Education costs are rising in South Africa. This can make it difficult for several students to continue their studies. Education loans can be a viable option for those who do not have funds in their reserves and want to continue their education.
There are multiple options available for South African students to access loans for education. In that context, it is important to be aware of the best education loans available.
This article will inform you about these and various other related details.
Table of Contents
What is an Education Loan?
An education loan is a type of loan that helps cover the costs of a student’s education at an institution. Unlike grants, bursaries and scholarships, an education loan needs to be repaid over a period of time along with interest.
These loans cover expenses for tuition, boarding, food, textbooks, and more.
An education loan can be an ideal option for those who have made sufficient provisions and plans for the upkeep of the loan. These can include starting to budget and having a plan so that you are aware of how long you will study and when you will start to work.
Read more: Education Loans in South Africa – Understand the Funding For Higher Education.
Top Education Loan Options in South Africa
In South Africa, various education loan options are available for students seeking financial assistance for their higher studies. Those who are searching for “how to choose the best education loan” must know about these options. Given below is a table that illustrates these loan options in a manner that’s easy to go through:
| Sl. No. | Education Loan Options | Description |
| 1 | Government-issued education loans | One can acquire these from the National Student Financial Aid Scheme (NSFAS) |
| 2 | Education loans issued by independent credit providers | Independent credit providers like Fundi or Eduloan offer these loans |
| 3 | Bank-issued education loans | These loans are offered by some of the top South African banks, like Nedbank, Standard Bank, First National Bank, and Absa Bank. |
Gain insights into Student Loans for International Students in South Africa.
NSFAS vs Private Education Loan
Education loan seekers often consider an NFSAS education loan versus a private loan. A detailed insight into these two types of education loans can help such individuals make an informed decision. The ultimate decision should be made after assessing each loan and choosing the one that aligns with one’s preferences, requirements, and circumstances.
The table given below draws a comparison between the two loans:
| Sl. No. | Education Loan Types | Description |
| 1 | NSFAS Loans | These are among the best education loans in South Africa for those looking to attend public universities. The rate of interest that this scheme provides for government student loans is highly competitive. |
| 2 | Private Loans(Loans from independent credit providers and banks) | The education loans offered by leading banks in South Africa need a guarantor, such as a guardian or parent. The private loans may come with higher interest rates than NSFAS loans. But they cover several expenses related to the institution and offer significant flexibility. The education loans that the independent credit providers offer are tailored to students and provide unique terms and advantages. |
Also read: Student Loans vs Personal Loans in South Africa – Key Differences.
Best Banks for Education Loans
Several banks in South Africa offer education loans tailored to the unique needs of individuals pursuing higher education. Among these, it is necessary to have an idea about the top banks out there.
Have a look at them here:
- FNB: FNB offers up to R360,000 to fund a student’s education, along with a tailored interest rate. The loans can cover accommodation, tuition fees, study materials, devices and equipment.
- Standard Bank: It provides flexible loan options ideal for both full-time and part-time students. The loan options cover a range of expenses, including study essentials and laptops. There is no maximum loan limit for the tuition fees.
- Absa: Absa provides competitive interest rates, and students can apply for a minimum loan amount of R15,000. The loans cover the accommodation, tuition fees, technical equipment and study books required for a student’s education.
- Nedbank: Nedbank offers loans to both part-time and full-time students. The principal repayment for full-time students is deferred until after graduation. So they need a guarantor.
Know about the Best Degrees to Study With a Student Loan in South Africa.
Education Loan Eligibility & Requirements
The eligibility and requirements for education loans can vary across the loan providers. It is important to take note of these prior to applying for a loan. Applying for a loan with any of the providers without meeting their criteria may result in rejection of the application.
Below are the eligibility and requirements for obtaining a loan from the banks mentioned above. Individuals must ensure they stay up to date on these, as they may change over time.
FNB
The person applying for the loan needs to meet the qualifying criteria for FNB. In many cases, this person is a parent or sponsor applying for funds to cover a student’s tuition, accommodation, and other expenses.
