FNB Student Loan Review 2022

If you are a student enrolled in a tertiary program, the FNB Student loan is one of the best student loans available. Anyone who enrols in a SAQA (South African Qualification Authority) recognized training program is eligible for the loan.

Students or their guarantors can borrow up to R300,000.00 to finance some of their study costs at a tertiary institution. The loan’s interest rate may be quite low, depending on the borrower’s risk profile. As a result, those with an excellent credit rating may have lower monthly payments. 

A credit life insurance policy is included at a cost along with the loan to help secure it. Should a covered incident occur, the FNB credit life insurance covers the amount borrowed. Death, temporary disability, permanent disability, and retrenchment are all covered events.

The FNB Student Loan is a one-of-a-kind loan that allows students to pay for their studies. Let’s go through the FNB Student Loan in greater detail, including how it works and other details.

FNB Student Loan Summary

FNB Student Loan is a student loan with a minimum interest rate of 6.5 % per year and a maximum interest rate of Prime + 4.5%. In terms of income, an applicant must earn at least R6000.00 per month to be considered. A sponsor can help you meet the minimum income requirements.

FNB Student loans start at R4000.00 and can go up to R80,000.00 per year. A R300,000.00 personal loan can be used to pay for overall student tuition and other expenditures while attending a tertiary institution.

The FNB Student Loan is only available to those that are above the age of 18. The applicant must have a valid South African ID or study permit if they are an international student. Foreign individuals with a permit can apply for the FNB student loan and are studying at a recognized tertiary institution. 

How the FNB Student Loan work

To obtain an FNB Student Loan account, one must fill out a basic application. To apply for the loan, one must be employed or self-employed; alternatively, the principal debtor must be employed or self-employed. Furthermore, to apply for the loan, one must be a permanent resident of South Africa.

The loan can be applied for entirely online by requesting a callback from FNB, of which a consultant will contact you to begin the application process. In South Africa, applications can be made at any FNB branch. When submitting an application, however, all needed documentation must be presented.

FNB will ensure that all appropriate fees associated with your education are covered following a successful loan application. Accommodation, tuition, textbooks, and calculators are among the expenses covered.

The money borrowed will have to be repaid over a period of up to 84 months. The rate of repayment is determined by the number of months for which the loan account is repaid. The loan will have an interest rate of at least 6.75 percent per year.

Advantages of the FNB Student Loan

• Anyone enrolled in a recognized tertiary institution is eligible for a student loan.
• Those pursuing a postgraduate degree are also eligible to apply for the loan.
• The loan covers not only tuition fees, but also other expenses incurred during a student’s term of studies, such as housing, stationery, and computer equipment.
• The loan’s interest is personalized, which means that those with a good credit score can negotiate a reduced interest rate.
• The repayment alternatives are adjustable to the individual’s financial circumstances.
• There is credit life insurance available that protects the principal in the event of his or her death.
• When compared to loans from other banks, the maximum loan amount is quite large. The maximum loan that can be granted is R300,000.00.

Disadvantages of the FNB Student Loan

• The loan demands that the borrower be employed or have a working guarantor, which some students may not have.
• The loan must be reapplied for every 12 months from year to year, which means that if the guarantor’s financial status changes, the student may be unable to complete his or her studies.

FNB Student Loan Requirements

• The applicant must be 18 years or older at the time of application.
• Have a South African ID book or Smart card.
• Have proof of residence that is not older than 3 months at the time of application.
• Proof of enrollment from the educational institution or proof of registration.
• Must be a permanent South African resident.
• Students must be registered with a SAQA accredited institution.
• Must have a principal debtor who is permanently employed or self-employed at the time of application.
• Salary or income must be paid into a bank account of the principal debtor.

Conclusion

The FNB Student loan is a great choice for any student that has been admitted to study at a recognized tertiary institution in South Africa. However, not anyone that has been granted space at a recognized tertiary institution can qualify for the loan. This loan is for those that earn an income or that can nominate a guarantor that is employed to sign the application forms. 

What’s great about the FNB Student Loan is that it covers the majority of the expenditures connected with attending a post-secondary institution. There will be no need to worry about purchasing stuff such as required textbooks, computer equipment, or lodging.