As with student loans, personal loans are widely available from financial institutions to finance full programmes or short learning programmes on either a full-time or part-time basis. A personal loan differs from a student loan, in that the person responsible for taking out the loan must immediately start paying off the capital amount of the loan as well as the interest. Personal loans can be repaid over a period of up to 60 months, thus making the repayments affordable on a monthly basis. As in the case of student loans, it is important to remember that, to qualify for a personal loan, the person applying for the loan will have to provide the bank with certain information in order to be assessed for credit worthiness. Interest rates that are applied to the loan may vary as a result of the institution assessing the risk attached to the approval of the loan.
The table below illustrates how a personal loan works:
|MONTHS||PROGRAMME CASH FEE||INTEREST RATE||BANK MONTHLY PAYMENT|
|Months 1-60||Payment of interest & capital|
*The amount of R60, 000.00 has been used for illustrative purposes only and is not for any specific Varsity College programme. Interest rates and monthly repayments will vary in accordance with different lending institutions’ policies and repayment terms. The illustration is based on year 1 of study only.