All full-time subsidised diploma students (not applicable to Polytechnic Foundation Programme students) who are Singapore Citizen or a Permanent Resident of Singapore with gross monthly household per capita income ≤ $2,700 can apply for the Study Loan Scheme.

 

The loan comprises of TWO components:

Component A: A loan of up to 25% of tuition fees payable

Student must already be on one of the following four (4) schemes to cover at least 75% of tuition fees:

• Tuition Fee Loan Scheme.
• CPF Education Loan Scheme.
• Mendaki Tertiary Fee Subsidy Scheme.
• Post Secondary Education Account (PSEA).

Component B: A loan of up to $2,000 for any 2 consecutive semesters to meet living expenses

Applications for Component B alone are permissible only if tuition fees have been paid in full. If you have tuition fees of up to 25% still owing to the Polytechnic at the point of application for the above, you will have to apply for Component A first before applying for Component B.

Your family income determines which loan (interest-free/with interest) you will be awarded.

 

 

@: Gross Income of all family members in the same household / No. of Dependents in same household

• Interest on the Tier 2 loan will be charged upon graduation at the same rate as the Tuition Fee Loan Scheme. The interest rate will be set by DBS Bank on 1 April and 1 October each year, based on the sum of:

(i) the 3-month compounded Singapore Overnight Rate Average as published by the Monetary Authority of Singapore (“SORA”) on 1 March and 1 September of that year; and

(ii) an additional 1.5 percentage points; or

(iii) such other rate(s) as may be determined from time to time by DBS Bank.

• Repayment may be made in one lump sum or by equal monthly instalments comprising both principal and interest and payment of the lump sum or first monthly instalment shall be made not later than 2 years from the date that interest is first chargeable on the Loan.
• The maximum repayment period in respect of the loans under the 2-tier loan system is: 

Tier 1 (interest-free): 2 years

*Tier 2 (with interest): 5 years.

• The minimum monthly instalment payment is $100. The late payment interest rate will be set by DBS Bank on 1 April and 1 October each year, based on the sum of:

(i) the 3-month compounded Singapore Overnight Rate Average as published by the Monetary Authority of Singapore (“SORA”) on 1 March and 1 September of that year; and

(ii) an additional 4.5 percentage points; or

(iii) such other rate(s) as may be determined from time to time by DBS Bank.

• If a student leaves the Polytechnic without completing the course of study, the loan amount will immediately become due and payable. He may repay the outstanding sum by monthly instalments on such terms and conditions as the Polytechnic may determine on a case-by-case basis.
• The repayment of instalment amounts shall be made through Interbank GIRO. Commencement of Loan Repayment is (6) months after graduation. For those with National Service Obligations, you may also choose to complete repayment two (2) months after your Operationally Ready Date (ORD).