Cash woes? A personal loan to the rescue!

    SBI Student Loan Review: For Indian Students Enrolled in Singaporean Centres of Higher Education

    Are you an Indian student who has been admitted into a prestigious course in an institute of higher learning in Singapore? If you’re looking for fund sources to finance your tuition fee and hostel charges, you could consider this loan option from SBI. The bank offers student loans exclusively for students from India who have been accepted into courses offered by selected educational institutions in Singapore.

    This student loan will be secured against a Standby Letter of Credit (SBLC). It will be issued by a branch of SBI in India when you apply for a student loan there. This letter can be obtained by pledging securities such as a property mortgage or a cash deposit in India, acceptable to the bank.

    You could borrow up to 100% of the tuition fee with this loan and enjoy a maximum tenure of 10 years. The following section has been dedicated to the closer inspection of each of these features.

    Loan Interest Rate, Flexible Repayment Options: Does This Loan Offer Value for Money?

    Wondering if you should really consider this loan? Here are the special features of this loan:

    High Borrowing Limit: You could receive up to 100% of the tuition fee and up to 75% of the hostel fee through this loan. The SBLC amount should be a minimum of 110% of the loan quantum and in Singapore dollars only. This will include interest accumulated until the end of the grace period (moratorium).

    Low Minimum Loan Amount: You could borrow as little as S$20,000 through this loan.

    Flexible Loan Tenure: You may not be able to stretch this student loan beyond 10 years. This will include the study period.

    No Need to Make Loan Payment During the Study Period: You won’t have to service the loan during the course of your study. In fact, you’ll enjoy an additional grace period of 6 months from the time you graduate. This could mean that you’ll enjoy complete peace of mind during the period of study. Also, the grace period could give you enough time to land a job before you start servicing the loan.

    Multiple Repayment Period Options: The repayment period could be from 1 year to 5 years. This will include a moratorium or a grace period of 6 months from the time you graduate.

    Availability Period: The loan will be available for 3 months from the time the acceptance letter is issued by the bank.

    Low Interest Charges: The interest rate applicable will be 4% above the 6-month SIBOR.

    Convenient Loan Disbursal: You won’t have to act as an intermediary between the bank and your school. The bank will disburse the loan directly to the school. The time of disbursal will depend on the fee invoice or payment schedule provided to it by the school.

    No Processing Fee: The bank won’t charge a processing fee on this loan. This could further add to your savings and make the loan more value-for-money.

    Minors Could Be Eligible: You may be eligible for this loan even if you’re aged below 21 years. However, in such a scenario, your parent or legal guardian will have to execute the loan documents.

    Also Check: SBI Personal Loan Rates

    Want to Know How Much Your Interest Charges Could Be? Get an Idea Here

    Interest will be charged on the outstanding loan amount. It will be 4% in addition to the current 6-month SIBOR.

    Until the end of the grace period, interest will be levied on a simple-interest basis on the loan amount disbursed. After the grace period ends, you’ll have to start servicing the loan. The monthly instalments will comprise a part of the loan principal and the interest charge.

    Currently, the 6-month SGD SIBOR stands at 1.87783%. This means that the current interest rate applicable on this loan is 5.87783%.


    1. The numbers and figures used in this example are for illustration only. These results are just indicative and may bear no resemblance with actual results.

    2. We have used the instalment calculator available on the bank’s website to make our deductions.]

    Are the Fees on This Loan Reasonable? Find Out Here

    The bank charges the following fees on this loan:

    Type of Fee Amount
    Processing fee S$0
    Cancellation fee 2% of the amount outstanding at the time of loan cancellation
    Restructuring fee S$200
    Early redemption penalty 2% of the amount outstanding
    Default fee An additional interest of 2% on the amount overdue

    Mull Over the Following: Personal Expenses Won’t Be Covered

    Before you ask the bank to process your application, you should probe the following points carefully:

    • The loan should mature at least 6 months before the expiry of the letter of credit you received from an Indian branch of SBI.
    • The loan will pay for your school tuition fee and a certain percentage of your hostel fees. However, the loan won’t pay for your living expenses.
    • The SBLC amount must be issued in Singapore dollars only.
    • The SBLC amount can’t be less than 110% of the total loan amount. This will include the interest accrued on the loan amount until the end of the loan grace period.
    • No loan less than S$20,000 will be granted.
    • Valuable assets other than property mortgages and cash deposits may not be accepted.

    Want to Learn More About the Eligibility Conditions? Find Them Below

    To be eligible for this loan, you’ll have to satisfy the following conditions:

    • You are an Indian student studying in Singapore.
    • You’re aged at least 21 years.

    You’ll also have to submit the following documents for verification:

    • A copy of your FIN or student pass.
    • Your standby letter of credit.
    • A copy of your parent’s or legal guardian’s passport, if you’re aged below 21 years at the time of application.
    • A copy of the letter of acceptance issued by your school, stating details such as the course type, fee structure, and duration of the course.
    • A copy of the letter of acceptance issued by your school showing your acceptance into a hostel accommodation provided by it. It should also state the fees and the duration of stay.

    Make Use of Any of the Following Channels to Submit Your Loan Application

    Want to apply? Use any of these modes listed below to complete the process:

    • Call the bank’s representative.
    • Walk into the branch in person.
    • Send the bank an email.

    Securing admission to a top school in Singapore could require a lot of discipline, dedication, and effort. Would you want to encumber yourself any further with money problems? You need not. With this loan on your side, you could push those worries out of your head and enjoy complete peace of mind until you finish your study course. Best of luck!

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