Government education loan interest rates | OCBC Singapore

GOVERNMENT EDUCATION LOAN INTEREST RATES

Plan and manage your education loan with revised interest rates

What you need to know:

Revised interest rates apply to all new applications for MOE-funded loans (Tuition Fee Loans, Study Loans and Overseas Student Programme Loans) from 1 April 2024

Rates are adjusted twice a year, on 1 April and 1 October

 

View the current and historical interest rates based on SORAFind out more

Learn how the revised interest rates may affect your education loans.

Borrowers with loan agreements signed on or after April 2024

If you signed your government education loan agreement (i.e. Tuition Fee Loan, Study Loan or Overseas Student Programme Loan) on or after 1 April 2024, the revised interest rates will apply to you.

The interest rates are revised on a half-yearly basis based on the 3-month compounded SORA (3M SORA)1 published on the Monetary Authority of Singapore’s (MAS) website on 1 March (for the period of 1 April to 30 September) and 1 September (for the period of 1 October to 31 March of the following calendar year)2.

View the current and historical interest rates based on SORA.

Here are the prevailing rates that apply:

  • Standard interest rate
  • Late payment interest rate
Effective from Standard interest rate Late payment interest rate
1 October 2025 to 31 March 2026 3.0% per annum 0.505% a month

Here is how they were calculated:

  • Standard interest rate3: The applicable 3M SORA rate plus 1.5 percentage points (or such other rate as may be determined from time to time by the Bank).
  • Late payment interest rate charged on overdue and unpaid loans/loan instalments: The applicable 3M SORA rate plus 4.5 percentage points, starting on the date that payments fall into arrears and ending on the date that payments are fully repaid (or such other rate as may be determined from time to time by the Bank).

1 SORA is the volume-weighted average rate of borrowing transactions in the unsecured overnight interbank SGD cash market in Singapore between 8am and 6.15pm. The 3-month compounded SORA is the rolling compounded average of daily SORA over the past respective period.

2 For example, if 1 March or 1 September falls on a weekend and/or a public holiday when the 3M SORA rates are not published by MAS, we will take the 3M SORA published on the MAS website on the last preceding working day in Singapore. For example, if 1 September is a Saturday, we will take the 3M SORA published on MAS website on 31 August.

3 The standard interest rate does not apply to the interest-free MOE Study Loan.

Borrowers with loan agreements signed before 1 April 2024

If you signed your government education loan agreement (i.e. Tuition Fee Loan, Study Loan or Overseas Student Programme Loan) before 1 April 2024, will retain the interest rate basis stipulated in your existing loan agreement – i.e. prime lending rates for the standard interest charged on your loan, and late payment interest of 12% per annum (1% a month) for any late payment made for your loan – until 31 March 2027.

  • Standard interest rate
  • Late payment interest rate
Effective from Standard interest rate Late payment interest rate
Now till 31 March 2027 4.75% per annum 1% a month

From 1 April 2027, the revised interest rates based on SORA will apply to both the standard interest and late payment interest on your outstanding loan.

You may use the time till then to plan ahead, including to make adjustments to your repayment plan if needed.

If you signed an interest-free MOE Study Loan before 1 April 2024, your Study Loan will continue to be interest-free during the maximum repayment period (i.e. you will not need to pay standard interest at a SORA-based rate from 1 April 2027). The late payment interest charged for any late payment on your loan – 12% per annum, as stipulated in your existing loan agreement – will apply until 31 March 2027.

REVISED INTEREST RATES

Here are the revised, SORA-based interest rates from 1 April 2024.

Effective date
1 April to 30 September 2024
1 October 2024 to 31 March 2025
1 April 2025 to 30 September 2025
1 October 2025 to 31 March 2026
Standard interest rate
5.1% per annum
5.0% per annum
4.2% per annum
3.0% per annum
Late payment interest rate
0.675% a month
0.666% a month
0.666% a month
0.505% a month

View the list in PDF format

FAQs
Common questions
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What does it mean for the basis for government education loan interest rates to be revised?

The Ministry of Education is revising the basis for standard and late payment interest on government loan schemes for:

  • Tuition Fee Loan
  • Study Loan
  • Overseas Student Programme Loan

If you signed your government student loan agreement on and after 1 April 2024, the revised interest rates based on Singapore Overnight Rate Average (SORA) will apply to you.

