• Personal Loan BYTES FROM OUR KITCHEN

    CIMB Education Loan Singapore

    Often CPF Ordinary Account (OA) savings is not enough to support your studies. This is when study loans come into the picture. CIMB offers you the chance to build your career by helping you study further. Here are some of the details of this loan

    Features and Benefits

    • CIMB offers education loan of up to S$200,000 or a maximum of 8 times your income per month, whichever is lower.
    • The tenure of repayment is between 1 and 10 years.
    • While you study, you need to pay just the interest. You could pay off the interest first and the principal amount later. This is called the Interest Servicing Period (ISP), which is dependent on the length of the course you have joined.
    • The Interest Servicing Period will not be extended beyond 4 years.
    • At the end of ISP, you will have to repay both, the interest and the principal.
    • Pay with unlimited cashier’s orders making the payment on your behalf.

    Interest rate

    Let us look at an illustration to understand the details of the Standard Repayment Plan and the Interest Servicing Scheme for a loan of S$20,000.

    Interest Servicing Scheme:

    Tenor Monthly Interest Rate Effective Interest Rate(p.a.) Instalment Per Month
    Year 1 to 4 Prime rate of CIMB + 0.49% p.a. N/A S$100
    Year 5 Prime rate of CIMB – 0.11% p.a. 6.44% S$1,716
    Year 6 6.34% S$881
    Year 7 6.27% S$603
    Year 8 6.21% S$465
    Year 9 6.15% S$382
    Year 10 6.11% S$326

    Note: The current CIMB prime rate is 5.5% p.a.

    Standard Repayment Plan:

    Tenor Monthly Interest Rate Effective Interest Rate Instalment Per Month
    Year 1 Prime rate of CIMB – 0.11% p.a. 9.18% S$1,716
    Year 2 7.38% S$881
    Year 3 6.75% S$603
    Year 4 6.42% S$465
    Year 5 6.23% S$382
    Year 6 6.10% S$326
    Year 7 6% S$287
    Year 8 5.93% S$257
    Year 9 5.88% S$235
    Year 10 5.83% S$216

    Fees and Charges

    Type of Fee Fees and Charges
    Processing fee 2% of the amount that is approved
    Cancellation fee 1% of the amount that is not disbursed yet
    Late payment fee S$80
    Early repayment/Prepayment fee (full/partial) 1% of the amount that is paid back

    Eligibility Criteria

    Here is a table showing the criteria for this study loan by CIMB:

    Eligibility Criteria Eligibility Requirement
    Nationality criteria for students Singaporean or Permanent Residents
    Nationality criteria for guarantors/joint applicants Singaporean or Permanent Residents
    Age criteria for applicant 16 years to 50 years
    Income criteria S$24,000 p.a.
    Guarantor requirement under these circumstances

      • If the age of applicant is less than 21 years.

      • If the monthly income of the applicant is below S$2,000.

      • Loan quantum is more than 8 times the monthly income.

      • If the Interest Servicing Scheme is chosen.

      • If the applicant wishes to study full-time.

    Documents Required

    • A front and back copy of NRIC is required from you and your guarantor, if applicable.
    • The completed and signed application form.
    • As proof of your course details, get a copy of your Letter of Acceptance from the institution.
    • As proof of your relationship with the guarantor, you would need to furnish either a marriage certificate or a birth certificate.
    • As proof of income you would need to submit the Notice of Assessment (NOA) for the last 2 years.

    Salaried employees must submit:

    • Last 3 months’ electronic/computerised payslips OR
    • CPF contribution history statement for the last 12 months OR
    • Most recent Income Tax NOA (Notice of Assessment).

    Commission-based/Variable income applicants must submit:

    • Last 2 years’ electronic/computerised payslips OR
    • Latest 2 years’ Income Tax NOA (Notice of Assessment).

    Self-employed applicants must submit:

    • Latest 2 years’ Income Tax NOA (Notice of Assessment).

    How to Apply?

    You can apply for this loan online on the bank’s website. You will take approximately 10 minutes to complete this online application form and submit it to the bank.

    For further assistance or information, on the same webpage, you can click on the option, “Let Us Call You” and fill in the necessary details after which a representative from the bank will get in touch with you.

    FAQs

    Q. What is the minimum amount of loan I can apply for?

    A. Your loan amount should be at least S$1,000.

    Q. When do I need a guarantor?

    A. If you are below 21 years and intend to study as a full-time student, you would need a guarantor. If you are opting for the Interest Servicing Scheme, or do not have an annual income of S$24,000 you would need a guarantor.

    Q. If I have already paid tuition fee to the educational institute, will I get a reimbursement? A. No, you will not be reimbursed the tuition fee already paid to your institute.

    Q. Can I apply for a loan if I do not have an account with CIMB?

    A. No, it is mandatory to have an account with CIMB to able to apply for the education loan.

    Q.  Am I exempt from repayment of the interest under the interest servicing scheme, if my course duration is 5 years?

    A. As mentioned, if your course duration is more than 4 years or for some reason extends beyond 4 years, you will not be exempted from repayment of interest. Also, after the 4th year, you need to start paying back the interest along with the principal instalment.

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