Looking for a student loan?
It seems that most students will not be able to finish their college degree 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. You need to take your time researching on 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. It is understandable that the guarantor must have outstanding credit history. This means that he or she must not have any loans ended in default or had not filed a bankruptcy. Some institutions may ask 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. The interest will not be charged until the course of study has been finished of the student dropped out of school. The minimum monthly repayment is S$100. You can pay the loan 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 up to $2,000 annual living allowance. The interest will commence after the course completion. You will be given up to 5 years repayment period for interest bearing loan. you will be eligible for DBS Student Loan if you took up Tuition Fee Loan Scheme, MENDAKI Subsidy Scheme/Loan, orCPF Education Scheme.
- DBS Tuition Fee Loan
This is a government education loan. DBS Bank administers this loan to Singaporeans, Singapore Permanent Residents and Foreign students who are studying in partnering local institutions which are:
- Singapore Polytechnic,
- Nanyang Polytechnic,
- Ngee Ann Polytechnic,
- Temasek Polytechnic,
- Republic Polytechnic,
- Singapore Institute of Technology,
- National University of Singapore,
- Nanyang Technological University,
- SIM University, and
- Singapore University of Technology and Design.
- DBS Tuition Fee Eligibility
This loan is offered to students who have no financial aid at any school which covers the tuition fee. This means that if you want to apply for the DBS Tuition Fee Loan, no other loan or educational aid must have the same purpose. Though there is not required income nor age restriction, you must have a guarantor who is within legal age but not older than 60.
- DBS Computer Loan
This loan is to aid students who cannot afford a laptop. This is offered only for NUS undergraduates, Nanyang Polytechnic and Ngee Ann Polytechnic. The loan is interest free and 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 contract of the loan will still be binding. Make sure that you are applying for a loan which 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, this will be recorded on your credit history. You will never want to flop your credit score if you want to get a car or home loan someday.
Choose your student loan carefully. Take time to shop around and borrow only what you need. Getting a loan may be a privileged but it is also your responsibility to settle.
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