Capitec Bank Student Loan Review 2023

Capitec Bank student loan

The Capitec Student loan is a study loan for students in primary, secondary, and tertiary school. Capitec Student Loan offers up to R500,000.00 in student loans that can be used for tuition, textbooks, study-related technology, and accommodation.

The Capitec Student loan has a repayment period of up to 84 months. The student loan may be in the form of a revolving credit facility linked to the prime rate. This loan is also available as a fixed-rate term loan. Alternatively, the loan could be a hybrid of the available funding options.

The Capitec Bank student loan is designed to last over a four-year period. Those pursuing one to four-year degrees may be eligible for financial aid during their studies. Depending on the student’s academic success, the loan will cover all of the student’s needs from start to completion.

The Capitec student loan is available to those that earn an income. However, the applicant doesn’t necessarily have to be employed as he/she can choose a guarantor to secure the loan. 

Capitec Bank Student Loan is discussed in detail below. 

Capitec Bank Student Loan Summary 

The Capitec student loan is a student loan for students pursuing post-secondary education. The maximum loan amount that can be obtained is R500,000.00, which must be repaid over a period of 6 to 84 months. The loan will be repaid over a period of time that the applicant is satisfied with.

Capitec Bank’s interest rate is personalised because it is subject to credit screening. Those who have a solid credit history and rating are more likely to be offered favourable interest rates. The loan’s interest rate might range from the prime rate to any percentage determined by Capitec Bank.

Capitec Bank has teamed up with a number of educational institutions to offer student loans. Capitec Bank has made partnerships with the following tertiary institutions:

  • AFDA (Africa Film Drama Art), 
  • Boston College, 
  • Henley Business School, 
  • Johannesburg Business School, 
  • Milpark Education, 
  • Stadio, 
  • Stellenbosch University, 
  • University of Stellenbosch Business School, and
  • USB-ED (University of Stellenbosch Business School Executive Development). 

The Capitec Bank student loan is not limited to postsecondary education; the bank can also advance student loans to Curro Academy students. Loan to study at Curro can be as high as R250,000.00. Loan account holders can get discounted interest rates and an extended repayment term of up to 24 months. 

Failure to repay a loan account might result in legal action; nevertheless, Capitec Bank has made it a point to assist account holders with the Capitec credit protection plan to tackle various circumstances of non-payment. The insurance plan protects you against a variety of risks, including loss of income, permanent disability, and temporary incapacity.

How does the Capitec Bank Student Loan work? 

The Capitec Bank Student Loan can be applied for in a few simple steps on the Capitec Bank website or via a referral from the website of a partner college or school. Before submitting an application, the applicant must have all of the necessary information.

Information on tuition and registration costs will need to be prominently displayed. To complete the application, information about fees must be emailed at the time of submission. 

If all of the required paperwork is presented and the primary applicant meets the eligibility requirements, the loan will be approved. Credit evaluation and evidence of income are two of the qualification conditions. To qualify for the loan, one must have a decent credit score and a steady source of income.

Capitec Bank will notify you of the loan amount you are eligible for once your application has been approved. The money that one is eligible for will be sent to the school where one is enrolled. There will be no money sent to the applicant because the money will be deposited in full at the registered institution.

Borrowed funds must be reimbursed to Capitec Bank. Depending on how many months the loan account holder is comfortable with, repayment can take up to 84 months.

Advantages of the Capitec Bank Student Loan 

  • The student loan can be used to pay for university education at any of South Africa’s academic institutions of Capitec Bank’s choice.( mainly business schools)
  • The student loan can be used to pay for Curro Academy’s elementary and secondary school costs.
  • There is no need to visit a Capitec Bank location because the application is completed entirely online.
  • Following approval, funds are sent immediately to the beneficiary.
  • The total sum borrowed can be repaid over a 84-months period with interest.
  • The maximum loan amount that can be authorized is R500,000.00.
  • In some cases, a loan payback extension of up to 24 months may be allowed.
  • Undergraduate and postgraduate students studying at a recognized higher institution are eligible for the loan.

Disadvantages of the Capitec Bank Student Loan 

  • The Capitec Bank student loan is available mostly for those attending business schools, therefore, many professions and universities are not funded by the loan. 
  • The loan is only available to South Africans. Therefore, those on a work permit cannot get the loan. 
  • Only those that earn a salary can get the loan. 

Requirements of the Capitec Bank Student Loan 

  • Must have a South African ID book or Smart card. 
  • Be over the age of 18 at the time of application. 
  • Have 3 recent consecutive payslips. 
  • Provide the recent 3 months bank statement showing the latest 3 consecutive salary deposits. 
  • Provide invoice or quote from the Capitec partner university or school. 

Conclusion 

The Capitec Bank student loan is an excellent option for anyone interested in attending a business school in South Africa. Advanced degrees, such as the Master of Business Administration, which costs over R180,000.00 per year, can be pursued with up to R500,000.00 in loans from Capitec Bank.

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