- Must have a minimum income of R3000 deposited into their account
- Be self- employed or permanently employed
- The student needs to be registered with a recognised tertiary institution
- The student and applicant need to have a South African ID
Absa
To qualify for a loan from Absa, the individual needs to be a South African citizen or a person permanently living in South Africa and earning over R3,000 per month. The loan can be taken in the name of:
- A sponsor or guardian having proof of income
- A parent with proof of income
- A part-time student who is employed full-time and has proof of income
Nedbank
Individuals looking to qualify for an education loan from Nedbank need to have:
- Their latest exam results
- A statement of textbooks, tuition fees, accommodation and equipment.
- Proof of registration at a SAQA-approved institution.
- A Nedbank bank account
- Their and their guarantor’s valid South African ID card or document.
- For the guarantor – Latest payslip or stamped bank statements of 3 months
- For non-South African citizens – Their and their guarantor’s valid passports
- A Nedbank transactional account serving as the main account of the guarantor
Standard Bank
At Standard Bank, only the citizens of South Africa can apply. Also, the bank needs the candidate’s final National Senior Certificate results to complete the loan application. If anyone wants to know whether they qualify for a loan at this bank, they can navigate to the ‘Do I Qualify?’ option on the website, enter their details and submit.
Interest Rates & Repayment Explained
Student loan interest rates and repayment terms can vary across loan providers and can also change over time. In addition, there can be additional terms and conditions applicable to these. It is necessary for individuals to stay up to date on these by consulting official sources.
Given below are the details for the above-mentioned banks, as of 19th February 2026:
| Sl. No. | Bank | Interest Rates | Repayment Terms |
| 1 | FNB | The interest rateat FNB is linked to Prime and depends on the credit risk profile of the customer. | The education loan repayment begins the following month after payout of the loan. |
| 2 | Absa | Loans are available at a prime rate. Also, if a candidate receives a lower interest rate elsewhere, Absa offers a better rate. | Candidates can choose to repay the interest and capital, or repay only the interest, for 12 months. |
| 3 | Nedbank | Offers personalised interest rates | For full-time students and those undertaking an internship, the guarantor must pay only the monthly interest on the loan. After completing studies, the candidate can then start repaying the loan amount. The repaymentsfor part-time students include the loan amount and the monthly interest from the beginning. |
| 4 | Standard Bank | Personalised interest rates that range from 10.25% (prime interest rate) to 18.25% | The loan repayment term ranges from 12 months to 120 months. |
How to Choose the Best Education Loan?
The right option among the best education loans in South Africa can help empower students to continue their studies without being burdened by financial constraints. Many individuals may be confused about how to choose the best option. But following a step-by-step approach can be helpful in this regard.
Here are the steps that education loan seekers must take note of:
- Step 1: Estimate the total studying cost involved.
- Step 2: Look into the interest rates and additional expenses.
- Step 3: Check repayment flexibility.
- Step 4: Consider the expenses the loan covers.
- Step 5: Check the documents required and eligibility criteria.
- Step 6: Apply for the loan that aligns with your requirements, circumstances and preferences.
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Conclusion
Individuals searching for the right option among the best education loans must consider the vital factors. Before choosing, they must be sure of their loan requirements. Then it is necessary to review the interest rates, repayment terms, covered expenses, and other factors.
In addition to reviewing the top banks offering these loans, individuals can also check the specific details of NSFAS loans.
Besides loans, it is worth noting that there are some reputable institutions, such as Regenesys Education, which provide financial assistance.
Contact us to know more.
FAQs
Which is the best education loan in South Africa?
The best student loan in South Africa depends on your preferences, requirements and circumstances. You should consider various factors, including repayment flexibility and interest rates, before opting for a loan.
How do I choose the best education loan?
To choose the right one among the best education loans, you should first estimate your total study cost and then check some of the factors, including the repayment terms, interest rate, and the expenses the loan covers.
Which bank has the lowest student loan interest rate?
The lowest student loan interest rate can vary from time to time, as per the offering by the loan providers. It is necessary to check with the official sources of the loan providers to confirm this rate.
Is NSFAS better than private student loans?
Whether NSFAS is better than private student loans depends on your individual circumstances and preferences. Before deciding, you must assess every option.
Can I get an education loan without a guarantor?
Yes, you can get an education loan without a guarantor.
