New Zealand Education Loan

Higher Education in New Zealand

There are various universities in New Zealand from where you can pursue a course of your choice. Some of the top New Zealand universities are:

1. University of Auckland
2. University of Otago
3. Victoria University of Wellington
4. University of Canterbury
5. University of Waikato

Banks Offering Education Loan in New Zealand

Expenses Covered under an Education Loan

The following expenses are covered under an educational loan:

1. Examination, library, laboratory fees.
2. Expenses for travelling if studying overseas
3. Fees for college and hostel.
4. Caution deposit
5. Cost incurred for uniforms, books, etc.
6. Cost of laptop or computer.
7. Other expenses.

Courses Covered under an Education Loan

1. Undergraduate degrees
2. Postgraduate degrees
3. Doctorate programmes
4. Diploma courses
5. Vocational courses
6. Skill development courses

Eligibility Criteria

1. The applicant should be aged 18 years and above.
2. The applicant should be a citizen of India.
3. The candidate should have secured admission in a recognised New Zealand university.
4. The course should be valid.

Documents Required to Apply for an Education Loan in New Zealand

Given below is the list of documents you will have to submit while applying for an education loan to study in New Zealand:

1. Entrance exam results if applicable
2. A duly filled out loan application form
3. Qualifying exam marksheets
4. Entrance test results
5. Letter of Admission
6. Statement of cost of education
7. Passport size photographs of the applicant
8. PAN Card of both the candidate and the parent/guardian
9. Aadhaar Card of both the candidate and the parent/guardian
10. Proof of identity such as PAN, Passport, etc.
11. Proof of address such as Aadhaar, utility bill, etc.
12. Statement of your bank account for the past six months
13. IT returns of the parents/guardians for the past two years
14. Any other documents required by the lender

How to Apply for Education Loans in New Zealand

Online Application:

1. Visit the official website of your preferred bank. 

1. Fill out the application form and upload all required documents. 

1. A bank representative will assist you throughout the process. 

Branch Visit:

1. Go to the nearest branch of your chosen bank. 

1. Submit the duly filled application form along with the necessary documents. 

1. The bank staff will guide you through the loan application process. 

Cost of Education in New Zealand 

The expenses for studying in New Zealand include tuition fees, living costs, travel, and other miscellaneous charges. Tuition fees constitute the largest share of these expenses and vary depending on the chosen qualification and university. Below is an overview of the average costs for different levels of study in New Zealand: 

Cost of Living in New Zealand 

For international students, the annual cost of living in New Zealand, including expenses like groceries, meals, travel, social activities, and emergencies, typically ranges from NZ Dollars 13,000 to NZ Dollars 16,000. However, the actual cost may vary depending on the student's lifestyle and spending habits.

Acceptable Sponsors and Banks for Education Loans in New Zealand 

The New Zealand Embassy recognizes only parents, siblings, or grandparents as acceptable sponsors for an overseas education loan. Third-party sponsors are not permitted. Additionally, all financial institutions in India registered with the Reserve Bank of India (RBI) are eligible to process education loan applications for studying in New Zealand. 

Types of Education Loans Accepted by the New Zealand Embassy 

Overseas education loans are classified into two categories, Secured Education Loans and Unsecured Education Loans. 

Secured Education Loan 

1. A secured education loan requires collateral, such as property, fixed deposits, or other assets, to be pledged against the loan. While government banks in India may offer loans secured by third-party assets, the New Zealand Embassy does not accept third-party collateral as a valid funding source. Therefore, it is advisable to avoid securing a loan against third-party assets when applying for an education loan for New Zealand. 

1. If the loan is secured against a fixed deposit (FD), the FD must be at least six months old, as the New Zealand Embassy only recognizes education loans backed by FDs that meet this requirement. 

Unsecured Education Loan 

1. An unsecured education loan does not require any collateral to be pledged. These loans are typically offered by Non-Banking Financial Companies (NBFCs) or private lenders. However, obtaining an unsecured loan for studying in New Zealand can be challenging, as the New Zealand Embassy rarely approves education loans without collateral as a valid funding source for higher education.

How to Secure a Student Visa for New Zealand 

Obtaining a student visa is a crucial step for pursuing higher education in New Zealand. Here's a streamlined process to help you secure it: 

1. Admission: Gain acceptance into a recognized university or institution in New Zealand for a UG degree, UG Diploma, Graduate Diploma, PG Diploma, or Master's degree. 

1. Document Preparation: Compile all necessary documents required for the student visa application. 

1. Medical Check-up: Complete medical examinations and tests as mandated by New Zealand Immigration. 

1. Police Clearance Certificate: Obtain a police clearance certificate from your local police station or regional passport office. 

1. Financial Compliance: Ensure you meet the financial requirements to qualify for a student visa in New Zealand. 

Financial Requirements for a New Zealand Student Visa 

To qualify for a student visa, applicants must meet specific financial criteria, including: 

1. Deposit Living Expenses: Students may need to deposit one year's living expenses in a New Zealand bank, though this is optional. 

1. Tuition Fee Payment: Tuition fees must be deposited after receiving an Approval in Principle (AIP) from Immigration New Zealand (INZ). 

1. Supporting Documents: Provide proof of financial sources such as education loans, loans against property, personal loans, and savings. 

1. Proof of Savings: Include evidence of a six-month-old savings account and fixed deposits. 

1. Provident Fund and PPF Proof: Show withdrawal letters for provident and public provident funds. 

Once all documents are prepared, submit the online visa application through the Immigration New Zealand portal. The process takes approximately one to three months, so apply at least two to three months before your course begins.

Show Money for Visa 

Applicants must present 'show money', including a detailed loan letter covering tuition fees and living expenses for the course's duration. Pre-visa disbursement of funds requires an AIP. 

Approval in Principle (AIP) 

AIP serves as a provisional confirmation of a student visa. To obtain it: 

1. Submit all required documents to the New Zealand Embassy. 

1. Once the financial documents are verified, the embassy grants AIP. 

1. If the visa is ultimately rejected, the student avoids losing significant funds. 

Types of AIP: 

1. AIP with FTS: Transfer the first-year tuition fees to the university account and NZ Dollars 15,000 living expenses to an ANZ bank account. 

1. AIP without FTS: Transfer only the first-year tuition fees and show NZ Dollars 15,000 in a personal savings account. 

Understanding the Funds Transfer Scheme (FTS) 

FTS, provided by ANZ Bank, allows students to transfer NZ Dollars 15,000 annually to their ANZ account in New Zealand. Funds are disbursed monthly (NZ Dollars 1,250) to cover living expenses. To meet AIP requirements: 

1. Submit a loan disbursement letter with loan details if a bank loan is used. 

1. Provide receipts for wire transfers of tuition fees and living expenses. 

1. After completing AIP requirements, Immigration New Zealand typically issues an E-visa within five working days. 

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