Student loans help thousands of students pursue higher education without putting a financial strain on their families. Loans allow deserving students from all backgrounds to further their education, learn technical skills, and join the workforce.
The government, banks, and private creditors offer student loans in South Africa. These loans help cover tuition fees, accommodation, books, laptops, and more. They allow students to focus on their education without having to worry about immediate expenses.
Continue reading to understand the student loan structure in South Africa, the types of loans available, and the criteria that can help students decide on the best student loans in South Africa.
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Best Student Loans in South Africa: Introduction
An increase in the cost of higher education sometimes requires students to apply for student loans to complete their degree or diploma. These loans are available after a student has completed their matric. Timeline for repayments, interest, and minimum loan amount are some factors that can help determine the best student loans in South Africa.
In South Africa, student loans are usually offered for 12 months, after which the repayment begins. Those enroling in a longer course, such as an undergraduate or postgraduate degree, must reapply for the loan each year until completion of the degree.
Student loans allow students to borrow the amount required for tuition and other expenses while obtaining higher education. They are a financial commitment, and students begin instalment repayments after they have completed their education. The right student loan offers low interest rates, flexible repayment terms, and does not impact your long-term financial goals.
How to Get a Student Loan in South Africa?
When students are in the final year of grade 12 and have secured admission to their dream university, it is time to figure out the funding for the programme. University education is a financial investment that not all can manage. For those, applying for a student loan helps ease the burden of continuing higher education.
This is a general guide that applicants can follow when trying to secure a student loan in South Africa:
- You must be a South African citizen currently studying or has been accepted into an accredited institute
- Then, you must fill out a qualification form online with a private creditor or check against an eligibility list
- Full-time students need to submit a surety, while part-time students need to meet the minimum earning amount.
- Once qualified, submit all required documents to the nearest branch or processing office.
- The creditor will pay the tuition and other expenses directly to the institute and landlord’s account.
First-time student loan applicants must ensure that they check the following to speed up the student loan process.
- Applicant fulfils academic requirements – grades or qualifications
- The course is registered with the Department of Higher Education and Training
- Students have strong credit and no history of loan default
- They have original documents
- They do not submit an incomplete application
Exploring the Different Types of Loans
When it comes to picking the best student loan in South Africa, there are a variety of government and private student loans from which applicants can choose. The best student loan is the one that matches your needs based on interest rates, repayment schedules, and any additional benefits that the lender provides. Some creditors might offer scholarships or discounts on certain loans or payment plans. Make sure to read and understand the terms of the agreement before signing any documents.
A variety of student loans are available to help aid South Africans’ educational journey. These are some types of loans that students can apply for in the country:
- Government-Sponsored Student Loans
- National Student Financial Aid Scheme (NSFAS): This financial support scheme aims to provide a bursary or financial aid to students from low-income families. To be eligible for NSFAS, students must be admitted to a TVET college or university.
- Bank Loans
- Nedbank: This is an excellent choice for both full-time and part-time students as it offers varied repayment options. The creditor also offers preferential rates that are tied to your academic performance at university.
- Standard Bank: The bank offers loans to full-time and part-time students who are accepted at a SAQA-approved institute in South Africa or abroad. Full-time students are offered six months to search for a job and then begin repayment of their student loans.
- ABSA: South African nationals and those residing in South Africa permanently are eligible for student loans from this creditor. ABSA also offer student loans for those pursuing higher education online with a SETA-accredited institute.
- FNB: Students can apply for personalised interest rates on student loans that cover tuition and living expenses while studying.
- Capitec: The bank offers a wide range of student loans in South Africa that can be borrowed to pay for high school, university, online courses, or vocational training at TVET colleges.
- Private Loans
- Fundi: A leading education financing company in South Africa, Fundi offers a wide range of student loans such as device loans, MBA loans, or tuition costs.
Applying for the Best Student Loans in South Africa
When applying for a student loan, it is essential to do your research and compare various loan plans before deciding on one that best fits your needs. Before applying for a student loan in South Africa, ensure you have an acceptance letter from an accredited institute, check your eligibility requirements at your preferred creditor, and submit your application.
When applying for a student loan, it is possible to check if you are eligible for the loan by filling out a form online. Once you know that you meet the requirements, submit the required original documents at the nearest branch. If you have a guarantor, make sure they understand the payment terms of the repayment plan.
