Study Loan helps multiple students climb the educational and social ladder

Study Loan in Singapore: Everything You Need to Know About

7 min

Do you want to continue your education after a few years in the workforce?

Or,  you have just completed your secondary second and like to study further!! 

Then, the idea of affording the university fee threatens!!

But, thanks to some specialized loans that are helpful in students’ lives. These study loans are the sigh of relief and ease the pain of paying huge tuition fees.

Of course, a good education is always helpful, productive, and meaningful and assures a well-paying job. But, the financial path is the biggest downfall here. The cost of studying for an undergraduate degree in Singapore may range from S$10,000 to S$15,000. 

Many schools offer financial assistance programs to assist you to pay for some of these expenses, like, books, tuition, and living expenses. Every educational institute fixes its eligibility requirements for people receiving this type of assistance. If you are not eligible, you can however get Singapore education loans or student loans from licensed moneylenders or different financial institutions.

In comparison to other debt types, like, mortgages or personal loans, the personal loan generally has more compliant repayment options. 

Understanding Singapore Student Loans

The study loans are needed and purposeful loans, which are tax-free loans. The introduction to Singapore study loans is that the interest rate fixed with them is usually less than that of other loans (such as personal loans).

It is vital to understand that there are different types of student loans in Singapore. Different loans have different terms. Before investing, it is necessary to read them to know the loan that best suits your future repayment ability.

Different Study Loan Options for Singapore

Generally, there are two types of loans that you can choose from for studying in Singapore, namely, Secured and Unsecured Study Loan. Know them out below:

Secured Education Loan Options for Singapore

The secured education loan is also termed as Study loan with collateral. Moneylenders and NBFCs need aspirants to provide mortgage loans in exchange for mortgage or assets. 

If the student defaults on payment, the study loan provides a guarantee for the bank. The collateral can be FD or real property.

  • Secured education loans for Singapore are accessible easily from private and public banks.
  • These loans demand less interest rates.
  • The probability of approval is more in these loans.

Unsecured Loan Options for Singapore

In the case of an unsecured loan, the students are not required to provide any collateral as security for the loan. This is more preferred by the students as they do not have any property to show as a mortgage. Even though the disadvantage to the unsecured loan is that they have more interest rates and higher processing fees.

But, it is tough to have an unsecured study loan to secure a study loan in Singapore, you can have a look for the same below. The students can have an unsecured loan for not more than two colleges and even for MBA courses. The “INSTEAD” is one of those colleges that the moneylenders by providing unsecured loans. If the co-applicant is more, by means of case basis, the colleges can also be considered for an unsecured study loan.

Cost of Studying in Singapore

It is prevalent to know the cost of study in Singapore so that you can find the approximate cost of studying in Singapore and draft your loan preferences accordingly.

Singapore is popular for engineering, MBA, law courses, and computer science. Therefore, for providing you an outline of the cost, mostly, three colleges are considered- National University. 

In Singapore, INSTEAD, Nanyang Technological University are the best ones. To know more, check out the tuition fee of MS in MBA and CS in these colleges.

  • National University of Singapore

MS – SD 37,150 annually 

MBA – SD 65000 annually 

  • Nanyang Technological University 

MS- $19,600 per academic year 

MBA – $19,250 per academic year 


MBA – €84,000 annually 

Despite the tuition fees, there are other living expenses. Basically, the living expenses in Singapore vary from SD 750 to SD 2,000 a month.

As it is clear from the above numbers that the cost of higher education in Singapore is more. It is because of the living and quality of education is much. At the same time, the order situation and the country’s harmonious law is unparalleled. 

This is obvious that the study abroad experience similar to this is characterized by strong monetary investment. However, the study loan assists you to avoid the extra burden of finances and permits you to not sell study properly but, maximum returns to complete the debt.

Eligibility Guidelines for Study Loan Singapore

It is essential for students to know the eligibility guidelines and for qualifying for the same for applying to their preferred moneylending bank or institution for the Study loan. The eligibility criteria for study loans varies for different moneylenders. Though, many common factors which are taken into consideration by every money lending institution are:

  • The student must be successfully secured admission for the professional course from the verified University and Institution with documents for proving the same.
  • The students are needed to be Indian.
  • The applicant has to be more than 18 years of age and can apply for a Study Loan. The students below the age of 18 are needed to apply for the loan co-jointly with their parents.
  • The applicant must monitor the college/university that is identified by the identified authorities. The licensed money lenders in Singapore grant a loan for the identified educational institutions.

What does the Study Loan Generally Cover?

The loan coverage is dependent on the type of financial instrument. If you have a MOE tuition subsidy, you have to invest in other tuition amounts as the subsidy just covers 90% of the overall cost. The students also have to include miscellaneous expenses like a book and different recurring costs.

Those students who get money from the banks might not from the moneylenders not have to spend for anything more. The more loanable amount is enough to include every expense. For choosing the CPF study scheme, the options for the university become narrow as CPF has all approved schools. Also, if you have an authorized institution, you will have to examine if the course also came under CPF’s authorized list. 

The moneylenders are the best choice, here, at this point when it is about loan coverage. However, it is challenging to get approval as of the strict credit check. Here, comes the question that if there is an option when you are not liable for the student loan from MOE, CPF, and moneylenders. The answer here is Yes!!

What to Choose When you Cannot have the Right Financing?

For those students looking for a short-term course, or the professionals who only require the education for skills improvement, the private personal loan Singapore is best for them.  The best example here is the marketing employees’ wish to know the web design for eCommerce. Usually, this course typically lasts for 10 weeks approximately for the most. Therefore, it is not the right option to borrow the money with a long repayment period even if it is about the year only.

Consider if you are not satisfied with the course, and 10 weeks have passed and even now, you are repaying the loan. The less loanable amount is the other issue that can arise while borrowing the money from the bank. 

The personal loan is the most suitable option, particularly when your preferred course and the university does not qualify for the study loan from the government.

As the licensed moneylenders are authorized by the Monetary Authority of Singapore, several shady companies and individuals exploit the desperation of various borrowers. Many have no choice than borrowing from loan sharks because of the lower credit score. The truth is that the licensed moneylenders also provide loans for bad credits for those who have bad credit histories. Despite paying higher fees and interest, the risk still exists of not paying on time. It is feasible if you are dealing with legitimate moneylenders Singapore. 

The Ministry of Law Singapore maintains a record of approximately licensed companies. You can examine the list on a timely basis to check if you select the company to remain in compliance with government and industry mandated regulations.  The clear sign that you are dealing with a trusted money lender is the monthly interest rate.

Concluding Remarks

Hopefully, you liked this article. If there are some queries or suggestions, then, let us know in the comment section below. Thanks for reading!!


The information provided on our website is for educational and informational purposes only and is not intended to be a substitute for legal or financial advice. While we try to ensure that information on this website is accurate, we do not warrant that the information will be free from error. We shall not be liable for any loss or damage that may arise from the use of this website.

Related Posts

Table of Content