A number of South African banks have incorporated student loans as one of their available loan options, offering students an alternative method for gaining tertiary funding. Capitec bank has been an instrumental part of this initiative, offering their own credit-for-education option.
However, simply because specific student loans have been made available for students, does not mean that a student is unable to take out a personal loan. So long as the student meets the requirements for a personal loan application, they should be eligible to receive the loan.
At Capitec Bank, a personal loan, which would take the form of a term loan, can be taken out for a number of reasons, including home improvements, buying a car, and much more. The term loan would have to be paid back in regular payments over a certain period of time, depending on each applicant’s personal loan package, which is typically moulded around their financial capabilities.
The term loan offers up to R250 000 over 5-84 months, and interest rates start from 9.75%. For students who want to apply for this loan option, the following should be considered:
- The student would have to be above the age of 18 and be able to prove that via identification documents
- The student would have to provide their latest salary slip and three months’ bank statements
- The student will need to provide a good credit and banking history
- The student would have to provide a statement of their income and expenses, so that the bank can measure how stable their income is
- The student will have to provide the amount they would like to take out for credit and how they would like to organise their monthly payments
So long as the student considers these main points and finds themselves within eligibility for taking out this personal loan, they should be allowed to take out the loan.