POSB Further Study Assist
At a Glance

Lower interest rate at 4.38% p.a. with 2.5% processing fee.

Higher loan amount of up to 10x the combined monthly income of you and your guarantor (max. S$160,000).

Flexible repayment period up to 10 years that best suit your needs.
Eligibility & Fees
Borrower
- Singapore Citizen / Singapore Permanent Resident
- 17 – 65 years (upon loan maturity)
- Minimum Annual Gross Income S$18,000
Guarantor#
- Singapore Citizen / Singapore Permanent Resident
- 21 – 65 years (upon loan maturity)
- Minimum Annual Gross Income S$24,000
- Must be an immediate family member
#Guarantor not required for part-time student age 21 to 65 years old (upon loan maturity) unless applicant does not meet minimum income requirement or studying overseas)
Interest Rate and Fees Table
Interest rate | 4.38% p.a. |
Processing fee | 2.5% of the approved loan amount (deducted upfront upon first disbursement) |
Late payment fee | $30 on overdue amount after the 1st of every month |
Cancellation fee | No charges |
Full/partial repayment fee | No charges |
Disbursement fee | No charges for issuance of Cashier’s Order/Demand Draft to the institutions |
Income Documents Required
For Salaried Employees:
- NRIC (Front and Back), AND either A. OR B. OR C. OR D.
- Latest 12 months' CPF Contribution History Statement
- Latest Income Tax Notice of Assessment*
- Latest Computerised Payslip
- Salary Crediting into DBS/POSB Account^
For Variable/Commission-based Employees:
- NRIC (Front and Back), AND either A. OR B.
- Latest 12 months' CPF Contribution History Statement
- Latest 2 years' Income Tax Notice of Assessment*
For Self Employed:
- NRIC (Front and Back), AND Latest 2 years' Income Tax Notice of Assessment*
Mandatory Documents to submit
- Photocopy of NRIC (front & back) for Applicant & Guarantor (if applicable)
- Copy of Letter of Acceptance stating course type and course duration
- Invoice of payment for course fees
- Applicant applying with guarantor must provide birth certificate or marriage certificate to prove relationship
Illustration
The below illustration is for lump sum disbursement with fixed monthly repayment, spread over 1 to 10 years of loan tenure.
Approved loan amount | S$5,000 | S$10,000 | S$30,000 | |
---|---|---|---|---|
Less processing fee | 2.50% | 2.50% | 2.50% | |
Disbursed loan amount | S$4,875 | S$9,750 | S$29,250 | |
Loan tenure | Interest rate (p.a.)1 | Installment amount per month | ||
1-year | 4.38% | S$427 | S$854 | S$2,560 |
3-year | 4.38% | S$149 | S$297 | S$891 |
5-year | 4.38% | S$93 | S$186 | S$558 |
8-year | 4.38% | S$62 | S$124 | S$372 |
10-year | 4.38% | S$52 | S$104 | S$310 |
Eligible loan amount | Up to 10x combined monthly income |
Note: Above calculations are for illustration purpose only and should not be taken to be a guarantee of the actual amounts payable.
For progressive disbursements, the monthly installment amount will increase with each subsequent disbursement. The revised monthly installment amount will be calculated based on outstanding loan balance and remaining tenure.
1 Interest is calculated on a monthly rest basis.
Send us your application
Other Forms
POSB Further Study Assist Subsequent Disbursement Authorisation Form | Apply Online |
POSB Further Study Assist Authorisation and Indemnity Form | Apply Online |
POSB Further Study Assist Loan Repayment Slip | Apply Online |
Click here for the latest POSB Further Study Assist Terms and Conditions (for loans approved on or after 1st December 2012).
- For loans approved before 1st December 2012, click here.
Frequently Asked Questions
How do I apply?
You may download the application form by clicking here.
How much credit limit will I be granted?
The maximum credit limit is 10 times of your monthly income or your unpaid course fees, capped at S$160,000, whichever is lower. Please note that the bank has the discretion to grant a lower limit which may be different from what you have requested.
How is interest calculated?
Interest is computed on a monthly rest basis and is based on 365 days regardless of leap year.
Is there any processing fee?
Yes. There is a 2.5% one time processing fee that will be deducted from the approved loan.
Example:
Approved Loan amount : S$10,000
2.5% processing fee of loan : S$250
Cashier's Order received : S$9,750
In what circumstances do I need a guarantor?
- Below the age of 21 years old;
- Studying on a full time basis;
- Studying overseas;
- Do not meet the minimum income eligibility of S$18,000 per annum; or
- Require a loan amount which is higher than your eligible credit limit.
Who is eligible to be my guarantor for POSB Further Study Assist?
- Your family member i.e.: parent / sibling / child or spouse;
- Singapore Citizen or Permanent Resident residing in Singapore;
- Aged between 21 – 65 years old (upon loan maturity);
