What is a Loan?
A loan is money that is borrowed to cover the costs of your tertiary education. A loan has to be repaid. The taking out of a student loan is one of the most utilized options for students.
Different Types of Loans
Institutional Loans - Some tertiary education centres offer student loans at preferential rates of interest. Ask the Financial Aid Bureau at the university where you intend to study if the university manages a loan scheme for students. Find out what the interest rate is that the education centre offers and how it expects you to repay the loan.
Bank Loans - Most banks offer student loans at relatively attractive interest rates. Student loans must be repaid once you have graduated, and most banks will require some form of surety or security before they grant a student loan. If you interested in applying for a student loan, it is always best to approach the bank where you, or the person who will sign surety for your loan, already has a bank account.
How to Apply for a Loan
Compare the options of various banks and financial institutions to be able to negotiate the best interest rate.
Here are some important contact details:
ABSA: www.absa.co.za or 0860 008 600
First National Bank: www.fnblifestart.co.za or 0860 102 458
Nedbank: www.nedbank.co.za or 0860 115 060
Standard Bank: www.standardbank.co.za or 0860 123 456
Requirements for Applying for a Loan
You must be accepted into a South African Qualifications Authority (SAQA) accredited institution and have proof of registration at the institution, you need a valid identity document, results of your previous qualifications whether they were matric or college, life insurance - which the bank will arrange for you if you do not have a policy, proof of residence, and someone to stand surety for your loan.
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