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Student loans With Best Interest In South Africa

Updated Mar 31, 2020

by Staff Writer


4 minutes read

Studying at a university in South Africa is not cheap, considering the #feesmustfall protests that happened in the past.

Many young people don't understand student loans and how it works. In fact, many students fail to realize that the most popular NSFAS is a student loan created by the government of South Africa.

Student loans  in South Africa

But it's okay, you won't get confused anymore.

Student loans are not like personal loans, funds are paid directly to the university or college. The loan is tailored for potential, dedicated and motivated students who want to invest in their future.

I know there's a high employment rate in the country, but that doesn't mean it's a risk to take up a loan to brighten your future.

You'll use part of the loan to purchase study materials. The loan provider will take care of your tuition and accommodation fees.

Student loans cover the following...

A loan is supposed to cover the basics for a student. Student loans are provided by major banks and government institutions.

Whichever provider you go with, the loan must cover the following:

  • Tuition Fees
  • Accommodations
  • Books

Depending on the institution offering you a student loan, there might be more benefits with the loan such as accessories - computers, iPad.

Student loan interest

Parents often fail to take important note of the student loan interest when applying on behalf of their children. What's more important to the parent is for the young adult to go to university for a brighter future.

Student loans have a lower interest rate compared to personal loans. By lower rate, it means you'll repay less.

The average student loan interest in South Africa is around 10.5% depending on the year you're applying. Other factors that might determine the interest rate is your surety's credit rating.

Knowing your interest will help you plan for the repayment of the loan.

Use our student loan calculator to determine the loan interest before approaching a lender.

Student loan providers

The following lenders have helped millions of young people to further their studies in universities and colleges.

Here's a list of the most popular student loans in South Africa.

NSFAS

The National Student Financial Aid Scheme offers loans to students who cannot afford to pay for study fees. It mostly covers potential students coming from low-income earners families. Students are required to pay back the loan after studies when working to ensure the availability of funds for future generations.

For more information, please visit - www.nsfas.org.za.

Funza Lushaka

The Funza Lushaka Bursary program is aimed at promoting teaching in public schools.

If you have a passion for teaching and can work with pupils and learners well, then this bursary is designed just for you.

Upon completion of your studies, you'll be placed to teach in a public school for the same number of years you've spent studying.

Visit www.funzalushaka.doe.gov.za for more detailed information.

Fundi

Student loan by Fundi, they offer three different types of loans to disadvantaged potential students, i.e. Student loan (study fees, registration fees, exam and outstanding fees), study fees (study material) and accommodation. There are no deposits required. Loans are offered at fixed monthly repayment.

For more information, please call Fundi on 0860 55 55 44 or visit their website on www.fundi.co.za.

Absa Study Loan

Absa is one of the oldest and top 5 banks in South Africa. They help students pay for studies by giving them an opportunity to borrow funds at a low-interest rate to support yourself or someone you would like to benefit from study funding. to qualify for the loan, you or your surety must earn at least R3 000 per month. Loans are provided at an affordable interest rate, based on affordability and risk assessments.

Find out more details by visiting the Absa website here. You can also give them a call today on 0860 100 372 or visit any of their local branches near you.

FNB Student Loan

First National Bank (FNB) offers student loans that cover pretty much anything about your studies, being tuition fees, books, and campus accommodation. FNB is a leading innovative bank in South Africa. Loans are offered at a personalized interest rate and you can apply for loans from R4 000 right up to R80 000.

Visit the FNB website today to read more and apply online.

Standard Bank Student Loans

Student loan allows you to pay for your study fees and make your dream come true. Standard Bank will finance your studies at a convenient and affordable interest rate. The institution will also offer you and student banking account that will best suit your needs as a student.

To apply and find out more information about the loans, please visit the Standard Bank website today.

Once again, this is not just a debt, it's an investment, you have to know yourself very well before taking up the loan. If you are not going to finish up your studies or go to university to play around, then you'll be wasting your own time and money.

Most importantly, missing out on an opportunity for a better future for you and your family.