Best Student Loans in South Africa 2026 – How to Apply for Low-Interest Loans
The cost of higher education in South Africa continues to rise each year, and not every student qualifies for a bursary or NSFAS funding. This is where student loans come in — providing an affordable way to finance your education without putting too much pressure on your family’s finances.
For 2026, several South African banks and private lenders are offering low-interest student loans designed for both university and TVET students. In this guide, we’ll explore the best student loans in South Africa 2026, including eligibility requirements, interest rates, repayment terms, and how to apply successfully.
Why Apply for a Student Loan in 2026?
Student loans remain one of the most practical ways to pay for your education when bursaries or scholarships aren’t available.
Here’s why thousands of students apply every year:
✅ Flexible repayment options – Many loans only start repayment after graduation.
✅ Low interest rates – Especially for government-backed or bank-issued education loans.
✅ Covers full study cost – Tuition, accommodation, books, and sometimes transport.
✅ Helps you focus on your studies – Without financial stress during the semester.
If you plan wisely, a student loan can be a smart investment in your future.
Top Banks Offering Student Loans in South Africa (2026)
The following banks and financial institutions offer some of the most trusted student loans in South Africa for 2026.
| Bank / Lender | Interest Rate (Approx.) | Repayment Terms | Eligibility | Special Features |
|---|---|---|---|---|
| Standard Bank | Prime -1% to Prime +2% | Start repayment after graduation | Must have a parent or guardian earning income | Covers tuition, accommodation, textbooks |
| Nedbank | Prime-linked (around 11.75%) | Repay after studies | Parent or guardian required | Online application; quick approval |
| Absa Bank | Prime interest (≈11.75%) | Pay interest during study, full repayment after | Surety required | Up to R250,000 funding limit |
| FNB (First National Bank) | Prime-linked | Flexible repayment plans | South African citizens, proof of registration | Covers full education cost; easy online tracking |
| Capitec Bank (EduLoan) | From 10.75% | Repayment after course completion | Students 18+, valid ID, proof of acceptance | Lower monthly repayments |
| Fundi (Private Education Loan) | Variable (depends on credit profile) | Repay after graduation | Employed or have a guarantor | Supports university, TVET, and online students |
| Sasfin Bank | From 9.75% | Starts after studies | Credit check + sponsor needed | Tailored for postgraduate students |
Eligibility Criteria for Student Loans in 2026
Each lender has its own requirements, but most South African student loans follow these general eligibility rules:
Must be a South African citizen or permanent resident.
Must have an official acceptance letter from a registered tertiary institution.
A parent, guardian, or sponsor with a steady income is often required as surety.
Must submit ID documents, proof of income, and academic records.
Some lenders perform a credit check before approving the loan.
Documents Required for Application
Before applying, prepare the following documents to speed up your approval process:
Certified copy of your ID or passport
Proof of registration or acceptance at a tertiary institution
Latest academic results
Proof of income for parent or guardian (payslips or bank statements)
Recent utility bill (for address verification)
How to Apply for a Student Loan in South Africa (2026 Guide)
Here’s a simple step-by-step guide for applying successfully:
Step 1: Research and Compare Banks
Visit official websites of top lenders (like FNB, Standard Bank, or Fundi) and compare their interest rates, repayment plans, and loan limits.
Step 2: Confirm Your Eligibility
Ensure you meet the age, citizenship, and study-related requirements before submitting your application.
Step 3: Gather Your Documents
Organize all required documents (ID, proof of income, acceptance letter, etc.) before applying online or in-person.
Step 4: Submit Application
Online: Visit the official bank portal and complete the student loan form.
In-person: Visit your nearest bank branch and meet a loan consultant.
Step 5: Wait for Approval
Most banks will review your credit profile and contact you within a few business days.
Tips to Get Approved Faster
Apply before the academic year starts (November–January).
Ensure your parent or guarantor has a good credit record.
Always compare multiple offers to find the lowest interest rate.
Avoid providing incomplete documents or unverified proof of income.
Repayment and Interest Terms
Most banks in South Africa allow students to:
Pay only interest while studying, then start full repayments after completing their studies.
Choose between fixed or variable interest rates.
Extend repayment periods up to 10 years after graduation.
Pro Tip: Always calculate your total repayment before signing — this helps you understand the full cost of your loan.
Alternatives to Student Loans
If you want to avoid loans entirely, here are a few other funding options:
NSFAS: For students from low-income families (R350,000 or less annual income).
Government Bursaries: Like the Funza Lushaka or Department of Health bursaries.
Private Scholarships: Offered by companies like Vodacom, MTN, and Sasol.
Combining bursaries and loans can reduce your debt load and help you graduate with less financial stress.
Frequently Asked Questions (FAQ)
1. What is the minimum amount I can borrow for a student loan?
Most banks start from R4,000 and go up to R250,000 depending on your study program.
2. Can I apply for a student loan without a guarantor?
Some private lenders like Fundi allow students without guarantors, but banks usually require one.
3. When do I start repaying the loan?
You’ll usually start paying after graduation or once you find a job.
4. Are student loans available for postgraduate studies?
Yes. Banks like Standard Bank and Sasfin specifically fund postgraduate students.
5. Can international students apply?
No, student loans in South Africa are mainly for citizens or permanent residents.