MOE Study Loan

Eligibility Critieria

1. Singapore Citizens (SC) and Singapore Permanent Residents (PR) who are full-time students at SIT.
2. International Students (IS) receiving the MOE Tuition Grant are eligible to apply. *International students paying non-subsidised tuition fees are not eligible to apply for the MOE Tuition Fee Loan.
3. Singapore Citizens and Singapore Permanent Residents with non-accredited diplomas or A-level certification who are pursuing their undergraduate degrees and are required to take bridging/top-up modules.

• Note:

  • For use of MOE Study Loan for payment of tuition fees, applicants must have also applied for the MOE Tuition Fee Loan.

  • Applicants' gross monthly household per capita income (PCI) must not be more than S$2,700. 
  • Students who are awarded a fee subsidy or loan by an organisation registered with a government agency or have applied for the government MOE Tuition Fee Loan (TFL) in full or a mixture of both, provided the total subsidy or loan is not below 80% (for students with gross monthly household per capita income (PCI) of S$950 and below) or 90% (for students with PCI more than S$950 and up to S$2,700) of subsidised fees payable by Singapore Citizen, shall be considered for the MOE Study Loan.

Quantum

• For Eligibility Criteria No. 1 & 2: Loan covers 10% of subsidised fees payable by Singapore Citizens plus a living allowance of S$3,600 per annum.
• For Eligibility Criteria No. 3: Loan covers 2.5% of the unsubsidised fees for bridging / top-up modules (eg. Unsubsidised fee is S$100, Maximum Loan Quantum = S$100 x 2.5% = S$2.50) plus a living allowance of S$3,600 per annum.
• The maximum limit of the MOE SL is 20% of the subsidised Tuition Fees payable plus a living allowance of S$3,600 per annum. The combined loan amount for Tuition Fees (from the MOE TFL, MOE SL and other loans) should not exceed 100% of subsidised SC Tuition Fees payable by the student.
• Students who have obtained loans amounting to 100% of tuition fees payable from either the CPF Education Scheme or a combination of the MOE TFL and the CPF Education Scheme can borrow up to the maximum living allowance quantum only. 
• Students who are awarded the Mendaki Tertiary Tuition Fee Subsidy (TTFS) and MOE SL can borrow up to the maximum living allowance quantum only. 
• Students who have obtained scholarships/sponsorships (for 100% of tuition fees only) can borrow up to the maximum living allowance quantum only. 

Loan Amount Eligibility

Scenario	Gross Per Capita Monthly Household Income (PCI)	Students (SC/PR) applying for / have been granted:	Loan Amount Eligible:
(A1)	More than S$950 but less than S$2,700 (loan is interest-bearing after graduation)	Maximum MOE TFL covering at least 90% of the subsidised tuition fees payable by SC.	MOE Study Loan component: - Up to 10% of the subsidised tuition fee payable by SC Living allowance loan component: - Students may also opt to apply for a maximum living allowance loan of S$3,600 per academic year. Living allowance is disbursed on a semestral basis.
(A2)		CPF Education Loan Scheme (CPFELS) covering at least 90% of the subsidised tuition fees payable by SC
(A3)		Combination of MOE TFL / CPFELS / Mendaki TTFS / PSEA covering at least 90% of the subsidised tuition fees payable by SC
(B1)	PCI less than or equal to S$950 (loan is interest-free)	Maximum MOE TFL covering at least 80% of the subsidised tuition fees payable by SC	MOE Study Loan component - Up to 20% of the subsidised tuition fees payable by SC Living allowance loan component: - Students may also opt to apply for a maximum living allowance loan of S$3,600 per academic. Living allowance is disbursed on semestral basis.
(B2)		CPF Education Loan Scheme (CPFELS) covering at least 80% of the subsidised tuition fees payable by SC
(B3)		Combination of MOE TFL / CPFELS / Mendaki TTFS / PSEA covering at least 80% of the subsidised tuition fees payable by SC

*For International Students on MOE Tuition Grant, the MOE Study Loan will be interest-bearing regardless of calculated PCI, as long it meets the eligibility criteria of being below $1,200.

Guarantor Requirements

• Loan application must include one guarantor between 21 – 60 years of age:
• Must not be an undischarged bankrupt.
• Must not be an existing guarantor for more than two (2) students' loans concurrently.
• Nationality of guarantor:
  • SC guarantor for SC applicant;
  • SC or PR guarantor for PR applicant;
  • SC, PR or foreigner for IS applicant. 

Loan Interest

• The MOE Study Loan is interest free for SC and SPRs with monthly PCI of below S$950.
• For SC and PRs with PCI more than S$950 and up to S$2,700, the Study Loan is interest-bearing.
• For IS with PCI up to $1,200, the Study Loan is interest-bearing.

The following interest rates will be applicable to all new Government education loan (i.e. Tuition Fee Loan, Study Loan, Overseas Student Programme Loan) agreements signed on and after 1 April 2024.

