You’ve just finished your Grade 12 exams, driven and hopeful; you’re thinking — What’s next? As a student, pursuing higher education is only a natural progression in the circle of life. The last thing you should stress about is funding your higher education.

If you’re in need of funding, applying for a student loan can be your way out. In this article, we will guide you on how to apply for a student loan in Cambodia. Not sure if a student loan is right for you? Read on to see if a student loan is worth investing in.

First — The Paperwork and Requirements<h/4>

Let’s discuss the basics. Before you apply, you should determine if you have met these requirements. In general, most banks or financing institutions in Cambodia would require applicants to:

1. Be a Cambodian citizen or permanent resident
2. Have a clean profile without crime history
3. Have a good academic standing
4. Complete high school education

Next, here are some documents that you might need to submit:

1. Completed application
2. Proof of address
3. Student confirmation letter from the institute or university and student transcript as required
4. Receipt or letter confirmation of school fee from the institute or university to the bank

Of course, the requirements and documents needed may vary from institution to institution so be sure to do your homework before you apply.

Be Clear on What You're Signing Up For<h/4>

While enquiring for a student loan, be sure to take note of the loan’s terms and conditions, repayment requirements, and other loan-related matters. Don’t be afraid to ask the following questions:

1. How much are the interest rates and are they fixed or variable?
2. How much are your monthly repayments and are there exclusive repayment programs?
3. Are there possibilities to get a lower interest rate?
4. What other extra fees do you have to pay?

By being aware of the above, you will be able to manage your financial planning accordingly. The formula is simple — know the right amount to sign up for, what you’re signing up for and how to handle your payments. Once you have weighed the pros and cons of a student loan, and you’re confident on the repayments, go ahead and sign on that dotted line.

Bonus Tips:

1. Try to avoid applying for a huge amount as interest rates are higher for larger loans.
2. Do not sign any document without thoroughly reading every clause and understanding it.

The Features of Student Loans in Cambodia<h/4>

In Cambodia, the general features of student loan are as follows:

Loan Amount

from $600 up to a maximum of $100,000, or some institutions will match the amount to your tuition fees

Loan Period

12 months up to 7 years, may be flexible for some institutions depending on loan agreement

Interest Rate

from 0.79% or can be dictated based on the applicant’s academic standing and level of degree

Payment Schedule Types:

1. Starts after a month of amount disbursement
2. Pay after your studies is complete
3. Pay interest now and principal amount after studies
4. Pay immediately to adjust interest and principal amount
5. Pay monthly instalments upon approval
6. Some institutions may also allow flexible repayment terms

Should You Take the Loan? Measure the Return on Investment.<h/4>

A key aspect to think about is the return of investment (ROI) on your loan. While opting for a student loan will lead to the prospect of a better education, a better career and ultimately a better future, you should carefully weigh your options before committing to one.

As long as you are confident that the return on your investment will exceed the repayments to be made on the student loan, then a student loan is ideal. Learn to practice good financial planning to avoid falling into a debt trap.

Bonus tip!

Make full use of your first student loan to start building a healthy credit score by paying your loans on time.