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Capitec offers student loans at reduced interest rates

Capitec offers USB students low-interest loans of 7% with a term of 84 months.

Capitec has partnered with the University of Stellenbosch Business School (USB) to offer low-interest loans to people seeking graduate studies.

Capitec has been offering some of its high-yielding customers unsecured loans at a premium rate since last year. And for many years, the bank said that its customers use unsecured loans for a variety of purposes to improve their lives, such as home improvement and, for example, to finance higher education.

But the partnership with USB is the first in which the bank explicitly offers student loans.

The bank offers USB students 7% low-interest loans payable by family or student over 84 months. In order to apply for a loan, however, prospective students must be at least 18 years old and have a valid South African ID.

Owen Mbundu, director of marketing at USB, said the loan application process fits in seamlessly with the business school’s existing admissions process. Applicants do not have to visit a Capitec office or be a Capitec customer to qualify.

“With the Credit-for-Education solution from Capitec, a postgraduate degree can become a reality for even more students,” says Mbundu.

Capitec’s Marketing and Communications Director Francois Viviers said Capitec has simplified the application process so that loans can be granted online or on campus in hours. Once a prospect’s credit is approved, Capitec pays the money directly to USB on the student’s behalf.

Viviers said this “purpose-built loan solution” is one of many ways Capitec is constantly innovating to improve people’s lives.

“One of those ways is by providing affordable credit to finance education. Our data showed us that we can continue to drive access to finance and affordability, as consumers who take up higher education loans are more likely to manage their loans well, ”Viviers said.

Partnering with USB is another example of how Capitec is working with other companies to expand their offering beyond unsecured loans.

In 2020, the bank began offering Capitec Home Loans in partnership with SA Home Loans. Capitec plays the role of a bond originator for SA home loans.

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Tags : unsecured loans
Richard Dement

The author Richard Dement