The interest rates will be revised on a half-yearly basis (every 1 April and 1 October) based on the 3-month compounded SORA (3M SORA)1 published on the Monetary Authority of Singapore’s (MAS) website2 on 1 March (for the period of 1 April to 30 September) and 1 September (for the period of 1 October to 31 March of the following calendar year)2:

  • Standard interest rate3: The applicable 3M SORA rate plus 1.5 percentage points (or such other rate as may be determined from time to time by the Bank).
  • Late payment interest rate charged on overdue and unpaid loans/loan instalments: The applicable 3M SORA rate plus 4.5 percentage points, starting on the date that payments fall into arrears and ending on the date that payments are fully repaid (or such other rate as may be determined from time to time by the Bank).

1 SORA is the volume-weighted average rate of borrowing transactions in the unsecured overnight interbank SGD cash market in Singapore between 8am and 6.15pm. The 3-month compounded SORA is the rolling compounded average of daily SORA over the past respective period.

2 For example, if 1 March or 1 September falls on a weekend and/or a public holiday when the 3M SORA rates are not published by MAS, we will take the 3M SORA published on the MAS website on the last preceding working day in Singapore. For example, if 1 September is a Saturday, we will take the 3M SORA published on MAS website on 31 August.

3 The standard interest rate does not apply to the interest-free MOE Study Loan.

If I applied for a government loan scheme on or after 1 April 2024, what are the rates that will apply to me?

If you signed your loan agreement on or after 1 April 2024, these revised rates based on Singapore Overnight Rate Average (SORA) will apply:

  • Standard interest rate1: The applicable 3M SORA rate plus 1.5 percentage points (or such other rate as may be determined from time to time by the Bank).
  • Late payment interest rate charged on overdue and unpaid loans/loan instalments: The applicable 3M SORA rate plus 4.5 percentage points, starting on the date that payments fall into arrears and ending on the date that payments are fully repaid (or such other rate as may be determined from time to time by the Bank).

The interest rates will be revised on a half-yearly basis every 1 April and 1 October.

For updates on the half-yearly interest rates, go to go.ocbc.com/moeloanrates

1 If you are on the interest-free Study Loan, your loan will continue to be interest-free during the maximum repayment period (i.e. you will not need to pay interest at a SORA-based rate from 1 April 2027). The late payment interest will be 3M SORA plus 4.5 percentage points.

If I applied for a government loan scheme before 1 April 2024, what are the rates that will apply to me?

If you signed your Government education loan (i.e. Tuition Fee Loan, Study Loan or Overseas Student Programme Loan) before 1 April 2024, will retain the interest rate basis stipulated in your existing loan agreement – i.e. prime lending rates for the standard interest charged on your loan, and late payment interest of 12% per annum for any late payment made for your loan – until 31 March 2027.

From 1 April 2027, the revised interest rates based on SORA will apply to both the standard interest and late payment interest on your outstanding loan.

You may use the time till then to plan ahead, including to make adjustments to your repayment plan if needed.

If you signed an interest-free MOE Study Loan before 1 April 2024, your Study Loan will continue to be interest-free during the maximum repayment period (i.e. you will not need to pay standard interest at a SORA-based rate from 1 April 2027). The late payment interest charged for any late payment on your loan - 12% per annum, as stipulated in your existing loan agreement - will apply until 31 March 2027. On 1 April 2027, the late payment interest will be adjusted to 3M SORA plus 4.5 percentage points.

Will I be notified when the interest rates change every 1 April and 1 October?

As we will not separately inform you of the half-yearly revisions to the interest rates, please check the rates every 1 April and 1 October at go.ocbc.com/moeloanrates.

Where can I find the revised or existing interest rates?

Please visit go.ocbc.com/moeloanrates.

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  5. I agree to pay OCBC Bank the prevailing card design fee for any card design selected by me whenever I apply for or replace any card and this includes any similar card designs previously selected and paid by me. I agree that the card design fee may be paid by debiting any of my accounts with OCBC Bank or other means as the Bank may agree.
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