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Top Student Loans In South Africa

Student Loans in South Africa have saved many lives. For example; sometimes a person who is intellectually gifted, and who has the desire to have a great academic career may find himself in a poor family, or in a situation whereby the funds are just not available to pay for his university education. The student must see the situation as a challenge; not as an obstruction. That means he must find the funds because he cannot afford to let his brains and talents go to waste.

The sad truth is that most institutions shy away from providing student loans because there is not much incentive for them to make the provisions. Nevertheless, there are some good student loans in South Africa that meet all the necessary provisions to make them good for students who have not started earning; the interest rates are low, and the repayment plans are reasonable.

As any student will tell you; the costs of education do not end with the payment of the tuition fees; you still need to buy books, pay for accommodation, buy some quality devices, even food, clothes, and internet connectivity.

So What Are The Best Student Loans In South Africa, And What Do They Offer?

Fundi

Fundi was formerly known as EduLoan, but has now rebranded as FUNDI, and expanded the scope of its operations. This is the number one South African education finance provider.

The company has over the years proved itself the most consistent and trusted provider of student loans in South Africa. One can say that FUNDI has provided more student loans than any single corporate body in South Africa.

Fundi provides all kinds of student loans: Study loans, Short courses loans, MBA loans, Executive loans, Accommodation loans, Educational tools, and Study device loans.

Study loans: of course study loans are the most sought after loans from FUNDI. This is basically for the payment of fees for long-term studies. This may also cover registration fees.

Short Course loans: these are loans for short or professional courses, for students who have already defined their career paths.

MBA loans: these are student loans for those pursuing their Master of Business Administration degree.

Fundi Student loans also cover Accommodation, Study aids and devices (laptops, tablets, smartphones, stethoscopes, musical instruments and so on), Textbooks, and so on.

For more information visit:

Website: www.fundi.co.za

Phone Contact: 0860 55 55 44

Student Loans From FNB

South Africa’s oldest bank First National Bank (FNB) has some brilliant student loan offers. FNB has already established itself in the entry level banking segment; the company has many entry level accounts suitable for students and young hustlers.

The bank builds the relations with these young people and continues sustaining the relationships when they are well established.

It is therefore no surprise that FNB offers student loans to help its young customers get through their education. The loans cover the following:

Tuition fees: the FNB student loans cover the cost of tuition, and the loan may also pay for your registration.

Textbooks: the FNB student loans also pay for the textbooks recommended for your study. Please note that this loan does not cover any other literature aside from what is recommended for your study.

Equipment and devices: some students need electronic devices like laptops, tablets and smart phones to enable them study. Other students may need equipment like stethoscopes or musical equipment in order to study their courses.

Benefits:

The loans give you a good interest rate.

FNB offers you the option to only pay interest, fees and charges to service your loan while you are still studying.  After you are through with school, and have started earning, you can then start repaying the capital on your loan.

The FNB student loan affords you the opportunity to get Credit life insurance.

The FNB student loan qualifies you to earn eBucks as a reward for your spending.

How to apply:

You can apply for a student loan from FNB at the nearest branch, you can also get the bank to give you process your request online.

Request Call Back

Phone: 087 335 8630

Nedbank Student Loan

Nedbank is a top bank in South Africa. They have a number of specialized products that are suitable for students and young people.

The Nedbank Student Loan is one of the most popular student loans in South Africa because the bank has done a lot of advertisement to promote the product which is specially designed to help customers who are students achieve their goals of attaining tertiary education.

The loans cover the following aspects:

Tuition fees: Nedbank student loans cover the cost of your tuition fees.

Textbooks: the Nedbank student loans help you purchase textbooks that are recommended for your studies.

Device and Equipments: the loans also help you buy the necessary electronic devices that can help you successfully go about your studies.

The loans can help you pay for on campus accommodation to help you maximize your learning experience.

Benefits:

This loan provides great interest rates, and to make flexible repayments.

This bank gives you the option to only pay interests on your loan during the duration of your studies, and to start repaying the capital when you have completed your studies.

This bank gives you the option to get credit life cover.

Please note that the bank requires you to have a guarantor to.

How to apply:

To apply for a Nedbank loan you just have to go to the nearest Nedbank branch with your guarantor. That guarantor will need to be a customer of Nedbank who has his main business or personal account with the bank.

