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

    POSB Education Loan Singapore

    Education is a necessary expenditure as well as an investment you have to make for yourself or for your children. However, finding quality education can set you back by thousands of dollars. Add to it the travel, and accommodation costs in case of studying abroad, and you are looking at a huge expense.

    There are many banks in Singapore that help you or your children achieve their dreams by financing the course fee. CPF Ordinary Account (OA) can be used to get a subsidy on education for yourself, your spouse, your children and even your relatives in special circumstances. However, if you have low funds in your CPF account, help from banks become important.

    POSB offers a chance to assist you to study further. The education loan offered by POSB is called POSB Further Study Assist. It is a type of personal loan where you do not have to provide any collateral.

    Features and Benefits

    • Get a loan amount of up to 6 times of your and your guarantor's monthly income. However, this approval amount is limited to a maximum amount of S$80,000.
    • You could choose to repay the loan from 1 year to 5 years, according to your convenience.
    • If you wish to repay before the tenor ends, you will not be charged an early repayment fee. Additionally, cheques will be issued free of cost to you.

    Interest Rates

    POSB charges an interest rate of 5.88% p.a. on the Further Study Assist loan and a 3% processing fee.

    For an approved amount of S$10,000, the amount disbursed after deduction of the processing fee would be S$9,700. Here is a table showing the break-up of the instalments for S$9,700 for a period of 5 years:

    Tenor Instalment to be paid each month Interest rate (calculated on a monthly reducing rest basis)
    Year 1 S$861 5.88%
    Year 2 S$443 5.88%
    Year 3 S$304 5.88%
    Year 4 S$235 5.88%
    Year 5 S$193 5.88%

    POSB Education Loan for foreigners

    Foreigners are not eligible to apply for the POSB Further Study Assist Loan.

    Fees and Charges

    Here is a table showing the various fees and charges that will be levied on your loan:

    Type of Fee Fees and Charges
    Processing fee 3% of the amount that is approved
    Cancellation fee Nil
    Late payment fee S$30 on the amount overdue will be applicable after the first day of the month
    Disbursement fee Nil, but the amount is disbursed after deducting the processing fee.
    Early repayment/Prepayment fee (full/partial) Nil


    • You can get an interest rate of 4.6% p.a. if you study with the educational institutions selected/preferred by POSB. The processing fee is 2% of the loan amount.
    • If you are not studying in a POSB partnered institution, the rate of interest will be 5.88% p.a. and the processing fee will be 3% of the loan amount.
    • You can get a loan repayment tenure up to 10 years.
    • You must take a minimum loan amount of S$2,000.
    • You can get up to 10x your monthly income which will be capped at your balance course fees or S$80,000 (whichever is lower).
    • A few preferred institutions are listed below:
      • Local institutions:

        • Nanyang Polytechnic
        • BCA Academy
        • Republic Polytechnic
        • Nanyang Technological University
        • Singapore University of Social Sciences
        • National University of Singapore
        • Singapore University of Technology & Design
        • National Institute of Education
        • Ngee Ann Polytechnic
        • Singapore Polytechnic
        • Singapore Institute of Technology
        • Temasek Polytechnic
        • Singapore Management University

        Private institutions:

        • Auston Institution of Management
        • Asian International College
        • Curtin Education Centre
        • Informatics Academy
        • ERC Institute
        • James Cook Australia Institute of Higher Learning
        • Lasalle College of the Arts
        • Kaplan Higher Education Academy
        • Management Development Institute of Singapore
        • Kaplan Higher Education Institute
        • Nanyang Academy of Fine Arts
        • Kaplan Learning Institute
        • PSB Academy
        • TMC Academy
        • Singapore Institute of Management

    Eligibility Criteria

    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 guarantor From 21 years to 55 years
    Age criteria for applicant From 17 years to 55 years
    Income criteria for guarantor S$24,000 p.a.
    Income criteria for applicant S$18,000 p.a.
    Additional criteria requirement for guarantor Should be a person from immediate family and not be an existing applicant or guarantor of POSB Further Study Assist.

    Documents Required

    • A front and back copy of NRIC is required for the applicant and guarantor.
    • A true copy of your Letter of Acceptance from the educational institution stating the name of the course and the duration.
    • Proof of course fee payment.
    • A marriage certificate or a birth certificate to prove your relationship with the guarantor.

    How to Apply?

    You could visit the website of POSB and navigate to the personal banking section. When you find POSB Further Study Assist, click on Download Form and take a print out, fill the details and submit it to the bank. Alternatively, you could visit any of the branches to apply for this loan.

    POSB Further Study Assist Repayment

    Repayments on your loan will start the next month after the loan is approved. The first day of every month is when you need to make the payment. There will be one designated POSB/DBS savings account from where the instalment will be deducted. This account is called the Loan Servicing Account.


    Q. When do I need a guarantor?

    A. If you are below 21 years old and intend to study as a full-time student, you would need a guarantor. This is mainly because at that age you might not have an annual income of S$18,000 or a high credit limit.

    Q. Can I repay after finishing my studies?

    A. No, you are required to start repaying starting from 1 month after the loan approval.

    Q. Will my interest rate change after approval if you have changed it?

    A. No, the interest rates are fixed in the beginning of the tenor and will continue to remain so throughout the tenor.

    Q. How many guarantors are allowed?

    A. You can have only one person as your guarantor.

    Q. How long will it take to process my loan application?

    A. POSB will take around 7 business days to process your loan and you will be informed by SMS about the approval/rejection. In case you have forgotten to submit any document, the process will take longer.

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