Eduloans are financial instruments designed to support individuals seeking educational opportunities. Whether you are pursuing higher education, vocational training, or a specialised course, MyLoan can help alleviate the financial burden. Choose the best loan option available - with no obligations or hidden costs.
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.
How Does an Eduloan Work?
Education loans are a form of financial aid that enables students or individuals to access funding for their education-related costs, such as tuition fees, textbooks, accommodation and living expenses. Banks, financial institutions and specialised educational credit providers typically quote these loans based on a borrowing agreement, where the lender provides a specific amount of money. The borrower is then required to repay the loan amount in installments, usually with interest, over a predetermined period, after completing their studies or securing employment.
Which EduLoan is the Best?
Determining the best education loan option depends on various factors, including individual circumstances and requirements. MyLoan recommends considering the following aspects when comparing quotes and before taking on any loan.
Can You Afford to Take on this Debt?
From a pure financial stability perspective, you should be confident that you can take on this loan and pay it back within the necessary period. Alternatively, you can collect all your loans in one big loan.
What is the Purpose of the Loan?
Determine the specific purpose for which you need the funds. Assess whether it is a genuine emergency or alternative financial solutions, like bursaries, are available.
Is the Loan Tenure Well Suited to the Expense?
The loan you choose should align with whatever you use the money for. So be sure the expense is acceptable before applying for the loan. It’s worth taking your time to consider these considerations before making any decision.
What are the Requirements for Foreign Students in South Africa?
Several documents are typically required to complete the application process when applying for an eduloan. Still, it will depend on your loan quote - some lenders require more documentation than others. But you will likely need the following:
Valid South African ID
Proof of residence
Banking details like recent bank statements
Proof of income like payslips
Proof that you are enrolled in a recognised educational institution
It is important to research beforehand to ensure you have all the necessary documentation ready, which will help applicants avoid unnecessary delays or rejections. All loans are subject to final credit approval and the lender’s terms and conditions.
Who Qualifies For an Eduloan?
If you can provide the required documents like the ones listed, you will likely be qualified for an eduloan with the NCR-certified credit providers MyLoan partners with.
Can Foreigners Apply for an Eduloan?
While Eduloans are primarily intended for citizens and permanent residents, specific lenders may consider applications from international students or individuals with valid study permits. Foreigners should research lenders that specifically cater to international students or consult with educational institutions for guidance on available loan options. MyLoan quote many credit providers, which you can apply for by filling in our online loan application, which only takes 5 minutes.
The National Student Financial Aid Scheme (NSFAS)
There are 25 public universities in South Africa. Suppose you are a student enrolled in one of these institutions. In that case, you may be eligible for a loan from NSFAS, a government-funded organisation renowned for quoting accessible and reliable student loans that can cover your expenses. The loan amounts are determined individually, but taking out a loan may be a more suitable option, provided it is higher, and you can get a lump sum amount abruptly. Some banks may not have designated student loans but quote 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 Benefits and Disadvantages of Eduloans
Education loans quote several benefits to individuals seeking financial assistance for their education. However, it is vital to consider the potential disadvantages as well. Here are some key advantages and disadvantages associated with education loans:
Access to education
Flexible repayment options
Enhancing career prospects
Accumulation of debt
Eligibility criteria and limitations
Frequently Asked Questions on EduLoans
Installment Loans vs Personal Loans
When comparing installment loans and personal loans, both quote financial solutions. Installment loans provide a structured repayment plan with fixed amounts, while personal loans quote more flexibility. Consider your needs, repayment terms, and interest rates to choose the option that suits you best. Explore the possibilities with MyLoan and make a positive step towards achieving your financial goals.
How Old Do I Need To Be To Get a Loan?
The requirements say that you must be above the legal age, which is 18 years. Sometimes credit providers want a surety responsible for signing the loan for you.
Are Education Loans Safe?
Education loans can be a safe borrowing option when dealing with reputable and NCR-licensed lenders like MyLoan. But an education loan is unsecured, meaning borrowers do not need to provide collateral to secure the loan. This accessibility makes education loans attractive to individuals facing urgent financial situations or unexpected expenses.
How Long Does it Take to Pay Off an Education loan?
These are two representative examples of how much a R15.000 loan would cost monthly with different payback periods.
A R15.000 loan at an interest rate of 5% per month 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 6 months would have a total cost of R4.572.96.
A R15.000 loan at an interest rate of 5% per month 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 12 months would have a total cost of R7.771.41.
How Long Does it Take for a Student Loan to be Approved?
It can differ from lender to lender. But some credit providers quote same day loans designed for immediate disbursement, typically within 24 hours. Same day loans usually have a simplified application process and minimal documentation requirements for a swift approval and disbursement timeline.