A study loan is really a financial tool that gives you, like a student, the ability to study further, even though you not have the immediate funds to pay for yourself.
Generally, students and a parent or guardian applies for students loan from the bank or other registered lender. The parent or guardian acts as surety (if the student is underage or unemployed) and is accountable for make payment on interest portion of the loan while the student is studying. A student is responsible for paying the capital portion of the loan after graduating.
The loans are generally used to cover tuition costs, accommodation and books.
Some education loan lenders give students a grace period after they have completed their studies. At the end of the grace period, the capital area of the loan becomes payable.
How to obtain a study loan in South Africa:
The major banks in South Africa currently offer study loans. FNB, Absa, Traditional bank and Nedbank all have dedicated study loan finance for qualifying South African students. You can approach any of these banks once you have the necessary documentation and anyone to behave as surety.
There are also other registered institutions that specialise in offering study loans, such as EduLoan and also the South African government-backed National Student Educational funding Scheme (NSFAS.)
Documents you may need to apply:
- You and your surety's South African ID
- Proof of income
- Proof of address
- Proof of enrolment at a qualified tertiary institution
When applying for a study loan, it's important to consider which study loan issuer is the best for your needs. Rates of interest in many cases are personalised and also the amount borrowed granted relies upon the creditworthiness and affordability of the baby acting as surety.
