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What You Need to Know About Student Loans In Singapore

What You Need to Know About Student Loans In Singapore

You may have by now heard about business loans, personal loans, payday loan, and even foreigner loans. However, there is a different loan type that is mainly meant for students more so those who are pursuing their studies overseas.

This kind of an instant loan is normally intended to offer students small affordable cash loans to assist them to manage most of their study expenses. The student loans can easily be obtained regardless of whether you hold a solid background or if you hold a poor credit score.

For this, you will need to find and research around the internet in order to locate many leads of moneylenders in Singapore who offer personal loans at competitive terms and rates.

Many people, and especially parents could be thinking that students may not require such expenses, due to the requirements and small needs. Then again this might not be the case, more so when these students are pursuing their studies overseas.

Due to the difference in economy and difference in the exchange rates, the students will find that the essential needs are a bit too costly and they may not be having any form of income to help them purchase all these.

In addition, an urgent need might arise that requires immediate funds or cash, for instance when they fall sick and have to go to a hospital. It then means the student has to find a more suitable solution to improve their financial status, therefore the student instant cash loans can be obtained from most moneylenders in Singapore.

Compared to other loans in the market, this loan type normally comes with much lower rates compared to the non-education loans. When you are planning to apply for a student loan, here are some things you need to know about these loans.

The Requirements

To start with you need not be troubled. The student loans are types of loans that intended and custom-made for students. Thus there are some requirements to fulfill before you qualify for the loan. These are different and somewhat easier for students to get their loan approval. In the past, students never qualified to get loans, and at present things have greatly changed and are a lot flexible.

You will, however, need to keep in mind that first there has to be an application procedure. At this point, you will need to present true information that the lender requires. Mostly they may ask you to complete a form that will contain some things such as:

  • Personal information
    This includes your nationality, date of birth, your passport number, as well as your family background.
  • A current active Account Information in the country you are in
    This includes Bank name and the bank account number.
  • University information 
    That is your University name, Student Pass information and your Student ID, courses that you have enrolled in.

Since the loan does not require collateral, then do not consider it as you apply. From there on the application process are rather simple when you are doing it online. When you have completed the form online, then the process will be very straightforward. Once they confirm your Identity, they will provide you with the necessary paperwork and the loan amount will be disbursed to your account.

Interest Rates

Before you submit your applications for a student loan, make sure that you do your research and also locate a lender who is offering the lowest possible interest rate. With lower interest rates, then the loan will be more attractive and convenient for you. Also, keep in mind on whether the interest charged is a flat-rate one or it reduces each month over the loan tenure.

When working with the flat rate, your lender will determine the fixed interest amount from the start. This is computed based on your loan amount and rates of interest. In such a case, the rate charged each month will stay the same irrespective of how much you have in outstanding balance for the personal loan taken.

When it comes to the monthly reducing or monthly rest interest plan, the interest is computed based on the amount you have as the outstanding balance on your loan. It then means that when you pay down or repay your loan fast, ultimately you will pay less in interest.

Loan Repayment Period and Method

Under normal circumstances, the term for the repayment of education loans ranges from 1 to 10 years. Realize that the longer the loan term you opt for, the more interest you will end up paying. Also, make sure that you have worked out the amount that you can afford each month to comfortably pay as repayment installment. Also, consider getting the shortest yet convenient repayment period for you.

Since there are various repayment methods that you can choose that is based on your financial status. Of these, the most popular one is making monthly installments on your loan principal and interest. This is while you are studying and have not yet started earning big money. This option may be ideal especially for the part-time students.

Processing Fee

Definitely a low-interest is, very attractive. Even so, banks and other lending institutions could advertise a low-interest to attract potential customers. Then later, you could find that the lenders charge you high processing fee to make up for the low-interest rates. As you carry out your research, make a point to note what each lender is asking for as processing fee. Also, remember to consider this fee amount in your computation for the full cost of your education loan.

Conclusion

Due to the difference in economy and difference in the exchange rates, many students will find that their essential needs are a bit too costly and they may not have any income to help them pay for all these. In such times, student loans will come in handy to help them manage their study expenses.

Once you have submitted your application with the correct details filled out, your lender will need to confirm your Identity, and then provide you with the paperwork and the loan amount will be disbursed to your account.