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GOVERNMENT STUDENT LOAN INTEREST RATES BY MOE

If you have signed your government student loan agreement on and after 1 April 2024, the revised interest rates based on SORA will apply to you. The interest rates will be revised on a half-yearly basis every 1 April and 1 October of the year.

Find out more below.

GOVERNMENT STUDENT LOAN INTEREST RATES

WHAT YOU NEED TO KNOW

  • BORROWERS WITH LOAN AGREEMENTS ON AND AFTER 1 APRIL 2024

    If you have signed your government student loan agreement on and after 1 April 2024, the revised interest rates based on SORA will apply to you.

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

    View the current and historical interest rates based on SORA.

    Effective Date Standard Interest Rate Late payment interest rate per month
    1 October 2024 to 31 March 2025 5.0% per annum 0.666% per month

    The interest rates will be revised on a half-yearly basis based on the 3-month compounded SORA (3M SORA)1 published on the Monetary Authority of Singapore (MAS) website on 1 March 2024 (for the period 1 April to 30 September 2024) or 1 September 2024 (for the period 1 October to 31 March 2024 of the following calendar year)2.

    The following interest rates will be applicable to all new Government education loan (i.e. Tuition Fee Loan, Study Loan, Overseas Student Programme Loan) agreements signed on and after 1 April 2024:

    • The standard interest rate3 will be 3-month compounded Singapore Overnight Rate Average (3M SORA) plus 1.5 percentage points or such other rates as may be determined from time to time by the bank
    • The late payment interest for overdue and unpaid loans/loan instalment will be 3M SORA plus 4.5 percentage points or such other rates 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.

    2If 1 March 2024 or 1 September 2024 falls on a weekend and/or 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 business day in Singapore. For example, if 1 September 2024 is a Saturday, we will take the 3M SORA published on the MAS website on 31 August.

    3The standard interest rate is not applicable to interest-free Study Loan.

  • BORROWERS WITH LOAN AGREEMENTS BEFORE 1 APRIL 2024

    If you signed your loan agreements before 1 April 2024, you will be retained on the interest rate basis of the prime lending rates for standard interest of interest-bearing loans and incur late payment interest of 12% per annum for any late payment on your loan(s), as stipulated in your existing loan agreements, until 31 March 2027.

    Effective Date Standard Interest Rate Late payment interest rate per month
    Current 4.75% per annum 1% per month

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

    You may use the transition period for financial planning or to make adjustments to your repayment plan.

    If you have an interest-free 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.

HISTORICAL RATES

REVISED INTEREST RATES BASED ON SORA FROM 1 APRIL 2024 ONWARDS

Effective date Standard Interest Rate Late Interest Rate
1 April – 30 September 2024 5.1% per annum 0.675% per month
1 October 2024 to 31 March 2025 5.0% per annum 0.666% per month
  • What is the revised basis for loan interest rate for government loan schemes?

    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 have 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 half-yearly interest rates every 1 April and 1 October as follows:

    • The standard interest rate1 will be 3-month compounded Singapore Overnight Rate Average (3M SORA) plus 1.5 percentage points or such other rates as may be determined from time to time by the bank.
    • The late payment interest for overdue and unpaid loans/loan instalment will be 3M SORA plus 4.5 percentage points or such other rates as may be determined from time to time by the bank.

    The interest rates will be revised on a half-yearly basis based on the 3M SORA2 published on the Monetary Authority of Singapore’s (MAS) website3 on 1 March (for the period 1 April to 30 September) or 1 September (for the period 1 October to 31 March of the following calendar year)4.

    1The standard interest rate is not applicable to interest-free Study Loan.

    2SORA 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.

    3https://eservices.mas.gov.sg/statistics/dir/DomesticInterestRates.aspx

    4If 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 business day in Singapore. For example, if 1 September is a Saturday, we will take the 3M SORA published on MAS website on 31 August.

  • If I am applying for a government loan scheme on and after 1 Apr 2024, what is the loan interest rate that will apply to me?

    If you have 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 as follows:

    • The standard interest rate will be 3-month compounded Singapore Overnight Rate Average (3M SORA) plus 1.5 percentage points or such other rates as may be determined from time to time by the bank.
    • The late payment interest for overdue and unpaid loans/loan instalment will be 3M SORA plus 4.5 percentage points or such other rates as may be determined from time to time by the bank.

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

    Please refer to our website on updates on the half-yearly interest rates: go.ocbc.com/moeloanrates

    Borrowers who are on the interest-free Study Loan will continue to be interest-free during the maximum repayment period for the loan and not change to the revised SORA basis. The late payment interest will be 3M SORA plus 4.5 percentage points.

  • If I am an existing borrower for a government loan scheme before 1 Apr 2024, what is the loan interest rate that will apply to me?

    If you signed your loan agreement before 1 April 2024, you will be retained on the interest rate basis of the prime lending rates for standard interest of interest-bearing loans, and late payment interest of 12% per annum for any late payment on your loan(s), as stipulated in your existing loan agreements, 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(s).

    You may use the transition period for financial planning or to make adjustments to your repayment plan.

    If you have an interest-free 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. Thereafter, the late payment interest will be adjusted to 3M SORA plus 4.5 percentage points from 1 April 2027.

  • Will I receive a notification from the bank whenever the interest rate changes half-yearly on 1 Apr and 1 Oct?

    The Bank will not be issuing notifications to update you of the half-yearly changes to the interest rates.

    Please refer to the go.ocbc.com/moeloanrates for updates on half-yearly interest rates every 1 April and 1 October.

  • Where can I find the revised or existing interest rates?

    Please refer to the go.ocbc.com/moeloanrates for updates on half-yearly interest rates every 1 April and 1 October.