Varsity College Full-time Brochure 41755VC_Full-time_Brochure_20172018_LR (1) | Page 28

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To qualify for a student loan, you will need to provide your
bank with certain information, so that they can assess
whether they are willing to grant the loan. The bank will
insist that there is someone (normally a family member or
a guardian) who will stand surety for the debt, and will also
require proof that they have sufficient income to cover the
monthly repayments. The interest rate that the bank offers
may vary depending on the bank’s assessment of the surety.
Personal Loans
As with student loans, personal loans are widely available
from financial institutions to finance full programmes or
short learning programmes on either a full-time or part-time
basis. A personal loan differs from a student loan, in that the
person responsible for taking out the loan must immediately
start paying off the capital amount of the loan as well as
the interest.
Personal loans can be repaid over a period of up to 60
months, thus making the repayments affordable on a
monthly basis.
As in the case of student loans, it is important to remember
that, to qualify for a personal loan, the person applying for
the loan will have to provide the bank with certain
information in order to be assessed for credit worthiness.
Interest rates that are applied to the loan may vary as a
result of the institution assessing the risk attached to the
approval of the loan.
The table below illustrates how a personal loan works:
Personal Loan taken over 60 months:
Months
Months 1-60
Programme
Cash Fee Interest
Rate
R60,000.00* 17%
Payment of
interest &
capital
Bank Monthly
Payment
*The amount of R60,000.00 has been used for
illustrative purposes only and is not for any specific
Varsity College programme.
Interest rates and monthly repayments will vary
R1,491.15
in accordance with different lending institutions’
policies and repayment terms. The illustration is
based on year 1 of study only.