Education Loan Payment Deferment Scheme

Supporting individuals through COVID-19

Apply to defer payments on your education loan if you have not missed more than 3 months of instalment payments. The deferment period is until 31 December 2020.

HOW THE DEFERMENT WORKS

Common questions

When do I have to pay my next instalment?
  • Your next instalment will be deferred to 4 January 2021.
What will happen to my instalments in 2021?
  • We will advise you on your revised instalment amount via email within 5 working days from your application.
  • The instalments from January 2021 and the next few months will be used to pay off the interest incurred during the payment deferment period, before the loan principal amount is reduced.
How will interest be calculated?
  • During the payment deferment period, interest will be computed on the outstanding principal amount. There is no interest charged on the deferred interest payments.
If I am interested, when do I need to submit my application?
  • Applications received by the 20th of the month will be effected the following month.
I’m currently paying for interest only, can I apply for repayment deferment?
  • Yes. Please note that your monthly instalment amount will automatically be converted to principal and interest repayment after the deferment period.
What happen to my arrears that are not taken as part of the deferment scheme?
  • Any arrears incurred before the payment deferment period must be paid in full by 31 December 2020.

Here is a scenario that might help you understand.

Mr Tan's profile:

He is currently serving his education loan with OCBC Bank but would like to defer his monthly instalments to a later date.

Scenario
Scenario
Scenario
Interest Calculation

Opting to defer repayment will result in higher interest paid on the loan. Interest is charged on the principal loan amount during the deferment period.

Interest calculation
Interest calculation
Interest calculation

Monthly interest

For the month of June 2020

S$30,000

Principal amount as at 1 June 2020

×

4.5% (monthly rest rate) per year

×

30 days out of 365 days

Number of days in June 2020 divided by the number of days in a year

=

S$111

(rounded off to nearest dollar)

Monthly interest

Total interest

From 1 June 2020 to 3 January 2021

S$30,000

Principal amount as at 1 June 2020

×

4.5% (monthly rest rate) per year

×

217 days out of 365 days

Number of days from 1 June 2020 to 3 January 2021 divided by the number of days in a year

=

S$803

(rounded off to nearest dollar)

Total interest

HOW TO APPLY

Fill out form

Step 1

Fill out form

Complete all fields in the Defer Repayment of Education Loan Form

Wait for approval

Step 2

Wait for approval

The processing time for the application will take up to 5 working days.

Receive notification

Step 3

Receive notification

You will receive an email advising the start date of the deferment, information on the monthly repayment amounts and the total interest accumulated during this deferment period.