Maybank Education Loan Review: Does it Meet Your Financing Needs?

Maybank Education Loan Review: Does it Meet Your Financing Needs?

Maybank's current promotion makes it a great option for nearly all students.

Good for

  • Part-time students
  • Students attending very expensive universities
  • Students attending one of Maybank's selected institutions

Bad for

  • Students that are unable to take advantage of the bank's promotional rate

Editor's Rating

5.0/5.0

Maybank's current education loan promotion (4.45% p.a. & 1.5% processing fee) makes it the cheapest option for most students, including those that study locally or abroad. The bank is also unique because it offers loans as large as S$200,000 and provides loans to part-time students with annual incomes as low as S$18,000. Finally, the bank's education loan is also particularly competitive for students attending any of its approved universities. With that said, the bank's local and overseas education loan rates are not particularly competitive for others.

Summary of Maybank Education Loans
Largest Education Loans: S$5,000 - S$200,000 (or 8 times guarantor's income)
Low Processing Fee: 2%
Best Student Loan Promotion: 4.45% interest rate & 1.5% fee + S$100 Takashimaya voucher for online applicants

Table of Contents

What Makes Maybank's Study Loans Stand Out to Borrowers

Maybank's current promotional rates make it the cheapest education loan for nearly all university students, with an interest rate of 4.45% p.a. and a processing fee of just 1.5%. Maybank is also a great option for students that plan to attend universities with high tuitions because it offers the largest education loans, with principals of up to S$200,000. This can be particularly useful for students that study overseas at universities, which tend to be very expensive. Another reason that Maybank is worth considering is that it allows part-time students to access education financing with annual incomes of only S$18,000, the lowest requirement in Singapore. POSB also allows part-time students with annual incomes of S$18,000 to access student loans; however, POSB's loans can be more expensive are not available to students under 21 years old without a guarantor.

Total Cost of Maybank's Education Loans - Local or International Study, Standard Repayment

TenureProcessing FeeInterest RateMonthly PaymentTotal Cost
5 Years1.5%4.45%S$466S$3,305
6 Years1.5%4.45%$396S$3,907
7 Years1.5%4.45%S$347S$4,517
8 Years1.5%4.45%S$310S$$5,134
Assuming loan of S$25,000, total cost includes impact of fees & promotion

On the other hand, without its promotional rate (which is available until October 4th, 2019) Maybank's education loan is not the cheapest available loan for studying locally or studying overseas for students who are not attending its approved institutions. It is also not the cheapest for standard or interest-first payment structures. Additionally, its interest servicing loan only defers principal payments for 3 years, which can be difficult for students that plan to pursue 4-year degrees, while banks such as OCBC allow for interest-only payments for up to 5 years. Therefore, Maybank is only worth considering for part-time students and students seeking very large education loans.

Total Cost of Maybank's Education Loans - Graduated Payment Structure

TenureProcessing FeeInterest RateMonthly Payment During StudiesMonthly Payment After StudiesTotal Cost
5 Years1.5%4.45%S$93S$1,091S$4,898
6 Years1.5%4.45%S$93$743S$5,970
7 Years1.5%4.45%S$93S$570S$6,060
8 Years1.5%4.45%S$93S$466S$6,653
Assuming loan of S$25,000, 3 years interest-only, total cost includes impact of fees & promotion

Who Can Apply: Eligibility Criteria

Consider this if you require a education loan with a low minimum income requirement for part-time studies

Early Repayment Fee 1% of loan prepaid
Late Payment Fee 3% min $30
Age 18 & Above

To be eligible for Maybank's education loans, individuals must be Singapore citizens or Permanent Residents and at least 18 years old. Part-time students may apply for loans with annual incomes as low as S$18,000, while full-time students must have a guarantor that earns at least S$30,000. Guarantors must be at least 21 years old and no older than 65 at the end of the loan. In order to capitalize on the banks S$100 Takashimaya voucher promotion, applicants must apply online and can use any of the "Apply Now" buttons on this page to do so.

Other Charges and Fees

Maybank charges a 2% processing fee, which is tied for the lowest in the market. Its other fees for loan cancellation, early repayment, late payment and cashier orders are quite standard in the industry. Maybank does not charge significantly higher fees than other banks; however, we still strongly suggest that students stick to their repayment plans to minimise the total cost of their education loan.

FeeAmount
Processing Fee2% (promo 1.5%)
Cancellation Fee1% of undrawn amount
Early Prepayment Fee1% of loan prepaid
Late Payment Fee3.00% above prescribed rate (min S$30)
Cashier OrderExists, amount unknown

How to Apply: Application Process

Students that are interested in Maybank's education loans are required to complete an application form and submit documentation to prove identity, income, course fees and enrolment. To prove income, salaried applicants or guarantors must provide either their latest computerised payslip, CPF Statement of Account for the lsat 6 months or latest Income Tax Notice of Assessment. Self-employed or commission-based individuals must submit Income Tax Notice of Assessments for the last 2 years.

Other Required Documents:

  • NRIC (photocopy front & back) for applicant & guarantor (if applicable)
  • Course fee invoice or schedule of payment
  • Enrolment or acceptance letter from the educational institution

Comments and Questions