- Earning a minimum gross annual income of S$24,000.
What do you mean by immediate family member?
Parents, siblings, children and spouse will form your immediate family nucleus. Proof of relationship such as Birth Certificate or Marriage Certificate is required when you submit your application.
Second degree family member can be considered, provided relevant proof of relationship is submitted.
Can I have more than 1 guarantor?
No. Only 1 guarantor is allowed and your guarantor must be your immediate family member.
Do I need to submit any document to prove the relationship between me and my guarantor?
Yes, you are required to submit either Birth Certificate or Marriage Certificate to prove the relationship.
Is there any other admin fee or charges?
Yes, there is an admin fee of S$50 for changes of disbursement amount after Cashier’s Order has been issued.
How much does it cost for issuance of a Cashier's Order / Demand Draft?
- Stop payment of Cashier's Order : S$15
- Re-issuance of Cashier's Order : S$5
- Stop payment of Demand Draft : S$35
- Re-issuance of Demand Draft: Difference of foreign currency exchange rates will be borne by customer.
- Changes to Cashier's Order / Demand Draft payee name : S$10
- Any changes in mode of disbursement will cause a delay in processing time
How long will you take to process my loan?
We will process your application within 7 working days. Upon approval/decline, you will receive an SMS notification from us. Applications not accompanied with required documents or with incomplete information will result in a delay in processing.
How will I know when the account will be approved / declined?
Once your loan is approved, your Cashiers' Order will be sent via post with a welcome letter to your address.
How will the approved loan be credited?
We will issue a cashier's order (payee to the Institution of study) to your correspondence address. Depending on whether it is a peak period or non-peak period, we will prepare the cashier's order to be mailed out 3 - 5 working days after your loan is approved. (Please note the said turnaround time is not inclusive of the mailing time required by Singpost).
You are required to present the cashier's order / demand draft at the institution of study within 30 days from the date of issue.
I need a S$5000 loan, can I request for 3-year repayment?
Yes. The minimum loan amount is S$2000.
I have a DBS/POSB account, can I request for the loan amount to be credited to my bank account?
No. The loan amount will be disbursed in a form of a Cashier's Order / Demand Draft, made payable to the designated institution of study.
I don't have a DBS/POSB account for the monthly payment, can you debit from my other Bank's account?
No. The monthly repayment must be made via you or your guarantor's DBS/POSB bank account. You may open an account here.
How can I make the monthly payment?
The monthly instalment amount will be deducted from your designated DBS/POSB savings account. Monthly instalment will be automatically deducted on the 1st of every month.
When do I have to start repaying?
Repayment will commence the following month after your loan is approved.
Can I choose to only start repayment after I graduate from school?
No. You are required to start your monthly repayments the month after your loan is approved.
When is my payment due date?
Repayment is to be made on the 1st of every month. Kindly ensure that your Loan Servicing Account has sufficient funds before the end of each month.
What will happen if I have insufficient funds in the Loan Servicing Account?
A late payment fee of S$30 per month will be imposed on each overdue instalment.
Is there any cancellation fee?
No. There is no cancellation fee should you cancel the loan prior to approval. Please do note that you will still be fully liable for the processing fee should you request to cancel after your loan is approved.
Will I get a monthly statement detailing the payment and outstanding balance?
No, there will not be any monthly statements. To find out the outstanding balance of your loan account, please call our hotline at 6333 0033 or 1800 111 1111.
I noted that the interest rate now is different from the time I applied. With the revised interest rate offered now, will the interest rate for my existing POSB Further Study Assist be affected?
No. Your interest rate remains as at the time the loan was approved. It will be fixed throughout your loan tenor.
Can I request for an increase in loan amount once the loan is approved?
No, the loan amount cannot be increased once the loan has been approved.
How long will the bank take to process the subsequent disbursement?
Please allow 14 working days after receipt of subsequent disbursement form and invoice by the bank for your instruction to be processed.
That's great to hear. Anything you'd like to add?
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