Educational loan for Singapore- A Complete Guide

Studying abroad is an exciting opportunity for students, and Singapore, with its world-renowned universities and vibrant culture, has become a dream destination for many. Beyond the quality education it offers, Singapore stands out for providing holistic growth, value for money, safety, security, and the potential for post-graduation employment. If you’re considering pursuing higher studies in Singapore, you might be wondering about the process of applying for an education loan to fund your educational journey.

Educational loan for Singapore

This comprehensive guide will walk you through the eligibility criteria, the application process, and the list of required documents for obtaining a student loan to study in Singapore.

Why Study in Singapore?


Singapore takes its education sector seriously, and it reflects in its modern infrastructure and top-notch educational institutions. Known as the business hub of Asia, Singapore attracts over 80,000 foreign students annually, with Indian students accounting for around 26% of the international student body. Besides offering quality education, Singapore entices students with its rich historical past, vibrant culture, picturesque tourist attractions, and delectable cuisine, making it a potpourri of enjoyable experiences.

Top Universities in Singapore

Before delving into the details of the education loan process, it’s worth highlighting some of the top universities in Singapore:

  • National University of Singapore
  • Singapore University of Technology and Design
  • SIM University
  • Singapore Management University
  • Nanyang Technological University

Banks that offer unsecured loans for Singapore

Unsecured loans for students planning to pursue higher education in Singapore are provided by several private banks and NBFCs, with loan amounts of up to Rs 60 lacs. The following financial institutions are among those offering such loans:

  • Axis Bank
  • ICICI Bank
  • IDFC Bank
  • Incred
  • Auxilo
  • HDFC Credila
  • Avanse

Additionally, public banks like State Bank of India, Bank of Baroda, etc., offer unsecured loans of up to Rs 7.5 lacs under the VidyaLoans scheme.

Eligibility Guidelines for Education Loan

To apply for an education loan to study in Singapore, it’s crucial to meet certain eligibility criteria set by various money lending institutions. While specific requirements may vary, some common factors taken into account by most banks include:

  • Secured admission to a recognized professional course at an institution/university abroad, with supporting documents.
  • Indian citizenship of the student (borrower).
  • The applicant must be at least 18 years old. For students below 18, applying jointly with parents is required.
  • Ensuring that the university/college is recognized by relevant authorities, as banks typically grant loans only for recognized
  • educational institutions.

Understanding the Cost of Education in Singapore

Studying abroad comes with various expenses, and studying in Singapore is no exception. The cost of education in Singapore typically includes:

  • Tuition Fees
  • Food and Accommodation
  • Books and Stationery
  • Medical Insurance
  • Transport
  • Telecommunications
  • Visa Application
  • Utilities
  • Personal Expenses

Applying for an Education Loan

When it comes to applying for an education loan, technology has made the process much more accessible. However, students and their families need to carefully comprehend various factors before choosing a preferred loan institution. First-time students are advised to consult their student coordinators abroad to get an accurate estimate of the required funds for their entire stay in Singapore. Once admission is secured, students should assess the amount they can self-finance and the amount they need to borrow as a loan. Here are some factors to consider while choosing a loan institution:

  • Interest Rate: Compare the interest rates offered by different banks.
  • Processing Fee: Look into the processing fee levied by each bank.
  • Covered Expenses: Check which expenses are covered under the education loan.
  • Loan Processing Time: Consider the time taken to process the loan.
  • Repayment Terms: Understand the repayment terms and duration.

Once the borrower has selected a bank, they must apply through the appropriate channel to have their loan sanctioned.

Expenses Covered Under the Loan

An education loan for studying in Singapore will encompass various essential expenses, including:

  • Course fees or tuition expenses
  • Accommodation or stay costs
  • Traveling expenses
  • Insurance premiums
  • Mess and food expenses
  • Expenses for library or laboratory equipment
  • Laptop purchasing cost
  • Costs related to study tours, thesis, or project works
  • Airfares
  • Additionally, all other necessary expenses required to successfully complete the studies will also be considered and covered by the education loan.

