4 Reasons You Need to Apply For a Personal Loan to Get An Education

For individuals who wish to study full-time courses in Singapore is a virtual paradise of education in the entire world. The reason for this is that Singapore is arguably the only country that offers an extensive variety of both full-time and part-time courses which citizen can avail of through the SkillsFuture programme.

However, getting a good education is not really cheap. While government subsidies are in place that will considerably reduce the costs of courses, most education opportunities are too expensive which would necessitate getting an education loan. The worst case scenario is your option is to get a personal loan.

What is an Education Loan?

As the term obviously denotes, an education loan is a loan used for purposes of getting an education. Upon approval of your loan, the money will not be given to you. Instead, it will be deposited in the account of the school or university that is providing the course/s you are going to take.

Compared to personal loans that have a 5 to 8 percent interest rate, education loans have interest rates of around 4 percent per year. It is because of the lower interest rate that individuals prefer to apply for education loans.

But what if you don’t qualify for an education loan?

4 Reasons You Need to Apply for a Personal Loan

Let us take a look at the 4 major reasons why you will need to apply for a personal loan to get an education in Singapore...

1) You don’t qualify for the education loan

Most individuals are unable to get an education loan because they don’t meet the eligibility requirements. Most education loans require applicants to be at least 21 years old. They should also not be studying full-time. In addition, the annual income of the family is should be between $24,000 and $30,000.

While a guarantor, such as an immediate family member or relative, can get the loan for you, they should also meet the above minimum criteria.

If you and your guarantor don’t meet these criteria, you need to get a personal loan.

2) The course you chose is not eligible for education loans

All education loans have lists of approved courses and course providers. If your chosen course and the institution that will be teaching it are not in the lists, your application for an education loan will be automatically rejected and you will need to take out a personal loan instead.

3) You’ve reached the limit of your education loan

Education loans have limits of between $80,000 and $200,000. If you exceed these limits, you have to get a personal loan especially if there are other courses that you would like to pursue.

4) Insufficient SkillsFuture credit

Although most SkillsFuture courses are reduced by government subsidies and your SkillsFuture $500 credit, some courses are just too expensive so that you need to get a personal loan.