What is FLISP?
FLISP is Finance Linked Individual Subsidy Programme which provides a subsidy to qualifying beneficiaries who have secured mortgage finance to acquire an existing house or a vacant residential serviced stand linked to a house construction contract. The subsidy is paid to your bank or financial institution in order to reduce the initial mortgage loan amount to render the monthly loan repayment installments affordable over the loan repayment term and to make good on any shortfall between the qualifying loan amount and the total product price.
The FLISP subsidy can assist you to:
- Purchase an existing residential property for the first time.
- Purchase a vacant serviced residential stand(ie. plot) which is linked to a house-building contract via the department.
- Build a new house with the assistance of a builder registered with the NHBRC, on a serviced residential stand(ie. plot) that you already own.
What is the qualification criteria to apply for a FLISP subsidy?
- The applicant must be a South African citizen or must hold a permanent residence permit.
- The applicant must be 18 years of age or older or legally married or legally divorced and of sound mind.
- The applicant’s current total household income must be between R3 501 and R22 000 per month, excluding overtime and commission but includes allowances.
- The applicant or his/her spouse must not have previously derived benefits from the housing subsidy scheme or any other state funded or assisted housing subsidy scheme which conferred benefits of ownership, leasehold or deed of grant.
- The applicant must not be owning any other residential property nor previously owned fixed residential property.
- Where the application is made for a subsidy on the basis of a legal marriage or cohabitation arrangement, it is required that the property must be registered in the name of both spouses in the Deeds Office.
- The applicant may be single but with proven financial dependents.
Any individual who has already purchased a property which has already been transferred into his or her name with effect from 01 April 2012, 01 April 2014 or 28 July 2018 will also be eligible to apply for the subsidy provided that they meet the requirements, of the respective policy revisions.
What is the subsidy amount that one can qualify for?
The subsidy amount depends on the income of the applicant.The range is between R27 960 – R121 626. To view your possible subsidy amount CLICK HERE.
How do I apply for the Finance Linked Individual Subsidy Programme?
Once your home loan is approved, a FLISP application can be discussed with your bank, financial institution, the Department of Human Settlements or your nearest municipality.
Interested applicants can also visit the Department of Human Settlements Helpdesk at 11 floor Eagle Building (munchies passage), 353–356 Dr Pixley KaSeme (former West street), Durban.
For enquiries please contact the KZN Department of Human Settlements on the following numbers:
031 336 5396 / 031 336 5262 / 031 336 5277 / 031 336 5285 / 031 336 5418 or visit our offices on the 11th floor, Eagle Building, 353–356 Dr Pixley KaSeme (former West street), Durban.
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Student Loans in South Africa: How to Apply and What to Expect
For many young South Africans, accessing higher education is a dream that often comes with a financial challenge. Fortunately, several student loan optionsstrong> are available in South Africa to help fund university, college, or TVET studies. Whether you’re looking for a government loan like NSFAS or a private student loan from a bank, understanding the process is essential for success.
What Are Student Loans?
Student loans are a form of financial aid provided to eligible students to help cover tuition fees, books, accommodation, and other study-related expenses. In South Africa, these loans can come from government institutions like NSFAS or private banks such as Nedbank, Standard Bank, FNB, and Absa. Most loans offer repayment flexibility and low-interest options until you graduate.
Types of Student Loans in South Africa
- NSFAS (National Student Financial Aid Scheme): A government-funded loan/grant program for students from low-income households. Covers tuition, housing, transport, and meals.
- Bank Student Loans: Offered by most major banks. These are credit-based and require a guardian or parent as a co-signer.
- Private Loan Providers: Companies like Fundi offer educational loans covering various costs such as school fees, gadgets, and textbooks.
Requirements to Qualify for a Student Loan
Each provider has its own criteria, but most South African student loans require the following:
- Proof of South African citizenship or permanent residency
- Proof of registration or acceptance at a recognised tertiary institution
- Parent or guardian with a stable income to co-sign (for private loans)
- Completed application form with supporting documents (ID, proof of income, academic records)
How to Apply for a Student Loan
To apply for a student loan in South Africa, follow these steps:
- Identify your loan provider: Choose between NSFAS, a bank, or a private lender.
- Gather necessary documents: ID copies, academic transcripts, acceptance letters, and income statements.
- Complete the application form online or at a branch.
- Await approval: Some banks offer instant decisions, while NSFAS can take a few weeks.
- Receive disbursement: Funds are typically paid directly to the institution or your account, depending on the lender.
Loan Amounts and Repayment
The loan amount you can receive depends on your chosen lender and financial need:
- NSFAS: Covers full tuition, residence, books, and a personal allowance. The loan becomes a bursary if you pass all your courses.
- Banks: Can provide up to R120,000 or more annually, depending on tuition costs and credit history.
Repayment usually starts after graduation or once you start earning an income. Bank loans may require interest-only payments during your studies. NSFAS repayment only begins when you earn above a specific income threshold.
FAQs on Student Loans in South Africa
1. Can I apply for a student loan without a parent or guardian?
For government loans like NSFAS, yes. But most banks require a financially responsible co-signer, especially for students without an income.
2. Is NSFAS a loan or a bursary?
NSFAS starts as a loan, but it converts to a bursary if you meet academic performance requirements. This means you may not have to pay it back.
3. What is the interest rate on student loans?
Private banks offer competitive rates between 5% and 12%, depending on the applicant's credit profile. NSFAS charges a much lower interest rate, usually linked to inflation.
4. What happens if I fail my courses?
If you’re funded by NSFAS and fail, your loan won’t convert into a bursary, and you’ll need to repay the full amount. Banks may continue charging interest, and your co-signer may be held liable.
5. Can I use a student loan to pay for accommodation and laptops?
Yes. Both NSFAS and many bank student loans cover costs beyond tuition, including housing, meals, textbooks, and electronic devices like laptops or tablets.
Final Thoughts
Student loans in South Africa offer a much-needed financial lifeline to thousands of students every year. Whether you're applying through **NSFAS** or a private bank, ensure you understand the **terms, interest rates, and repayment conditions** before signing any agreement. Make informed decisions today to secure your academic and financial future tomorrow.