How does Absa Student loan Work? - Maximum Quote Amount
Being able to pursue a career and become what you always wanted to be is priceless. Unfortunately, universities do have a price and sometimes we are not able to afford it. If this is your case and you live in South Africa we may have a solution for you: Absa loans for students. Here, we’ll tell you all about it.
How does Absa Student Loan Work?
Not everybody has the means to afford their tertiary studies. If you or your child are within the ones who cannot afford it, don’t get discouraged. In this article we’ll provide you with all the info about Absa study loan.
Absa Student loans cover for the university or tertiary institution fees, accommodation, reading materials and any devices you may need for completing your studies. Also, you can take a study loan for every year of your tertiary education.
Absa promises the lowest interest rates in the market. If you go to another bank or financial institution and get a better rate, you can go to Absa and they will try to make you a better offer.
When you take out a student loan with Absa, the first 12 months you only have to pay for the interest amounts. After those first twelve months, you start paying repayments. Absa also offers insurance for your loan, so in the event something unexpected should happen, your loan is covered.
Is there a Maximum Amount I can Borrow with Absa Student Loan?
Before you move on to requesting a loan, you should have figured out all the expenses you will have during your study year. Once you have that covered, you will know for sure how much money you’ll need. The minimum amount for an Absa student loan is R15 000 and the maximum amount is R250 000. And remember, you will have to take out a student loan for each year you are studying at a tertiary institution. Although Absa has a maximum amount for their student loans, their top amount is pretty comprehensive.
What does Absa Student Loan Cover?
Before we begin to mention all you can do with an Absa student loan, let us tell you something that, to our mind, is great: Absa allows you to fund everything in your education experience —from tertiary institution fees to housing— this is something not every bank offers. Now, let’s see what Absa covers:
Fees from the university or tertiary institution
Books you’ll need to study
Devices like a computer, or any other technical apparatus you might need
How do I Apply for an Absa Student Loan?
This new generation of young people is used to do everything online and is not comfortable with waiting. Yes, you’re smiling because you know it’s true! You want to swipe up and, boom! Being all set. But let’s get serious; taking out a loan is not the same as buying a new cellphone over the Internet. You should be aware that this is a great responsibility and that the loan will be under your name, so forget about an online application with Absa.
Absa wants to walk you through your loan decision and for that reason the means they offer for you to apply are as follows:
Go to an Absa branch near you. There, the staff will tell you all you need to know about their student loan. However, if you have any question, don’t hesitate and asks us. We’ll be happy to help you.
Call the bank. You can request your student loan over the phone. But again, should you have any doubts, feel free to make us any questions.
What do you Need to Apply for a Student Loan at Absa?
Are you already in love with Absa’s student loan? We know! It’s pretty cool. But hold your horses. First you need to know the requirements for requesting a student loan at Absa.
Just like any other bank or loan, the most important requirement is being a South African or residing in South Africa. This is an essential condition and no exceptions are made. So, your ID is the first thing you should bring to the bank.
These are the other documents you should bring to the bank with you:
A document certifying your address
The latest pay stub or bank statements
Certificate proving you have been accepted or that you are registered in tertiary institution
Papers documenting your expenses, such as university fees, housing expenses, and the like
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If you don’t work, one of your parents can be your guarantor, and of course, the bank statement and pay slips you’ll bring to the bank will be theirs.
Where can I Find a Repayment Calculator to better Understand my Absa Student Loan?
If you are asking yourself this question means that you are well aware that taking out a loan is no joke. You know that requesting a loan is a major commitment and if you don’t meet it you will end up in real trouble.
You’re in the right track, though. A calculator is a useful tool which might help you corroborate if that kind of loan is good for you, if you will be able to repay it, or if you should better stay clear of it.
In our website you will find a loan calculator you can use to answer all the above issues. Besides, our calculator lets you compare different loans. We think this is a plus because knowing what other financing companies offer also helps you make a more informed decision.
All you have to do is enter the amount of money you want to borrow and the repayment period you’d like. There you have it. All the information you need in one site.
What is Absa Student Loans Interest Rate?
