RHB Education Loan Review: A Good Option for Students in Singapore?

RHB Education Loan Review: A Good Option for Students in Singapore?

RHB's education loans are not the cheapest available, but are decent backups to other loans in Singapore. RHB also offers a unique plan that defers monthly payments until the student's education is completed.

Good for

  • Students that are unable to obtain another education loan
  • Students that cannot make even small monthly payments during their studies

Bad for

  • Individuals seeking the least expensive student loans
  • Students attending very expensive universities

Editor's Rating

3.5/5.0

RHB's education loans do not offer the lowest interest rates, which makes them more expensive than others available in Singapore. With that said, RHB is the only bank to offer student loans that do not require repayment during the years of study. This can be very helpful for students that are on a very tight budget.

Summary of RHB Education Loans
Local Study Interest Rates: 4.78%
International Study Interest Rates: 4.88%
Low Processing Fee: 2.0%
Minimum Income Requirement: S$30,000
Loan Size: S$3,000 to S$100,000 or 6 times borrower's monthly income, whichever is lower

Table of Contents

What Makes RHB's Education Loans Stand Out to Borrowers

RHB's education loans are not among the cheapest available due to its interest rates of 4.78% for local studies and 4.88% for overseas studies. While there are other banks that offer similar rates, RHB's maximum loan limit and minimum income requirement tend to be less flexible. For these reasons, RHB is best viewed as a good alternative to cheaper study loan providers.

Total Cost of RHB's Education Loans - Local Study, Standard Repayment

TenureProcessing FeeInterest RateMonthly PaymentTotal Cost
52%4.78%S$469S$3,656
62%4.78%$400S$4,306
72%4.78%S$351S$4,965
82%4.78%S$314S$5,633
Assuming loan of S$25,000, total cost includes impact of fees

Another feature of RHB's that is worth noting is that it is the only bank that offers deferred repayment, which allows students to delay making any repayment until after their studies conclude. While this may sound attractive to students who may have no income during their studies, it is generally the most expensive type of study loan. For example, an 8-year S$25,000 student loan with a deferred payment structure can cost hundreds of dollars more than an interest-first loan and thousands more than a standard payment loan. Therefore, students that can afford to make monthly payments, even if they are small, should avoid RHB's deferred payment study loans.

TenureProcessing FeeInterest RateMonthly Payment During StudiesMonthly Payment After StudiesTotal Cost
RHB Standard2%4.78%S$314S$314S$5,633
RHB Graduated2%4.78%S$100S$573S$7,796
RHB Deferred2%4.78%S$0S$691S$8,666
Assuming 8-year loan of S$25,000, total cost includes impact of fees

Who Can Apply: Eligibility Criteria

Consider this if you are unable to obtain one of the other top education loans

Early Repayment Fee 1% of loan prepaid
Late Payment Fee 10.7% on overdue amount
Age 21 - 62 (at loan maturity)

To be eligible for RHB's education loans applicants must be either citizens or permanent residents of Singapore. Applicants must also be between the ages of 21 and 62 at the end of the loan tenure. Lastly, individual applicants must earn an annual income of S$30,000 or earn at least S$12,000 and apply with a guarantor that earns S$30,000 annually.

Other Charges and Fees

RHB charges a 2% processing fee for its education loans, which is the lowest rate charged by banks in Singapore. It also charges a number of fees that are standard for education loans including fees for loan cancellation, early prepayment, full repayment, late repayment and for cashier orders. We recommend that borrowers carefully stick to a repayment plan in order to avoid unnecessary fees.

FeeAmount
Processing Fee2%
Cancellation Fee1% on the undrawn loan amount cancelled
Early Prepayment Fee1% of loan prepaid
Full Repayment Fee1% on the outstanding loan amount
Late Payment Fee5% above Prime Lending Rate (currently at 5.70%) on any overdue instalment
Cashier Order FeeExists, amount unknown

How to Apply: Application Process

Individuals interested in applying for an education loan from RHB must complete an application form and submit several required documents. Students or their guarantor must provide proof of income. For example, salaried employees must submit either their latest computerised payslip, latest CPF contribution history statement or latest Income Tax Notice of Assessment. Variable or commission-based earners are required to submit their last 6 months' computerised commission statements or their last 12 months' Income Tax Notice of Assessment. Finally, self-employed applicants or guarantors must submit their last 2 years' Income Tax Notice of Assessment.

Other Required Documents:

  • NRIC (photocopy front & back) for applicant & guarantor (if applicable)
  • Birth certificate or marriage certificate (if applying with guarantor)
  • Certified true copy of letter of acceptance
  • Invoice or schedule of course fees

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