With a high loan quantum and a long repayment period, the Maybank Education Loan may fulfil the needs of a wide variety of students.
The Maybank Education Loan has one of the highest loan quantum caps for education loans, and it comes with an attractive interest rate to boot. It can be used for all approved courses at institutes of higher learning both locally and overseas. It even covers education-related expenses such as accommodation, books, and more.
This loan comes with a maximum tenure of 10 years, and you may pay only the interest or partial amounts during the first three years.
Could this be the best education loan for you?
What the Maybank Education Loan can do for you
Maybank Education Loan product summary
- Borrow up to eight times your monthly income, maximum of S$200,000
- Loan repayment tenure up to 10 years
- Applicable for both local and international studies at an approved institution of higher education
- May also be used for study-related expenses, such as accommodation, laptops, books, etc.
- Staggered repayment schemes for greater flexibility
Maybank Education Loan’s pros and cons
|High loan quantum ceiling of S$200,000||Processing fee is 2% of principal amount (gets expensive at high amounts)|
|Can take up to 10 years to repay the loan||No deferred payment available|
|Interest-only payment, partial payment for first three years||Minimum annual income of S$30,000 for applicants applying for part-time studies|
|Covers course fees and study-related expenses||Minimum annual income of S$60,000 for international studies|
Why should you choose the Maybank Education Loan?
#1: Suitable for high-cost studies
The Maybank Education Loan allows you to borrow as much as S$200,000 to fund your higher education, which is one of the highest loan quantums in the market. This makes it suitable for those who wish to pursue expensive degrees or study in top-notch institutions.
#2: Repayment tenure of up to 10 years
You can take as long as 10 years to finish paying off your Maybank Education Loan. This is favourable for those who want to spread out their payments.
#3: Flexible repayment terms
Another layer of flexibility this loan offers is its three repayment schemes. You can choose to pay only your loan’s interest in the first three years, part of your loan’s interest, also in the first three years, or pay both the interest and instalment of your loan’s full amount throughout.
Note that no deferred payment is offered; once disbursed, the first instalment payment is due on the 1st of the following month.
Who should get the Maybank Education Loan?
Those who are pursuing expensive degrees at prestigious institutions of higher learning will appreciate the high loan quantum cap of S$200,000. Additionally, you can also borrow up to eight times of your monthly salary.
The caveat is that these expansive limits are likely being offered only to applicants who fulfil a certain profile.
This doesn’t mean that those with modest needs should look elsewhere. Any loan is a good loan for as long as you can get a favourable interest rate. With Maybank’s 4.45% per annum rate, this is about as good as it gets.
Interest rates, fees and eligibility criteria
Interest rate illustration: 4.45% per annum on a S$30,000 loan
|Tenure (years)||Estimated monthly instalment|
The Maybank Education Loan’s interest is dependent on the Education Loan Board Rate, which is currently at 4% per annum. Thus, 0.45% per annum is added.
This makes the interest rate of this loan 4.45% per annum at the time of writing.
The table shows an estimation of the monthly instalment amount payable on a S$30,000 loan. The processing fee, which is equal to 2% of the principal loan amount, is not included.
Note that these figures are for illustration only. Maybank does not provide a loan calculator on their website, hence, the above figures were derived from an online loan repayment calculator.
Furthermore, the actual instalment amount you have to pay depends on the interest rate Maybank offers, which may depend on your credit score, income level, and other factors.
Charges and fees to note
Take note of the following charges and fees when applying for the Maybank Education Loan:
- Processing fee: 2% of principal loan amount
- Cancellation fee: 1% of principal loan amount
- Loan restructuring/variation fee: S$200
- Late payment interest charges: Prevailing rate + 3%, minimum S$30
- Early payment fee (full or partial): 1% on prepaid amount
Refer to Maybank Education Loan’s Special Terms for more details.
- 18 to 65 years old (applicant)
- 21 to 65 years old (guarantor)
- Part-time study: At least an annual income of S$30,000
- Full-time study: Guarantor with an annual income of at least S$30,000
- Overseas study: Guarantor or joint borrower with at least a combined annual income of S$60,000
How to apply
Follow these steps to apply for the Maybank Education Loan.
- Go to the Maybank Education Loan webpage
- Click on “Apply Now” in the upper right
- You can apply for the loan using your Singpass. To do so, click on the “Retrieve Myinfo” button down the page.
- Follow the on-screen prompts to submit your application.
- Wait for Maybank to contact you with an offer.
The following documents will be required:
- Proof of enrolment or acceptance (in PDF)
- Course fee invoice or schedule of payment (in PDF)
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By Alevin Chan
An ex-Financial Planner with a curiosity about what makes people tick, Alevin’s mission is to help readers understand the psychology of money. He’s also on an ongoing quest to optimise happiness and enjoyment in his life.