Things to consider when getting a POSB Education Loans
POSB Singapore offers one of the best education loans in the country. Individuals who get this financial service receive competitive benefits.
POSB Education Loan charges the lowest penalty fees, especially for late payments. Therefore, it fits students who make unintentional or occasional late payments.
Another perk of POSB Further Study Assist is the competitive yet reasonable interest rates. It permits you to continue study. Get a chance to attend the preferred universities without the money trouble. Learn more about what POSB Student Loan is all about.
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POSB Student Loan Singapore
POSB has a comprehensive study to assist products further. The services available are from the affiliated schools that students can enrol in. Please take note that studying abroad is not part of their offer.
Attending schools preferred by the POSB Student Loan offers lower interest rates. The process is not as tedious, and the processing fee is cheaper. Also, the loan terms are more flexible. Students can pay up to 10 years, whichever suits them best.
POSB Education Loan Singapore has one of the cheapest interest rates and fees. Therefore, it is no surprise why a significant number of student borrowers look forward to further study with POSB.
And if you like to attend other universities, you still can. But, expect much higher fees and rates.
POSB Student Loan Features
Let’s dive deeper into the details of what the institution can offer.
Interest Rates: POSB Further Study Assist has a lower interest rate of 4.38% p.a. The computation is according to the monthly rest basis from the 365 days. Regardless if there’s a leap year or not. Also, the rate remains the same from the time of loan approval. POSB Education Loan interest rate is fixed throughout the loan tenure. The interest rate is considerable for someone who seeks financial study to pursue education.
Processing Fee: POSB has an affordable processing fee of 2.5% of the approved loan amount with a good-looking interest rate. Accordingly, the first disbursement includes the upfront deduction of the said fee. If you have an approved loan amount of $10,000, the 25% processing fee is $250. The loan amount you’ll get from the Cashier’s Order is $9,750.
Loan Amount: Once the Cashier’s Order is issued, borrowers cannot request an increase in the approved loan amount. So think when you decide how much you need for your further study. The minimum loan amount one can take from POSB Student Loan is $2,000. At the same time, the maximum loan amount a student can take home is $160,000.
Take note that these amounts are from the combined monthly income of the student and the Guarantor. So you’ll get a higher loan amount of up to 10x with the combined paycheck.
Loan Tenure: Another thing that sets POSB apart is the flexible repayment person. Borrowers can settle the financial obligation for 1 to 10 years. Choose which loan tenure is suitable for your financial status.
POSB Education Loan is popular because of the following.
- Late Payment Fee: An overdue amount charges $30 after the 1st of every month.
- Full or Partial Repayment Fee: POSB does not apply charges for this.
- Cancellation Fee: When cancelling a loan application before loan approval, it has no more charges. But with the processing fee, you are still fully liable for it, especially if you cancel after the loan approval.
- Disbursement Fee: Upon issuing Cashier’s Order or Demand Draft to the institution, there are no other charges. Yet, a $50 admin fee is mandatory for any changes in the disbursement amount once the Cashier’s Order is released.
Duration of Approval
Many aspiring students look forward to POSB Study Further Assist. However, the application process typically takes seven working days.
Receive the loan approval or decline through your Cashier’s Order – an SMS notification. Or a post with a welcome letter in your correspondence address.
Expect a delayed process if you submitted incomplete documents.
These characteristics of POSB Education Loan prove how beneficial taking out a loan from them.
Study Location affiliated with POSB
As of now, the schools affiliated with POSB Further Study Assist are available in Singapore only. Studying overseas is not part of their student loan offer.
Eligibility for POSB Study Further Assist
Here is the list of qualifications to pass as a POSB Student Loan Borrower and Guarantor.
Applicant must be a Singapore Citizen or a Permanent Resident in Singapore. Also, the student needs to be at least 17 to 65 years old. Include the loan maturity in the age computation. A borrower must have a minimum annual gross income of $18,000.
A guarantor must be a Singapore Citizen. Singapore Permanent Resident can qualify as well. The age upon loan maturity should be 21 to 65 years old. Also, the minimum annual gross income of a guarantor is $24,000.
Most importantly, a guarantor must be an immediate family member. He or She can be your parents, siblings, spouse, or children. Remember to bring any documents showing proof of relationship.
A second-degree family member can be another option. Make sure to provide a relevant requirement to get approval. If you think you have the qualities to apply for a student loan, prepare the necessary documents needed.
Why Need a Guarantor?