The million dollar question: which interest rate will I have? Determining the interest rate the bank will provide you in a loan is what we want to know first. But the rate you will be offered will vary based on your income, your credit history, and other factors the bank deems important. What you can do to get an idea of the approximate number of the interest rate offered by Absa is using our loan calculator: it’s online!
Besides Study Loans, does Absa Offer Bursaries?
As we have been discussing in this article, Absa offer student loans both for full-time and part-time students. But does it award bursaries? The answer is yes. Absa has a bursary program for those top Afro American students who want to pursue an education but have no means. In order to apply for this grant you have to be Afro American and there are other requirements you should meet. If interested, drop us a message and we’ll tell you more about it.
Do you have Enquiries about Absa Student Loans?
Taking out a student loan is a big deal and it may be the first time you engage yourself with a bank or finances. So, it is ok to have questions and doubts. If you need more information or you have doubts that haven’t been dealt with in this article, contact us. You can leave as a comment or ask us any question you may have. We will be more than happy to give you a hand.
Does Absa have Positive Student Loan Reviews?
When we are to embark into a big step such as requesting a student loan, we want to know what other people have to say about it. Most of the times when we want to know what people think about something, we resort to the Internet. Don’t we? But, on the web there are million comments, both positive and negative. So, you might do your own research with people you actually know. What we can tell you is that Absa is one of the most important Banks of South Africa that has been providing services for over 18 years.
Is there a Special Car Loan for People with Absa Student Loan?
Absa offers a Student Loan which allows you to cover for tuition fees, accommodation, books, and technical devices. You can request this loan either if you are a part-time or a full-time student. But there are no car loans specifically designed for students with an Absa Student Loan.
Many students have to move out to a different city in order to attend college and many others have to travel several miles to get there. For this reason, owning a car would be super convenient. What happens if you don’t have a car and don’t have enough money to buy one? Well, a car loan might be just what you need.
If you want to find out about car loans in South Africa, read our articles about car loans in South Africa. There you will find where you can find the best car loans and with the best rates in the market.
In this article we’ve discussed Absa Study Loans in depth. Are they convenient? What are the maximum quote amounts? How to apply? All these questions and more have been answered. But again, if you need more info or have any question. Drop us a line. We’re here for you.
Questions and answers
Hi, if I have a study loan, do I qualify for a certain grace period before repayment commences once my studies have been completed? Is there a possibility to extend the repayment term, if so by how much I would be able to extend?
If you have a study loan, it is possibly that you have a grace period before the repayment period starts once your studies have been completed. However, it is important to clarify that there are specific terms and conditions established by ABSA which will determine the length of this grace period and the possibility to extend your loan. Please, check your loan agreement.
Does an Absa student loan get paid out directly to the institution or the student?
If you apply for a student loan with ABSA, then you should know that the money is directly paid to the institution rather than to the student. Consider that once the loan application is approved and all the required documentation is thoroughly analysed, the money goes to the university or institution where the applicant attends.
I am still owing a certain amount at school, so is it possible to combine the owing amount and the current year amount?
In case you wish to combine two pre-existing payments, including the current year's amount with a student loan with ABSA, you may be eligible to apply for the loan to cover both of the arrears. Consider that the terms and conditions of the loan will depend on your individual financial situation and credit history.
When do I pay back?
In order to know when you pay back your student loan with ABSA, you may need to check the terms and conditions you agreed with the bank when you first applied for the loan. In this way, you can find the repayment period you chose. Also, you can contact customer service to settle the payment method.
Good day, if your student loan is about 350,000 rand, and you must start to pay back in how many months can you pay back this loan? Thank you.
In the case that you have applied for a student loan of 350,000 rand with ABSA, and you need to pay it back completely, you can choose a payment period between 12 and 48 months. The interest rate can reach up to 7% and an initiation fee of about 1,207 rand.
How to renew study loan at ABSA for a second year?
In order to renew your study loan with ABSA Bank for a second year, you can visit any local office to start a new application. Also, you will need to present proof of your previous years' academic results to ensure that you need to continue your studies. Please, remember that the money is granted based on your affordability capacity and credit history.
If ABSA had already lent you money, and you failed all your second semester modules, would they still fund you, or should you change institutions?
