RHB Education Loan Review A Good Option for Students in Singapore Value Champion Singapore PDF

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ASSIGNMENT MATERIALS OF PERSONAL FINANCIAL PLANNING. RHB Education Loan Review_ A Good Option for Students in Singapore_ _ ValueChampion Singapore.pdf FOR ASSIGNMENT WORK CONSUMER CREDIT TYPE OF LOAN...

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6/8/2021

RHB Education Loan Review: A Good Option for Students in Singapore? | ValueChampion Singapore

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RHB Education Loan RHB Standard (Local) Education Check Rates Loan Review: A Good Option for Students in Singapore?

RHB Education Loan RHB education Standard (Local) loans are no longer available. Check Rates

RHB education loans are no longer available.

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Pros

ValueChampion Rating

Cons

Students that

Individuals

are unable to

seeking the

obtain

least

another

expensive

education

student loans

loan

Students

Students that

attending very

cannot make

expensive

even small

universities

monthly payments during their Back to Top

tudies

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RHB Education Loan Review: A Good Option for Students in Singapore? | ValueChampion Singapore

RHB's education loans do not offer the lowest interest rates, which makes them more expensive than others available in Singapore. With that said, RHB is the only bank to offer student loans that do not require repayment during the years of study. This can be very helpful for students that are on a very tight budget. Please note RHB educations are no longer available. Please see our Best Education Loan page for other great options. Summary of RHB Education Loans Local Study Interest Rates: 4.78% International Study Interest Rates: 4.88% Low Processing Fee: 2.0% Minimum Income Requirement: S$30,000 Loan Size: S$3,000 to S$100,000 or 6 times borrower's monthly income, whichever is lower

Table of Contents What Makes RHB's Education Loans Stand Out to Borrowers Who Can Apply: Eligibility Criteria Other Charges and Fees How to Apply: Application Process

What Makes RHB's Education Loans Stand Out to Borrowers RHB's education loans are not among the cheapest available due to its interest rates of 4.78% for local studies and 4.88% for overseas studies. While there are other banks that offer similar rates, RHB's maximum loan limit and minimum income requirement tend to be less flexible. For these reasons, RHB is best viewed as a good alternative to cheaper study loan providers. Total Cost of RHB's Education Loans - Local Study, Standard Repayment Tenure

Processing Fee

5 Years

Interest Rate

Monthly Payment

Total Cost

4.78%

S$469

S$3,656

4.78%

$400

S$4,306

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6 Years

2%

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Tenure

Processing Fee

Interest Rate

Monthly Payment

Total Cost

7 Years

2%

4.78%

S$351

S$4,965

8 Years

2%

4.78%

S$314

S$5,633

Assuming loan of S$25,000, total cost includes impact of fees

Show All Rows Another feature of RHB's that is worth noting is that it is the only bank that offers deferred repayment, which allows students to delay making any repayment until after their studies conclude. While this may sound attractive to students who may have no income during their studies, it is generally the most expensive type of study loan. For example, an 8-year S$25,000 student loan with a deferred payment structure can cost hundreds of dollars more than an interest-first loan and thousands more than a standard payment loan. Therefore, students that can afford to make monthly payments, even if they are small, should avoid RHB's deferred payment study loans.

Tenure

Processing Fee

Interest Rate

Monthly Payment During Studies

Monthly Payment After Studies

2%

4.78%

S$314

S$314

S$5,633

2%

4.78%

S$100

S$573

S$7,796

2%

4.78%

S$0

S$691

S$8,666

RHB Standard RHB Graduated RHB Deferred

Total Cost

Assuming 8-year loan of S$25,000, total cost includes impact of fees

Show All Rows

Who Can Apply: Eligibility Criteria RHB Education Loan Standard (Local) Back to Top Check Rates https://www.valuechampion.sg/RHB-education-loan-review#fees

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Consider this if you are unable to obtain one of the other top education loans more details

To be eligible for RHB's education loans applicants must be either citizens or permanent residents of Singapore. Applicants must also be between the ages of 21 and 62 at the end of the loan tenure. Lastly, individual applicants must earn an annual income of S$30,000 or earn at least S$12,000 and apply with a guarantor that earns S$30,000 annually.

Other Charges and Fees RHB charges a 2% processing fee for its education loans, which is the lowest rate charged by banks in Singapore. It also charges a number of fees that are standard for education loans including fees for loan cancellation, early prepayment, full repayment, late repayment and for cashier orders. We recommend that borrowers carefully stick to a repayment plan in order to avoid unnecessary fees. Fee

Amount

Processing Fee

2%

Cancellation Fee

1% on the undrawn loan amount cancelled

Early Prepayment Fee

1% of loan prepaid

Full Repayment Fee

1% on the outstanding loan amount

Late Payment Fee

5% above Prime Lending Rate (currently at 5.70%) on any overdue instalment

Cashier Order Fee

Exists, amount unknown

How to Apply: Application Process Individuals interested in applying for an education loan from RHB must complete an application form and submit several required documents. Students or their guarantor must provide proof of income. For example, salaried employees must submit either their latest computerised payslip, latest CPF contribution history statement or latest Income Tax Notice of Assessment. Variable or commission-based earners are required to submit their last 6 months' computerised commission statements or their last 12 months' Income Tax Notice of Assessment. Finally, self-employed applicants or guaran

mit their last 2 years' Income Tax Notice of Assessment. Back to Top

Other Required Documents: https://www.valuechampion.sg/RHB-education-loan-review#fees

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RHB Education Loan Review: A Good Option for Students in Singapore? | ValueChampion Singapore

NRIC (photocopy front & back) for applicant & guarantor (if applicable) Birth certificate or marriage certificate (if applying with guarantor) Certified true copy of letter of acceptance Invoice or schedule of course fees

William Hofmann William is a Product Manager at ValueChampion Singapore, helping consumers and SMEs find the best banking products through comprehensive analysis of data. He previously was an Economic Consultant at Industrial Economics Inc, where he conducted a variety of research and economic analyses. He graduated from University of Vermont with degrees in Economics and Psychology. His work has been featured on a variety of major media such as the Straits Times, the Business Times, the Edge, DailySocial, the Entrepreneur and more. VALUECHAMPION SINGAPORE

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