This will give the bank enough time to send you a cashier’s order before the deadline for fee payment gets over.
Keep a Close Watch on Loan Transactions
The bank will periodically send you statements. Go through them carefully to stay up-to-date with the transactions in your account. Inform the bank immediately if you spot inaccuracies. If you have access to internet banking, you can monitor your loan transactions even on the go.
Planning to apply? First, think about the following points for a while to understand if you’re comfortable with them:
Before you apply, make sure that you’re aware of the eligibility requirements.
The total annual income of the applicants should be at least S$24,000. The following two cases are possible:
You may also have to submit a list of supporting documents. Some of the most important ones are:
In addition, the following income documents have to be furnished for verification purposes:
Salaried Employee? Submit the Following Documents
Self-Employed or Variable Earner? Provide the Following Documents
You may be able to retrieve your documents at an OCBC branch if you visit it with your SingPass details.
Use any of the following modes to apply:
For more details, fill up the contact form available on the bank’s website or send an SMS to the bank. OCBC is not the only bank that offers financing to students applying to foreign universities. Click here to learn about other banks in Singapore that offer similar overseas education loans.
The right education loan has the potential to power your dream. But, how do you know a loan is right for you? Research and trial. Adopt the same method to determine the suitability of OCBC Study Loans.