Bank Loans For Students

Bank Loans for students

Higher education in South Africa has helped to boost the economy and has helped to create a wealthier society by producing highly skilled graduates. What cannot be denied is that education costs are rising every year.

Government realises the value of an educated nation and aims to raise annual university enrolment to 1.5 million by 2030.

Compared to the global average participation rate for adults aged 18- 24 years, of 30%, South Africa is lagging far behind at 16%. One of the main hindrances to an escalation in this number is the high cost of education in the country.

While high costs may put off many people, most South Africans are determined to succeed despite the circumstances they face. It’s estimated that around 25% of students access commercial loans to fund studies.

A good thing is that largely due to the well-regulated South African banking industry and strict adherence to the National Credit Act and Consumer Protection Act, a student loan crisis has been avoided.

Standard Bank:

If you earn a minimum of R5000 a month and are looking for a student loan to make your dreams a reality, Standard Bank has the ideal solution for you. When applying, you’ll need to provide your ID, proof of residence, proof of registration and your latest results. The loan covers tuition, books and accommodation. As a full-time student, you’re responsible for repayment on completion of your studies. During your studies, you only need to pay monthly interest and service fees.

Absa Bank:

The Absa Student Loan finances textbooks, accommodation and equipment fees at competitive rates. Loans are granted based on affordability and your individual risk profile.

FNB:

Loans are offered from R4000 to R80 000 at a personalised interest rate. To qualify you need to earn at least R6000 monthly.

Nedbank:

This student loan is offered to part-time and full-time students at approved tertiary institutions. Offered at competitive interest rates, the loan also has a flexible repayment term. While studying you are only required to pay the interest portion.