Best Education Loan Options For Studying in Singapore

According to an official report, approximately 17,000 Indian students were pursuing higher education in Singapore, which marks a whopping 87% increase compared to the previous year. This surge in numbers reflects the growing demand for new study-abroad destinations, with Singapore emerging as a prominent choice. While the cost of studying in Singapore is relatively lower than other popular study-abroad destinations such as the USA, UK, and Canada, it still necessitates a certain level of financial support when compared to the Indian subcontinent. In this blog, we will discuss strategies for managing the financial aspects of studying in Singapore.

Cost to study in Singapore

Before we dive into the various lending options available, let's first examine the distinct costs associated with pursuing higher education in Singapore. The cost of studying in Singapore consists of two main elements: tuition fees and the cost of living. The tuition fees for different academic programs in Singapore can be found in the table provided below - 

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The next component in the cost of studying in Singapore is the cost of living. An overview of monthly expenses that you may have to bear is showcased in the table below -

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Education loan eligibility for Singapore

Understanding the eligibility criteria is vital for students to ensure they meet all the requirements. While each lender may have its own set of eligibility criteria, here's a general outline - 

The applicant must be an Indian citizen and be a minimum of 18 years old.

The applicant must be enrolled in a full-time program at a reputable university in Singapore.

The applicant needs to have taken an English proficiency test.

In the case of an unsecured education loan, there should be a financial co-applicant and a solid career outlook.

For a secured education loan, the applicant must possess collateral equal to or greater in value than the required loan amount.

Education loan documents required for Singapore

To initiate your loan application for studying in Singapore, you will be required to provide a specific set of documents. The following documents may be necessary for your loan application:

Official acceptance letter from the university.

A filled-out loan application form.

Documentation outlining the expenses associated with your studies.

Proof of your identity.

Evidence of your place of residence.

PAN (Permanent Account Number) details of the applicant.

Bank statements for the guarantor, co-borrower, or the student.

Asset statements for the guarantor, co-borrower, or the student.

Proof of income for the guarantor, co-borrower, or the student.

Secured loan for Singapore

For students aiming to secure education loans for their studies in Singapore, there's a requirement to provide collateral or security. These types of loans are commonly known as education loans with collateral. Collateral can encompass assets like property (such as a house or land), fixed deposits (FDs), or insurance policies. Opting for such loans can bring several advantages, including lower interest rates, extended repayment durations, and the potential for higher loan approval amounts.

When considering lenders for these secured education loans, public sector banks are often preferred over private banks and non-banking financial companies (NBFCs) due to their attractive features. These features may include larger loan amounts, lower interest rates, and additional benefits. Below, you'll find a table that provides a comparison of various lenders and the offerings they provide for secured education loans.

Lender Name	Maximum Loan Amount (in INR)	Rate of Interest	Margin Money
SBI	Up to 1.5 Cr	10.65% (for girls) 11.50% (for boys)	10%
UBI	Up to 1 Cr	10.5% - 10.85%	10% (listed university) 15% (non-listed university)

Unsecured loan for Singapore

An unsecured education loan for studying in Singapore is known as an education loan without collateral since it does not demand any security or pledging of assets. However, due to its unsecured nature, the interest rates may be slightly higher compared to loans offered by public sector banks.

 

When considering education loans for Singapore, you have three types of lenders to choose from private banks, NBFCs, and international lenders. The table below illustrates the specific offerings provided by each type of lender.

Lender Name	Maximum Loan Amount	Rate of Interest	Margin Money
Axis Bank	Up to 50 Lakhs INR	11% - 13.50%	5%
ICICI Bank	Up to 50 Lakhs INR	10.85% - 12.50%	0 - 15%
IDFC FIRST Bank	Up to 35 Lakhs INR	11.75% - 13.25%	Nil
HDFC Credila	Up to 20 Lakhs INR (Only STEM Courses)	12% - 13%	Nil
Avanse	Up to 20 Lakhs INR (Only STEM Courses)	12.75% - 13.25%	Nil
Prodigy Finance	Up to 100,000 USD	12% - 14%	Nil

Choosing the best lender

We understand that having a multitude of options can make the process of selecting the right lender more complex. However, do not worry! We've compiled a list of factors to assist you in comparing lenders and identifying the one that best suits your requirements. These factors will aid you in assessing and choosing the ideal lender for your needs:

In addition to these variables for comparing lenders, here are some additional points to consider before finalizing your lender:

Secured education loans offer a higher loan amount limit and lower interest rates, ensuring that most of your expenses are covered, thereby reducing your financial burden.

