Overseas Student Programme (OSP) Loan

Eligibility:

• SIT undergraduates who are Singapore Citizen (SC) or Singapore Permanent Residents (SPR) going for their Overseas Immersion Programme (OIP) or Overseas Exposure Programme (OEP).

• Each student is entitled to receive the OSP loan only once during the course of study.

• Student must not concurrently hold other loans or aid that covers the full cost of the OIP / OEP.

Guarantor Requirements:

One guarantor between 21-60 years of age:

• Must not be a full-time student or an undischarged bankrupt and must be gainfully employed.

• Must not be an existing guarantor for more than two (2) Students' loan concurrently.

• Guarantor must be a Singapore Citizen.

Interest:

• The following interest rates will be applicable from 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

• The interest rates will be revised on a half-yearly basis based on the 3M SORA¹ published on the Monetary Authority of Singapore’s (MAS) website  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)². You can visit DBS website for the applicable interest rates every 1 April and 1 October.

• Interest will start accruing on the 1st day of the 4th calendar month following graduation / withdrawal. For graduates / withdrawn students with remaining National Service (NS) obligations, the same interest commencement date will apply.

• Example of interest commencement date: If you have graduated in June, interest will commence on 1st October of the same year. If you have graduated in December, interest will commence on 1st April of the following year.

Repayment:

• Repayment of loan can be in one lump sum or by equal monthly instalments commencing not later than two years from the date of graduation or upon securing employment, whichever is earlier.

• Payment of monthly instalment shall be made on the 1st working day of each month.

• The minimum amount of repayment is S$100 per month and the maximum repayment period is 5 years (for SC) / 3 years (for SPR).

• At the end of the OIP, if there is an unutilised loan amount, the student has the flexibility to return this amount to the bank as part of the loan settlement.

• In the event that the student leaves SIT without completing the programme of study, the loan outstanding will immediately become due and payable.

Usage of PSEA for Repayment of Approved Loan Schemes: 

PSEA holders may utilise the funds remaining in their respective PSEA to repay the OSPL 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.
**Students will be notified of the application period nearer to the date of their OIP / OEP.