Mendaki Study Loan: Complete Guide in Simple Language

If you are a Muslim student in Singapore and money is a big worry for your studies, the Mendaki Study Loan can be a very helpful support. It is an interest-free loan for students who need financial help to study full-time at local private institutions.

In this blog, we will explain:

What the Mendaki Study Loan is
Who can apply
How much loan you can get
Who can be a guarantor
How to apply step by step
How repayment works (with example and calculations)
Common questions students have

Everything is written in easy language, so you can understand clearly.

What is the Mendaki Study Loan?

The Mendaki Study Loan (Full Time Local Private) is a study loan for Muslim students in Singapore. Its main purpose is:

To support Muslim students who need financial help
To help them complete a full-time diploma or degree course
To give interest-free financial assistance for their education

This means:

You borrow money now for your studies
You repay later, but no extra interest is added

This is very helpful because normal bank loans usually charge interest, which makes you pay more than what you borrowed.

Who Can Apply for Mendaki Study Loan?

To apply, you must meet some eligibility conditions. Here they are in simple points:

Religion & Status
- You must be a Muslim
- And you must be a Singapore Citizen or Singapore Permanent Resident
Course Type
- You must be studying a full-time diploma or degree course
- Part-time courses are not covered under this scheme
Institution Requirements
- Your school must be a local private institution
- The institution must have EduTrust or EduTrust Star certification
- This is to ensure the school is properly recognised and maintains good standards
Admission
- You must already have an unconditional admission offer for your course
- This means you are officially accepted, not just “conditional” on exam results
Guarantors
- You must provide 2 guarantors who meet Mendaki’s requirements
- We will explain guarantor rules in detail later

If you match all the above points, you are likely eligible to apply.

Important Dates: Application Periods

For a given year, there are usually three application periods. For example (based on 2025):

13 January – 28 February
1 April – 31 July
1 September – 31 October

These dates may change each year, but the pattern is:
👉 There are multiple windows in a year, so if you miss one, you can try for the next.

So, students should:

Check the latest dates before applying
Prepare documents early so they don’t miss the deadlines

How Much Loan Can You Get?

The loan amount depends on your Per Capita Income (PCI) and is given yearly.

What is Per Capita Income (PCI)?

PCI means the average income per person in your household.

The formula is:

PCI = Total monthly gross household income ÷ Number of people in the household

Gross income means income before CPF deduction
Household means people living together and sharing expenses (usually parents, siblings, etc.)

PCI and Loan Amount

For local private institutions, the yearly loan amount is roughly:

If PCI > $750 → You can get up to $5,000 per year
If PCI ≤ $750 → You can get up to $8,000 per year

The loan can be given for the whole course, up to 4 years, but the final decision is made by the Loans Committee based on:

Your financial situation
The course you choose
Your institution’s status
Other criteria

Example 1: PCI Calculation

Suppose:

Your father earns: $2,800/month
Your mother earns: $1,200/month
You have one younger sibling (no income)
Total household members = 4

Step 1: Calculate total household income

Total income = $2,800 + $1,200 = $4,000

Step 2: Calculate PCI

PCI = $4,000 ÷ 4 = $1,000

Here, PCI = $1,000, which is more than $750.

So you fall into the category: PCI > $750 → up to $5,000/year.

Example 2: Lower PCI

Suppose:

Father: $1,200/month
Mother: $800/month
3 children (including you), all studying, no income
Total household members = 5

Total income = $1,200 + $800 = $2,000
PCI = $2,000 ÷ 5 = $400

Here, PCI = $400, which is ≤ $750.

So you may be eligible for up to $8,000/year loan amount.

Guarantor Requirements

A guarantor is a person who promises to repay the loan if the student cannot. Mendaki needs two guarantors, and they must meet specific conditions.

Basic Requirements for Each Guarantor

Must be a Singapore Citizen
Must be living in Singapore
Age between 21 and 55 years
Must have basic monthly income of at least $2,000
Must not be an undischarged bankrupt
Must not be:
- An existing Mendaki loan holder, or
- A guarantor for another Mendaki loan

Household Rules for Guarantors

Only one guarantor can be from the same household as the student
The first and second guarantor must not be from the same household
So usually:
- 1 guarantor can be a parent or relative staying with you
- The other guarantor must be someone living elsewhere (for example, an uncle, aunt, or family friend)

Documents Needed From Guarantors

Copy of NRIC
Recent income slip
If self-employed: latest IRAS form or CPF statement

Also, the Loans Committee has the final say on whether your guarantors are acceptable.

What Happens After You Get a Loan Offer?

If your application is successful:

You will receive an email informing you that your loan is approved.
You and your two guarantors must electronically sign the loan agreement within one week from the date of agreement.
If anyone fails to sign within the deadline:
- The conditional approval is cancelled
- You may need to submit a new application

Conditions You Must Follow

According to the agreement, the loan holder (you) must:

Pass all subjects taken during your course
Not change the agreed study period
Not change the course of study
Not withdraw or be terminated from the course
Not defer your studies without valid reason

If you break any of these conditions:

It is seen as a breach of the loan agreement, and
You may have to repay the full loan amount immediately

How is the Loan Disbursed?

