To make the most of your education opportunity, you need to stay sharp and focused. Worrying about tuition fees and charges, can certainly hamper your focus. If you have the OCBC FRANK Tuition Fee Loan, you may not have to worry about tuition fees as much.
With this loan, you can pay up to 90% of your course fees. What’s more? You’ll be charged 0% p.a. during the course of your education programme. You can start repaying the loan after you have graduated. You may be able to stretch your loan repayment to up to 20 years. Your affordable monthly instalments can be as little as S$100. Let us now look at the loan features and benefits in detail.
Looking for a cost-effective tuition fee loan? This OCBC loan could be one of your options. The following are some of the features that you’ll enjoy:
High borrowing limit: You can borrow up to 90% of the tuition fees that a Singaporean student will pay for his/her education.
Repayment Commences After the End of Course: Until the time you graduate, you won’t have to start repaying your loan dues. Repayment can either be started after you graduate or after you find a job within 2 years of course completion.
Low Monthly Instalment: Monthly instalments for your loan can be as low as S$100. This means that you may not feel the pinch even after repayment commences.
The following are some of the important things that you should be aware of:
Find a Guarantor: You can’t apply for this loan if you don’t have a guarantor. Your guarantor will have to accompany you at the time of application. He/she should be willing to take on the responsibility of repaying the loan in case you fail to settle the loan.
Wait for Your College/University/Polytechnic to Disburse the Loan: The disbursement of the loan and the period of commencement of interest will be decided by your university. However, rest assured knowing that no interest will be charged during the course of your studies. You’ll also have to make no payment during this period.
Start Settling the Dues: Depending on your choice and/or the terms of your loan agreement, the repayment period will commence right after you graduate or after you have landed a job. The first payment, however, will have to be made within 2 years of course completion.
An additional interest will apply provided you don’t pay the first minimum monthly due amount within 2 years of graduation. Your monthly instalment can’t be less than S$100.
Here’s what you need to know about interest rates:
|Type of Interest||Rate of Payment|
|During the study period||0% p.a.|
|After repayment starts||Average of prime lending rates offered by DBS, UOB, and OCBC|
|If payment is not started within 2 years of graduation||An additional 1% per month|
Let Us Illustrate:
Let us assume that your tuition fee is S$30,000 for a 1-year course and that have been granted a FRANK Tuition Fee Loan of S$27,000. Let us also assume that you have graduated and your repayment period will start soon.
The rate at which you’ll be charged interest on this loan currently is 4.75% p.a. [=(4.25+5+5)/3]. This rate is the average of the current prime lending rates of DBS, UOB, and OCBC which are 4.25% p.a., 5% p.a., and 5% p.a., respectively.
Your yearly interest charges will be S$1,282.50 (=4.75/100x27,000).
[Disclaimer: The numbers used here are for illustrative purposes only and may bear no resemblance to actual figures.]
Here are a few things that you should consider while assessing the suitability of this loan:
Get a thorough understanding of the loan eligibility criteria in this section.
Students enrolled in selected NUS/NTU degree programmes are eligible. If you satisfy one of the following conditions, you may be eligible:
If you’re a part-time student of NTU or NUS, you may be eligible for this loan if you satisfy all the following prerequisites:
You won’t be eligible for an NUS programme if:
[Note: Please refer to the website of your university to know if the programme will be considered for financing or not.]
You’ll be eligible for this loan if:
You won’t be eligible for this loan if:
A guarantor for this loan has to satisfy the following conditions:
The following conditions have to be taken care of:
If you’re an existing OCBC customer, keep the following handy:
A foreign applicant has to submit the following:
If your guarantor is a national or PR of Singapore, he/she needs to carry their NRIC at the time of submission of application.
If your guarantor is a foreigner, he/she will have to provide the following documents:
If you’re interested and want more information, you can fill up an interest form available on the bank’s website. You may also send the bank a text message. Usually, the bank will contact you within 3 working days of receiving a text message from you.
Once ready, your application form can be submitted at an OCBC branch or a FRANK store. You can download the form from the bank’s website. At the time of submission, your guarantor should also be present with you. Don’t forget to submit supporting documents when you apply.
Use this loan to provide yourself with the best educational opportunities available. Don’t let lack of money be an impediment to your dream. Feeling deprived? Don’t let it hold you back. Use this loan as a guiding stick on your way to success. To learn more about other OCBC Study Loans, click here. You may also want to check out some interest-free education loans here.