You can find out more at the bank website:

ABSA Student Loans

ABSA is one of the biggest banks in South Africa by market share. A good number of its customers are students and young people. ABSA provides student loans which cover the following student needs:

Tuition fees: ABSA Student Loans help pay for tuition fees, registration, and any other mandatory payments. However, these loans will not cover any fines and penalties incurred.

Student Accommodation: the ABSA student loans will only cover accommodation if the students are studying fulltime.

Equipment: the ABSA student loans will also cover the equipment which will help you study, including laptops, phones, tablets, and other professional equipments like stethoscopes.

Text books: the ABSA student loans will also cover your recommended textbooks.

Benefits

ABSA student loans have low interest rates, very competitive with anything you will find in the market.

ABSA gives you the option to pay only the interest of the loan during the time when you are studying; and then to start paying back the capital after you have finished studying.

There is another option in which you may only pay interest, fees and charges during the duration of your studies, and then you can start repaying the capital once you’ve finished your studies.

How to apply:

You can apply for an ABSA student loan by visiting your nearest ABSA branch. Please call the bank on.

Phone contact: 0860 100 372

Email: [email protected]

Student Loans From Standard Bank

Standard Bank is one of the top banks in South Africa by market share. Already, this bank has become popular among the young people because of its entry level banking products that are great for students, and young people who are just starting out in life.

Standard Bank student loans are actually broken into two categories: the fulltime loans, and the part time loans. We will treat them as one to avoid unnecessary confusion. Here is what the loans offer in brief.

Tuition: the Standard Bank student loans help you pay your tuition fees, registration fees, and any mandatory fees, excluding fines and any penalties.

Accommodation: Standard bank student loans cover your accommodation during your studies. This is for part time students.

Textbooks: standard bank loans cover the costs of textbooks; however, they must be textbooks recommended for your studies.

Benefits

Standard Bank gives very low interest rates on your loan to customers who use the Standard Bank Student Achievers account. it is recommended that you first open this student account before applying for the loan.

Standard Bank gives you the option to only pay interests on your loan while you are studying, and then to start paying the capital once you’ve finished your studies, and have started earning.

With this student you can get insurance cover as a benefit.

How to apply:

You can apply for a student loan from Standard Bank online, and then visit the nearest Standard Bank branch to finish the application process.

Visit the Standard Bank Student loan page to apply

How to Choose Student Loans in South Africa

Unfortunately, there are not too many options from which a person can choose when trying to decide on a good student loan in South Africa. Nevertheless, one should always keep in mind the fact that a loan is a loan and repayment is required. Therefore, a good student loan is one that you can easily repay.

These are key deciders:

Interest Rates

Always ensure that the interest rates are low and achievable. There is nothing wrong with going from bank to bank (we have provided you with the details) and comparing the interest rates.

Repayment Plan

Before taking any loan or signing anything, it is essential that you know how you are going to pay back the loan. A good student loan should hold off repayments (of the capital at least) until you have completed your education and started earning.

Since one may not immediately start working after school, the loan should allow you a grace period of 6 to 12 months after school, for you to find a job, and start paying.

What Are The Interest Rates For Student Loans In South Africa?

Banks in South Africa charge an average of 10.5% for student loans. However, they can cite factors like whether or not the student is a fulltime student, as well as how many years it will take them to start receiving the repayment of the capital.

How Do Student Loans Work In South Africa?

School loans in South Africa are identical in that a bank or company lets you borrow the money in order to pay your tuition, buy textbooks, pay for accommodation, and any other necessary payments for your school.

Ideally, you should repay that loan as soon as you are through with school, but sometimes the bank decides that it needs a guarantor to surety the loan. This is someone who is already working and earning money. Some banks require the guarantor to have his main account domiciled with them, so as to facilitate the deduction of the loaned amount in case the student defaults.

Conclusion

Right now when one mentions student loans in South Africa; the first thing that comes to people’s minds is FUNDI. One can get student loans from the banks highlighted above, although it must be stated that a student loan is easier to get with the banks if one is already a customer.

An alternative way of getting funding for school is the NSFAS, and other bursaries and scholarship awards in the country. You can visit the financial aid office of your institution for further assistance.

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