Student loans provide a short-term benefit for students needing more money to cover their educational expenses.
By taking out a student loan, one can use their money for other essential expenses that have to do with schooling.
This article will focus more on the Capitec Student loan so read on!
Table of Contents
Overview of Capitec Student Loan
Students pursuing post-secondary education can borrow money from the Capitec student loan.
The largest loan that may be received is R500,000.00, which must be returned over 6 to 84 months. A timeline that satisfies the borrower will be used to repay the debt.
As a result of credit screening, the interest rate at Capitec Bank is unique to each customer.
The likelihood of favorable interest rates is higher for people with a strong credit history and rating. The interest rate on the loan could be anything Capitec Bank chooses, ranging from the prime rate to any amount.
Schools in Partnership with Capitec Student Loan
Student loans are available from Capitec Bank due to partnerships with several universities. The tertiary institutions below are partners with Capitec Bank:
- African Film Drama Art, or AFDA
- Boston University.
- Henley College of Business.
- Milpark Education
- Johannesburg Business School, and Stadio.
- Cape Town University.
- USB-ED (University of Stellenbosch Business School Executive Development) and the University of Stellenbosch Business School.
- The Capitec Bank student loan is available to students attending Curro Academy and tertiary institutions. The maximum loan amount for Curro students is R250,000.00. Holders of loan accounts can benefit from reduced interest rates and a more extended payback period of up to 24 months.
Capitec Bank Student Loan Application Process
On the Capitec Bank website, you can decide to apply for the Capitec Bank Student Loan in a few easy steps, or you can get a referral through a partner college or school website.
The applicant must have all the required data before applying.It will be necessary to disclose tuition and registration charges in a visible location. Fee information must be emailed at the time of submission to complete the application.
The loan will be authorized if all the necessary documentation is submitted and the principal applicant satisfies the eligibility standards.
Two of the qualifications include a credit review and proof of income. One needs to be employed and have a reliable income source to be approved for the loan.
After approving your application, Capitec Bank will let you know how much you can borrow. One’s registered school will receive the funds to which they are entitled.
The funds will be entirely deposited at the registered institution; no money will be provided to the applicant.
Reimbursement of borrowed monies to Capitec Bank is required. Repayment may take up to 84 months, depending on how many months the loan account holder is willing to accept.
Follow the steps below to apply for the Capitec Student loan:
- Students can submit their loan applications immediately through the campus website of the university they have chosen.
- The student must finish a four-step online application to determine eligibility.
- A Capitec consultant will get in touch with the student once they’ve been accepted once they’ve qualified. Remembering this procedure could take up to 48 hours is essential.
- A QR code that may be scanned to start the application process may also be present, which students should look for. At the partner campuses, this QR code is available in-store.
Benefits of the Capitec Student Loan
- Any South African academic institution of Capitec Bank’s choosing accepts the student loan as payment for tuition for undergraduate study (mostly business colleges).
- A student loan may cover the primary and secondary tuition fees at Curro Academy.
- The application is online, so there is no need to go to a Capitec Bank office.
- Funds are quickly provided to the beneficiary after approval.
- The entire loaned amount may be repaid over 84 months with interest.
- There is an R500,000.00 maximum loan amount that can be approved.
- A loan repayment extension of up to 24 months may be possible in particular circumstances.
- Students enrolled in undergraduate and graduate programs at accredited colleges and universities are eligible for the loan.
Problems with the Capitec Bank Student Loan
- The loan only covers a few professions and universities because Capitec Bank offers student loans primarily to individuals attending business schools.
- Only South Africans are qualified for the loan. So, those with work permits are not eligible for the loan.
- The loan is only available to salaried people.
Documents Needed For Capitec Student Loan
Students must submit the following paperwork during the application process:
- An invoice that is at most 30 days old from a partner institute.
- the three most recent pay stubs
- An account statement showing the three successive deposits.
- A legitimate South African ID.
- The student must be at least 18 years old.
- Although you don’t need to confirm your home location, some supporting paperwork might be requested.
- As long as the borrower is informed of and satisfies the standards, obtaining a student personal loan as a student is feasible.
The most crucial step is to consider your options carefully and what will work best for you.
Frequently Asked Questions
How much can I borrow from Capitec, and what interest rates are in effect?
A personal loan is one of the loans that are available to you. To help with the cost of tuition, Capitec offers loans ranging from 4,000 to 25,000 rands.
Interest rates for borrowing range from 13% to 28%. They differ according to the amount borrowed and the length of the financing period. In 84 installments over seven years, the principal and interest can be repaid.
One can request a minimum interest rate of 13.2% if you select one of the shorter financing terms, such as one year.
You will make 12 payments totaling about R9120 over a year. Longer finance terms, like four years, are an option if you need to make smaller payments.
You must remember that interest rates could rise by 18% so you will pay 48 charges close to R3041.
You can apply for a multi loan if you need access to quick cash. The fact that these credits only provide up to R4000 makes them unique.
What amounts are possible to get from Capitec student loans?
You can receive up to R250 000 to cover up to four years of tuition. You will also receive an extended term and a reduced interest rate to meet your educational needs better.
Your college receives the fees when your loan is authorized. You can apply straight from their website if your institution is affiliated with the Capitec student loan program.
Can I purchase textbooks or other fees with student loans?
You could utilize the credit to pay for textbooks if they are provided by the same institution as the tuition and are eligible to be included on the invoice.
You cannot use the credit to pay for textbooks purchased separately or provided by a different source.
What is the difference between student loans and education credit?
Education credit is only applied to needs related to education. The money will be paid directly to the appropriate partner on your behalf if you are eligible and your credit is approved.
A student loan on the other hand can be used to cover tuition costs. When approved, money is sent into the client’s bank account for a term or personal loan that can be utilized for various purposes. However, you won’t get a lower interest rate or a more extended period.
Who is eligible for a Capitec student loan?
To apply, you must be 18 or older and possess a current SA ID document or smart ID card.
The credit assessment will be based on your credit profile, affordability, and our credit-giving policies. You may also have to give:
- Your three most recent pay stubs in a row.
- If your pay is not deposited into your Capitec account, a bank statement displaying your three most recent consecutive salary deposits
- No evidence of your home address is required. However, you could be asked to submit supporting documentation to finish your application.
Is it simple to obtain student loans?
It’s relatively easy to apply for a student loan. After applying with a public or private lender, it would be best to wait until the loan funds were disbursed to your institution.
Which Student Loan Is Better?
Since federal student loans feature a fixed interest rate for all borrowers and are accepted regardless of a borrower’s income or credit history, they are frequently the first option students consider.
Federal student loans also come with repayment plans and assistance programs like student loan forgiveness.
Capitec can provide some fantastic terms for this specific loan as a significant credit and financial service provider.
Reduced interest rates could be advantageous for students. As a result, you’ll pay lower interest rates than those on other bank loans and save a ton of money—Capitec deposits money directly into the educational facility’s bank account.