Home Article Where To Apply For A Student Loan In South Africa-Check Here!

Where To Apply For A Student Loan In South Africa-Check Here!

Many households in South Africa cannot afford the cost of sending a student to university but do not qualify for government bursaries. Student loans aim to plug this gap and ensure students can attend university and start paying its costs when they start working.

A student loan is a type of financial assistance provided to students by credit providers which allows students to pay for the costs associated with their studies. Students are then only expected to only repay their student loans once they’ve finished their studies.

The main benefit of a student loan is that it allows the students to pay all the costs associated with their studies and begin repaying the loan when they start working.

Students may need to nominate a surety to pay interest on the student loan while they are studying. The monthly interest payments are just a percentage of what the student/parent would have been required to pay if they were paying for the course without financial assistance.

Here’s Where To Apply For A Student Loan In South Africa

  1. Fundi

Fundi offers “Educational loans” or “study loans” that enable students to attend university and not worry about the costs until they obtain their qualifications.

They offer comprehensive loans that cover all costs associated with studying. In addition, they also offer loans for specific costs. This includes loans for education tools, loans for study devices, and accommodation loans.

Visit the Fundi website for more information. You can also request a callback where a Fundi staff member will tell you everything you need to know about Fundi student loans.

  1. Nedbank

Nedbank offers student loans with competitive interest repayment rates, ensuring that individuals can obtain their tertiary education qualifications and achieve their academic goals.

The Nedbank student loan covers tuition fees, books, stationary, housing expenses, and other additional costs associated with tertiary education.

Part-time students are required to start repaying their Nedbank student loan amount and interest at the beginning of the academic year.

Full-time students are required to nominate a surety to make monthly payments on the interest of the loan. The student will start repaying the loan amount and interest once they’ve completed their studies and secured employment.

  1. Standard Bank

Standard Bank offers student loans that allow individuals to finance full or part-time studies. They can choose to take a student loan to pay for just their tuition fees or a more comprehensive loan that may include money for accommodation and study equipment.

Part-time students are required to pay the loan while they study.

Full-time students will only be required to start repaying their student loans once they completed their studies. They are also granted a grace period of six months after completing their studies before taking over the loan repayments.

  1. Absa

Absa bank offers student loans called study loans for students to finance full or part-time courses.

Students must borrow a minimum of R15,000 to pay for their tuition fees. They can also choose to borrow a higher amount to cover most of the expenses they may accrue while they are studying.

The loan applicant will be required to nominate a surety in whose name the loan will be. This surety can be a parent/sponsor/guardian who has proof of income. Part-time students who are employed on a full-time basis and have proof of income can also apply for an Absa student loan.

This amount of interest you or your surety will pay on an Absa study loan will be based on your credit risk profile and you may be required to pay higher interest rates than the prime lending rate based on your risk profile.

  1. Capitec

Capitec offers a Credit-for-education system. While this is similar to other student loan options in South Africa, this loan option caters specifically to students who study at a set list of institutions that have partnered with the bank.

Each institution has its own process through which students can apply, but they all direct the student to a page where they can get an estimate for their loan to determine if the student qualifies.

  1. FNB

FNB bank offers student loans by which students will enjoy a personalised interest rate and an interest-only repayment, for a 12-month period. This personal interest rate starts from the prime lending of less than 0.5% and up to R300 000 to fund their tertiary education journey.

Choosing to take a student loan could have an impact on your personal finances long after you complete your studies. It is therefore crucial to do extensive research to determine which student loan option is best for you.

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