The loan is typically disbursed yearly.
You must upload:
- A copy of your exam results and
- Bank statement

into the online portal at the end of each academic year, so that Mendaki can confirm you are progressing to the next year.

How to Repay the Mendaki Study Loan?

Repayment starts soon after you receive the loan.

Repayment Schedule (General Structure)

Start of Repayment
- Repayment begins 1 month after the first loan disbursement
- Initial repayment amount: $50 per month
After Course Completion
- 6 months after completing your course, the monthly amount will increase:
  - Diploma level: $100 per month
  - Normal degree: $250 per month
  - Medicine course: $500 per month
Annual Increment
- There will be an annual increase of $100 in the monthly repayment.
- This helps to clear the loan faster as your income is expected to grow over time.

Example 1: Simple Repayment Calculation (Diploma Student)

Let’s say:

You take a diploma and receive a total loan of $12,000 over your course.
You start repayment 1 month after the first disbursement.

Year 1 (During Study Period)

Monthly repayment: $50
One year = 12 months
Amount repaid in Year 1 = 12 × $50 = $600

After Course Completion

6 months after finishing your diploma:

Monthly repayment becomes: $100

Suppose you continue with this structure, and every year, the monthly amount increases by $100.

Year 2: $100 per month
- Annual repayment: 12 × $100 = $1,200
Year 3: $200 per month
- Annual repayment: 12 × $200 = $2,400
Year 4: $300 per month
- Annual repayment: 12 × $300 = $3,600

Now let’s add:

Amount repaid in Year 1: $600
Year 2: $1,200
Year 3: $2,400
Year 4: $3,600

Total after 4 years = $600 + $1,200 + $2,400 + $3,600 = $7,800

If your total loan is $12,000, remaining amount = $12,000 − $7,800 = $4,200.

In the next years, as monthly repayment keeps increasing by $100 each year, you will clear the remaining balance faster, especially once you are working and earning more.

Note: This is a simple example to help you understand the structure, not an exact official schedule.

Example 2: Degree Student Repayment

If you are a degree student with a larger loan, say $20,000, the repayment pattern may look like:

Start: $50/month
Later: $250/month after 6 months of course completion
Then yearly increments of $100: $350, $450, etc.

Even though the monthly amount looks big later, you will likely be working by then and have a stable income. The idea is:

Smaller payments while you are studying
Bigger payments when you start earning more

This makes the loan easier and fairer on the student.

How to Apply for Mendaki Study Loan (Step-by-Step)

Here’s a simple step-by-step process:

Check Eligibility
- Make sure you meet all requirements: religion, citizenship/PR, full-time course, EduTrust school, guarantors.
Confirm Application Period
- Look at the current year’s application windows.
- Choose the window that matches your school’s start date.
Prepare Documents
- Your NRIC
- Your admission letter from the institution
- Proof of household income (e.g., payslips, CPF statements)
- Details and documents of two guarantors
Register / Log In to Online Portal
- Go to the official education assistance portal (MyMENDAKI-type portal).
- Create an account or log in.
Fill in Application Form
- Enter your personal details, course information, and family income details
- Add guarantor information
Upload Documents
- Upload all required documents in the correct format and size.
Submit Application
- Check everything carefully.
- Submit your form before the closing date.
Wait for Processing
- Processing can take up to several weeks from the time of complete submission.
- Check your email regularly for updates or requests for more information.
Loan Approval & Agreement
- If approved, sign the loan agreement electronically along with your guarantors within one week.

Tips for Students and Families

Start early: Don’t wait till the last day of the application period.
Discuss with potential guarantors early so they have time to prepare documents.
Keep copies of all documents and emails related to your application.
Understand your responsibilities: Remember, it is still a loan, so plan how you will repay.
Study seriously: Failing or dropping out can make repayment harder and may require immediate repayment.

Frequently Asked Questions (FAQ)

Q1: Is the Mendaki Study Loan interest-free?
Yes. The loan is interest-free, which means you repay only the amount you borrowed, not extra interest.

Q2: Can I apply if my school is not EduTrust certified?
No. Your institution must have EduTrust or EduTrust Star status for you to qualify under this scheme.

Q3: What if I fail a subject?
You are expected to pass all subjects. If you fail repeatedly or withdraw, it may be treated as a breach of agreement, and you might have to repay immediately. Always inform the organisation if you face serious issues.

Q4: Can both guarantors be from my family?
They can be from your family, but they cannot be from the same household. Only one guarantor can live in the same home as you.

Q5: How long will my application take?
Processing can take several weeks after you submit a complete application. Incomplete forms or missing guarantor acceptance will delay or stop the process.

Final Thoughts

The Mendaki Study Loan is a powerful support system for Muslim students in Singapore who want to pursue higher education at local private institutions but face financial challenges. Because it is interest-free, it reduces the total burden on students and their families.

If you plan properly, choose the right guarantors, and keep your study performance strong, this loan can help you focus on your education without constant stress about money.

Use this guide as a starting point to understand the scheme, calculate your possible loan amount, and prepare your application with confidence.