Maybank Education Loan
Maybank Education Loan, study loans are essentially unsecured personal loans taken to pursue your higher education. Maybank provides education loan which helps students finance their expenses while studying either locally or overseas. With Maybank Education Loan, you can get up to 8 times your monthly earning. Besides, the interest rates are low and you can make use of several repayment schemes.
Features and Benefits
There are several key benefits associated with Maybank Education Loan, which are given below:
- It is offered for many institutions in Singapore as well as abroad.
- You can borrow up to 8 times your monthly income, subject to maximum of S$200,000.
- The rate of interest begins from 4.50% p.a.
- The repayment tenure is flexible, extending up to 10 years. For studying at local universities, you can repay over a period of 8 years.
- Maybank Education Loan has several repayment schemes for your convenience.
- It also provides financing for other expenses related to education, which include textbook purchases, fees for accommodation, and cost for computing equipment.
Interest Rates
The following table illustrates how the bank charges interest rate for this loan:
Term< | Chosen institutions | Institutions in Singapore | Studying abroad |
---|---|---|---|
1 year | 4.50% p.a. | 4.78% p.a. | 4.88% p.a. |
2 years onwards | 4.50% p.a. | 4.78% p.a. | 4.88% p.a. |
Let’s consider an instance where you borrow a sum of S$25,000 through Maybank for overseas study, for a duration of 5 years. The applicable interest rate would be 4.88% p.a. The estimated instalment for this amount, under the standard repayment plan, would be S$471 every month.
Repayment Schemes
Maybank has 3 repayment schemes for the education loan, which are described below:
- Standard Repayment: This is the usual way of repaying any loan. You can pay your monthly instalments as usual, based on a calculation of paying off both the principal amount and the interest on it. You can start paying as soon as the loan is disbursed.
- Partial repayment: This option allows you to make partial payments – instead of the full monthly instalment amount required – for up to a period of three years, or until the course ends, whichever comes first. Following this, standard monthly instalments need to be paid.
- Interest Servicing: Under this mode, you only pay the interest for up to a period of three years or until the course ends. After a maximum of three years, you need to make standard monthly instalment payments.
Application Process
The step-by-step application process for Maybank Education Loan is given below:
Step 1: You must provide the acceptance letter from your school.
Step 2: Submit the following list of documents:
- Correctly and completely filled application form.
- A copy of NRIC.
- Your income proof documents such as latest computerised payslips, past six months’ CPF Statement of Account, and latest Income Tax Notice of Assessment. If you are self-employed then you must provide last two years’ Income Tax Notice of Assessment.
- Acceptance letter from your school (in Singapore or overseas) which specifies your duration and type of course.
- Relationship proof letter between the main applicant and/or student and/or guarantor.
Step 3: Loan proceedings
- Once your loan is approved, you will get a letter from Maybank.
- You must submit the loan disbursement form.
- The amount will be issued in your institution’s name.
Illustration of Monthly Instalment
Let’s understand the monthly instalment of education loan with the following illustration:
Let’s assume that you borrow S$20,000 from Maybank for your education fees overseas, for a loan tenure of 5 years and you choose the Standard Repayment Scheme. Then, the interest rate for overseas study will be 4.88% p.a. The estimated monthly instalments are given in the below table:
Tenure(in years) | Simple interest |
---|---|
1 | S$1,711.05 |
2 | S$876.35 |
3 | S$598.34 |
4 | S$459.50 |
5 | S$376.33 |
If you take an education loan of S$20,000 for a tenure of 5 years for your study in Singapore, then an interest rate of 4.78% p.a. will be applicable. The below table gives the estimated monthly instalment amounts:
Tenure | Estimated monthly instalment for local study |
---|---|
1 | S$1,710.13 |
2 | S$875.46 |
3 | S$597.44 |
4 | S$458.60 |
5 | S$375.41 |
Note: The values mentioned in the tables are for illustrative purposes only.
Fees and Charges
The following table illustrates the typical fees and charges associated with the loan:
Type of Fee | Fees and Charges |
---|---|
Processing fee | 2% of the amount borrowed |
Cancellation fee | 1% of amount undrawn or cancelled |
Late payment fee | 3% above the specified rate, where a minimum of S$30 applies |
Early repayment/Prepayment fee (full/partial) | 1% of amount that has been prepaid during the loan term |
Restructuring of loan during ongoing tenure | S$200 |
Interest on late payment | Minimum S$30 or 3% above the prevailing interest rate |
Eligibility Criteria
The following eligibility parameters hold valid in case of applicants and guarantors while applying for the Maybank Education Loan:
Criteria | Eligibility Requirement |
---|---|
Nationality criteria for students | Singaporeans and permanent residents |
Nationality criteria for guarantors/joint applicants | Singaporeans and permanent residents |
Age criteria | Applicant: 18-65 years Guarantor: 21-65 years |
Income criteria | Applicant: A minimum of S$18,000 p.a. if you are going for part-time education in Singapore Guarantor: A minimum of S$24,000 p.a. |
Documents Required
The following documents have to be provided when applying for the Maybank Education Loan:
- Filled-up application form
- Proof of identity – a copy of both the sides of NRIC
- Proof of income:
- Most recent computerised payslip OR last 6 months’ CPF Statement of Account OR latest IRAS Tax Bill for salaried individuals
- Last 2 years’ IRAS Tax Bill for self-employed or commissioned-based earners
- Proof of course fee (invoice or payment schedule)
- Enrollment/acceptance letter from the institution, describing the type of course and duration
- Document stating relationship proof between applicant and guarantor
How to Apply?
You can apply for this product in any of the following ways:
- Online application: Go to the official bank website and apply online. You can also fill the Education Loan Enquiry Form and the bank will contact you.
- SMS Banking: Send an SMS in the format “STU ” to 79898. The bank will get in touch with you later.
- Go to branch: You can apply directly by visiting any of the 22 Maybank branches.
The bank will send you a letter once your loan is approved, following which you have to submit the loan disbursement form. The bank will subsequently issue Cashier’s Order(s) in the name of the accepted institution.
FAQs
Q. How is the interest rate decided for the education loan?
A. Maybank bases its study loan interest rate on the Education Loan Board Rate. A margin of 0.5% p.a. is added to this board rate to arrive at the prevailing interest rate.
Q. Do I need to show an annual income if I am going abroad for full-time studies?
A. No. The minimum annual income for applicants is applicable only if you are doing part0time studies in Singapore itself.
Q. How will the bank disburse the non-tuition fee part of the loan to me?
A. The bank will credit the non-tuition related component of the loan to your savings or current account.
Q. I already paid the tuition fee for my course. Can I use this loan as a reimbursement on that amount?
A. No. The bank will disburse tuition fees directly to the institution. You cannot claim that amount as any sort of reimbursement.
Q. Does my interest rate come down if I make partial payments towards the loan?
A. No. The interest rate is not affected in any way, but your total repayment amount over the rest of the tenure will come down. Your loan may be completely repaid before the original tenure.