9 Cheapest Student Loans In South Africa (2023)

Education is a vital process that not only arms a person with the knowledge and ability he needs, it also opens the doors to greater financial security and helps one to climb the social ladder. The problem is that education is expensive. The availability of funding is therefore one factor that can determine how far one can go in his academic quest.

Are you looking for the cheapest student loans in South Africa to help you pay for your tuition and any other expenses related to your education? Yes, it is possible to get a loan to help cover the costs of your education, and there in fact several options available in South Africa. However, it is important that a loan is taken for the purpose of education be flexible in the repayment, and low in interest.

Most affordable student loans in South Africa are paid after the duration of the student’s education when the person has started earning. Sometimes, a person is required to produce a guarantor who stands as the principal debtor, to provide assurance of payment in the event of a possible default.

Cheapest Student Loans In South Africa

1. Capitec Bank Student Loan 

The Capitec Bank Student Loan can give you from R10,000 to R25,000 at first asking. This loan will give you between 1 to 84 months to pay it off, and it is completely flexible; you get to choose the amount and tenure that suits you.

With an interest rate of 12.90%, this is one of the cheapest student loans in South Africa. 

Phone Contact: 0860 10 20 43


2. ABSA Student Loans

ABSA is a well-established financial institution that offers entry-level banking, and various credit facilities. The ABSA offers that offers one of the cheapest students loans in South Africa, their student loans are very flexible: The minimum amount you can take out with an Absa student loan is R15 000, while the maximum amount is R250 000. You may need to take a loan every year to cover your tuition and other expenses.

Phone Contact: 0860 100 372


3. Student Loans from Standard Bank

The standard bank student loan is one of the cheapest loans in South Africa. The bank allows you to pay interest rates as low as 7% interest per annum (terms and conditions apply). With this loan, you can get from R10,000 at the first asking, and then work your way up if need be.

You can register for a Standard bank student loan via: https://www.standardbank.co.za/southafrica/personal/products-and-services/borrow-for-your-needs/student-loans/student-loans/apply-for-a-new-student-loan


4. Nedbank Personal Loans

Nedbank Personal Loans is not strictly a student loan; it is a general loan that can also serve to provide emergency funds for students. You can get between R2 000 to R300 000. The bank offers flexible repayment terms ranging from 6 up to 72 months. You don’t even have to deposit cash anywhere; the money is just debited from your bank account. 

The interest rate is 24.75%, and you have to pay charges of up to R910.

Phone Contact: 0860 103 582


5. Direct Axis Personal Loan

Direct Axis gives out loans that start from R1000 up to R250 000. A student in urgent need of money can quickly get a loan from Direct Axis with a fast and convenient application process. If your application is successful you can get the money in your bank account within 24 hours. Furthermore, the repayment options are flexible; there are options ranging from 12 to 60 months. 

As you make your fixed monthly repayments, you will receive updates on the state of the loan facility via a free monthly statements through email or SMS.

This loan charges an interest of 15.00%, and you will also pay fees of up to R805.

Phone Contact: 0861 02 03 04


6. Direct Axis Consolidation Loan

Direct Axis also offers a Direct Axis Consolidation Loan which also offers an easy option to get cash if a student is stranded. This is a loan that you can apply for separately, even when you already have an outstanding debt with the company.

This facility can give you from R5,000 to R250,000, and also give you from 12 months to 60 months to pay. The loan charges an interest of 15%.

Phone Contact: 0861 02 03 04


7. African Bank Personal Loan

The African Bank personal loan can give you from R10,000 to R250,000. You can choose from 7 months to 72 months to repay the loan. The loan requires an interest of 15%.   

Phone Contact: 0861 111 011


8. African Bank Debt Consolidation Loan

The Consolidation Loan from African Bank is an option that can help you consolidate when you are already in debt. That is because there is no point in being in debt only to go halfway on a project. Therefore, you can get from R10,000 to R250,000 more to continue with your education. You can choose between 12 months to 72 months to repay the loan, and the interest rate is 15.00%.

Phone Contact: 0861 111 011


9. RCS General Purpose Loan

A student who is in dire financial need does not care about the name given to a loan, as long as it meets his needs. With this loan, you can get between R2 000 up to R250 000 although the first asking is usually around R5000. It is possible to register with this company, apply for this loan and get the money in your account all within the space of 24 hours.

You can pay back the loan in 12 to 60 months. The company charges 15% for this loan. You will get statements about the loan monthly through email and SMS.

Phone Contact: 0861 729 727



An ideal affordable student loan in South Africa should be cheap, and they usually are. However, one must be very careful when considering debt in order to fund his education. Of particular disinterest are those so-called consolidation loans which lure people into taking even more debt in order to pay off already existing ones. A person can easily take on debt, and find himself paying for it for the next 10 years.