How Do The Nedbank Student Loan Repayments Work?

A student loan can easily amount to a source of relief for qualifying prospective tertiary students who have no alternative means to fund their studies. South Africa’s big commercial banks tend to play a vital role in this respect.  

One of them is Nedbank, they provide student loans depending on a wide variety of factors such as the student’s duration of study as well as their level of study among other eligibility requirements. However, it is equally important for benefiting students to understand how the stipulated repayment conditions work.

According to the student loan section of Nedbank's website, your guarantor will only be responsible for paying the monthly interest on your loan if you are a full-time student, still working on your internship, or are too busy to pay the whole amount. 

Additionally, once you have finished your studies, you can begin making loan payments.

For students who are enrolled part-time, the loan balance and monthly interest are the first items that must be repaid. The loan balance and the monthly interest are always included in the repayments for part-time students.

There are always requirements that the student loan applicant must meet in order to be given consideration for the loan, just like with all loan offers. By evaluating the borrower's financial situation and ability to repay the loan plus interest, these standards aim to determine whether they are eligible for the loan.

The minimum entry criteria for a Nedbank loan are as follows:

1. The applicant must be a South African citizen
2. Applicant must have been accepted to a recognised tertiary institution
3. The surety must have a Nedbank transactional account
4. The surety must have a good credit record

The following document will need to be attached in accompaniment with the applicant’s Nedbank student loan application:

1. Student’s latest exam results 
2. Proof of registration at a tertiary institution recognised by the South African Qualifications Authority (SAQA)
3. An invoice for university fees, textbooks and university-accredited or campus accommodation
4. A Nedbank Unlocked.Me account

The guarantor or surety who will be responsible for repaying the loan will be required to have the following:

1. A Nedbank transactional account as their main account
2. A valid South African ID
3. Their latest payslip
4. Three months’ bank statement if they don’t bank with Nedbank
5. To learn more about this loan option and to access the application form, click here.

At the beginning of the academic year, students are obliged to furnish the bank with a proof of registration within two months of registration at a tertiary institution for each academic year.