Banks That Offer Student Loans In South Africa 2021 And How To Get It

A lot of students are really wondering where they can get money to go back to school due to how things are in the country today. Numerous questions are running through their minds and it seems they can’t find a lasting solution to it. Well, in every situation there is always a way out. So, in this article, you will be given detailed information on how to get student loans in South Africa.

What Is A Student Loan?

A student loan is designed to help students pay for education and its associated fees. This loan differs from other kinds of loans in the sense that the interest rate is relatively lower, and the repayment schedule is much more flexible.

Banks That Offer Student Loans In South Africa

Financial institutions like banks offer study loans. However, before settling on one, you should be conversant about the terms that the financial institution is offering. It would also be prudent to go with the one with favourable interest rates. Being knowledgeable on the repayment plan is also essential.

1. Fundi

Fundi has the following student loan options:

• Study loans (school and tuition fees, registration fees, exam and outstanding fees)
• Study tools (textbooks, technology, study equipment)
• Accommodation (covered during studies)

Details:

• Fixed monthly repayments
• You need four documents to apply and will receive a response within 48-72 hours.
• No deposits
• The study loan is paid directly to the institution
• No limits
• Anyone can apply on your behalf (they need to be fully employed and meet the criteria stated on their website)

FYI: Interest rates and repayments will vary according to the institution and the applicant’s profile.

For more information, you can visit their website.

2. First National Bank

What They Cover?

• Tuition fees
• Books
• Campus Accommodation

Details:

• Personalized interest rate
• Access to loans from R4,000 to R80,000*
• While you study students only pay interest on your loan and can pay the rest after the student has graduated.

FYI: A new application is required each year you start studying.

For more information, you can visit their website.

3. National Student Financial Aid Scheme (NSFAS)

NSFAS is the biggest loan issuer in SA, and they’ll help you through every step of the process too, which is helpful. For anyone with very little household income, the NSFAS is the best place to turn to fund your studies, as they are willing to work with you even if you don’t have a parent with an income to stand surety for your loan.

For more information, you can visit their website.

4. Standard Bank South Africa

If you are a part-time or full-time student, you will also get the Standard Bank transaction account that best suits your needs when your Student Loan is approved.

What They Cover?

You can use the money from your Student Loan to pay for your tuition fees and accommodation (if you are a part-time or full-time student not living at home).

Details:

• Tuition and accommodation will be paid directly to the institution and place of residence whilst funds for books will be transferred to the transactional account.
• Student Loans are granted for a specific year of study and you will have to reapply for each year of registration.
• There is a maximum amount granted for each year of study.
• A once-off initiation fee and monthly service fee will be charged on your student loan.

For more information, you can visit their website.

5. ABSA

What They Cover?

• SETA and SAQA courses
• Textbooks
• Accommodation and equipment

Details:

• Earn a monthly income of minimum R3000 per month
• Approved based on their affordability and risk
• Pay the prime interest rate on their study loans
• Customers are offered a 15% discount on study equipment when they apply for a study loan
• The study loan forms part of the Student Package, which includes a student credit card and a cheque account

For more information, you can visit their website.

6. Sanlam Student Loans

Sanlam offers student loans that are tailored to the needs of the student and their parents and guardians. The package has a more flexible repayment plan. As a student, you can only start worrying about repaying it once you are done with your studies. Sanlam study loans have a lower interest rate, unlike personal loan interest rates.

7. Nedbank

Nedbank offers to fund full-time students and interns. For you to be a benefactor, your guarantor should commit to paying the monthly interest on your loan. Once you have completed your studies, you will start repaying your loan, capital and interest. Nedbank offers part-time students access to the loan, although on different terms.

As a part-time student, you will need to service the loan and interest once you commence your studies. Nedbank offers favourable interest rates based on your credit scores. It also provides a life cover in case of death or a disability. The Nedbank study loan covers tuition, accommodation, study-related equipment, and books.

What’s your take on this? We believe this article was helpful, if yes, then don’t hesitate to share this information with your friends on Facebook, Twitter, WhatsApp, and other Social Platforms.