Banks Offering Student Loans in SA
There are several banks offering student loans in SA. These loans aim to ease the financial stress on students while allowing them to focus on their education. They are competitive loans with flexible repayment options. Many of these banks typically allow repayment to continue even after graduation. In this article, we explore these banks in South Africa offering student loans and highlight their application methods.
Banks Offering Student Loans in SA
1. Nedbank
Designed for students running part-time or full time programmes. This loan covers tuition fees, textbooks, and other school-related fees. For part-time students, repayments begin immediately and consist of the loan amount plus monthly interest. If you are a full-time student or currently engaged in an internship or articles, your guarantor will only need to pay the monthly interest on your loan. You can begin repaying the principal amount once you have completed your studies.
Features:
- Pay while you study or settle your loan when you are done
- Enjoy preferential interest rates that are linked to your academic performance
- For your added financial security you can take out credit life insurance on your student loan
- Our loans are suitable for both full-time and part-time students
Requirements:
- Your latest exam results
- For first-year applications, a matric certificate. If you’re already a student, your previous college or university exam results
- A statement of tuition fees, textbooks, equipment and accommodation
- Proof of registration at an institution that is approved by the South African Qualifications Authority
- A Nedbank bank account, which we will help you open when your loan is approved
- Yours and your guarantor’s valid South African ID card or document
- A valid passport of either of you if you are not South African citizens
- The guarantor’s latest payslip or 3 months’ stamped bank statements
- A Nedbank transactional account belonging to your guarantor as their main account.
How To Apply:
- Visit Nedbank student loan portal
- Download and fill the loan application form. Send it back or take it to a Nedbank branch near you
- Upon submission, your application and documents will undergo review
- Upon approval, you will receive the loan amount in your accout.
2. Capitec Bank
Capitec provides loans of up to R500,000 for students across all educational levels, including primary school, high school, university, Technical Vocational Education and Training (TVET) colleges as well as online courses.
Features:
- Cover tuition fees and other expenses (textbooks, etc., as long as they appear on the invoice from the institution you must pay)
- Capitec Bank pays the institution on your behalf
- Get up to R500,000 revolving credit
- Up to 84 months to repay
- An interest rate from prime
- Only pay for what you use
How To Apply:
- Visit Capitec Bank student loan portal or a branch close to you
- Supply your personal information
- Provide details of your educational needs
- Confirm your identity
3. Absa
Absa student loan is available to full-time or part-time students of any the following South African institutions:
- University, university of technology, agricultural college, technical vocational education and training college (TVET)
- Any private study institution registered at a Sector Education and Training Authority (SETA) and accredited by the South African Qualifications Authority (SAQA)
- Online study courses accredited by the United States Department of Education or the UK Government of Higher Education Quality Assurance Agency (QAA). The borrower is required to be based in South Africa.
- Aviation training from an approved training organisation (ATO) which has been approved by SA Civil Aviation Authority (SACAA).
Requirements:
- A valid South African ID document or Smart card
- Proof of residential address such as a municipal or rates bill
- Your last three months’ payslips or bank statements
- Proof of study in the form of a final letter of acceptance or proof of registration
- Proof of course costs for the year of study (invoices/statements); for
- Tuition fees
- Accommodation for full-time students not living with parents or relatives
- Text books
- Study-related technological devices
- For second and subsequent years of study, proof of the previous years’ academic results to ensure student is permitted to continue studies.
How To Apply:
- Visit any Absa branch; or
- Absa Student bureau; or
- Call us on 0860 100 372.
4. Standard Bank
Features:
- Study abroad at any SAQA approved institution
- Get an instant online quote before finalising your student loan application
- Insure your student loan in case of death, disability or dread disease
- Finance your studies with an affordable interest rate of 11.75% (T&Cs apply)
Requirements:
- Full-time students:
- Someone to co-sign your student loan as guarantor/surety
- Your guarantor/surety is responsible for servicing the interest and fees while you study, or if you default on your repayments
- You and your guarantor/surety must be present at the branch to sign for your student financing
- There can only be one guarantor/surety on a student loan and he/she must earn at least R3,000 per month
- You get a grace period of 6 months after completing your studies before taking over the loan repayments
- Your guarantor/surety, however, will continue to pay the interest and fees until you are able to take full responsibility
- Part-time students:
- You must earn a minimum income of R5,000 per month to qualify
- You will be required to pay the loan while you study
Documents Required:
- Course-related documents
- Registration letter from Institution. Should client require registration funds, an acceptance letter will be required, however, full funds will only be paid out once registration letter is in place.
- Proof of costs for tuition, accommodation and textbooks and/or equipment
- Latest academic results
- If you are in matric, we require your final National Senior Certificate results
- Personal (FICA) documents
- ID documents (student & guarantor/surety)
- Proof of residence not older than 3 months (student & guarantor/surety)
- 3 months’ payslips (guarantor/surety)
- 3 months’ bank statements for non-Standard Bank clients (guarantor/surety)
How To Apply:
- Visit Standard Bank student loan portal
- Get an online quote by completing the form after clicking on Do I Qualify?
- Upon pre-approval, get documents ready
- Visit any branch to get assistance for the final stage of application
5. FNB
This loan is applied for by a principal debtor (parent or sponor) on behalf of the student
Features/Benefits:
- Personalised interest rate: Get a tailored interest rate
- Up to R360,000 to help fund your studies
- Flexible payment options: Pay only interest and fees for a 12 month period and then start repaying interest, fees, charges and capital thereafter
- Credit life insurance: Credit life insurance is compulsory for the student loan, this is essential to cover the student and principal debtor in the event of death, temporary and permanent disability.
Requirements:
- Have a minimum income of R3000 deposited into your account
- Be permanently employed or self- employed
- The applicant and student must have a South African ID
- The student must be registered with a recognised tertiary institution
- For an FNB customer
- Proof of enrolment from the educational institution / proof of registration
- Student ID
- For a non-FNB customer
- South African green bar-coded ID or smart ID card
- Latest 3 months’ payslip or 3 months’ bank statement (latest 6 months’ bank statements and ITA34 for self-employed customers)
- Proof of residence not older than 3 months
- Proof of enrolment from the educational institution / proof of registration
- Student ID
How To Apply:
- Visit FNB student loan website
- Click on Apply Now and supply necessary information
- You can also apply via:
- FNB Banking App
- Contact your private advisor
- Contact us on 087 730 5596 (Helpdesk)
- Call Centre – 087 736 4800
These banks offering student loans in SA most often have a student bureau in institutions. It is advisable to visit their offices for further assistance.
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