Maybanks is 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. 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|
|Inexpensive education loans for study at preferred institutions: 4.5% p.a., 1.5% processing fee|
|Local Study Interest Rates: 4.78%|
|International Study Interest Rates: 4.88%|
|Largest Education Loans: S$5,000 - S$200,000 (or 8 times guarantor's income)|
|Low Processing Fee: 2%|
Table of Contents
What Makes Maybank's Study Loans Stand Out to Borrowers
Maybank is 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. Finally, Maybank offers preferential interest rates of 4.5% and processing fees (1.5%) to individuals who attend "selected institutions". These loans would be the cheapest available in Singapore. Unfortunately, Maybank does not list the names of these institutions on its website, which makes it difficult for students to know if they are eligible for this rate.
Total Cost of Maybank's Education Loans - Local Study, Standard Repayment
|Tenure||Processing Fee||Interest Rate||Monthly Payment||Total Cost|
|Assuming loan of S$25,000, total cost includes impact of fees|
On the other hand, Maybank's education loan is not the cheapest available loan for studying locally or studying overseas for students who are not attending its approved institution. 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
|Tenure||Processing Fee||Interest Rate||Monthly Payment During Studies||Monthly Payment After Studies||Total Cost|
|Assuming loan of S$25,000, 3 years interest-only, total cost includes impact of fees|
Who Can Apply: Eligibility Criteria
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.
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.
|Cancellation Fee||1% of undrawn amount|
|Early Prepayment Fee||1% of loan prepaid|
|Late Payment Fee||3.00% above prescribed rate (min S$30)|
|Cashier Order||Exists, 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