New Zealand is becoming a favourite study abroad destination for international students. The main reason of attraction is that all the courses across various disciplines are conducted in English in New Zealand. It has also surprisingly well-developed infrastructure for research.
The main challenge international students have to face is Arrangements of funds for studying in New Zealand. Studying abroad is always an expensive affair than studying in the home country. So in this article, we are going to present you complete information about Education Loan to Study in New Zealand.
Education Loans from banks are easily available for higher studies anywhere in the world. International Students looking forward to studying in New Zealand with the help of an education loan must start their process as soon as possible. You may also choose to start your loan application process with the university application procedure. The following steps will help you to reach your destination of getting education loan for New Zealand:
Now its time to deep dive into these steps. You should follow each step with all the details mentioned in it. This is a big decision which will affect your financial life, so be careful with your decision.
Find the options of banks available to you. Explore their eligibility criteria, terms and conditions as well as documents requirements. You should do some research about the banks with the help of the internet or visit the banks. But before you research, there are few things you have to consider.
Factors to consider for applying for education loan
Before applying for a student loan to study in New Zealand, you should have a clear estimation of how much money you will require and how much you are going to self-finance. Other important factors to take note of before applying for the education loan are:
Once you are prepared with the above factor, you should check whether you are eligible to apply for the loan or not. Here are the criteria:
Eligibility Criteria to apply for international education loan
Different banks are different eligibility criteria for approving the loan. So before you fill your application form., mak sure that you met the eligibility criteria of the particular bank. The common eligibility criteria followed by all the banks are mentioned below. The applicant-
After researching and checking the eligibility criteria you have to estimate the amount you need for your studies in New Zealand. Generally, an education loan covers the total cost of a study for the particular study program. It not only includes tuition fee but also the living expenses. Here is the bifurcation of the expenses which you need to include while calculating the total amount:
Once you get your final amount requirement, you have to check your savings to check how much you will be able to pay on your own. After including this saving, the remaining amount would be arranged from the education loan.
It’s time to get the confirmation from the university of Newzealand regarding your admission. This confirmation letter should be presented in the bank while applying as proof.
There are numerous universities in New Zealand which welcomes international students wholeheartedly. Here are the top universities in New Zealand:
The list does not end here. There are many more. Check this out: Universities in New Zealand
The term and conditions for international student loans may vary from Bank to Bank. You should compare the different loan options provided by the different banks for studying in New Zealand. After comparison select the one which suits your needs better. Compare the loans options with the following factors such as:
Each factor is essential as it would make your decision of choosing the bank more beneficial than other bank options. If you decide after proper planning and comparing you will be able to save a few dollars.
Now it is the time to apply..!! After finalising the bank and loan amount, you have to fill the education loan application form. You can find the form online or else collect from the bank. Make sure to fill correct information in it and recheck it before applying. The details asked int he application form are as follow: following details in it:
To get loan approval easily, applicants need to provide some documents as proof and verification. You can attach the documents along with the Loan Application Form for the New Zealand study. Different banks demand different types of documents. The basic documents requirements for the loan approval are listed below:
Basic Documents for Students (Primary Applicant)
Documents for Co-Applicants
Income Proof for Self-employed Co-applicant/ Guarantor
Income Proof for Salaried Co-applicant/ Guarantor
Other Optional Documents
As soon as the bank approves your loan, it will issue a loan document The loan document or agreement includes various terms and conditions of the loan. If you agree with these you need to sign it, only then the amount will be disbursed to you. The details mentioned in it are
After signing the loan sanction document, the money lending institution will pay the amount to you in instalments or as required by the university. It will also be mentioned in your loan agreement. Once you receive your money, spend on the essential educational expenses such as tuition fee, books and supplies, project work, accommodation etc.
Any property kept as a security against the education loan is known as collateral. It can be either movable or an immovable. The rate of interest r of the education loans to study in New Zealand depends straightly on collateral value. Most of the banks demand collateral only for high amounts to reduce the risk involved in paying off the credit.
Instruments used as collateral:
Loan amount against collateral
The loan taken to study in New Zealand can be paid in instalments. Repayment of the amount including principal and interest will start after one year of completion of the study program or 6 months after getting the job, whichever is earlier. The loan amount can be repaid in 10 to 12 years. However, the moratorium period and instalment amount vary with the funding intuition and loan amount.
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