Overseas Student Programme (OSP) Loan

Note - Suspension of repayment of Overseas Student Programme (OSP) Loan from 1 June 2021 - 30 September 2021

  1. MOE will extend the suspension of the repayment and interest for TFL, SL and OSPL for all university and polytechnic graduates for 4 months from 1 June 2021 to 30 September 2021. This measure was first announced as part of the Resilience Budget on 26 March 2020, where MOE had provided a one-year suspension from 1 June 2020 to 31 May 2021. 

  2. The repayment and interest suspension will take effect from 1 June 2020 to 30 September 2021. During this period, all loan repayments due will be suspended and no interest (standard or penalty interest) will be levied on any outstanding loan. However, those who wish to continue repaying their loans can still do so by informing the institutions and their agent banks.

  3. Please refer HERE for the FAQ on this matter.


  • SIT undergraduates who are Singapore Citizen (SC) or Singapore Permanent Residents (SPR) going for their Overseas Immersion Programme (OIP) or Overseas Exposure Programme (OEP).

  • Each student is entitled to receive the OSP loan only once during the course of study.

  • Student must not concurrently hold other loans or aid that covers the full cost of the OIP / OEP.

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' loan concurrently.

  • Guarantor must be a Singapore Citizen.


  • Interest rate will be based on the average of the prevailing prime rate of Singapore's 3 local banks namely DBS, OCBC and UOB on the first day of each quarter or such rates as may be determined from time to time.

  • Interest will start accruing on the 1st day of the 3rd calendar month following graduation / withdrawal. For graduates / withdrawn students with remaining National Service (NS) obligations, the same interest commencement date will apply.

  • Example of interest commencement date: If you have graduated in June, interest will commence on 1st September of the same year. If you have graduated in December, interest will commence on 1st March of the following year.


  • Repayment of loan can be in one lump sum or by equal monthly instalments commencing not later than two years 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 5 years (for SC) / 3 years (for SPR).

  • 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 OSPL 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, 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 / OEP.

How To Apply

  1. Students who wish to apply for the OSP Loan are required to complete the OIP / OEP Financial Assistance Form found in In4SIT.

  2. Successful applicants will receive an OSP Loan Eligibility Letter in their SIT email accounts.

  3. Students are to bring their OSP Loan Eligibility Letter and OSP Loan application form to the bank with their guarantor during the application period.