May 04, 2021

Overseas Education Loan for New Zealand: Costs, Types, Lenders & More

The decision to study abroad can be exciting, nerve-wracking, and intense all at once. The decision of where to go is made easier by the academic reputation of study destinations like New Zealand, which welcomes lakhs of international students each year. New Zealand has been trending for many years, thanks to its world-class Universities, practical skill-focused curricula, innovative student policies, and rich cultural environment. However, pursuing higher education in New Zealand will require a considerable investment. This can be covered by an overseas education loan.

Applying for an overseas education loan for New Zealand might be the first big decision that students take once they get an admission letter from their dream University. Therefore, it is important to get all the information before making an informed decision. This article will act as a starting point for students thinking about loan options for the academic experience of their dreams in New Zealand.

Table of Content

Cost of Education in New Zealand

Although passion and interest form the basis of a study abroad dream, finances are what make it a reality. Students need an aggregate picture of the major expenses required to study in New Zealand, which are mentioned below.

These costs can be covered by a mixture of financial sources, but overseas education loans might be the most convenient, accessible, and comprehensive option for Indian students. Keep reading to know more.

Types of Overseas Education Loans for New Zealand

There are two main types of overseas education loans in the Indian financial market: secured and unsecured education loans. Let us understand each type below.

Secured Education Loan

This refers to an overseas education loan based on collateral security like property or fixed deposits (at least 6 months old) belonging to the student or their co-applicant. The asset offered as collateral security must be approved by the New Zealand student visa authorities.

Unsecured Education Loan

This refers to an overseas education loan that relies on the borrower’s creditworthiness instead of collateral security. It allows students from various financial backgrounds to access higher education in New Zealand. However, the visa norms around unsecured education loan are quite strict.

International student loans for NZ are offered by myriad lenders in the Indian financial market, including Nationalized Banks and Private Banks. Get an idea of the best loan schemes for New Zealand in the next section.

Lenders Offering Overseas Education Loans for New Zealand

When looking for an overseas education loan for New Zealand, students must choose a scheme from lenders that recognize Universities in New Zealand and offer unique benefits that make the visa application process easier. Some scheme options across different types of lenders are mentioned below, so take a look.

Nationalized Banks

Private Banks

These overseas education loans schemes for New Zealand empower students to pursue their dream course in a University of their choice. For the most part, these loans cover a large portion of the major expenses of students, as we will learn next.

Expenses Covered in Overseas Education Loans for New Zealand

The coverage of an overseas education loan for New Zealand depends on the loan margin offered by the lender. Regardless, there are certain expenses that it covers. Students can have the following expenses covered by an overseas education loan:

• The tuition fees, examination fees, and admission deposit for the duration of the course

• On-campus or off-campus accommodation fees, food, travel, clothing, and other day-to-day expenses

• Health insurance, visa fees, study material, and other miscellaneous expenses

Many loan schemes cover everything from a laptop to flight tickets for New Zealand, so it is best to check the coverage before narrowing down lender options. It is also important to check whether the lender offers services according to the New Zealand student visa norms, so let us explore that aspect further in the following section.

Student Visa Norms for Overseas Education Loans for New Zealand

The New Zealand student visa process is mandatory for all international students. Part of the process is to fulfill certain financial conditions, which may require a pre-visa disbursement of the loan amount. This may require students to get the Approval in Process (AIP) visa, which is described below.

AIP Visa Process

The AIP visa is a unique document issued by the New Zealand student visa authorities after the student’s application is reviewed. The student visa is awarded to students after their financial documents are reviewed. There are two types of AIP – with the Funds Transfer Scheme (FTS) and without FTS.

• AIP with FTS: Students need to transfer NZD 20,000 for the tuition fees and living expenses for the first year in New Zealand into the University account and the student’s ANZ Bank account. The living expenses are released each month after the student reaches New Zealand.

• AIP without FTS: Students only need to transfer the tuition fees to the University account for this process. The living expenses can be carried in their own account without transfer.

Students are required to provide proof of funding, like loan sanction letters, loan disbursement letters, and loan account statements, as part of the New Zealand student visa process. It is advisable to choose a lender that fulfills these requirements. Before finalizing the lender, students should check the eligibility criteria, which are mentioned in the upcoming section.

