FNB currently offers student loans up to R300,000

FNB has been one of those financial institutions that has been promoting education through their student loans which it states that their pay-outs for last year grew by 116% in the six months ending December 2022.

The bank stated that it aims to make student loans available through the FNB app, and the enhanced payouts are a part of that goal.

Amika Maharaj, Business Solutions Head at FNB Loans, said that because school costs have risen dramatically over time, many people now find it challenging to fulfill their educational ambitions and professional aspirations.

Their student loans are now available through their FNB App which is a huge advantage for their bankers who might need assistance in that area.

Since the debut, our clients who have expressed a lot of interest have found the application procedure to be simple, secure, and convenient.

As stated by FNB, in order to be eligible for a student loan, the person taking out the loan (the principal debtor) must have a monthly salary of at least R3,000.

Part-time students and those who work full-time can still apply for the loan as principal debtors as long as they fulfill the R3,000 minimum income criterion.

A credit and affordability assessment will be performed on any loan applications made by parents or family members of any other sponsor.

According to FNB, it offers loans up to R300,000 at interest rates as low as Prime minus 0.50%.

The amount of the loan is sufficient to pay for all study-related costs, including tuition, housing, books, and other supplies.

The principle debtor will only make interest and fees payments for the first 12 months, with capital payments making up the remainder of the repayment schedule.

The bank emphasized that students should use the loan for what it is designed for and not to fund a lifestyle while noting that student loans offer significantly lower interest rates when compared to personal loans or credit cards.

Wherever possible, FNB urges customers to make a small overpayment on their agreed-upon monthly student loan repayment. By doing so, the overall cost of credit is reduced and interest and fees are saved.

For paying off the student loan early, there are no fees. Also bear in mind that a fresh application must be made if additional money is needed for the following academic year, so only borrow what you actually need, keep spending reasonable, and maintain a good credit rating, says Maharaj.