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What You Need To Know Before Applying For Student Loans In Singapore

Not all loans are made equal.

As a student, it can be tough to cough up money for your education. If using one of your parents’ CPF is not an option, a study loan offered by the banks will be a good alternative (assuming you are studying locally).

Before you rush to a bank prior to your matriculation, here are some basic things you need to know about the various study loans offered here in Singapore.

Interest-Free Loan During Study

During your time in university, some student loans do not require you to pay interest. These loans include the DBS study loan and OCBC’s FRANK Tuition Fee Loan.

CIMB’s study loan require you to pay the interest during your undergraduate years.

Bank Provides Interest-free Loan?
OCBC FRANK Tuition Fee Loan Yes


Loan Tenure & Interest Rates

Interest rates are pretty attractive for students, they are much lower than personal loans.

It depends on the repayment option you choose so that you can choose how to service your loan in the way you are most comfortable with.

Bank Loan Tenure (in years) Interest Rate(s)
DBS 20 Charged at average prime rate of DBS, OCBC and UOB after graduation.
OCBC 20 Charged at average prime rate of DBS, OCBC and UOB after graduation.
CIMB 10 See below under Repayment


Read Also: Common Ways To Finance Your Education



Repayment will commence no later than 6 months after graduation. The repayment can be in one lump sum or in monthly instalments of a minimum of $100.


OCBC’s FRANK Tuition Fee loan allows repayment in monthly instalments of $100, but a 1% late payment fee will be levied if you miss an instalment payment.

OCBC allows you to start repaying once you graduate or up to as late as 2 years after graduation.


CIMB’s loan repayment is different from the other two, they come in two options.

Standard Repayment:

Interest servicing:


Since university undergraduates are considered jobless, the bank has to ensure that the loan is repaid by requiring a guarantor. This person will be who the bank chases for repayment if the borrower fails to make payment.

Guarantor requirements:

  • 21 – 60 years old
  • Must not be bankrupt

Nationality requirements:

  • If student is Singaporean, guarantor must be Singaporean.
  • If student is Singapore PR, guarantor must be Singaporean / Singapore PR.
  • If student is Foreigner, guarantor can be Any Nationality.

Read Also: Should University Undergrads Get A Concession Pass?