Students of academies, colleges, technical schools, and courses can take advantage of the education loans. A student with an official income will personally apply for a loan for himself if he meets the age requirements. In some cases, a financial institution may demand surety.
Paid education can also affect both young students and well-established specialists who are thinking about improving their qualifications or changing their occupations. What opportunities does the financial market offer today and how to get education loans for students?
Consumer loan: earmarked or not
Exclusively earmarked education loans are quite rare. It is ideal when an educational loan involves payments that the borrower does not make immediately, but after graduation and employment, or at least with a delay for the first couple of years of study. However, such deferred payments are an additional risk factor, which, as a result, can negatively affect the interest: it may turn out to be too unattractive to find people willing to take out such a loan for study.
A good low-interest earmarked loan is possible with the participation of a future employer. Often, industries with a shortage of specialists attract employees precisely through educational lending programs. In this case, the company pays the education loans in South Africa on the condition that the graduate will receive a certain specialty and will work in the organization for the period established by the contract.
If you cannot get educational loans in South Africa for a targeted program, you can use standard consumer loans.
Benefits of the education loans
Young people easily and with pleasure master remote channels of loan repayment. For example, the money can be transferred free of charge in the mobile application, via Internet banking. There are several sources for obtaining information about the amount and date of the next payment to help to form financial discipline, learning students how to be a conscientious borrower.
Other advantages of educational loans for students:
- a solid sum of money (up to R350,000), which allows a student to transfer funds to the account of a prestigious educational institution. If you only need to pay for a semester or a year, it is better to request only the required amount, saving on interest;
- possibility of credit holidays for 1-3 months, which are individually provided to borrowers in the absence of debt. During this period, only interest is paid;
- ease of registration by submitting data online;
- the efficiency of decision-making – education loans South Africa, in general, approved very quickly.
Remote services for student loan management for study, make it possible to monitor transactions, track the balance of debt online.
How to get a loan
A consumer loan is the need to be confirmed by the solvency and availability of income sufficient to repay the loan. However, some banks allow a simplified procedure for issuing loans for small amounts. For example, if you need to take out educational loans in the amount of R2,000-10,000, then it is quite possible to find among the proposals a suitable option with minimum requirements for the list of documents.
Usually, department of education loans asks for:
- ID of South Africa citizen;
- Documents confirming registration from a South African institution;
- Documents confirming the level of income and solvency.
If you are planning to take out an education loan, we recommend that you check the list of required documents in the department of education student loans, the offer of which is most suitable for your purposes.