Study in New Zealand Education Loan – Process, Eligibility & more!

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Study in New ZealandNew Zealand is home to various universities that offer a wide variety of courses to international students. In order to study in New Zealand, it is essential to have sufficient information about the various stages of getting there. As is common knowledge, a lot of students fund their higher studies in New Zealand with the help of education loans. Today’s blog article will give you information about the entire New Zealand student visa process as well as the process of taking bank loans for higher study in New Zealand. New Zealand is the last one amongst the list of countries the education loan process for which will be covered in this blog.

Or better yet, watch this 25th episode of Loanflix, a comprehensive web-series on education loans, developed and presented by the WeMakeScholars team. The 25th episode will give you a complete insight into how you can study in New Zealand with the help of abroad education loans.


Types of Bank Loans for Education in New Zealand

As mentioned in our previous articles and episodes, education loans are bifurcated into two types, based on the kind of collateral security required. The two major types of bank loans in India have secured loans and unsecured education loans.

Secured Education Loans

Secured education loans are majorly lent on the basis of some kind of collateral security being pledged against the education loan. Government banks lend secured bank loans for education in New Zealand. The maximum loan amount limit set by government banks for those who need it to study in New Zealand solely depends on numerous factors. SBI, one of the major banks in India, lends education loan of up to Rs.1.5 Cr. This is the highest amount lent as education loan for abroad education aspirants.

Living expenses: The average living expenses required for students to study in New Zealand is estimated to be NZD 15000 for the entire course duration or a monthly sum of NZD 1250, for the duration of the course. The bank loans for education in New Zealand cater to these living expenses. Candidates are expected to deposit their living for a year according to the payment methods approved by the New Zealand immigration department, prior to their visa process. A loan sanction letter stating the approval of your education loan can also be submitted to the New Zealand embassy as proof of funds.

Tuition fees: The tuition fees mentioned in your college admission letter is also catered for in the abroad education loan taken from government banks.

Another very important point that you need to note is that although government banks do grant third-party collateral-based education loans to study in New Zealand, the embassy does not encourage this as a funding source. Hence, it is recommended that you avoid borrowing third- party education loan to study in New Zealand. 

Candidates who plan to borrow education loans against Fixed Deposits as security need to ensure that their FDs are 6 months old. The embassy only accepts education loans taken against 6 months old FDs as a funding option.

Moving ahead, let’s explore the second type of education loan option to study in New Zealand.

Unsecured education loan

Unsecured education loans do not require candidates to deposit security of any kind against their education loans. Unsecured education loans are majorly lent by NBFCs (Non-Banking Finance Companies), which are private lending institutions. Many candidates often face a difficult time finding non-collateral bank loans for education in New Zealand. This is because very few NBFCs lend such loans to students who wish to study and work in New Zealand with the help of an education loan. Another major factor is that the New Zealand embassy generally discourages choosing unsecured education loans as a  funding option for higher education in New Zealand for international students.

Read More: Private Education Loan Without Collateral – Must Know Basics


When to Manage the Funds to Study in New Zealand?

There are many ways to fund your Masters in New Zealand. A major percentage of candidates prefer to borrow bank loans for education in New Zealand, as opposed to self-funding their higher education in New Zealand due to a lot of reasons. 

In order to study in New Zealand, the first major step is to secure admission into a university of your choice. It is only after you have received an admission letter that you can proceed with your loan application process.

Before we delve into the details of the education loan process to study in New Zealand, It is essential that you get a clear picture of the New Zealand student visa process. In order to seek our team’s assistance regarding your bank loan to study in New Zealand, do give a callback request.

abroad education loan


The New Zealand Student Visa Process

Obtaining a New Zealand student visa is the gateway to pursue higher education in New Zealand for international students. A New Zealand student visa is a compulsory requirement for candidates who wish to study and work in New Zealand. The New Zealand student visa process consists of the following steps:

  1. Secure admission into a good university for Masters in New Zealand.
  2. Arrange the documents mentioned in the checklist for New Zealand student visa.
  3. Undergo certain medical tests mentioned in the New Zealand immigration department’s official website.
  4. Candidates will also be required to arrange for a police clearance certificate from their local police station or the regional passport office.
  5. Candidates are required to fulfil certain financial requirements before they can qualify for a New Zealand student visa.

Basic documents required from candidates for a New Zealand student visa.

  1. Duly filled New Zealand student visa application form.
  2. Identity proof.
  3. Study plan proof and admission letter from the respective university.
  4. Statement of fees
  5. Proof of finances.

A loan sanction letter can be submitted as proof of finance by candidates who wish to study in New Zealand with a New Zealand student visa.

Financial requirements for a New Zealand student visa

In the New Zealand student visa process, candidates need to fulfil certain financial pre-conditions before they can qualify for one.

  1. Deposit their living expenses for at least a year of their course duration with a bank based in New Zealand.
  2. Pay their annual tuition fees before their visa process.