Overseas Education Loan for New Zealand: Eligibility Criteria

The overseas education loan eligibility criteria for Indian students applying to Universities in New Zealand change as per the lender’s requirements. However, the general criteria can be found below for reference.

• The student should be at least 18 years old.

• They need a confirmed admission from a recognized University in New Zealand.

• They must demonstrate a good academic record and apply for a professional or technical course with the necessary standardized test scores

• The co-applicant must be a relative or guardian of the student and show a good credit score and a steady income source.

Overseas education loans for New Zealand also have specific collateral requirements for secured education loan, so it is best to check thoroughly before determining the loan and lender type. Once students get closer to the application, it is time to gather the documents. We will mention those requirements next.

Overseas Education Loan for New Zealand: Documents Required

An overseas education for New Zealand is a financial commitment, and lenders need to be sure that students and their co-applicants fit the specifications and can manage the repayment before approving the amount. This is done by looking at the academic and financial documents mentioned below.

Handling the overseas education loan application process can seem daunting, especially for first-time borrowers. Knowing the general steps might put students at ease, so let’s get a look below.

Overseas Education Loan for New Zealand: Application Process

The overseas education loan process consists of many decisions, from the interest rate to the repayment plan. One such important decision is applying for a loan from a reliable lender. The step-by-step process is mentioned below.

• Step 1: Students research various lenders and check the eligibility criteria specified by various lenders.

• Step 2: They create a financial profile and gather the documents before applying for the overseas education loan for New Zealand.

• Step 3: The loan application form will be processed and verified before the lender releases a loan approval letter.

• Step 4: The terms of the loan are negotiated, and students submit some additional documents to finalize the approval.

• Step 5: The loan disbursement process is initiated according to the agreement and the lender’s procedures.

While the application process is quite straightforward, students may face many unfamiliar terminologies and procedures throughout. Seeking the help of experts like Élan Overseas Education Loans can help make this process less stressful. Find out how in the next section.

How Does Élan Assist in Securing an Overseas Education Loan for New Zealand?

Élan Overseas Education Loans has years of expertise guiding students and co-applicants through the loan process in a transparent and seamless manner. Our expert team ensures that students’ study abroad dreams are not held back by financial constraints. Time to find out how our help can transform students’ loan experience.

• Our team thoroughly evaluates the student’s academic and financial background, shortlisting lenders that fit their requirements for an overseas education loan for New Zealand.

• We help students get the most competitive interest rates and high coverage from their preferred lender.

• Our experts compile a personalized list of the documents required from start to end, ensuring a smooth and expedited process.

• We assist with pre-visa disbursement of funds for the student visa AIP process with FTS.

In addition to all this, we inform students about every stage of the journey and help them set up repayment plans or troubleshoot issues after they reach New Zealand. With our precision and attention to detail, students can get financial help in no time.

In a nutshell, overseas education loans for New Zealand are a great way to cover the cost of education without any stress. From the best banks for education loans for New Zealand to creating a realistic budget for one’s preferred course, students can rely on loan experts like Élan Overseas Education Loans to streamline the loan application process and create a hassle-free experience.

Overseas Education Loan for New Zealand FAQs

Q1. Can I get an overseas education loan for New Zealand with 100% coverage?

Ans. Yes, many lenders offer 100% coverage of all student-related expenses. Sometimes, the loan coverage may change according to the type of loan, the student’s profile, or the University of choice, so it is best to check the details.

Q2. What types of courses are eligible for an overseas education loan for New Zealand?

Ans. The types of courses eligible for an overseas education loan for New Zealand vary across lenders. Some may offer loans for Master’s, Bachelor’s, Diploma, Pathway, and Foundation programs, while others may offer loans only for select programs. The eligible programs may also change across loan types.

Q3. Can I avail tax benefits on my overseas education loan for New Zealand?

Ans. Yes, absolutely! Most lenders offer tax benefits on overseas education loans for New Zealand under Section 80E of the Income Tax Act.

Q4. How long does it take for an overseas education loan for New Zealand to process?

Ans. The processing time for an overseas education loan for New Zealand can vary according to the lender. While Nationalized Banks may take 10-30 working days to process the loan, NBFCs may take up to 7 days for the process.

Q5. When should I apply for the New Zealand student visa?

Ans. The New Zealand student visa process takes around 2-3 months to complete. Therefore, it is recommended that students start the application process a few months before their joining date to ensure timely procedures.