There are various factors which pose difficulties to borrowers in South Africa including the strict money lending system and the recent economic downturn which made banks even more cautious. Numerous university students would like to know whether they are eligible for personal loans in this situation. Use this guide to find out.
Criteria for getting a personal loan
Personal loans are generally available to individuals who receive a monthly income such as a salary and a rental income. If you meet this condition and you are over 18 years of age, you will certainly qualify for credit from small and independent lenders no matter whether you are located in Cape Town, Pretoria or Durban. These financial products are available nationwide. It may be more difficult to meet the lending criteria of large banks like African Bank, Bidvest Bank or Investec Bank, but you may also want to check out their loans and eligibility criteria.
It is important to note that you will not be able to qualify for a loan if your income is from a grant, a scholarship or any other form of student funding.
Generally, part-time students who have a job with a salary have the highest chances of getting credit granted to them.
The same applies to research students who are paid by the university or another institution.
You can also consider getting a credit card. There are some cards especially designed for university students. They are typically available from the large banks that traditionally serve universities and their students. You can get approved automatically if you have paid your tuition fees, accommodation expenses and bills. Usually, the maximum limit is not high and the interest is not super low, but you can use such a card in case of emergency.
A student can take advantage of personal loans if he/she meets the eligibility criteria.