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Absa Student Loan Review 2022

Absa Bank provides some of the lowest interest rates in South Africa on any sort of borrowing, and there is no better place to start looking for a student loan than at Absa Bank. There are strict rules that must be followed when applying for an Absa student loan. However, a successful application means lower interest rates. 

An Absa Student Loan benefit includes not only the interest rate but also the student loan itself. A successful applicant receives funding for all of their educational expenses. That implies money will be available for housing, tuition, and other expenses. During one’s studies, one can rest assured that all of his or her study demands will be met.

The Absa Student Loan also includes special repayment options that are affordable for any student. To obtain an Absa Student Loan, one must be working or have a guarantor. The loan repayments must begin immediately once the loan is taken out, and there are two repayment choices available.

Let’s discuss what an Absa student loan is and what you receive from it before we get into the different repayment alternatives.

Absa Student Loan Summary 

An Absa Student Loan is a student loan for students who are seeking a higher education. An applicant must be working or have a sponsor or guarantor to qualify for the loan. To qualify in terms of income, the sponsor, guarantor, or employed candidate must make at least R3000.00 per month.

The Absa Student Loan covers the cost of studying at a South African post-secondary institution. The loan will be used to pay for required textbooks, tuition, registration fees, housing, and computer equipment such as laptops, printers, and calculators.

Full-time and part-time students can apply for an Absa Student Loan. Accommodation funding is only available to students who are enrolled full-time and do not live with their families. With so many expenses, the Absa Student Loan has a minimum credit limit of R15,000.00.

Since the Absa Student Loan is only intended to pay one year’s tuition and associated expenses, it must be reapplied for the following year. Because reapplications are subject to approval, the prior year’s grades will be vital in determining whether or not the loan will be granted.

Absa offers loan account holders the option to insure themselves with the Absa Credit Protection plan since the loan must be repaid at some point. Death, disability, critical sickness, terminal illness, and loss of income are all covered by the Absa credit protection plan.

How does the Absa Student Loan work? 

To apply for a student loan from Absa, you must first fill out an application and attach all the necessary documents and information. Application forms are available at any Absa branch in South Africa, as well as on the Absa website and mobile app.

Undergraduate and postgraduate students studying at a registered institution in South Africa are eligible for the loan. Furthermore, both part-time and full-time students are eligible for the loan. Each student finance option has its own set of requirements. As a result, you must have the following documents in order for your application to be considered:

Full-time students

  • A sponsor or guardian who earns R3000.00 or more per month is required.
  • Obtain proof of income from the designated guardian or sponsor.
  • Acceptance letter from a SAQA-approved university, a TVET (Technical Vocational Education and Training) college, or online courses recognized by the US Department of Education or the UK Government of Higher Education.
  • At the time of application, you must provide proof of residence that is no more than three months old.
  • Bank statements or payslips from the previous three months.
  • A valid South African identification book or smart card is required.
  • For second or subsequent years of study, proof of previous year’s academic results or proof of previous year’s academic results.

Part-time students 

  • Must have a valid South African ID book or smart card. 
  • Must be full time employed. 
  • Have proof of income that can be a bank statement or payslips. 
  • Must earn an income of at least R3000.00 or more. 
  • Acceptance letter from a SAQA(South African Qualification Authority) accredited institution or from a TVET (Technical Vocational Education and Training) college or online courses accredited by the US Dependent of Education or the UK Government of higher education. 
  • proof of the previous year’s academic results for second or subsequent years of study. 

When making an application, it is obvious from the above information that the applicant must have a parent or guarantor who earns more than R3000.00 per month to apply for the loan. Part-time students, on the other hand, will need to work to qualify for the loan.

When approved, the loan will be used to pay for tuition and other educational expenses. As per the invoices provided to Absa, the funds will be deposited directly to the chosen recipients. When it comes to disbursing loan cash, only well-known institutions will be considered.

The loan amount will have to be repaid using one of the offered repayment options. The first alternative is to repay the loan in full, including both principal and interest, immediately after taking out the loan through monthly instalments. The second option is to pay interest for the first 12 months, and then make capital and interest payments thereafter.

Advantages of the Absa Student Loan 

  • The loan amount available is substantial, starting at R15,000.00.
  • Those with a good credit score can acquire loans with lower interest rates.
  • Before repaying the capital, one might choose to pay interest for the first 12 months.
  • Credit protection plans, which cover a variety of incidents, can be used to protect the loan.
  • The loan is available to undergraduate and graduate students.
  • Part-time and full-time students can apply for the loan.
  • The loan amount covers the entire set of fees associated with a student’s education. 

Disadvantages of the Absa Student Loan 

  • Interest can increase from year to year for those that will be taking multiple student loans. 
  • There is no accommodation financing for those studying part-time. 

Conclusion 

If you want to pursue a university education in South Africa, you should look into the Absa Student Loan. The loan has several advantages and can be applied for multiple times till you complete your tertiary program. If you are a capable student, you will be financed. Nevertheless, the loan is also approved depending on other considerations such as credit rating, credit behaviour, and financial circumstances.

Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted at [email protected]

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