Eduloan, the education finance business long associated with student funding in South Africa, rebranded as Fundi. If you are searching for Eduloan, Fundi is where you will now find the products, and the older name no longer identifies a separate lender.
An education loan differs from a general personal loan in two practical respects: the money usually goes to the institution rather than to you, and it is often structured around the academic year rather than a conventional loan term.
Eligibility Requirements at a Glance
The applicant must be the person with income. A student without their own income cannot pass an affordability assessment in their own name.
- Be 18 years or older with a valid South African ID
- Have a regular, verifiable income paid into a bank account in your own name
- Not be under debt review, sequestration or administration
- Have proof of the student’s acceptance or registration at a recognised institution
- Have the institution’s fee statement or quotation for the period being funded
- Be able to identify the student and the institution on the application
Income and Affordability Requirements
The affordability assessment applies to whoever repays.
The Act requires an affordability assessment before credit is granted: the provider must verify gross income, subtract statutory deductions such as PAYE and UIF, subtract the minimum living expenses prescribed in the affordability assessment regulations, and subtract existing monthly debt repayments. Lending without that assessment is reckless lending and is prohibited.
Where a working student borrows for their own part-time study, their income is assessed. Where a parent or guardian borrows, theirs is — and they carry the legal obligation to repay whether or not the student completes the qualification.
Education loans are usually advanced for one academic year at a time and reassessed for the next. Plan on that basis: approval this year is not approval for the remainder of a degree.
Ask precisely what is covered. Some education finance covers tuition only; other products extend to accommodation, textbooks, devices and registration fees. The gap between tuition and the true cost of studying is where families are most often caught short.
Credit and Financial Requirements
The applicant’s credit bureau record determines approval and the interest rate.
The agreement is regulated by the National Credit Act 34 of 2005 and the provider must be registered with the National Credit Regulator (NCR). Verify registration free of charge at ncr.org.za before you sign.
Apply for funding you do not repay first. NSFAS funds qualifying students at public universities and TVET colleges. Institutional bursaries, merit awards, sector education and training authority funding and corporate bursaries all exist, and their deadlines usually fall well before registration. Every rand of bursary money is a rand you never repay with interest.
Where the institution offers its own payment plan, price that too. Instalments arranged directly with a university or college are sometimes interest-free within the year, which no credit product can match.
Credit life insurance is standard on this kind of lending. Given that education loans run for years, ask specifically what happens to the debt if the person repaying dies, is disabled or is retrenched mid-qualification.
Documents and Verification Required
Both the applicant and the student need documents.
- South African ID document or smart card for the applicant
- Latest payslip, or the latest three where income varies
- Latest three months’ bank statements
- Proof of residence not older than three months
- The student’s ID document
- Letter of acceptance or proof of registration from the institution
- A fee statement or quotation showing the amount required
- For self-employed applicants: six months’ statements and financial statements
How to Apply and Improve Approval Readiness
Apply early. Institutions generally require proof of payment or a signed fee undertaking before a student may register, and approval and disbursement take time.
- Apply for NSFAS and bursaries first, and note their earlier deadlines
- Ask exactly what the loan covers beyond tuition
- Confirm whether payment goes to the institution directly
- Ask the institution about its own payment plan before borrowing
- Check your credit report and dispute errors before applying
- Borrow only the shortfall after bursaries, savings and payment plans are accounted for
Frequently Asked Questions
Is Eduloan still trading under that name?
It rebranded as Fundi. Search for Fundi rather than Eduloan when looking for current products and terms.
Can a student apply without income?
No. Credit is granted against verified income. An earning parent, guardian or spouse must apply and carries the obligation to repay.
Does the money go to the university?
Education finance usually pays the institution directly. A general personal loan pays into your account instead.
What if the student does not complete the qualification?
The debt remains payable in full. That risk sits with whoever signed the agreement.
Product names, coverage and criteria change. Confirm current details with Fundi, and check NSFAS and bursary deadlines directly with the funder and the institution.