RHB Education Loan Review: A Good Option for Students in Singapore?
RHB Education Loan Review: A Good Option for Students in Singapore?
ValueChampion Rating 
Pros
- Great alternative when denied an education loan for other banks
Cons
- Not the cheapest student loan
- High minimum principal amount
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. Please note RHB educations are no longer available. Please see our Best Education Loan page for other great options.
| 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
| Tenure | Processing Fee | Interest Rate | Monthly Payment | Total Cost |
|---|---|---|---|---|
| 5 Years | 2% | 4.78% | S$469 | S$3,656 |
| 6 Years | 2% | 4.78% | $400 | S$4,306 |
| 7 Years | 2% | 4.78% | S$351 | S$4,965 |
| 8 Years | 2% | 4.78% | S$314 | S$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.
| Tenure | Processing Fee | Interest Rate | Monthly Payment During Studies | Monthly Payment After Studies | Total Cost |
|---|---|---|---|---|---|
| RHB Standard | 2% | 4.78% | S$314 | S$314 | S$5,633 |
| RHB Graduated | 2% | 4.78% | S$100 | S$573 | S$7,796 |
| RHB Deferred | 2% | 4.78% | S$0 | S$691 | S$8,666 |
| Assuming 8-year loan of S$25,000, total cost includes impact of fees | |||||
Who Can Apply: Eligibility Criteria
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.
| Fee | Amount |
|---|---|
| Processing Fee | 2% |
| Cancellation Fee | 1% on the undrawn loan amount cancelled |
| Early Prepayment Fee | 1% of loan prepaid |
| Full Repayment Fee | 1% on the outstanding loan amount |
| Late Payment Fee | 5% above Prime Lending Rate (currently at 5.70%) on any overdue instalment |
| Cashier Order Fee | Exists, 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