Pursuing higher education in South Africa can be expensive, especially if you’re attending a university or private college. While bursaries and government funding like NSFAS are available for qualifying students, many people turn to study loans to cover tuition, textbooks, accommodation, and other costs.
How to Apply for a Study Loan in South Africa (Step-by-Step Guide)
This guide explains how to apply for a study loan in South Africa, step by step.
1. Understand What a Study Loan Is
A study loan is a financial product offered by banks, credit providers, and some educational institutions. It allows students (or their parents/guardians) to borrow money to pay for education-related expenses. Unlike bursaries, study loans must be paid back with interest.
2. Check if You Qualify
Before applying, ensure you meet the lender’s basic requirements. These usually include:
- The applicant must be a South African citizen or permanent resident.
- The applicant or sponsor (such as a parent) must have a steady income and good credit history.
- Proof of registration or acceptance at a recognised tertiary institution.
Some banks also require the student to pass their previous academic year to continue receiving the loan in subsequent years.
3. Choose a Suitable Loan Provider
In South Africa, study loans are offered by several institutions, including:
- Banks: Standard Bank, Nedbank, Absa, and FNB offer student loans with flexible repayment options.
- Private Lenders: Companies like Fundi provide loans specifically for education expenses.
- Education Institutions: Some universities and private colleges offer internal loan options or partnerships with financial institutions.
Compare their interest rates, repayment terms, and additional costs (like initiation fees) before making a choice.
4. Prepare Your Documents
Each loan provider will have specific documentation requirements. Typically, you’ll need:
For the student:
- South African ID or passport
- Proof of acceptance or registration at an accredited institution
- Latest academic results (if continuing studies)
For the sponsor (if applicable):
- South African ID
- Latest payslips or bank statements (3–6 months)
- Proof of residence
- Employment confirmation letter
- Consent for a credit check
Make sure all documents are up-to-date and certified if required.
Recommended for you: Best Banks Offering Student Loans in South Africa (2025 Update)
5. Complete the Application Form
Most banks and lenders offer both in-branch and online application options. Carefully fill in the application form with accurate details. Common information required includes:
- Personal and contact details
- Institution name and course details
- Loan amount requested
- Purpose of the loan (tuition, books, accommodation, etc.)
Be honest when declaring income and expenses to avoid issues later.
6. Wait for Approval and Loan Offer
Once you submit your application, the lender will review your documents and assess the financial status of the sponsor. This can take a few days to a few weeks.
If approved, you’ll receive a loan offer detailing:
- The approved amount
- Interest rate (fixed or variable)
- Repayment terms (e.g., interest-only payments while studying, full repayments after graduation)
- Disbursement process
Review the loan terms carefully before accepting.
7. Sign the Agreement and Receive Funds
If you accept the loan offer, you and the sponsor will need to sign a loan agreement. Some lenders disburse the funds directly to the institution, while others deposit it into the sponsor’s account.
Keep track of all documents and receipts for future reference.
8. Start Repaying the Loan
Depending on the lender, repayments may start:
- Immediately (interest-only while studying)
- After graduation (usually 6–12 months)
- When the student starts working
It’s important to meet repayment deadlines to avoid extra charges or legal action. Some lenders allow early repayment without penalties.
Also check: Motsepe Foundation Bursary 2026
Final Tips
- Apply early: Don’t wait until registration day to look for funding.
- Budget wisely: Only borrow what you need. Overborrowing increases your long-term debt.
- Explore alternatives: Check for scholarships, bursaries, and NSFAS funding before turning to a loan.
With careful planning and the right lender, a study loan can open the door to quality education without placing too much financial strain on your family.
