Best Student loans in South Africa in 2026-Including interest rates
Looking for an institution to further your studies is hard and very competitive. But not as hard as trying to source funding for said studies.
Here’s a clear and up-to-date look at the best student loan options in South Africa and their typical interest rates — so you can plan your education funding with confidence in 2026.
1. NSFAS – Government-Backed Student Funding
Best for: Students from low-income families attending public universities or TVET colleges.
Key features
Interest: Very low (typically around 80% of the repo rate, which is much lower than bank loans) — if you qualify for a loan rather than a bursary.
Repayment: Only starts after you graduate and are earning above a set income threshold (often around R30 000/year).
Bonus: A portion becomes a bursary (no repayment) if you pass your modules!
Coverage: Tuition, accommodation, meals, and learning materials.
Why choose NSFAS?
This is typically the most affordable option — especially if you can get part of the funding converted to a bursary.
2. Standard Bank Student Loan
Best for: Students who need traditional banking support with flexible repayment.
Typical terms
Interest rates: Around 10.25% – 18.25% p.a. (varies by credit profile, often linked to prime).
Repayment: Interest-only while studying; full repayment usually starts after graduation.
Loan range: R5 000 up to R300 000+ depending on needs.
Standard Bank sometimes offers a no-guarantor loan for eligible students (e.g., middle-income households and specific study levels), which can make access easier.
3. FNB Student Loan
Best for: Flexible, repeatable yearly funding with digital account management.
Typical terms
Interest: Usually linked to prime (e.g., prime ± small margin), meaning rates often align with prevailing market rates — roughly around prime + 1.5% or competitive based on your profile.
Loan range: R10 000 to R300 000 per year.
Repayment: Interest only during study; capital repayment after graduation.
Existing FNB clients often enjoy quicker approvals and potentially better pricing.
4. ABSA Student Loan
Best for: Students who want a widely accepted bank loan with broad coverage.
Typical terms
Interest: Competitive, often around prime rate or slightly above depending on credit.
Loan range: R15 000 to R250 000 or more.
Repayment: Interest can be paid while studying; full repayment begins post-graduation.
ABSA’s student loan is especially popular for local studies and straightforward application processes.
Best for: Students seeking a digital, faster application with flexible terms.
Typical terms
Interest: From around 12.75% – 28%+ depending on your credit profile and amount borrowed. (moneyloans.co.za)
Loan range: Up to ~R500 000.
Repayment: Monthly, selected term (can be up to 84 months).
Capitec doesn’t always require surety if you can demonstrate affordability — making it more accessible for self-funded students.
Tips When Choosing a Student Loan
✅ Check interest calculation: Some banks link to the prime lending rate, which fluctuates. Standard Bank has a good debt calculator. Check it out!
✅ Consider repayment start: Some allow interest-only while studying and defer capital repayments until after graduation.
✅ Get quotes from multiple banks: Rates can vary widely based on your credit, income, and surety.
✅ Apply for NSFAS first: If eligible, it’s usually the most affordable option.
Quick Rate Summary (Typical)
| Provider | Interest Rate (approx.) | Notes |
|---|---|---|
| NSFAS | ~Low (based on repo rate) | Government; income-based; partial bursary possible |
| Standard Bank | ~10.25%–18.25% p.a. | Prime linked; interest-only while studying |
| FNB | ~Prime + small margin | Flexible, digital |
| ABSA | ~Prime or competitive | Broad coverage |
| Capitec | ~12.75%–28%+ | Digital, flexible but higher depending on credit |
(Percentages are approximate and vary based on credit profile and prevailing market rates.)
In summary, choose the funding that works best for you. Check the interests and repayment plan. Good luck
Also check: Best 32-day notice account
