POSB Further Study Assist Education Loan Review: How Does it Compare?

POSB Further Study Assist Education Loan Review: How Does it Compare?

POSB offers competitive education loans to individuals that attend its preferred universities. It also charges some of the lowest penalty fees for late payments.

Good for

  • Individuals planning to attend one of POSB's preferred institutions
  • Students that may make occasional late payments

Bad for

  • Students seeking the cheapest possible education loan
  • Students planning to study overseas

Analyst's Rating


Individuals that plan to attend one of POSB's preferred institutions may find POSB as a good source for educational financing. First, the bank offers competitive interest rates to students that attend these institutions. It also charges the lowest late payment fee, which benefits students that may occasionally struggle to make on-time payments.

Summary of POSB Education Loans
Relatively High Interest Rates: 5.88%
Competitive Rates for Preferred Institutions: 4.38%
Processing Fee: 2% - 3%
Low Late Payment Fee: S$30
Low Minimum Income Requirement: S$24,000

Table of Contents

What Makes POSB's Student Loans Stand Out to Borrowers

POSB offers vastly different study loan products based on the schools that students attend. For example, students that attend POSB's preferred institutions are offered cheaper interest rates, a lower processing fee and more flexible loan terms. In fact, these rates tend to be some of the lowest interest rates and fees in Singapore, making POSB's student loans very affordable for these students. However, students who plan to attend other universities are subject to much higher fees and rates.

POSB Loan Features

Preferred InstitutionsOther Universities
Interest Rate4.38%5.88%
Processing Fee2%3%
Loan Tenure1 - 10 years1 - 5 years
Maximum Loan Size10x combined monthly income (max. S$80,000)8x combined monthly income (max. S$80,000)

Unfortunately, POSB's list of preferred institutions is somewhat limited. For example, it only includes 30 schools and none are international. This can be limiting for students that would like to attend university overseas. However, students that are considering one of these schools should absolutely consider POSB's Further Study Loans.

Total Cost of POSB's Further Study Loans - Preferred Institutions

TenureProcessing FeeInterest RateMonthly PaymentTotal Cost
5 Years2.0%4.38%S$465S$3,383
6 Years2.0%4.38%$395S$3,974
7 Years2.0%4.38%S$346S$4,573
8 Years2.0%4.38%S$309S$5,180
Assuming loan of S$25,000, total cost includes impact of fees

Who Can Apply: Eligibility Criteria

Consider this if you need an education loan and are worried about making on-time payments

Early Repayment Fee N/A
Late Payment Fee S$30
Age 17 & Above

Citizens and Permanent Residents of Singapore between the ages 17 and 50 are eligible for POSB's study loans. All applicants are required to have a guarantor, except for part-time students aged 21 to 50 that earn at least S$18,000 annually. To be an eligible guarantor, individuals must be between 21 and 55 years old, earn at least S$24,000 annually, be an immediate family member of the applicant and not be an existing applicant or guarantor for another POSB student loan.

Complete List of POSB's Preferred Institutions

Local InstitutionsPrivate Institutions
BCA AcademyAsian International College
Nanyang PolytechnicAt-Sunrice GlobalChef Academy
Nanyang Technological UniversityAuston Institution of Management
National Institute of EducationCurtin Education Centre
National University of SingaporeERC INSTITUTE
Ngee Ann PolytechnicInformatics Academy
Republic PolytechnicJames Cook Australia Institute of Higher Learning
Singapore Institute of TechnologyKaplan Higher Education Academy
Singapore Management UniversityKaplan Higher Education Institute
Singapore PolytechnicKaplan Learning Institute
Singapore University of Social SciencesLasalle College of the Arts
Singapore University of Technology & DesignManagement Development Institute of Singapore
Temasek PolytechnicNanyang Academy of Fine Arts
Nanyang Institute of Management
Ngee Ann Academy
PSB Academy
Singapore Institute of Management
TMC Academy
Trent Global College of Technology and Management

Other Charges and Fees

POSB charges a 3% processing fee, which is higher than those of other banks in Singapore. However, POSB lowers this fee to 2% to students that attend one of POSB's preferred institutions. The bank also charges a late payment fee of S$30, which is the lowest amount charged by banks in Singapore. This can be very helpful to students that may struggle to always make payments on-time. Not only that, the bank also does not charge any fees for early repayment, loan cancellation or cashier fees, making it one of the more flexible student loan lenders.

Processing Fee2% - 3%
Late Payment Fee$30
Cancellation FeeN/A
Early Prepayment FeeN/A
Cashier FeeN/A

How to Apply: Application Process

Individuals interested in POSB's education loans must submit an application form. Applicants must also provide income documents. For salaried employees this includes either their latest 12 months' CPF contribution history statement, latest Income Tax Notice of Assessment, latest computerised payslip or salary crediting into a DBS/POSB personal bank account during 3 consecutive months. Variable or commission based employees must submit either their latest 12 months' CPF contribution history statement or their latest 2 years' Income Tax Notice of Assessment. Finaly, self-employed individuals must provide their latest 2 years' Income Tax Notice of Assessment

Other Required Documents:

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

William is a Product Manager at ValueChampion Singapore, helping consumers and SMEs find the best banking products through comprehensive analysis of data. He previously was an Economic Consultant at Industrial Economics Inc, where he conducted a variety of research and economic analyses. He graduated from University of Vermont with degrees in Economics and Psychology. His work has been featured on a variety of major media such as the Straits Times, the Business Times, the Edge, DailySocial, the Entrepreneur and more.

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