As a kid, you might have awaited the day you don’t have to go to school anymore. Now that you’re older, it’s the complete opposite. In contrast to your dreams back then, you want to extend your student life.
Upon browsing through course fees, you’d see that tuition fees can be expensive. Not to mention, if you’re going overseas, then other considerations have to be factored in as well. If you’re planning to take on an instant loan for your education, here’s what you need to know.
1. Check if you qualify
As a basic rule, you must be at least 21 years old to obtain an education loan in Singapore. You must also provide proof of income, from employment that also contributes to your CPF. Ultimately, the qualifications vary according to the licensed moneylender you approach.
2. Reasonability of interest rates
There are no standard interest rates to follow; it changes all the time. If you’re the kind of person who values people’s recommendations, try to take it with a pinch of salt this time around because their experience may not be the same as yours. Instead, take the time to conduct extensive and thorough research.
But when it comes to licensed moneylenders, they can only charge a maximum of 4 per cent each month. However, if you’re not sure who to look for, feel free to enlist the help of Easyloan.com.sg! We aim to bring you closer to licensed moneylending companies so you can get fast cash loans without much hassle.
3. Paying back your loan
Different moneylenders offer different repayment schemes. As you juggle school and possibly, work, evaluate whether your income will be sufficient to cover your regular savings, daily expenses and loan repayments. Otherwise, you may consider paying your debt once you’re out of school. In this situation, your loan money allows you to work less and give schoolwork your undivided attention.
Then again, it can have long-term implications for when you plan to purchase a home in future, for example. In this case, express your concerns with utmost transparency when consulting with moneylenders. They should be able to explain the terms carefully and determine if the loan is an excellent choice for you.
4. Take note of prepayment penalty
A prepayment penalty refers to the act of completing payment, before the stipulated due date. But isn’t it good to pay back your debt as soon as possible? In the eyes of a moneylender, you’ve agreed to a deal which also involves interest rates charged per month. Hence, it would be better if you stick to what you’ve decided on initially. However, if you can afford to fork out extra for the prepayment penalty, then by all means!
In contrast, there might also be a late payment fee if your repayment isn’t finished on time. Be sure to actively listen as the consultant goes through all the terms and conditions, and clarify your doubts if necessary.
Furthering your studies is an investment for your future. Before taking up a loan, dedicate a significant amount of time researching and considering the college you want to go to and the course you plan to take. Don’t forget to read up so you can make an informed decision on your preferred moneylender! Be it for consolidation loans or other enquiries, you’re always welcome to talk to our friendly team for guidance.