When to Use a Personal Loan for Education

1. You don't qualify for an education loan

Education loans come with certain eligibility requirements.

For a start, most education loans require you to be at least 21 years of age (with the exception of OCBC – minimum age for an education loan is 17). You should also not be studying full-time, and should have an annual income of between S$24,000 to S$30,000.

You can bypass these requirements by getting an immediate family member to act as your guarantor. However, your guarantor must fulfil these minimum requirements themselves.

If you’re unable to qualify for an education loan in person or through a guarantor, you would need to take up a personal loan to pay for your studies, but you’ll still need to be at least 21 years of age for most of these loans.

2. Your course doesn't qualify for the education loan

As the name suggests, an education loan can only be used for education purposes. This is why when approved, the loan amount will be disbursed to your educational institution’s account (via an escrow account, or similar protective arrangement), and not directly to your personal bank account.

This also means that your education loan can only be used to pay for courses run by an approved institution. If the provider of the course you are seeking to join falls outside of the approved list, your loan application will not be successful.

In this case, a personal loan would be necessary to pay for your chosen study programme.

3. You’ve exhausted the limit on your education loan

Before taking up an education loan, we strongly recommend that you work out exactly how much you’ll need. And once you arrive at the final figure, strive to stick to that budget.

This is because education loans come with a limit, which can range from around S$80,000 to S$200,000. Once this amount is used up, you’ll need to seek alternative financing.

However, there may be certain instances – say, a summer internship at the leading firm in your industry, for example – that could be worthwhile pursuing.

Should you find an opportunity like this, consider supplementing your education loan with a personal loan to gain maximum benefit from your studies.

4. You don't have enough SkillsFuture credits

Singaporeans aged 25 and above receive a base S$500 SkillsFuture Credit, usable across thousands of eligible SkillsFuture courses and workshops — this base credit does not expire. A separate S$500 top-up issued in 2020 expired on 31 December 2025, so if you didn't use it in time, it's no longer accessible. Singaporeans aged 40 and above also received an additional S$4,000 Mid-Career SkillsFuture Credit from 1 May 2024, ring-fenced for longer-form, employment-focused courses like diplomas and professional certifications — this credit does not expire either.

Given how targeted the Mid-Career tier is, there's still a good chance your available SkillsFuture Credit isn't enough to cover every course on your list. In that case, taking up a personal loan can help you top up your course fees or cover the courses your credit doesn't stretch to.