Need a loan for your college education?
We all know studying can be very expensive and most students need a loan to get by. Unless your parents will use their CPF to help you out, you must find a good student loan in a bank. Is the POSB Education Loan the most flexible one for you?
Here are some facts about POSB Further Study Assist.
POSB Further Study Assist Eligibility
Of course, the first thing you have to check is if you are qualified to apply for this loan. POSB only offers its study loan to student 17 to 50 years old. This may be a good news to those who want to continue studying later in life.
However, if you are full time student under 20 years old, you need to have a guarantor. Part-time student ages 21 to 50 are not required to have a guarantor if they can meet the required minimum income which is S$18,000 annual gross income.
Who needs a guarantor?
POSB Study Loan Guarantor Criteria
As said earlier, applicants who are 17-50 years old and couldn’t meet the minimum income requirement has to present a guarantor.
Your guarantor has to be between 21 and 55 years old with an annual gross income of at least S$24,000. You can’t just choose anybody to be your guarantor just because he or she is a Singapore Citizen/Permanent Resident. Your guarantor should be a family member who is not an existing applicant or guarantor for this student assist loan. This means he/she must be your parents, sibling, spouse or child.
Who needs a guarantor?
You will need a guarantor if you are younger than 21 years old, a full-time student, earning less than S$18,000 per annum, or you are requesting for a loan amount which is higher than your eligible credit limit.
POSB Study Loan Required Documents
- Salaried employees have to submit their CPF Contribution History Statement for the last 12 months, Income Tax Notice of Assessment, and computerized payslip. If your salary is credited via Giro to your Personal DBS/POSB Account (at least for the last three months) then you don’t have to present any income documents.
- For the variable or commission-based employees. They have to present their NRIC and either CPF Contribution History Statement or the Income Tax Notice of Assessment for the last two years.
- If you are self-employed you just have to provide your NRIC and Income Tax Notice of Assessment for the last two years.
POSB Study Loan Fees
Just like most bank loans, you’ll be charged a processing fee. POSB charges 3% of the amount of the loan for its Study Loan. You need to make sure that you have enough funds on your account to avoid late payment fee of S$30 per month.
How long will it take to get your funds?
The loan process is within seven days, provided that you are able to present complete document requirements. After loan approval, it will take three (3) to five (5) working days for the cashier’s order to be mailed out.
Take the cashier’s order or demand draft to your institution within 30 days from the date of issue.
How flexible is POSB Further Study Assist?
- A lot of student loans commence its repayments a few months after getting out of school or graduating, but POSB study loan is different. Repayment will start the following month after your loan has been approved and not after the course is completed.
- The monthly repayments must be made either through your DBS/POSB bank account or your guarantor’s. If neither of you has a DBS/POSB bank account, then you must open one.
- Your loan amount will not be sent directly to your bank account. This loan is specifically made payable to your designated institution of study. This is why it is released in form of the cashier’s order or demand draft. Let’s say you need a new laptop for your school activities or research, then you will need to get a loan which you can use to pay for it.
- You can’t request for a loan increase. Whatever amount has been approved will be final.
- There will be no monthly statement detailing the payments. For you to track your payments, you will have to call the bank’s hotline. If you are too busy, your repayments might slip your mind.
Need to make an immediate payment for school needs? Get a loan from Cash Mart. Cash Mart offers multi-purpose personal loans with flexible repayments terms. Visit cash Mart’s office at Balestier Road, or give them a call at +65 6397 4111 to learn more.
Latest posts by Cash Mart Singapore (see all)
- How to Escape the Social Status Trap - July 18, 2017
- 4 Finance Trackers That Can Ease Your Money Problems - July 5, 2017
- 5 New Online Scams You Have to Watch Out For - June 21, 2017
- 7 Affordable Travel Destinations to Tour Your Friends in Singapore - June 14, 2017
- 3 Practical Tips to Build Enough Retirement Savings - June 5, 2017