Representative example: a R50 000 loan at an interest rate of 24.5% per annum plus a once-off initiation fee of R1 207.50 (added to the loan amount in this example) and a monthly admin fee of R69.00, over 72 months would have a total cost of R 103 155.57.
The maximum annual interest rate including fees is 27.5%. Repayment terms can range from 1 - 72 months.
MyLoan is an online loan broker and not a lender. Our service is free and we work with NCR licensed lenders in South Africa. Interest rates charged by lenders can start as low as 20% APR, including an initiation and service fee determined by the lender. The interest rate offered depends on the applicants’ credit score and other factors at the lenders’ discretion.
It doesn’t matter if you’re studying towards a higher certificate, diploma, or degree: the price of tertiary education is steep! And it will only get more expensive, from increasing tuition fees to the rising cost of transport, accommodation and study materials. Luckily, there are a few options for students in South Africa seeking financial assistance, including student loans. We will explore the concept of student loans, delve into the requirements, and provide guidance on the application process and potential loan amounts. So let’s embark on this empowering journey of educational possibilities.
What is a Student Loan?
A student loan is a financial lifeline that allows students to pursue their dreams of higher education. It is money lending institutions, or government agencies provides to cover tuition fees, accommodation, textbooks, and living expenses. Unlike grants or scholarships, student loans generally defer capital repayments for 12 months or until the student graduates. A student loan provides an opportunity to invest in your education now while building a solid foundation for your future.
Choosing the Best Student Loan
When selecting the best student loan, it’s essential to consider your circumstances and aspirations. Various factors should be considered, such as interest rates, repayment terms, loan limits, and eligibility criteria. The National Student Financial Aid Scheme (NSFAS), a government-funded organisation, is renowned for offering accessible and reliable student loans. However, exploring all available options is crucial in finding the best fit for your needs. You can use MyLoan to get multiple loan quotes at once for no extra charge. Research the different lenders, and compare loan features to decide on the best offer that aligns with your financial situation and future goals.
Some banks may not have designated student loans but offer personal loans that can be used to further your studies. However, personal loans often have different repayment structures and guarantor requirements than student loans. The interest rates and penalties may also vary.
The Potential Loan Amounts
Regarding potential loan amounts, student loans aim to cover various educational expenses, including tuition fees, accommodation, textbooks, and living costs. The amount you can receive depends on multiple factors, including your financial need, academic merit, and the available funding. MyLoan quotes loans from as little as R500 to as much as R350000, depending on the lender. Assessment of your loan application can take between minutes and 48 hours.
What are the Requirements for a Student Loan?
Several documents are typically required to complete the application process when applying for a student loan. Still, it will depend on your loan quote - some lenders require more documentation than others. You will likely need the following:
Proof of Identity includes a valid South African ID card or passport.
Proof of income like a payslip.
Proof of residence, which could be a utility bill.
Proof of Registration, where you will likely need to provide documentation confirming your enrollment in a recognised educational institution or confirmation of acceptance at your institution.
Banking Details, where you may be required to provide your bank account details for loan disbursement purposes.
Remember to have all the required documents close by so that applying for a loan online is as smooth as possible.
How to Apply for a Loan
Here’s how to apply for a loan online in three simple steps:
Fill in the Loan Application
Fill in the loan application. The form only takes a few minutes to complete, and once you submit it, we will forward it to multiple lenders that are most inclined to lend to you.
See Loan Offers
Small loan providers that see your application and are willing to provide the cash you need will instantly provide you with a preliminary loan quote. You will see the details of your loan, such as how much you qualify for and your expected interest rate. After you accept a quote, the lender will contact you directly to finalise the process.
Get the Money
Once you choose and accept one of the quotes, you finalise the application by submitting additional details and required documents like proof of residence. The lender then deposits the funds in your bank account.
Students can confidently navigate the financial aspects of their education by understanding the concept of student loans, comparing options, and exploring government initiatives. Whether through loans or bursaries, these financial resources empower students to pursue their dreams without being limited by financial constraints. By utilising available resources, understanding the application process, and making informed decisions, students can unlock the doors to a brighter future and contribute to the growth and development of South Africa.