A borrower requires a guarantor if the Applicant is below 21 years of age or studies on a full-time basis. Applicants who wish to study overseas or can not meet the minimum income requirement need an underwriter.
Also, look for a guarantor if the required loan amount is higher than the eligible credit limit of the student. Still, for part-time students at the age of 21 to 65 years, a guarantor is unnecessary.
Required Documents For Further Study
After assessing yourself and the Guarantor, prepare the requirements for the loan application:
Basic Documents required to get a student loan:
Here are the primary documents to submit for a student loan application in POSB.
- Photocopy of NRIC for both the Applicant and the Guarantor (if applicable). Make sure to provide a copy of the front and back.
- Letter of Acceptance. It must state the course type and course duration.
- Payment Invoice. It must state all the course fees.
- Birth Certificate or Marriage Certificate. It is necessary for applicants with a guarantor to prove the relationship.
Income Documents Needed
On top of this paperwork, an employed student applicant must prepare the following.
For Salaried Employees:
Submit a front and back photocopy of NRIC, including either of the following documents:
- CPF Contribution History Statement – latest 12 months
- Income Tax Notice Assessment – recent
- Computerized Payslip – recent
- Credit Salary in DBS/POSB Account
For Commission-Based Employees:
Submit a front and back photocopy of NRIC, including either of the following:
- CPF Contribution History Statement – latest 12 months
- Income Tax Notice Assessment – last two years
Submit a front and back photocopy of NRIC and Income Tax Notice Assessment (latest two years).
Once you have all these documents at hand, proceed with your further study in Singapore.
Simple Application Process
Applying for POSB Study Further Assist is easy.
1. Download the application form from the official POSB Education Loan website.
2. Print and fill-up the form with complete and correct information.
3. Visit any of the POSB branches near you.
4. Submit your application form. Get any clarifications from any Student Loan Personnel.
5. Wait for the approval via SMS notification or mail out.
There’s not too much fuss to get financial help for your further study.
POSB Education Loan is one of the most applied student loans in Singapore. Its features and process make it stand out among other banking products and services.
Licensed Moneylenders Singapore: Your Best Alternative
Not all applicants are lucky enough to qualify for POSB Study Loan. But with moneylenders, you can still get financial help to support your child’s education needs.
Aside from banks, licensed moneylenders are also under the regulation of the Ministry of Law. Therefore, such entities oblige to follow the Moneylenders Act. Otherwise, the entity will lose its license to operate.
If you look where you can go to take a Study Loan, better search for a money lending entity listed in the Registry of Moneylenders. All listed are legal entities, so you don’t have to doubt borrowing from them.
Tip for parents, it would be better to choose a money lending company operating for years. The longer years they serve, the more reliable company they are. It’s about how the company established their reputation over the years.
Cash Mart Singapore
Cash Mart is a known and trusted money lending facility in Singapore that provides financial help. The company takes full measures to protect each borrower’s identity. Rest assured that your online application is 100% confidential.
One of the premier financial services of Cash Mart Singapore is its low-Interest Personal Loan. In addition, they offer payday loan, foreigner loan, business loan, jewellery, and wedding loan. They even have a renovation loan which you can use whenever you need an additional budget for home improvements.
Competitive Loan Amount: Whatever money issues you face, the institution lends smalls loans yet big solutions. So get accessible extra cash for your urgent matters.
Short-Term Loan: A personal loan offers flexible repayment terms. Fulfil your financial obligation with ease according to your budget.
Instant Cash: Receive the quick cash in less than 30 minutes. But, first, make sure you signed the loan contract with complete comprehension.
Complete Transparency: The online loan calculator and loan contract states all the charges of your loan. So don’t fret about any hidden charges.
Personal Loan application for Cash Mart is uncomplicated, safe, and secure.
Make sure to check the eligibility documents first before you apply. Applicants must be:
- 21 years of age
- Singapore Citizen or Permanent Resident
If you see you’re fit to apply, ready all the mandatory documents such as:
- Singpass Login
- Proof of billing with a current residential address
- Last 3-month payslip (original), if CPF contribution is not available.
- Employment letter for new employment
After your thorough assessment, do the following.
1. Send your application through online loan services. Talk to a loan officer to schedule a visit.
2. Bring the required documents. The loan officer follows the due process in verification.
3. Take out instant cash loan in as fast as 30 minutes. Read the loan contract before signing it.
4. Repay responsibly. Settle your dues on time through bank transfer, PayNow, or in-person.
Once you receive your loan cash, use it to solve your financial issues. It can be for medical bills, unexpected hikes in utility bills, school fees, and miscellaneous.