Bank Formalities

To get the loan amount sanctioned, the bank will require several documents, including but not limited to:

  • Academic Documents of the Student
  • Proof of University Admission
  • Proof of Residence of the Student (Borrower) and Guarantor
  • Statement of Borrower’s Bank Accounts
  • Legitimate Guarantee against the Loan Amount

Loan Application Guidelines Applicable to Most Nationalized Banks

For Indian students seeking higher education in Singapore, certain guidelines apply to education loans:

  • The minimum loan amount that students can apply for is SGD 20,000, and the maximum can cover up to 100% of the
  • student’s tuition fees.
  • A moratorium period of 6 months is granted after course completion before students must begin repaying the loan.
  • The repayment period typically ranges from 1 to 5 years, but the loan term must not exceed 10 years.
  • The interest rates for education loans vary across different banks.

The repayment plan for Secured Education

The repayment plan for secured education loans in Singapore will be tailored according to the unique terms of the loan, which include the following details for example:

  • Loan Amount: Rs 50 lacs
  • Interest Rate: 10%
  • Repayment Duration: 12 years It’s essential to be aware that your personal repayment plan could vary depending on other aspects of your loan agreement.

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Can I get a loan to study in Singapore?

Yes, you can get both secured and unsecured education loans from public and private banks in India to study in Singapore.

Which bank is best for student loans in Singapore?

Public banks in India offer education loans of up to Rs 1.5 Cr at interest rates starting from 8.50% for studying in Singapore. They also offer longer repayment durations of up to 15 years.

How much study loan can I get in Singapore?

You can get a secured education loan of up to Rs 1.5 Cr and an unsecured education loan of up to Rs 75 lacs to pursue your preferred degree course in Singapore.

Can I get a 100% student loan?

Yes, you can get an education loan that covers 100% of your tuition fees, living expenses, travel expenses, insurance premiums, etc., for studying in Singapore.

How do I repay my student loan?

Generally, after the moratorium period, you will need to pay a monthly EMI to repay the student loan. Private banks may require partial simple interest during the moratorium period, or in some cases, direct EMIs may start immediately after loan disbursement.

Can foreigners get an education loan in Singapore?

Yes, foreign students who have secured admission in Singapore can apply for education loans in the country. However, Indian students are advised to take education loans from Indian lenders due to the advantages offered such as interest rate subsidies, tax benefits, and lower processing fees.

What are the preferred study programs in Singapore?

Students go to Singapore to pursue their bachelor’s, master’s, diploma courses, and doctoral degrees. Singapore’s educational institutions are among the best in the world, making it a preferred international study hub.

What expenses are covered under the education loan for Singapore?

An education loan for studying in Singapore covers various essential expenses, including course fees, accommodation, travel, insurance premiums, mess and food expenses, study materials, laptop, study tours, project works, airfares, and all other necessary expenses required to successfully complete the studies.

How do I apply for an education loan for studying in Singapore?

To apply for an education loan, you can approach the banks directly or seek assistance from financial platforms.

What are the eligibility criteria for obtaining an education loan for Singapore?

The eligibility criteria for an education loan may vary among different banks, but common factors include securing admission to a recognized educational institution in Singapore, Indian citizenship, age above 18 (or applying jointly with parents for students below 18), and ensuring the university/college is recognized by the concerned authorities.

Can I get an education loan for part-time or distance learning programs in Singapore?

Education loans are typically available for full-time courses. However, some banks may offer loans for specific part-time or distance learning programs in Singapore. It is best to check with the bank’s specific policies before applying.

What documents are required to apply for an education loan for Singapore?

The documents required for an education loan application may include academic documents, proof of university admission, proof of residence, bank statements, and a guarantee against the loan amount. The specific documents may vary based on the bank’s requirements.

Are there any scholarships or financial aid options available for studying in Singapore?

Yes, some universities in Singapore offer scholarships or financial aid to international students. Additionally, you can explore various scholarship programs and financial aid options available from the Indian government or other organizations.

Is there any tax benefit on education loans for studying in Singapore?

Yes, education loans in India are eligible for tax benefits under Section 80E of the Income Tax Act. The interest paid on the education loan is tax-deductible, providing financial relief to the borrower.


Studying in Singapore offers a remarkable opportunity for students to experience quality education, cultural diversity, and a promising future. With various financial institutions providing education loans, students can make their dreams of studying in Singapore a reality.

By understanding the eligibility criteria, application process, and required documents, aspiring students can navigate the loan application process with ease and embark on their educational journey in this exciting and vibrant country.

Remember to compare different loan options, evaluate the terms, and choose the one that best suits your needs and financial circumstances. So, if Singapore is your dream destination, take the leap and explore the world of possibilities that await you!

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