Unsecured education loans are often favored by students due to their ease of application and approval. Private banks like Axis Bank and ICICI Bank tend to offer more favorable terms and conditions. NBFCs come next in line if, for any reason, you are unable to secure an education loan from private banks.

In cases where you lack a financial co-applicant to support your loan application, you may need to explore options with international lenders.

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How to apply for education loan?

Securing an education loan for Singapore is a straightforward process. However, dealing with multiple lenders individually can be overwhelming. To simplify this, GyanDhan offers streamlined assistance in obtaining education loans for Singapore through the following steps:

Check your eligibility on GyanDhan's platform.

Connect with a dedicated loan expert for personalized assistance and lender recommendations.

Receive a tailored document checklist for convenient organization.

Submit the necessary documents following the lender's guidelines.

Await verification (typically 7 to 15 days). Once approved, sign the agreement and track progress using GyanDhan's user dashboard.

Initiate the loan disbursement following the lender's procedures, with funds either directly deposited into your account or disbursed to the university by international lenders.

Why choose Singapore?

Here are some reasons that can help answer the question, "Why study in Singapore?"

Affordability - Compared to other study-abroad destinations like the USA, the UK, Canada, and more, Singapore offers more economic tuition fees and a lower cost of living. International students can come here and complete their studies easily.

Safe and secure environment - According to the Global Peace Index 2022, Singapore ranks as the 9th safest country in the world. This ensures that international students can reside safely in the country.

No language barrier - Students willing to study in Singapore won't face any language barriers because most people in Singapore speak English, a globally spoken language. Singapore recognizes four languages as its official languages: Malay, Mandarin, Tamil, and English, thanks to its multi-racial environment.

 

Based on the information provided earlier, it's clear that Singapore is destined to become a popular destination for Indian students pursuing international education in the years ahead. At GyanDhan, the education financing expert, we are committed to simplifying your journey. Check your loan eligibility with us to discover the most suitable lender and obtain a customized document checklist, all at zero cost. With our assistance, embark on an exceptional educational journey in Singapore, transforming your aspirations into a reality. Don't miss this chance to study in Singapore with GyanDhan as your guiding partner!

Read Also

Education Loan for Abroad Studies Without Collateral

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Foreign Education Loan for Abroad Studies

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Education loan to Study in USA for Indian Students

 

Frequently asked questions

Which bank is best for education loan to study in Singapore?

Public sector banks (SBI and UBI) are best when it comes to education loans to study abroad due to the lower interest rates and higher loan amounts being offered. In any case, if public sector banks are not able to clear your loan then you can go for private sector banks (Axis, ICICI, and IDFC) or NBFCs (HDFC Credila, Avanse, and more).

What is the eligibility for an education loan to study in Singapore?

Applicants must be Indian citizens, at least 18 years old, and enrolled in a full-time program at a recognized Singaporean university. They should also demonstrate proficiency in English through a language test. In the case of unsecured education loans, a strong financial co-applicant and promising career prospects are essential. For secured loans, applicants must provide collateral equivalent to or exceeding the loan amount.

What is the average cost in INR to study in Singapore?

The cost of study is divided into 2 components: the tuition fees and the cost of living. The average annual tuition fee for a university/college in Singapore is around 30 Lakh INR and the cost of living per month can range between 25,000 INR - 55,000 INR.

Is IELTS required to study in Singapore?

In the context of undergraduate programs, a minimum IELTS score of 6.5 is considered acceptable, while for postgraduate courses, a minimum score of 7 is required. Therefore, IELTS is a mandatory requirement for studying in Singapore.