Higher Education Student Loan (HESL) – Overseas Student Programme Component

Eligibility:

  • SIT undergraduates who are Singapore Citizens (SC) going for their Overseas Immersion Programme (OIP).
  • Applicant’s gross monthly household per capita income (PCI) must not be more than S$3,500.
  • Applicant must not concurrently hold other loans or aid that covers the full cost of the OIP.
  • Each student is entitled to receive this loan component only once during their course of study.

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' loans concurrently.
  • Guarantor must be a Singapore Citizen.

Interest:

  • The following interest rates are applicable:
Standard interest3-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 instalment3M 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 the DBS website for the applicable interest rates every 1 April and 1 October.
  • Interest will start only upon student’s graduation or leaving the institution.

1SORA is the volume-weighted average rate of borrowing transactions in the unsecured overnight interbank SGD cash market in Singapore between 8am and 6.15pm. The 3-month compounded SORA is the rolling compounded average of daily SORA over the past respective period.

2  If 1 March or 1 September falls on a weekend and/or a public holiday when the 3M SORA rates are not published by MAS, we will take the 3M SORA published on the MAS website on the last preceding business day in Singapore. For example, if 1 September is a Saturday, we will take the 3M SORA published on MAS website on 31 August.

Repayment:

  • Repayment of loan can be in one lump sum or by equal monthly instalments commencing not later than one year 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 10 years.
  • 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 loan 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. The 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.

 

How To Apply

Students who wish to apply for the loan are required to submit their application via the StudentLoanSG portal.