Capitec bank one of the major banks in South Africa has announced that they will start giving student loans at low-interest rates. The major bank has joined hands with the University of Stellenbosch business school to help students who want to further their studies.
Currently, the bank has been offering unsecured loans to high earners. These loans help people to improve their livelihoods by renovating their homes or furthering their education. The partnership with USB is the first where the bank will explicitly be giving out student loans.
Capitec bank will be giving out loans at 7% payable within 7years. The student or a family member is responsible for paying back the loan. The terms and conditions are that the student should be fully employed, older than 18 years, and have valid South African citizenship.
Those who wish to apply for this loan do not need to visit a Capitec branch. You also don’t have to be a capitec client to qualify. Owen Mbundu marketing head at USB said that this loan will make it possible for many students to get a postgraduate qualification.
Capitec’s marketing and communications head Francois Viviers said that they have made the application process simpler and easier. He said that the loan can be granted within hours for suitable students. The loan can be applied online or on campus. Once the loan has been granted the money will be paid directly to USB on behalf of the student..
Viviers further explained that the bank is always coming up with new ideas to change people’s lives for the better. One of the ideas is to provide affordable credit to help pay for education costs. He said according to research those who apply for credit to pay for their education usually utilize it well.
This partnership is one of the examples of how capitec is expanding its unsecured loans. Last year the bank also introduced home loans in partnership with SA home loans.