Millennials Should Know About DBS Student Loans

Are you looking for a student loan? DBS Student Loans is one of the best choices for Millennials in Singapore. Learn more about it.

It seems that most students will not be able to finish their college degrees without any financial help. Some are fortunate to have a scholarship or a loving rich relative. A lot of students resort to loans.

Are DBS student loans the best for millennials?

Before you decide, here are some facts you should know.

Different loans from different institutions

Though DBS offers various student loans, it will still follow the terms and conditions laid out by specific institutions. Also, it would help if you took your time researching which one you are eligible to apply for. DBS offers Student Loans, Tuition Fee Loans, and Computer Loans.

DBS Student Loan requirements

The student must have a guarantor. The most preferred guarantor is a Singaporean citizen. The guarantor must be at least 21 years old but not more than 60. Understandably, the guarantor must have an outstanding credit history. It means that he/she must not have any loans ended in default or had not filed a bankruptcy. Some institutions may ask for other requirements.

DBS Student Loan benefits only for university students

DBS can loan up to 20% of the subsidized tuition fees or up to S$3,600 of the student’s annual living allowance. There is no interest charged until the course of study is finished, or the student dropped out of school.

The minimum monthly repayment is $100. You can pay the loan for up to 20 years.

DBS Student Loan benefits only for polytechnic students

DBS Student Loans can be up to 25% of the subsidized tuition fees or $2,000 annual living allowance. The interest will commence after the course completion.

In addition, you have up to 5 years repayment period for an interest-bearing loan. You will be eligible for DBS Student Loan if you take up Tuition Fee Loan Scheme, MENDAKI Subsidy Scheme/Loan, orCPF Education Scheme.

DBS Tuition Fee Loan

It is a government education loan. DBS Bank administers this loan to Singaporeans, Singapore Permanent Residents and international students. However, they must study in partnering local institutions, which are:

• Singapore Polytechnic,
• Nanyang Polytechnic,
• Ngee Ann Polytechnic,
• Temasek Polytechnic,
• Republic Polytechnic,
• Singapore Institute of Technology,
• The National University of Singapore,
• Nanyang Technological University,
• SIM University, and
• Singapore University of Technology and Design.

DBS Tuition Fee Eligibility

The loan offers students who have no financial aid at any school, covering the tuition fee. It means that if you want to apply for the DBS Tuition Fee Loan, no other loan or educational aid must have the same purpose.

In addition, though there is no required income or age restriction, you must have a guarantor within legal age but not older than 60.

DBS Computer Loan

This loan is to aid students who cannot afford a laptop. The offer is only for NUS undergraduates, Nanyang Polytechnic and Ngee Ann Polytechnic. The loan is interest-free. Plus, the repayments will commence after the completion of the course.

Points to Take Note

• Even if you do not have a DBS bank account, the loan contract will still be binding. Therefore, make sure that you are applying for a loan that you can repay after you have finished your course.

• Start your repayment as indicated in the loan contract to avoid penalties. Though it says 0% interest such as the Computer Loan or the interest rates seems low for you, do not miss your repayments, especially the first one. You may have a hard time getting your first job, but do not ignore the bank. Give the bank a call in case you think you can’t pay the monthly repayments.

• Pay diligently. Though this is a student loan, it will still reflect your credit history. You will never want to flop your credit score if you wish to get a car or home loan someday.

Choose your student loan carefully. Take time to shop around and borrow what you need. Getting a loan may be privileged. But it is also your responsibility to settle.

Another best option to finish your studies is applying to a licensed money lender Singapore. For example, Cash Mart offers a low-interest personal loan. You can use instant quick cash to supply the finances for your college.