Anonymous
I can afford to pay for my University tuition fees fully. Does it make sense to still take up a bank loan to earn extra interest?
Was thinking to take up a study bank loan and use the money to put it in a high interest Fixed Deposit account and earn the interest then repay the loan fully before I graduate? It'll still be interest free and I'll get to earn additional interest from the loan amount.
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Gabriel
19 Nov 2018
Undergraduate at National University of Singapore
Here's a similar question answered previously, check out what others have shared - https://seedly.sg/questions/i-can-afford-to-pay...
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Jonathan Chia Guangrong
19 Nov 2018
SOC at Local FI
Will you be able to invest your own funds to achieve a better yield as compared to the interest rate of the loan? If yes then consider taking up the loan.
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No, dont take a loan unnecessarily. Why pay the interests cost. Typical private uni u only need to pay term by term. So u will not need to come out with the full lump sum at the onset.
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Let say it cost $35k for the entire uni fees. And if you take a loan, the interest rate is about 5%....
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You might want to consider dragging the repayment as long as you can as a 4.75% 'loan' is quite cheap, for retail (not hard to get returns above that) - speaking from my own experience