Education Loan to Study in New Zealand: A Detailed Overview

    Updated on: 27 Sep 2022


    Studying at a top university in New Zealand can take your career to the next level. To fulfill the dream of studying in New Zealand, students need significant bank balances. Education loan for New Zealand is undoubtedly the best way to bridge the financial gap. There are several banks and private lenders in India that can help Indian students avail of the desired study loans for New Zealand.  

    In this blog, we will provide information about the process of taking bank loans for higher studies in New Zealand. Let’s dive in…

    What are the major requirements to study in New Zealand?

    • For courses of more than nine months’ duration, students have to show evidence of funds of NZ$15,000 for living expenses. For a course shorter than 9 months, evidence of at least NZ$1,250 per month is mandatory. Funds for the first year of study should be readily available in terms of liquid funds.
    • As a shred of evidence, students can present an original bank deposit certificate; study loan sanction letter from a recognized bank with security against a fixed asset of the applicant or co-applicant, FD at least 6 months old; bank statement(s) of the student or acceptable co-applicant for past 6 months; provident fund accounts supported by documents related to employment.
    • Students who have availed of scholarship students have to show the offer letter from a New Zealand institution providing the details of the scholarship and dates of the program
    • Plan of fee payment for the courses with a duration of more than a year. This can comprise co-applicants tax returns mentioning the income and saving patterns, FD due to mature in the following year, and bank account statement with the source of recent funds (if any)
    • A letter from the financial co-applicant detailing personal tax records, gross annual income, length of employment and position occupied, and evidence of business registration and recent business tax returns with the income statement.

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    What are the financial requirements for a New Zealand student visa?

    In the New Zealand student visa process, students have to fulfill certain financial pre-conditions before they can get one. These requirements are:

    • Students have to deposit the living expenses for at least one year of their course with a bank based in New Zealand.
    • Students have to pay their annual tuition fees before their visa process.

    What are the eligibility criteria for an education loan for New Zealand?

    • The applicant should be an Indian national.
    • The applicant must have secured admission to professional/technical courses through a recognized entrance test/selection process.
    • The applicant should have the required financial and academic profile depending on the type of loan and lender.

    What are the types of education loans available for studying in New Zealand?

    Broadly, the education loan options in India to study in New Zealand fall under two categories:

    1. Education Loans with Collateral - These are the study loans in which applicants have to provide collateral as a security. This collateral is pledged to the bank as a security for the loan. This collateral security can be of two types:
      • Tangible assets such as flats, land (non-agricultural), shops, etc.
      • Intangible assets such as fixed deposits, life insurance, government bonds, etc.
    2. Education Loans without Collateral: These are study loans in which the student does not have to pledge any collateral security to the lender in order to get the education loan to study abroad. However, there has to be a co-applicant and his/her income becomes a major factor of the loan sanction likelihood. Only the private lenders in the country offer an unsecured education loan for an amount more than INR 7.5 Lakhs to study in New Zealand.
    Check Your Education Loan Eligibility Apply Here

    What are the types of lenders that provide education loans to study in New Zealand?

    • Government Banks Public-sector banks like the State Bank of India and Bank of Baroda provide education loans for New Zealand for students who look to study undergraduate or postgraduate courses. They only provide study loans for New Zealand on the basis of earning and decent parental earning. These banks also take into consideration the future earning potential of the applicant. 
    • Private Banks - A few private banks in India also provide unsecured education loans for New Zealand but only for the masters’ degree from a reputed college there. The private banks are also approved by New Zealand universities for visa purposes; thus, students can show the education loan letter from a private bank as proof of funds during the visa interview.
    • NBFC -  Non-Banking Finance Companies are not so eager when it comes to education loans for New Zealand. They do provide education loans with collateral for New Zealand but are reluctant to offer education loans without collateral. 

    How to get an education loan for a bachelor’s degree in New Zealand?

    Overseas undergraduate students can expect to pay around NZ$22,000-32,000 per year, with higher fees for subjects such as veterinary science and medicine. Most of the undergraduate degrees in New Zealand take three years to complete. For undergraduate courses in New Zealand, Indian lenders only offer loans with collateral. You will need to put an asset as a security to get an education loan for a bachelors’ degree in New Zealand. For such loans, you can apply to a public-sector bank as for secured loans, government banks are the best options, due to their lower rate of interest, longer moratorium period, tax benefits under section 80 E, and more.

    Read Also:

    How to get an education loan for MS in New Zealand?

    To finance a postgraduate course in New Zealand, you can go for any of the secured and unsecured education loans. However, it is important to note that for masters in New Zealand, it is always better to go for a secured loan if possible. It is hard to get an unsecured loan to study in New Zealand and even it can be sanctioned, the interest rate would be on the higher side.

    To know more about study loans for MS in New Zealand read - Educational Loan Options for MS in New Zealand.

    Check Your Education Loan Eligibility Apply Here

    How to get an education loan to study in New Zealand?

    • Check your loan eligibility
    • Get free expert education loan counseling from a counselor to compare the loan options available. 
    • Select a lender and do the application online on our platform.
    • Get your customized document checklist.
    • Submit all the required documents either online or get documents picked up from your home by our representative.
    • Property & other legal evaluation (in case of loans with collateral).
    • Get the loan sanction letter after the bank’s approval.


    How can GyanDhan help in getting a loan to study in New Zealand?

    You can avoid all the hassles of the education loan process by contacting GyanDhan. We can help you with free education loan consultation and providing free help in the loan application. GyanDhan has partnered with leading banks and private lenders of India including government banks, private banks, and NBFCs. Leveraging our partnerships, we provide end-to-end help in the abroad education loan process and also try to solve any issue if arises during the loan process. We also provide a customized document checklist so that you don’t have any confusion related to what documents are needed. In a nutshell, you can contact GyanDhan and leave all your abroad education-related worries to us. To know if you are eligible for a New Zealand study loan, check your loan eligibility now!

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