Standard interest*	3-month compounded Singapore Overnight Rate Average (3M SORA) plus 1.5 percentage points or such other rates as may be determined from time to time by the bank
Late payment interest for overdue and unpaid loans/loan instalment	3M SORA plus 4.5 percentage points or such other rates as may be determined from time to time by the bank

* not applicable to interest-free Study Loan

The interest rates will be revised on a half-yearly basis based on the 3M SORA[1] published on the Monetary Authority of Singapore’s (MAS) website[2] on 1 March (for the period 1 April to 30 September) or 1 September (for the period 1 October to 31 March of the following calendar year)[3].  You can visit DBS website for the applicable interest rates on every 1 April and 1 October.

 

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[1] SORA is the volume-weighted average rate of borrowing transactions in the unsecured overnight interbank SGD cash market in Singapore between 8am and 6.15pm. The 3-month compounded SORA is the rolling compounded average of daily SORA over the past respective period.
[2] https://eservices.mas.gov.sg/statistics/dir/DomesticInterestRates.aspx
[3] If 1 March or 1 September falls on a weekend and/or a public holiday when the 3M SORA rates are not published by MAS, we will take the 3M SORA published on the MAS website on the last preceding business day in Singapore. For example, if 1 September is a Saturday, we will take the 3M SORA published on MAS website on 31 August.

Repayment of Loan

• Repayment of loan can be in one lump sum or by equal monthly instalments commencing not later than six months from the date of graduation or upon securing employment, whichever is earlier.
• Payment of monthly instalment shall be made on 1st working day of each month.
• The minimum amount of repayment is S$100 per month.
• Repayment period:
  • Up to 5 years (if loan is interest-waived) OR
  • Up to 20 years (if loan is interest-bearing)
• In the event that the student leaves SIT without completing the programme of study, the loan outstanding will immediately become due and payable.

Bank Late Payment Charges

• Penalty interest will be levied at the rate of 1% per month on instalments in arrears.

Usage of PSEA for Repayment of Approved Loan Schemes

• PSEA holders may utilise the funds remaining in their respective PSEA to repay the MOE SL after successful graduation from the programme, i.e. PSEA holder must have left the institution of study prior to using the PSEA for the repayment of any approved loan scheme. 
• The PSEA can be used to repay the principal loan amount, and any interest charged in respect of the loan or financing scheme that is payable by the PSEA account holder as part of the outstanding loan. 
• PSEA holders can only use their own PSEA for the repayment of approved loan schemes, minimum withdrawal amount is $100, as per the minimum monthly repayment sum for the approved loan schemes.
• For more information on the usage of the PSEA for repayment of approved loan schemes, please click here.
• The Loan Repayment Application Form is also available here. Students are strongly encouraged to understand the rules of usage of the PSEA prior to submission of the form.
• Terms and conditions apply.

 

How To Apply

Application Period (AY2024)

01 July to 31 August 2024

1. Students who wish to apply for the MOE Study Loan are required to complete the application form via the IN4SIT portal. To access the portal, students are to login to the Student Intranet and click on the "IN4SIT" tab.

2. Students will need to complete/submit the online form and upload the required supporting documents by the application deadline for income eligibility assessment.

3. Successful Applicants will be notified via email to download the Study Loan Approval Letter from the IN4SIT portal.

4. Successful Applicants and their Guarantor are to submit the Study Loan Approval Letter to DBS online. Please read through this guide to learn more about what to prepare in advance before submitting the MOE Study Loan application online.

5. Please visit MOE Study Loan | DBS Singapore and follow the instructions in the ‘Apply Now’ section.

 

For successful Applicants with Guarantors who are NOT residing or working in Singapore:

1. Student downloads and emails the Study Loan Approval Letter and the Student Loan Agreement to Guarantor.

2. Guarantor completes and signs the Study Loan Approval Letter and Student Loan Agreement in the presence of a notary public or officer from Singapore Embassy. Guarantor should also obtain a notarised photocopy of his/her Identity Card/passport.

3. Guarantor mails/couriers all the completed and notarised documents from Step 2 to Student in Singapore.

4. Student brings all the documents received from Guarantor and own passport to sign the Study Loan Approval Letter and Student Loan Agreement in the presence of a bank officer at the DBS Singapore Raffles Place Branch.

5. Student updates Bank Submission Details in IN4SIT after application has been endorsed by a bank officer.

• The location and operating hours of DBS Raffles Place branch are as follows:

DBS Raffles Place Branch
22 Malacca St #01-00 RB Capital Building
Singapore 048980

Operating Hours
Mondays to Fridays: 8:30am to 4:30pm
Saturdays: 8:30am to 1pm
Excluding Sundays and Public Holidays

 

For all MOE Study Loan applications, please take note:

• Actual disbursement of the loan will be subject to MOE's confirmation of your Tuition Grant (TG) eligibility and the Bank's approval. 

• For those students with TG eligibility, the approved loan quantum will be net off from the tuition fee payable in each qualified semester.

• If MOE confirms subsequently that you are not eligible for TG, this loan agreement will be void. All monies disbursed to you should be repaid immediately.