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Exactly How Much Money Can You Borrow For a Student Loan In Singapore?

Young Asian female bachelor showing student loan text on blackboard
Written by CB Community

Entering a higher institution of learning comes with a lot of added costs. Some students might be approved for financial aid, while others are required to pay out-of-pocket. If you are a parent who has saved money over time for this purpose, student loans may not be an option for you. Generally, a college education often involves lending money for most students. Even though loans may be handy in this regard, taking too high of a loan may have negative financial impacts in the future.

Education is Costly

Singapore has some of the best tertiary institutions of learning throughout the world. The education system in Singapore ranks among the topmost in the world. However, there has been a shift in emphasis on the quality of education to the number of students that can be served. Matters to do with education are seriously considered by the government of Singapore. This is evidenced by the contemporary infrastructure suitably melded within the education system.

Like many across the world, Singaporean students perceive education as a determinant of a lucrative income and a favorable career. Nevertheless, the education system is just so expensive, and that is the reason why it is regarded as one of the best in the world. Parents with the desire of enrolling their teenagers in universities have to pay a large amount of money. Even with the cheapest public universities, you will still be required to pay at least a 5-figure sum for a degree. Even so, you can successfully manage because:

  • There are certain loans meant strictly for students who for reasons may not be able to afford college fees along with other associated expenses. Even if you are a student who works, you will not have to spend the better part of your income on fees.
  • Nearly all colleges offer assistance to students when it comes to shouldering tuition fees and other daily expenses. However, each learning institution has got its own eligibility standards and if you do not qualify, you still have other options. For instance, you can be approved for student loans in Singaporean banks or other money lending institutions in the country.
  • Compared to other loan types such as mortgages and other personal loans, student loans are basically very flexible and have different repayment options. Make sure you know how to choose a licensed money lender online and they will be such a great help.
  • Students loans in Singapore have a relatively lower interest rate compared to other public loans.

How Much Money Can You Borrow for a Student Loan?

The amount an individual can borrow is not fixed, as it will depend on a number of factors. In this section, we will examine the basic requirements for obtaining a student loan in Singapore. In the end, the question of how much one can be approved for will be answered. The following are the basic things to keep in mind:


Students below the age of 21 years are ineligible unless they are guaranteed by someone. It is a requirement that the age of the student range4 between 21 and 60 years to be eligible. This gives the lenders an assurance that you will be able to settle the loan once you get a job. In case you are below 21 years, you will need a guarantor who will be held responsible if you default. The guarantor must not only be a stable person but also be willing to sign up for you. The minimum income for an eligible guarantor should range between SGD 24,000 and SGD 30,000 depending on terms.


Lenders want assurance that you will be able to repay the loan amount and the interest it carries. Because of this, your level of income is very important. If you intend to enroll for a part-time course, you need at least SDG 18,000 to be eligible for an education loan. If you do not earn such an amount, you will need a guarantor.

Loan Principal

Generally, local banks permit individuals to borrow loans at most 8 times their periodic earnings. For example, an individual earning a monthly salary of SDG 30,000 can be approved for a loan of up to SDG 240, 000. Even people with guarantors are subject to this provision.

Interest Rate

You need to research on the interest rate charged by different banks. You should keep in mind that lower interest rate means the loan is more lucrative to you. You should also check whether the rate is fixed or floating, as the latter will cause your interest rate to fluctuate. You should opt for a monthly reducing plan, as with this option, the quicker you pay, the lesser the interest.

Processing Fee

Even though education loans come with meager fees, you still need to be careful. Through various strategies, the bank can trick applicants by reducing interest rates but inflate the processing fee. This trick works for them as the lower rates get compensated with a large processing fee. When shopping the market for favorable terms, ensure you include the processing fee in the calculation of the entire loan amount.

Repayment Method

There are several repayment alternatives for students. For instance, one can opt to pay a monthly installment which includes both the interest and the principal. If you are a part-time student and do not earn much, this option may serve you better. Alternatively, you can opt to pay the loan once you are done with studies. You will not be plagued with worries regarding loan repayments as you study.


Back to the question raised at the outset: Exactly how much money can you borrow for a student loan? It will depend on several factors, among them is your level of income. Lenders will approve you for loans of up to eight times your periodic earnings. In addition, various institutions support students based on their needs and eligibility. Whether you are financially capable or not, you can successfully enroll in university education.

For more great tips on all things college, check out the other blogs at College Basics.

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CB Community

Passionate members of the College Basics community that include students, essay writers, consultants and beyond. Please note, while community content has passed our editorial guidelines, we do not endorse any product or service contained in these articles which may also include links for which College Basics is compensated.