There are many reasons why a person can get a loan. One of these is to finance one's education or that of a dependant. In any of these cases, one can get a loan from the established financial lenders in South Africa. Those who want to take a loan for themselves will mostly be getting into a part time program because they will require a source of income to repay their debt and to cover their living expenses. On the other hand, if one is taking out a student loan for a dependant things are going to be easier. As such a borrower, you will be employed so you will not have an issue with making the payments.
There are two main ways in which one can use a student loan in South Africa.
1. Salary based loan
One is known as salary based loan while the other is a fixed time based system. The best form of repayment out there is the salary based one. There is a fixed percentage that has been set in advance and no lender can cross this figure. In this way, it is ensured that the customer is not exploited and is able to look after their other financial needs as well. This percentage figure is set on twenty five per cent of one’s annual income in South Africa.
2. Fixed duration repayment
The other option that has been mentioned here is the fixed duration repayment. This system is just like in the case of any other form of loan repayment. One has to repay the loan and the interest within a period of six to twenty two months, depending on what is decided at the time of the signing of the agreement.
As stated earlier the most recommended and the best method for making the payments for an educational loan is the salary repayment.
This is easier because it is going to have a more manageable percentage compared to any other form of repayment. Added to this, the procedure is quite easy as well. All one needs to do is to take into account the fact that there should be an agreement between the financer and the employer. In this way the transfer of funds is made quite easy and there is no hassle involved.
In South Africa this procedure is excellently managed. The result is that the customer can not only secure the loan with ease but the repayment schedule is quite easy and this makes life comfortable enough. You should not hesitate to invest in your education.