South African bank First National Bank (FNB) has come to the party for students who need money (for their studies) but simply don’t have the time and energy to go through the dreaded student loan bank application process.
It’s not just banks that make it difficult to get a loan,. Try applying for a bursary or a loan from the National Student Financial Aid Scheme (NSFAS). The paperwork is enough to exhaust even the greatest of minds, but you do what you have to do to get that paper — the degree and the money.
Learn from FNB
FNB has introduced student loan applications to their app. Students, or their guardians, will be able to apply for student loans without the pain of the paperwork and a million documents sent via a few million emails.
By introducing student loan applications to the app, the bank says it hopes to make the process safer and more convenient.
This is the majority of financial institutions continue to offer only part of the services for student loans on their apps. FNB’s move to facilitate the entire process on the app could be a game changer for the industry. This is great news for students, who simply don’t have the time to go back and forth to get things done.
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To qualify, students or their guardians need to earn at least R3,000 per month and have a good credit history. The bank will review the application and facilitate the process via the app. FNB says applicants will also be able to “receive immediate feedback” on their application. We assume that means you won’t have to wait for days to find out if you can afford to study or not.
“The bank offers a maximum loan amount of R300,000, which could cover expenses such as tuition fees, accommodation, textbooks, and other study-related expenses,” said FNB.
The bank added that it’s important to also choose the right loan amount. You don’t have to apply for the entire R300,000 if you know won’t afford to pay it back or you simply don’t need that much.
“Applicants must also keep in mind that interest on the student loan is relatively lower when compared to a personal loan or credit cards,” said Gavyn Letley, product head for FNB Loans.
While the interest on student loans may be lower, FNB said students should view loans as an alternative and they should consider other ways to pay for their studies before going for a student loan.
“This includes the National Student Financial Aid Scheme (NSFAS), a bursary, or a sponsor who would be willing to fund the student’s education,” said Letley.