The Nedbank Student Loan is a student financing option with a maximum loan amount of R100,000.00. The repayment period for the Nedbank Student loan is 36 months. Nedbank Student Loan has an interest rate of 10.25%.
The Nedbank Student loan can be used to pay for textbooks, tuition, student equipment, and housing. A statement outlining how the loan will be used will be required. In addition, recent exam results will be required.
Part-time students at a South African higher education institution can also apply for a Nedbank Student loan. Furthermore, the loan can be used to pay off a past-due tuition bill.
The Nedbank student loan is intended to assist students who are unable to pay for tertiary education, which can cost hundreds of thousands of rands per year depending on the program. Many South Africans, particularly those who were previously disadvantaged under apartheid, lack access to such funds.
Before applying, we’ll go over how the Nedbank student loan works below.
How the Nedbank Student Loan work
The Nedbank Student Loan provides a funding option for those who are unable to meet the financial obligations of tertiary education. To be eligible for the loan, you must submit an application that is accompanied by the necessary supporting documentation. The application can be completed entirely online or in-person at a Nedbank location.
The supporting documents that are required include:
- The applicant’s latest exam results for those that are already doing a tertiary program.
- Official registration letter from a tertiary institution that is accredited by the South African Qualifications Authority (SAQA).
- An invoice or statement for university fees.
- Lease agreement for campus or university accredited accommodation for those that want finance for accommodation.
- Invoice for textbooks and other items such as laptops or calculators.
To begin the application process, all of the above-mentioned documents must be supplied with the application form. Different candidates have different needs.
Additional information and papers are needed for:
Part-time Students
Part-time students will be required to provide additional financial information. They will be required to detail their monthly costs as well as their monthly income. This will assist Nedbank in determining the amount of loan a part-time student is eligible for.
It will also be necessary to show proof of income. Payslips, bank statements showing where the salary is deposited, or a provisional tax return for individuals who are self-employed will be required as proof of income.
Full-time Students
When applying as a full-time student, a guarantor will be required. A guarantor must be listed on the application as the guarantee and have a Nedbank transactional account. Nedbank will assist customers in opening a transactional account if they do not already have one.
When applying for a student loan with Nedbank, the guarantor must provide the following documents:
- guarantor’s latest payslip.
- three-month bank statement where their salary is deposited if they don’t bank with Nedbank, and
- A valid South African ID book or smart card.
Payments from Nedbank will be made to the valid accounts after a successful application. Every application, however, is subject to approval, with approved applications being considered successful.
Advantages of the Nedbank Student Loan
- Part-time and full-time students can apply for the loan.
- Any South African who is enrolled in a SAQA certified higher institution is eligible for the loan.
- The loan amount is large enough to pay most or all of the fees associated with attending a tertiary institution.
- Loans are available for each year of study. However, they must be applied for separately each year.
- The Nedbank Student Loan can be returned once you have completed your studies.
- With a flexible repayment arrangement, the loan can be repaid in as little as three years.
- The loan includes credit life insurance, which pays off the loan in the event of an insured event.
Disadvantages of the Nedbank Student Loan
- When compared to market rates, the student loan’s minimum interest rate is quite expensive.
- Part-time students are not allowed a repayment holiday in order to complete their education before making loan repayments.
- Given the interest and monthly service fee due, the loan repayment may be more than anticipated.
Conclusion
The Nedbank Student Loan is one of the best student loans available in South Africa from a bank. The loan is open to anyone studying part-time or full-time at a SAQA certified institution, making it accessible to many students who have previously been barred from student lending.
Applicants with a good credit score can take advantage of Nedbank’s competitive interest rate. As a result, using a guarantor with a good credit score or having a good credit score can benefit you in the long run.