Usually, ABSA Bank lends students money to cover one year tuition fees and all related costs. Then, if more funding is needed, they will have to apply for a loan again. However, this decision will depend on their previous year's academic results to continue with their studies. So if you have failed your second semester, the bank will be the one to make the decision whether you can access more money or not.
How long does it take for a study loan to be approved? Thank you.
ABSA Bank usually takes between 48 working hours up to two weeks in order to approve a study loan application. This will depend on the analysis carried out by the entity on all the information that you submit. The approval time will also depend on the amount of money you request.
Please, explain what happens in the event that you take another loan for your second year, will you be paying your first full instalment from the 13th month plus the interest for the second year loan? And will that be the trend until you qualified? Also, what is the duration to pay off each loan/ year applied for? Must each loan be paid within 2 years of approval? e.g. year 1 must be paid in full by the end of year 2.
In the case that you have obtained a student loan with Absa Bank, you will be paying the interest costs during the first 12 months. Only afterwards, you will be paying full instalments from month number 13 to repay the loan completely. Usually, you need to take up a course that at least lasts for 2 years to qualify for an Absa student loan.
What can you do if you and your guarantor can no longer pay for the loan?
If either you or guarantor cannot longer pay for the loan with Absa Bank, you should communicate with the company immediately to inform about your situation. There may be some alternatives to you as a client to rearrange the repayment method. This is important to remember, if you do not pay the loan, your credit history will be negatively affected.
Is the maximum amount of R250000 for one year or is it the maximum amount for the whole course of a student?
Absa Bank allows applicants to take out money for each year of study. The loan should be enough to pay for one year's tuition fees and other associated costs. The amount of the loan will be decided according to the applicant's credit risk and affordability. If it happens that the student needs more money for the following year, then they should apply for the loan again.
I want to study part time and I'm working part time and I do earn 3000 a month, but my credit is not so good . Will I qualify for loan . I want it under my name, I have no one to help me as a suretyship.
If you wish to study part time and you are working part time with an income of 3.000 rand per month, you can apply for a student loan with Absa Bank. The minimum amount of monthly salary required in order to obtain a student loan is 3.000 rand with proof of income as the bank will request your last payslips, and possibly, your bank statements.
So, when I take a study loan with ABSA will I have to repay it the same year?
No, with Absa student loans you will only be paying interest for the first 12 months. You will start repaying the loan from the month 13 onwards. The great thing about Absa loans is that you can fund undergraduate and postgraduate courses. For the course to be funded by Absa it has to last for at least 2 years.
My dad earns a salary of above 10000, but he is already paying up for another loan. Will I be able to take out a student loan under his name but pay for myself?
If your father's credit record is good enough, you might be able to have him ask for the loan. What Absa needs for a student loan is that you are able to pay it back. If you want to give your father the money to repay the loan every month, you can do so. However, bear in mind that your father will be the one responsible for paying it back.
I am 18 years old and earn more than R3000 per month. I am a full time student and also have a permanent job tutoring in the evenings 2 times a week. Furthermore, I have the contract, and it is an ongoing contract thus permanent. Am I eligible to apply for a student loan at ABSA? I am also an ABSA account holder.
If you work full-time and earn at least R3,000 as you say you do, you might be eligible to request an ABSA Student loan in South Africa. Of course, you should also meet all other qualifying criteria set by Absa Bank. In this case, the loan would be on your name.
Is this loan available for postgraduate study?
Yes, you can finance your postgraduate study with an ABSA student loan. It is available for both postgraduate and undergraduate qualifications. The course should last more than two months. The minimum amount to apply for is of R15000. You will be able to cover tuition fees for a whole year and all the costs associated with it.
My mom’s wage is of 4 000 Rands a month, can I apply for an Absa student loan?
Sure you can. Absa requests that person the loan is under earns over R3 000.
Can I take a student loan to study to become a pilot?
Yes, Absa student loan covers aviation institution. But check that the institution you chose is an approved training organization and that is certified by the Civil Aviation Authority of South Africa.
I am a part-time student; would a study loan allow me to rent a house?
No. Only full-time students who don’t live with their parents are able to fund their accommodation with Absa student loan.