Student loans help thousands of students pursue higher education without putting a financial strain on their families. The best student loans in South Africa allow deserving students from all backgrounds to further their education.
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 worrying about immediate expenses.
This article will help you better understand the student loan structure in South Africa. It will also include the types of loans and the criteria to help students choose the best student loans in South Africa
Table of Contents
How to Get a Student Loan in South Africa?
Students need to secure admission for an undergraduate or postgraduate programme to apply for a student loans in South Africa. University education is a financial investment that not all can manage. 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 have 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 must submit a surety, while part-time students must meet the minimum earnings requirement.
- 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 the 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 selecting the best student loan in South Africa, there are a variety of government and private options available. The best student loan is the one that matches your needs in terms of interest rates and repayment schedules.
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:
1. Government-Sponsored Student Loans
- National Student Financial Aid Scheme (NSFAS): This financial support scheme provides bursaries and financial aid to students from low-income families. To be eligible for NSFAS, students must be admitted to a TVET college or university.
2. Bank Loans
- Nedbank: This is an excellent choice for both full-time and part-time students, as it offers a variety of repayment options. The creditor also offers preferential rates that are tied to your academic performance at the 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 given six months to search for a job and then begin repaying 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.
3. 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.
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. These include interest rates, repayment plans, minimum loan amount, etc. When signing for a student loan, make sure to read all the documents carefully and understand payment plans before agreeing to the loan amount and the interest rate.
The table below helps to compare which banks offer 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 | – | R 20,000 | – | R 360,000 | R500,000 |
| Additional Benefits | Preferential interest rates | A grace period of 6 months before loan repayment | Personalised loan structure | Flexible payment options | 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 must be enrolled at an accredited institution. This guarantees that the student receives a quality education, and the skills they learn will be applied in the workplace.
Since thousands of students apply for a student loan annually, candidates must ensure their documents are complete and accurate.
The table below lists the student loan requirements applicants need to meet to apply for a bank student loan in South Africa:
| Eligibility Criteria | South African NationalAdmission into an accredited institute in South Africa |
| Academic Requirements | Proof of admissionAccredited courseAcademic resultsFull-time or Part-time |
| Financial Requirements | Proof of income (for part-time students)ID documents of the guarantorGood credit scoreNo default on previous loans |
| Personal Requirements | Proof of ResidenceProof of expenses |
Conclusion
Student loans provide students who wish to pursue higher education with a way 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.
To secure the best student loans in South Africa, students need to ensure that their documents are complete and accurate. Incorrect information may result in their loan being cancelled.
Before you secure funding, visit the Regenesys Education website to explore our wide range of undergraduate and postgraduate programmes.
FAQs
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?
To qualify for a student loan, applicants must be South African nationals, be admitted to 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 a 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.
