Standard Bank and the established education finance company Edu-Loan on Wednesday announced a far-reaching education investment that will give thousands more South African students access to affordable funding to further their tertiary studies.
In 2003 Standard Bank and other financial institutions signed the Financial Sector Charter committing to, among other areas, open access to affordable financial services to those who have been denied access to financial services in the past.
In terms of the agreement, Standard Bank acquired an equity stake in Edu-Loan and will extend loan funding to the company to expand its business of providing educational finance to students, primarily from low-income households.
Over the past six years, Edu-Loan has disbursed in excess of R450-million to more than 170Â 000 students coming predominantly from households earning below R4Â 000 per month. This has been provided across the country at affordable interest rates.
Says Emil Bohme, Edu-Loan managing director: “We look forward to joining forces with South Africa’s premier banking group, the Standard Bank. They have the most advanced mass market presence and infrastructure, and a value system that we closely identify with. Through this relationship, we intend to expand the service we provide on campuses across the country and provide affordable funding to students looking to further their education.
“Our funders, the International Finance Corporation, an affiliate of the World Bank; the DEG, German Investment and Development Company; the French Development Agency; together with our shareholders, tertiary institutions and the public sector enabled Edu-Loan to exponentially grow its financing facility to students at tertiary institutions, thereby increasing access to education for all South Africans.
“We’re certain that the people, organisation and technology that we have developed provide a solid foundation on which to build for the future.”
Edu-Loan has not only provided education loan finance to the emerging market but has also affirmed its commitment to the upliftment of the community and historically disadvantaged individuals by providing more than 300 bursaries in the past four years.
Says Laurence Rapp, director of Standard Bank Retail Strategic Investments and Alliances: “Standard Bank is very excited about this relationship with Edu-Loan. Our alliance is twofold. Firstly, our innovative approach to strategic investments and alliances will drive revenue growth from which both parties stand to benefit. Secondly, it is our way of re-enforcing the commitment we made when we signed the charter that we will, among other things, help historically disadvantaged people gain access to financial services.
Over the past three years Standard Bank has committed more than R17-million towards educational projects throughout South Africa with an emphasis on programmes that enhance mathematics and science skills in schools and tertiary institutions.
In addition, the bank has committed more than R9-million to its financial literacy programme, a national project that provides economic and financial education to more than a million South African learners. This project is rolled out to more than 5Â 000 schools nationally.
In 2003 Standard Bank and Liberty Foundations conceptualised and provided R74-million to start Mindset Network, a multimedia satellite television network aimed at addressing South Africa’s educational challenges. — I-Net Bridge