Capitec Student Loan Interest Rate

Capitec Student Loan Interest Rate

Since inception in 2001, Capitec Bank has created simplified banking solutions for millions of clients all over South Africa.

Through its personal loan offerings, the bank has created convenient solutions for pressing financial needs.

Although a Capitec Student Loan is not yet available, there is a personal loan available up to R230 000, with up to 84 months to repay.

The loan interest rate that you are charged is based on your individual credit profile. The major banks in South Africa, including Capitec, charge a personal loan interest rate in line with the National Credit Act, while also taking into account the personal creditworthiness of the individual applying.

There is a common misconception that interest charged on student loans is zero-rated. The reality is that interest rates can be anything between 15 and 30 percent.

Capitec loan interest rates:

  • 21% for R4000 loan amount
  • 20%- 28% for R25 000 loan amount
  • 80%- 28% for R50 000 loan amount
  • 40%- 27.40% for R100 000 loan amount
  • 65% -22.40% for R250 000 loan amount

How to lower your student loan interest rate:

The effects of amortization can mean that most of your student loan payments are going toward interest rather than principal repayments. If you pay more than the amount due at the end of the month you’ll be out of debt much faster.

Have your student loan paid via debit order. This way you won’t miss any payments. Keep in mind that if your default, you’ll be charged higher interest rates.

Get a co-signer. This is someone who is legally liable for your debt if you are unable to pay. This lowers your level of risk, so a lender is likely to charge you a lower interest rate.

Refinance with another lender. This way you can undergo the process of combining all of your student loans into one monthly payment and having one interest rate.

To apply for a student loan from Capitec, click here.


Categories: Student loans