What is the repayment period and when do I start to pay?
The repayment of the loan can be made in one lump sum payment or by monthly instalments commencing 6 months after graduation or on graduate securing employment, whichever is earlier. Students who are required to perform National Service are however allowed to commence repayment of the loan 2 months after ORD.
The maximum repayment period in respect of the loans under the 2-tier loan system is:
Tier 1 (interest-free): 2 years
*Tier 2 (with interest): 5 years
The minimum monthly instalment payment is $100. Penalty interest will be charged at the rate of 1% per month on instalments in arrears.
If a student leaves the Polytechnic without completing the course of study, the loan amount will immediately become due and payable. He may repay the outstanding sum by monthly instalments on such terms and conditions as the Polytechnic may, on a case-by-case basis, determine.
The repayment of instalment amounts shall be made through Interbank GIRO.