The rising costs of education in Singapore makes it challenging to access quality education. There are many banks that help you pave a brighter future by providing finance for the course fee. Sometimes CPF Ordinary Account (OA) savings might not be enough to support your further studies. This is when study loans come into the picture.
CIMB offers a chance to make your career by assisting you study further. Here are some of the details of this loan.
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|
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|
|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|
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.
Salaried employees must submit:
Commission-based/Variable income applicants must submit:
Self-employed applicants must submit:
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.
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.