Singapore as a country tops the list of the favourite study abroad destination for students looking to study in other countries. It provides quality education, holistic growth, safety and security and above all a chance to work in the country once the student has completed his education. A wide spectrum of international students looks forward to Singapore for their higher education.
One of the biggest challenges international students face for studying in Singapore is an arrangement for funds. It is not possible for each student who dreams to study in Singapore to fulfil their dreams, as it is not very affordable. So in this article, we are going to present you each minute detail of Education Loan to Study in Singapore.
International Students wishing to study abroad in Singapore with the help of an education loan must start their process minimum 6-7 months before their study program begins. You may also choose to start your loan application process while you are applying for the university admission. The steps you need to follow for applying for a student loan are mentioned below:
In the next part of this article, we will present each step in detail. Consider each step thoroughly and take note of the necessary points, as it is a big decision which will make a difference in your financial life.
You should begin the process by researching different loan options offered by different banks. But before you research, there are few factors you have to take into consideration.
Factors to consider for applying for education loan
Before applying for a student loan to study in Singapore, you should have a clear picture of how much money you will require and how much you are going to manage by your fund. Before applying for a student loan to study in Singapore, you should have a clear picture of how much money you will require and how much you are going to manage by your fund. Other important parameters you should consider before applying for the education loan for Singapore are:
After taking into account the above-mentioned factors, check your eligibility for an education loan to Study in Singapore. Here are the criteria:
Eligibility Criteria to apply for international education loan
Before applying, check whether you are eligible to apply for the education loan to study in colleges in Singapore or not. Different money lending institutions have different eligibility criteria. The common eligibility criteria for most of the banks are:
Here you have to estimate the amount you will require to study abroad in Singapore. Generally, an education loan to study in Singapore covers the total cost of a student’s education in Singapore. However, the number of expenses covered can vary depending on the chosen institution and study program. While calculating the expenses, you should consider the following expenses:
Estimating the Cost of studying in Singapore is one of the crucial steps. Once you get your final amount, you have to estimate the amount you would self-finance and the amount you would borrow as a loan. Keep in mind the loan sanctioned by a bank would entirely be for educational purposes and not to cover any of the personal expenses.
To get an education loan for Singapore you need to show your admission proof in the University in Singapore. So you need to apply and get your letter of acceptance before applying for a loan. There are plenty of universities in Singapore open for international students. Here are some of the best universities in Singapore:
The list is not yet completed here, you will have a spectrum of options in Singapore where you can pursue your higher education. You will get full information here: Universities in Singapore
In the next step, you have to compare the different loan options provided by the different banks for studying in Singapore and choose the one which benefits you the most. Here are various factors that you should carefully comprehend before selecting your preferred loan institution:
Each element plays an important role, so decide properly after comparison. If you decide after comparing and planning you can save a few dollars.
In this step, you will officially start the process of applying. After finalising the bank and amount of loan you will require, you have to fill the loan application form. It can be done online or offline as demanded by the bank. Make sure to fill correct and accurate information in it.
In the application form you will have to fill your full name, parents name, residential address, date of birth, ID proof, course name, duration of the courses, university name, Income, type of security, Guarantor’s detail, employment details, tuition fees, other expenses etc. Fill everything you are asked in the form correctly and recheck it before submitting.
Every loan applicant needs to submit some necessary documents along with the international Loan Application Form for Singapore. Here is the list of these documents required to submit:
Other Optional Documents
As soon as your loan application gets sanctioned from the bank, it will issue a loan document that has various terms and conditions of the loan along with the basic details. You should read the loan sanction document properly and sign it if you agree. The details mentioned in the loan agreement are
Disbursement of education Loan Amount
After signing your loan document, the bank will lend you the money in instalments or lump sum as per your and university requirement. Once you receive your loan amount, spend it on the necessary expenses such as tuition fee, accommodation, books and stationery etc.
Usually, banks do not ask for collateral security for loans which include less amount. However, for a high amount of education loans, most of the banks demand collateral in the form of a satisfactory third party guarantee.
Secured education loans for Singapore are easily obtainable. These loans will also charge low-interest rates. The chances of approval of these loans are high. It is hard to get international education loans to study in Singapore without collateral security.
Instruments used as collateral or security:
There are some important things money lending institution examine before granting loan:
The loans taken to study in Singapore are to be paid in instalments, as decided in the loan agreement. Ensure to pay the instalments on time agreed. The loan can be repaid within 10 -20 years after taking the loan.
Once the Moratorium Period is over students, you should start paying the instalment The repayment period starts from around 4- 12 months after the end of the course. Moratorium period varies with different loan options and institutions.
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