There are a number of banks and financial aid schemes that are able to offer student loans to those who are unable to afford the cost of studying.
However, with so many excellent funding options available, it can be difficult to choose which one will be best for you. That’s why, in this article, we outline the application process of South Africa’s most popular loan providers to help you apply for your student loan.
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What is a Student Loan and How Does it Work?
A student loan is when you borrow funds to help pay for your educational fees, such as tuition, accommodation, textbooks, food and other expenses.
When applying for a student loan, you’ll only be getting funds for that specific year of study and will have to re-apply the next year to pay for the rest of your studies.
Once you’re granted a student loan, you’ll have to pay back the money you’ve borrowed from your loan provider—along with any interest rates and fees that have built up over time.
How Do You Repay a Student Loan?
Unlike bursaries or scholarships, a student loan needs to be repaid by the student. If you are studying full-time, you may need to get someone to sign a surety agreement.
Whoever signs for surety will be responsible for paying your interest rates and fees while you study and are unable to pay for it. This is usually a parent or guardian earning a minimum income of roughly R3 000 to R6 000.
You’ll then be able to take over the payments when you’ve secured a steady job. If you can’t find a job or are unable to pay back your student loan, having that surety will ensure that your student loan is still repaid. That’s why it’s important to make sure that whoever signs your surety is someone you can trust and who has a stable income.
If you don’t have someone to sign surety for you, don’t worry, there are other funding options out there that will allow you to get a student loan without it. The National Student Financial Aid Scheme (NSFAS) and Standard Bank are great examples of loan providers that allow students to get a loan without surety.
If you’re a part-time student, you might be expected to pay back the loan from the get-go as you’ll be able to work a part-time job while you’re studying.
Be sure to check with your loan provider to see how it all works, and don’t forget to read the fine print so that you know what you’re getting yourself into.
What are Your Student Loan Options in South Africa?
When it comes to student loan options available in South Africa, it’s important to ensure that your financial service provider is reputable and legitimate.
Thankfully, there are credible financial service providers that offer loans to students in need of funding—including some of the biggest banks in South Africa.
How to Apply for a Student Loan at a Bank
In order to apply for a student loan at a South African bank, you need to ensure that you meet all the requirements. These may vary depending on which bank you choose to go with; however, there are general requirements you can refer to in order to see if you qualify:
- An acceptance letter from your chosen university, TVET or college
- Academic results or a National Senior Certificate (NSC) if you’re in matric
- Proof of study costs (textbooks, devices, tuition, accommodation)
- Proof of residence (you or surety)
- A valid South African ID from you (must be 18 years old or older) or your surety
- The last 3 salary slips from your employer or from your surety
- A bank statement showing the last 3 salary deposits
Once you’ve met the requirements for a student loan, you can start looking at different banks to compare their offers. It’s important to compare not only the interest rate but also the repayment terms and conditions.
The good news is that all 5 of South Africa’s major banks—Standard Bank, Capitec Bank, FNB, Absa and Nedbank—have opened their doors to students and have given them loans at low-interest rates to help them achieve their academic goals.
Standard Bank Student Loan
Standard Bank is one of the biggest banks in South Africa and is known for being the biggest lender in Africa in terms of assets. Standard Bank offers student loans for full-time and part-time studies and you can apply to both local accredited institutions or even overseas.
Standard Bank Student Loan Application
To start the application process for a student loan at Standard Bank, there are a few steps you need to follow before sending your application.
- Visit the Standard Bank website
- Click on ‘Do I Qualify’
- Fill in the form to get pre-approved
- Once you are pre-approved, get your documents ready. This includes your acceptance letter, proof of registration, proof of costs for tuition, accommodation, textbooks, equipment and latest academic results
- Visit your nearest Standard Bank branch within 7 days of applying via ‘Do I Qualify’ to complete the final stage of your application
*Matriculants will need to send in their National Senior Certificate results to complete their applications
Apart from the above application requirements for Standard Bank Student Loan, you may be requested to provide additional (FICA) documentation such as:
- ID documents (for you and surety)
- Proof of residence (no older than 3 months)
- 3 months payslip (for whoever is responsible for paying back the student loan)
- 3 months bank statement for surety who are non-Standard Bank clients
Standard Bank Student Loan Repayment
To give you an idea of how the Standard Bank student loan repayments work, Standard Bank offers an estimated guideline of how your repayments may look:
- Full-time student (still studying): The estimated repayment for a R50 000 loan comes at an interest of up to 9.75% per year, meaning you will need to pay approximately R535.06 per month.
- Full-time student (working): For a R50 000 loan, students who are working may pay this amount off over a period of 72 months. This will equate to an interest rate of 9.375% and a monthly payment of up to R1 011.22 a month.
- Part-time student: Students who are studying part-time are expected to pay a R50 000 loan at an interest rate of 9.75%, which can be paid off over 44 months. This equals a repayment of roughly R1 457.88 per month.
Calculate your repayment with Standard Bank’s student loan calculator.
Capitec Bank Student Loan
If you’re looking to apply for a student loan from Capitec Bank, it’s important to note that you’ll be restricted to the schools and institutions Capitec has partnered with, which are:
Capetic Bank Student Loan Application
Applying for a student loan at Capitec is easy. All you need to do is:
- Visit the Capitec Bank website
- Choose your chosen institution from Capitec’s directory of educational partners
- Scan the QR code at the institution’s page and start your application
- Visit your nearest Capitec branch to complete your application
Capitec Bank Student Loan Repayment
Students applying for credit at Capitec can get up to R250 000 at a discounted interest rate (varying from institution to institution). This amount will be paid off over 84 months and an extended term to suit your academic needs.
