In South Africa, the cost of quality education continues to rise, making access to student finance more important than ever. While many banks offer traditional student loans, Capitec has carved a unique niche by offering a flexible, modern solution through its Education Finance program—empowering students to fund their studies across high school, university, TVET colleges, and even short online courses.
Whether you’re a prospective student, a working professional looking to upskill, or a parent supporting your child’s academic goals, this in-depth guide will help you understand how Capitec student loans work, what they cost, and how to apply responsibly.
How Does Capitec Bank Student Loan Work?
Capitec’s education loan isn’t a traditional student loan with deferred payments during study. Instead, it’s a customized personal loan product offered under the bank’s Education Finance initiative. The key difference is that Capitec pays the institution directly, ensuring the funds go straight toward tuition and other academic needs.
Capitec has partnered with leading educational institutions such as:
Stellenbosch University
Boston City Campus
University of Pretoria
Red & Yellow Creative School
Vega School
Milpark Education
And many more…
This makes it easier for applicants to secure funding quickly and access education across multiple disciplines, from degrees and diplomas to certifications and online courses
Key Features of Capitec Student Loans
Feature Details
Loan Amount: Up to R500,000
Repayment Term: Up to 84 months (7 years)
Interest Rate: From 9% to 24.75% (based on credit risk)
Payout Directly to the institution
Monthly Repayments: Start immediately after disbursement
Loan Type: Unsecured personal credit
Guarantor: Optional; may help improve loan approval
Flexible Usage: Covers tuition, accommodation, learning materials
Unlike government-funded bursaries like NSFAS, this is a privately-financed solution, and credit approval depends on the applicant’s or sponsor’s financial standing.
Eligibility Criteria: Who Can Apply?
To apply for a Capitec education loan, you must:
Be 18 years or older
Be a South African citizen with a valid ID
Provide proof of registration/admission at a recognized institution
Earn a regular income (alternatively, apply with a sponsor or guarantor)
Have a clear or manageable credit record
Submit three months’ bank statements and payslips (or sponsor’s documents)
Show proof of residence (not older than 3 months)
Good to know: Capitec is open to funding any accredited course—university degrees, TVET diplomas, part-time short courses, or even online programs like those offered by Udemy or Coursera.
How the Application Process Works
Capitec’s application is streamlined and digital-first. You can apply:
Via the Capitec mobile app
Online through their website
At any Capitec branch
Documents Required:
Certified copy of your ID
Proof of admission/registration
Latest salary slip or proof of income
3 months’ bank statements
Proof of residence
Once submitted, your application is evaluated based on affordability, credit history, and the terms of the course or institution. Most approvals happen within 24–48 hours if all documents are valid.
Loan Calculator: Estimate Your Monthly Repayments
Capitec offers an intuitive online loan calculator that helps you plan based on:
Course fee
Desired repayment period
Your income and credit profile
Here are some repayment scenarios for 2023–2025 estimates:
| Loan Amount | Term | Interest Rate (Est.) | Monthly Installment |
| R10,000 | 24 months | 13.5% | ~R1,105 |
| R25,000 | 36 months | 14.5% | ~R1,050 – R1,300 |
| R50,000 | 60 months | 16% | ~R1,250 – R1,800 |
| R100,000 | 84 months | 17% | ~R2,200 – R2,900 |
Tip: The lower your credit risk, the lower your interest rate—so apply with a healthy credit profile or consider using a financially stable guarantor.
What Can You Use the Capitec Student Loan For?
Capitec makes it clear that their loan goes directly to the institution to ensure responsible spending.
Here’s What It Can Cover:
Purpose Covered?
University tuition
TVET college fees
Online courses
Preschool/High school
Accommodation
Study materials/books
Student laptop or tech (If institution-approved)
What It Does Not Cover
Transport or meals
Extracurricular fees
You’ll need to submit a quotation or invoice from the institution as part of your application.
Pros and Cons of Capitec Student Loans
Pros:
Fast approval and digital process
Up to R500,000 available for a wide range of courses
Direct payments to institutions minimize misuse
Flexible repayment terms up to 7 years
Available for online and international courses
Cons:
Interest starts immediately, no grace period while studying
Based on credit risk and may be inaccessible for unemployed youth without guarantors
Doesn’t cover living expenses not linked to study (e.g. food, transport)
Still a loan—not a grant or bursary
Capitec Loan vs Traditional Student Loans vs NSFAS
| Feature | Capitec Loan | Traditional Bank Loan | NSFAS |
| Type | Personal Loan | Student Loan | Government Bursary |
| Repay While Studying? | Yes | Deferred | No (grant-based) |
| Guarantor Required? | Optional | Often required | Not required |
| Max Amount | R500,000 | Varies (usually < R150k/year) | Based on institution fees |
| Repayment Term | Up to 84 months | 6–10 years | None if eligible |
| Interest Rate | 9% – 24.75% | ~10% – 15% | 0% (income-based repayment only) |
How to Qualify With a Guarantor
If you’re a student without formal income, you can apply using a sponsor or guarantor, usually:
A parent
Guardian
Spouse
Employed relative or benefactor
The guarantor will submit their financial documents, and repayments will be calculated based on their income and credit profile. Capitec will hold them liable if you default.
Responsible Borrowing Tips
Only borrow what you need – Stick to tuition and required materials. Avoid maxing out the facility unnecessarily.
Use the calculator – Know your monthly payments before committing.
Track your credit score – A healthy credit profile improves interest rate offers.
Explore bursary options first – Look into NSFAS, company sponsorships, or scholarships before opting for debt.
Read the fine print – Understand terms, fees, early settlement policies, and your responsibilities.
Closing
Capitec student loans are a lifeline for many students across the country. However, it is a risky venture undertaken by the bank. It is important to faithfully repay these loans so that the service can remain available, and other students can take advantage of the opportunity.