Required Documents
Before applying for a student loan, the applicant needs to review the required documents and make sure they have it all on hand before applying. Incorrect or insufficient documents can lead to load rejection. To apply for a student loan in South Africa, the applicant needs to submit the following documents to complete the application process:
- South African National ID (student and guarantor)
- Proof of residence not older than 3 months (student and guarantor)
- Payslip for 3 months (guarantor)
- Acceptance letter from the institute
- Registration letter from the institute (for transfer of funds)
- Proof of expenses, including tuition, books, and accommodation
- Some might require the latest academic results
Which Bank is Best for Student Loans in South Africa?
Several banks offer student loans in South Africa, and the one you select depends on many factors such as interest rates, repayment plans, minimum loan amount, etc. When signing for a student loan, make sure that you and the guarantor read all the documents carefully and understand payment plans before agreeing to the loan amount and the interest rate.
Let us look at the various criteria that can better help students understand which bank offers the best student loans in South Africa.
| Criteria | Nedbank | Standard Bank | ABSA | FNB | Capitec |
| Minimum Loan Amount | No minimum amount | R5,000 | R15,000 | R4,000 | R1,000 |
| Maximum Loan Amount | – | Based on the ability to repay | – | Based on the ability to repay | R500,000 |
| Additional Benefits | Preferential interest rates | A grace period of 6 months before loan repayment | Personalised loan structure | – | Revolving credit. Only pay the amount you use |
How Do You Qualify for a Student Loan?
To qualify for a student loan in South Africa, students need to be enroled in an accredited institute. This guarantees that the student receives a quality education and the skills they learn will be applied in the workplace. When creditors loan money, they want to ensure that the lender will be employable in the future and can return the student loan amount. An accredited institute not only offers a standard education, but its reputation makes it easier for students to gain employment.
Since thousands of students apply for a student loan annually, candidates must ensure their documents are complete and the information provided is current and accurate. Let’s get a detailed list of criteria and requirements that must be met to successfully apply for a student loan.
| Eligibility Criteria | South African National Admission into an accredited institute in South Africa |
| Academic Requirements | Proof of admission Accredited course Academic results Full-time or Part-time |
| Financial Requirements | Proof of income (for part-time students)ID documents of the guarantor Good credit score No default on previous loans |
| Personal Requirements | Proof of Residence Proof of expenses |
Get Expert Student Loan Guidance
A student loan is a significant financial decision, and applicants should gather all information to make informed decisions. They should also use student loan calculators to determine interest rates and payment plans based on estimated loan amounts.
Before finalising a credit provider, applicants should also check if they are eligible for scholarships from the institute.
Loan applicants should also read about the various types of student loans available and the different providers. They should understand their eligibility requirements, interest rates, payment plans, and repayment duration.
Students can also contact advisors working with credit providers and have them explain the terms. Advisors can also help answer any queries so individuals can make an informed and financially sound decision.
Conclusion
Student loans offer students who wish to pursue higher education a solution to meet their financial needs. Various loans cover tuition, accommodation, books, and educational tools. Students should research all available options before deciding on a lender, as full-time and part-time students have different interest rates and payment plans.
Regenesys makes it easy for students to pursue their dream of higher education by offering affordable student loan plans.
Check out our Student Loans page for more details. Fill out your details online, and a consultant will contact you.
FAQs on Best Student Loans in South Africa
Can I apply for a student loan in South Africa?
Banks, government institutions, and private lenders offer student loans to full-time and part-time students in South Africa. Therefore, it is possible to apply for a student loan in South Africa.
How do you qualify for a student loan?
In order to qualify for a student loan, applicants must be South African nationals, admitted into an accredited programme, and have a strong credit score.
Where can I get student loan guidance?
Students can contact loan advisors at the crediting bank or use online resources to understand loan terms.
Which bank is best for student loans in South Africa?
Various private banks offer student loans in South Africa. Each bank offers different rates, some have minimum loan value, while others offer flexible payment plans. The best bank is the bank that meets your criteria.
What are the documents required for a student loan in South Africa?
Students applying for a student loan must submit a South African National ID (student and guarantor), an acceptance letter from the institute, a registration letter from the institute (for transfer of funds), and proof of expenses. Some banks might require additional documents.