To see if you qualify for a Capitec study loan, all you have to do is follow these 4 steps:
- Tell Capitec about the credit you need
- Provide personal information about yourself
- Answer a few questions to confirm your identity
- Get a personalised estimated result telling you which credit option will be best for you
FNB Student Loan
If you’re eager to apply for a student loan at FNB, you’ll need to follow their application process. Thankfully, the entire process can be done online, making applying for a student loan at FNB an absolute breeze.
FNB Student Loan Application
To submit an FNB student loan application, all you need to do is:
- Visit the FNB website
- Click on ‘Apply now’
- Fill in your personal details (a One Tip Pin (OTP) will be sent to your cellphone/mobile number)
- Accept the Terms and Conditions
- Fill in tax details (if applicable)
- Click ‘Accept’
- Follow the prompts to complete your application
FNB Student Loan Repayment
Getting a student loan from FNB means you’ll get a tailored interest rate from 0.5% with up to R300 000 for your studies.
FNB additionally offers students flexible payment options, meaning they only pay interest and fees for 12 months, after which, they start repaying interest, fees, charges and capital thereafter.
Absa Bank Student Loan
There are various ways to apply for a student loan at Absa. You can either submit a student loan online application on the website; via the Absa mobile banking app, which you can download via Google Play or Apple iStore; or by visiting a nearby Absa branch.
Absa Bank Student Loan Application
The easiest and most convenient way to apply for a student loan online at Absa is through the bank’s online portal, which you can access on your desktop or mobile.
To apply for an Absa student loan online, you need to follow these quick and easy steps:
- Visit the Absa website
- Tap ‘Apply now’
- Tell Absa who you are (new customer, Absa customer with online banking, Absa customer without online banking)
- Do a security check and verify your Security SurePhrase
- Click ‘Accept’
- Tell Absa about your student loan needs (fill in the online form)
- Confirm your details
- Review your personal loan offer from Absa
- If you approve, hit ‘accept’
- Arrange your debit order
- Complete your application
Absa Bank Student Loan Repayment
Absa Bank’s repayments vary according to your personal funding needs and the bank has several options available in terms of repayments for student loans:
- Repayment term: From 12 to 84 months (from 2 months if you bank with Absa)
- Interest rate: From a minimum of 13.75% per year
- Estimated interest repayment: For a R50 000 loan taken over 36 months, the interest rate would potentially be 18% per year, which equates to roughly R2 113 per month
Calculate your repayment with Absa’s student loan calculator.
Nedbank Student Loan
Nedbank has flexible options for both part-time and full-time students, making it easier for you to get your student loan and start studying
Nedbank Student Loan Application
Applying for a student loan with Nedbank is simple and all you need to do is follow these 4 steps:
- Visit the Nedbank website
- Download the loan application form and fill it out
- Send your student loan application back to Nedbank or hand it in at your nearest branch
- If you qualify, you will be able to review what Nedbank has to offer and accept the student loan
Nedbank Student Loan Repayment
If you’re a full-time student or busy with an internship, your parent(s) or guardian(s) will only need to pay the monthly interest on your student loan. Once you’re done with your studies, you can then take over your student loan from your guarantor.
Part-time students will need to start paying immediately and will need to pay the full amount of their study loan.
How to Apply for a NSFAS Student Loan
The National Student Financial Aid Scheme (NSFAS) has provided a great number of students with the funds they need to finance their studies.
To qualify for NSFAS, you’ll need to have achieved high marks in high school, so make sure to review your matric results carefully once you’ve completed your final matric exams.
If you’re a high-achiever and in need of funding, then NSFAS could be a great option for you. All you need to do is get your paperwork ready and apply.
NSFAS Student Loan Application
The application process for NSFAS is pretty strict, but the good news is that you can now easily apply online for 2023!
To submit a student loan online application for NSFAS, you need to create a myNSFAS account. Once you’ve created a myNSFAS account, you can complete your application online by following these steps:
- Click ‘Apply’
- Fill in your personal details and (if applicable) your parents’ or guardian’s details
- Upload the supporting documents that apply to you (copy of ID or birth certificate, parent, guardian or spouse’s ID, proof of income or 1 year’s IRP5)
- Confirm all your details and documents (make sure they’re all uploaded correctly)
- Submit your application
NSFAS Student Loan Repayment
The great thing about NSFAS is that you only have to repay your student loan after you have completed your studies and are employed or in business.
In addition, you’ll have to be earning at least R30 000 to start paying off your loan. If you make less than that, are still studying or are unemployed, NSFAS does not require you to start making payments.
How to Apply for a Fundi Student Loan
Fundi is South Africa’s leading education finance and fund management specialist. To date, Fundi has provided millions of students all over South Africa with student loans that enable them to achieve their dreams.
With Fundi, students can get funding for all their educational needs—including everything from tuition fees, accommodation and textbooks to technology and devices.
To qualify for a Fundi student loan, you first need to make sure that you meet the following requirements:
- You have to be 18 years of age or older
- You have to have a permanent job with a regular income
Fundi Student Loan Application
To apply for a student loan at Fundi, you need to do the following:
- Visit the Fundi website
- Click on ‘Solutions’
- Select ‘Educational Loans’
- By Study Loans, click ‘Know More’
- Fill in your personal details
- Wait for a Fundi representative to give you a call
Fundi Student Loan Repayment
Once you have been approved for a Fundi student loan, you will be required to repay them in small monthly instalments that will be deducted either from your salary or via debit order. This means that you need to have a stable, permanent monthly income in order to qualify for the Fundi loan.
Get Funding from Fundi
Now that you’ve read through all the funding options for your student loan, you may want Fundi to be your financial service provider.
Before you start the application process, be sure to check out our student loan calculator to see if you qualify and let Fundi enable your dreams today!
