Multiple banks. Different interest rates. Call it a "conflict of interest".

    OCBC FRANK Education Loan

    OCBC FRANK Education Loan is one of the best options in Singapore with an interest rate as low as 4.5% p.a. It is an ideal choice for people with low annual income. Most education loans, just like other personal loans, require your guarantor to have a yearly income of at least S$30,000. But this bank has a lower requirement of S$24,000 p.a. In terms of processing fee, this student loan is slightly more expensive than most banks with a 2.5% charge of the approved loan amount.

    Features and Benefits

    Tuition fee loan for a public university:

    • You can enjoy 0% applied interest and zero repayment when you are studying.
    • You can get loan amounts of a maximum of 90% of the tuition fees you will need to incur.
    • You can choose either of the flexible repayment schemes with monthly instalments starting from S$100.
    • You can pay the loan as soon as you graduate or within two years after your graduation.
    • You can even choose to pay the loan in full or in instalments for 20 years.

    Education loan for private or overseas institution:

    • You can enjoy interest rates as low as 4.5% p.a.
    • You can either get a loan amount of up to 10 times more than your monthly income or S$150,000, whichever is lower.
    • You have the option to choose from three flexible repayment schemes with a tenure of up to eight years.

    Repayment Schemes

    OCBC FRANK Education Loan has three flexible repayment option for you to choose from:


    • After the disbursal of the loan, you can pay the monthly instalments which consists of your principal and interest amount.
    • The EIR (Effective Interest Rate) is 5.17% p.a.


    • You are required to pay only the interest amount during your course period.
    • After you graduate, you need to pay the principal and interest amount.
    • The EIR is 5.06% p.a.

    Graduated Plus:

    • You need to pay only the interest during the period of the course and for one year after you graduate.
    • You need to pay the principal and interest amount only from third year onwards.
    • The EIR is 5.01% p.a.

    Interest Rates

    Interest rates for the OCBC FRANK Education Loan is shown in a table below:

    Loan Term Applied Interest rate (p.a.) (%) EIR for Standard (p.a.) (%) EIR for Graduated (p.a.) (%) EIR for Graduated Plus (p.a.) (%)
    One year 4.50 9.25 - -
    Two years 4.50 6.99 - -
    Three years 4.50 6.19 5.56 -
    Four years 4.50 5.79 5.39 5.28
    Five years 4.50 5.54 5.27 5.19
    Six years 4.50 5.38 5.18 5.12
    Seven years 4.50 5.26 5.11 5.06

    *Note – The EIRs for Graduated and Deferred schemes have been calculated on the basis of a 2-year course period.

    Say you have borrowed a total amount of S$12,000 from the bank for 5 years. The interest rate for overseas studies will be 4.5% p.a. with a processing fee of 2.5% of the approved loan. If you choose the standard scheme, then your monthly instalment for 60 months would be S$230 upon loan approval. If your select the graduated scheme, you will have to pay only the monthly interest amount of S$28 for your 2-year course in the beginning. Upon completion of your course, you will have to pay a monthly instalment of S$228 for the next 60 months.

    If you choose the deferred scheme, you do not have to pay anything during the 2-year course period. You will only start paying the monthly instalment of S$228 for the next 5 years after you graduate.

    Fees and Charges

    The fees and charges for the education loan are mentioned in the table below:

    Fee Type Amount
    Processing fee 2.5% of the loan amount or a minimum of S$100
    Disbursement fee S$20 per demand draft issue
    Late payment fee S$50
    Full repayment penalty 1% of the amount prepaid
    Partial repayment penalty 1% of the amount prepaid
    Cancellation fee 1% of the loan amount


    To be eligible for this student loan, you must be one of the following:

    • A full-time undergraduate or postgraduate student.
    • A part-time undergraduate student.
    • A BA/BSc student teacher without any income or stipend.
    • You did not receive any full Tertiary Tuition Fee Subsidy from MENDAKI.


    • You and your guarantor must either be a Singaporean or a Permanent Resident of Singapore.
    • If you are a foreigner, then your guarantor can be of any nationality.

    Age Criteria:

    • The student must be 17 years of age and above.
    • The guarantor must be between 21 and 60 years of age.

    Income requirement:

    • You and/or your guarantor’s annual income should be S$24,000 and above.
    • The guarantor should not have declared bankruptcy.

    Documents Required

    For Singaporean/ PR applicant:

    • A copy of the NRIC.
    • A copy of a recent utility bill or bank statement.
    • Certified copy of acceptance letter from the institution.
    • Certified copy of schedule of payment from the institution.

    For salaried employees:

    • Latest payslips and Income Tax Notice of Assessment (NOA) or CPF contribution statement for the most recent six months.
    • A valid SingPass identity proof.

    For self-employed or variable income earners:

    • Latest Income Tax Notice of Assessment or CPF contribution statement for last 1 year.
    • A valid SingPass identity proof.

    For foreigners:

    • A copy of your Passport.
    • A copy of the School Letter of Admission.
    • A copy of your IPA or ICA Pass.


    Q. Can I use CPF savings to pay my tuition fee?

    A. No, you cannot use your CPF savings to pay for the subsidised tuition fee.

    Q. How do I apply for this loan?

    A. To apply for this loan, you need to visit their branch or leave your details with the bank. After receiving the application, the bank will send an approval letter to you in seven working days. Sign the disbursement authorisation form and send it to the bank before your school fee payment. Next, you will receive the cashier’s order which you need to submit to your school to pay the fees. You can monitor the payments through your bank statement or internet banking.

    Q. How do I get in touch with OCBC for the education loan?

    A. You can get in touch with the bank either by submitting your details on the bank’s website or you can send an SMS in the format – STUDYEDLName – to 76062. You can even visit any of the nearest branches or FRANK Stores with your guarantor to submit the application. You also have the option to download the application form and mail the completed form along with your NRIC copies, income documents, and offer letter to the bank.

    Q. What is a guarantor’s requirements?

    A. A guarantor must be between 21 and 60 years old and should not be bankrupt. The student and the guarantor must belong to the same nationality. In case the student is a foreigner, the guarantor can be of any nationality.

    Q. I am a student receiving government aid. Am I eligible for this loan?

    A. No, if you are receiving any government aid or Statutory Board or NUS Scholarships, you are not eligible for this loan.

    Q. How long will it take to approve my loan?

    A. It will take one to two weeks for the bank to approve your loan.

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