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.
Tuition fee loan for a public university:
Education loan for private or overseas institution:
OCBC FRANK Education Loan has three flexible repayment option for you to choose from:
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.) (%)|
*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.
The fees and charges for the education loan are mentioned in the table below:
|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:
For Singaporean/ PR applicant:
For salaried employees:
For self-employed or variable income earners:
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 – STUDY
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.