Capitec to offer unsecured student loans

File: A Capitec bank branch. AFP/Emmanuel Croset 

JOHANNESBURG - Capitec bank has partnered with private higher education group Stadio to offer unsecured student loans.

The company has more than 34,000 students enrolled at various campuses, with about 80 percent studying online and the remainder engaged in face-to-face learning.

READ: Capitec now offering home loans

Most student loans from the main four banks need the backing of a guardian or a person's assets such as a home as collateral.

Unsecured loans do not.

READ: Capitec earnings hard hit by COVID-19

Capitec has faced criticism for its unsecured lending, with some arguing that the lending may be unsustainable.

Capitec says its interest on the typical 12-month loan ranges from 9-to-10 percent.

The bank said it is using lending in certain ways to help improve a borrower's ability to earn and repay debt.

Source
eNCA

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