The Approval In Principle Student Visa for New Zealand

The biggest plus-point of the New Zealand student visa process is the Approval-in-Principle (AIP) visa. Students who wish to study abroad often have to fulfil certain financial pre-conditions before they can qualify for a student visa to the respective countries. In the case of visa rejection, these candidates tend to lose out on a significant amount of money in the form of forex charges and other related expenses.

When it comes to the New Zealand student visa process, students can follow their dream of pursuing a Masters in New Zealand, without losing out on a lot of money, because of the AIP provided to New Zealand student visa applicants. 

  • Candidates need to submit all the necessary documents to the New Zealand embassy.
  • In return, the embassy provides an AIP, which is a temporary proof of confirmation of your New Zealand student visa. 
  • The actual visa is confirmed, once all the necessary financial documents and formalities are verified and confirmed by the New Zealand embassy. 
  • This way, even if a candidate’s visa is rejected, they don’t end up losing a lot of money in the process.

Know More: Top Universities in New Zealand

How to Apply For Bank Loans for Education in New Zealand?

Candidates are required to deposit their tuition fees for the entire academic year, along with their annual living expenses, before applying for a New Zealand student visa. Generally, candidates who borrow education loans are required to apply for a pre-visa disbursement from their respective lending institutions.

A pre-visa disbursement refers to any component of your education loan that may be required, to fulfil any financial prerequisites placed by the respective country’s embassy for a student visa, before the visa process.

Common problems encountered by students while applying for a pre-visa disbursement

  1. Banks ask you for a solid proof before approving a pre-visa disbursement. 
  2. Candidates have a tough time retrieving this disbursement from government banks.
  3. Students have to depend on the goodwill of their presiding bank officer to get their loan sanction letter and pre-visa disbursements.

How do you counter these problems?

Our team at WeMakeScholars works very closely with notable public banks like the State Bank of India and the Bank of Baroda and ensures that candidates who have applied for abroad education loans through us do not face the problem of getting their pre-visa disbursements. WeMakeScholars is a government-funded organization that helps candidates with their abroad education loan process. Our team provides the necessary assistance at every stage of the abroad education loan process for New Zealand. When you apply for an education loan for New Zealand through our team, about 80% of the process is cut short. Our team has been at the core of a lot of education loan policy decisions taken by major public banks in India.

So what are you waiting for? Request a callback from our team today and avail our team’s assistance for an uninterrupted education loan process.

abroad education loan


When to Apply for a Bank Loan for New Zealand Education?

It is always advised that candidates apply at least 1.5 months prior to when they will be requiring funds to study in New Zealand. Most public banks generally approve education loans within 18-20 days of applying. This time period is for those candidates who have submitted the complete and correct list of documents and whose financial profile meets the requirement put down by these government banks. 

Prevention is better than cure. In the case of the abroad education loan process, it will always help you if you stay ahead of the regular schedule by applying for an education loan way ahead. So does this mean that you need to apply a year before you plan to go to study in New Zealand? The answer is no.

Applying 1.5 months prior to your deadline to deposit funds will give you the sufficient buffer time to cater for any financial emergencies. And when you apply through our team, you can expect your education loan process to be faster and hassle-free. Request a callback today and pave the way for a stress-free education loan process.


When to Repay the Education Loan for New Zealand?

The repayment procedure of bank loans for education in New Zealand is pretty simple. Every public/government bank grants a moratorium period to candidates who wish to study abroad with the aid of education loans.

A moratorium period refers to that duration in the loan tenure, in which candidates are not required to start their loan repayments. The plus point of such a holiday is that it gives them ample amount of time to seek and gain employment before their loan repayment begins.

This moratorium period consists of the candidate’s course duration, plus six months post the completion of the course or when the candidate gets employed, whichever happens first. The loan repayment tenure for abroad education loans granted by public banks is 15 years.

Another benefit of applying for an education loan through public banks is that your interest in the entire moratorium period is calculated on the basis of simple interest only. Also, the interest payment doesn’t start until your moratorium period ends. Apart from the above benefits, there are many other ways in which you can save money and avoid unnecessary interest payment when you apply through us for education loans with public banks.

An education loan is one of the most pragmatic ways of funding higher education in New Zealand for international students. The entire process may seem to be overwhelming for those who have not done their research on the education loan process. However, it’s never too late. Getting an education loan for New Zealand in India may seem like an impossible process, given the various terms and conditions that you need to fulfil in order to get one. However, when you apply through our team, you stand to gain a lot. Your loan processing time becomes shorter, you get personalised assistance for each and every step, and our financial team also advises you about how you can save on your time and effort during your education loan process to study in New Zealand. The 25th episode is the final one in the series of the country-wise education loan process. The topic of the next Loanflix episode is a surprise! So do make it a point to subscribe to our YouTube channel so that you don’t miss out on important updates regarding our future episodes.


Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it’s at free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, China, France among others

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