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    OCBC Education Loan Review: Enjoy Flexible Repayment Options

    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.

    3 Distinct Repayment Plans, High Borrowing Cap: Will This Loan Solve Your Problems?

    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.

    What Are the Repayment Options for This Loan?

    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.

    Interest Charges That Will Apply

    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.

    [Disclaimer: The numbers used in this example are for illustrative purposes only. The result shown here may bear no resemblance with actual results.]

    Important Fees and Charges That You Might Encounter

    Some of the fees and charges that might apply to your loan are:

    • A processing fee of 2.5%.
    • A prepayment fee, where applicable.
    • A cancellation charge, where applicable.
    • Other administrative and service charges.
    • All legal charges.
    • Any other out-of-pocket expenses borne by the bank with relation to approval of the loan and disbursal of funds.

    What Should Your Actions Be at Various Stages of the Loan Process?

    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.

    Here’ What You Should Keep in Mind

    Planning to apply? First, think about the following points for a while to understand if you’re comfortable with them:

    • A loan application for any amount exceeding S$150,000 may not be accepted.
    • The tenure of your loan can’t exceed 8 years. Also, don’t forget that under certain repayment schemes, the tenure will include the period of study.
    • Not all local private or foreign universities may be admissible.
    • A processing fee of 2.5% will be charged on the loan amount approved.
    • Partial prepayment of your education loan may not be possible.
    • You’ll have to give the bank at least a month’s notice in writing if you wish to make an early settlement.
    • The bank will have the right to share your credit standing with a third party. If necessary, the bank can share your credit details and borrowing history with a credit rating agency, your current or past employer, and professional agencies.

    Want to Know If You Are Eligible? Check the Criteria Here

    Before you apply, make sure that you’re aware of the eligibility requirements.

    Main Applicant

    • Should be aged 17 years or above.
    • Should be a citizen or permanent resident of Singapore.

    Joint Applicant

    • This is a necessity when the main applicant is aged below 21 years.
    • It’s required for foreign education.
    • The joint applicant can’t be aged more than 65 years at the time of loan maturity.

    The total annual income of the applicants should be at least S$24,000. The following two cases are possible:

    • The main applicant has no income and the joint applicant earns S$24,000 or more in a year.
    • Both the main and joint applicant have an annual income of at least S$12,000.

    You may also have to submit a list of supporting documents. Some of the most important ones are:

    • A copy of your NRIC.
    • Proof of address, if your mailing address is different from the one mentioned on your NRIC.
    • A certified copy providing details of your course payment schedule, provided it isn’t mentioned on the Letter of Acceptance issued by your university/institute of study.
    • A certified letter of acceptance from your university providing details on the type of course and its duration.

    In addition, the following income documents have to be furnished for verification purposes:

    Salaried Employee? Submit the Following Documents

    • The latest electronic payslip and the latest Income Tax Notice of Assessment (NOA) OR
    • Proof of your CPF contributions for the last 6 months.

    Self-Employed or Variable Earner? Provide the Following Documents

    • Proof of contributions to your CPF Account for the last 1 year OR
    • Copy of the most recent NOA that you have received.

    You may be able to retrieve your documents at an OCBC branch if you visit it with your SingPass details.

    Enjoy a Fuss-Free Application Process

    Use any of the following modes to apply:

    • Visit a FRANK store or OCBC branch to complete the process. The joint applicant should accompany you.
    • Download the form and mail it to the bank after completing it. You’ll also have to send proof of identification, income documents, and the offer letter.

    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.

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