Top Education Loans to Study in New Zealand: New Zealand is an emerging destination for international students due to its high-quality education system, affordable tuition fees, and post-study work opportunities. However, pursuing education in New Zealand requires substantial financial investment, which is why education loans to study in New Zealand have become a crucial financial tool for students.
In this blog, we will explore the top education loans to study in New Zealand, covering loan options, interest rates, eligibility, and application procedures.
Table of contents
- Types of Education Loans to Study in New Zealand
- Banks Offering Top Education Loans to Study in New Zealand
- NBFCs Providing Education Loans for New Zealand
- Eligibility Criteria for Education Loans to Study in New Zealand
- Application Process for Study Loans to New Zealand
- Education Loan Repayment Terms & Interest Considerations
- Alternatives to Education Loans for New Zealand
- Benefits of Education Loan with Collateral to Study in New Zealand
- FAQs on Education Loans to Study in New Zealand
Types of Education Loans to Study in New Zealand
When applying for a study loan for New Zealand, students generally have two options. Understanding these loan types is crucial to making an informed decision about financing your education. The two main types of Top Education Loans to Study in New Zealand are secured and unsecured loans, and each comes with its benefits and limitations.
Knowing the differences between them can help you select the best education loan that suits your financial situation and repayment capacity. Let’s understand these two types of study loans for New Zealand.
Secured Education Loans to Study in New Zealand
Secured education loans to study in New Zealand require collateral, such as property, fixed deposits, or other assets, as security. They typically come with lower interest rates and longer repayment terms, making them a preferred choice for students.
Unsecured Education Loans to Study in New Zealand
Unsecured loans do not require collateral but may have higher interest rates. These loans depend on the borrower’s financial background and the credibility of the co-applicant.
Also Read: Check here all about SBI Zero Balance account for students
Banks Offering Top Education Loans to Study in New Zealand
There are many public and private sector banks in India that provide education loans to study in New Zealand. Some of the major banks are State Bank of India, Bank of Baroda, Union Bank, HDFC Bank etc. All these banks provide both secured and unsecured education loans to study in foreign countries including New Zealand.
Check all the details of the banks providing top education loans to study in New Zealand below.
State Bank of India
SBI is the largest public sector bank in India that provides education loans to study in New Zealand up to INR 1.5 crore (with collateral) under the SBI Global Ed-vantage scheme. You can apply for an SBI education loan through the Vidya Lakshmi portal. The bank provides a very smooth process of education loans and disburses the amount directly to the university. Check more details below:
- SBI education loan interest rate is only 11.15% for the global ed-vantage education loan to study abroad.
- After the loan sanction, the SBI education loan disbursement process gets initiated by the bank and the loan amount is transferred to the university.
- The bank also provides a rebate of 0.5% to female students and also to those applicants who are buying SBI RiNn Raksha along with an education loan.
- Collateral Requirement: Required for loans above INR 7.5 lakh
- Processing Fee: 1% of loan amount
Bank of Baroda
Bank of Baroda is one of the most popular banks for overseas education loans. The bank provides education loans to study in New Zealand at low interest rates and also offers a rebate on it. The bank follows the IBA model education loan scheme and abides by the RBI guidelines on education loans. Check the major features of the Bank of Baroda education loan below:
- The bank provides education loans to study abroad under the Baroda Scholar loan scheme and you can get up to INR 1.5 crore subject to eligibility criteria and requirements
- Bank of Baroda charges only 1% Processing Charge (Max INR 10,000/-) which is recovered upfront for education loans above INR 7.50 lakh
- The processing charge will be refunded on the availment of the loan (first disbursement) for premium institutions.
- Bank of Baroda education loan interest rate starts from 9.70% and may vary depending upon the university and the course selected.
- Repayment Tenure: Up to 15 years
- Processing Fee: Nil for loans up to INR 4 lakh
Union Bank of India
Union Bank of India is one of the oldest government banks in India which was established in the year 1919. The bank provides education loans to study in New Zealand under the Union Education Premier Abroad education loan scheme. You can get up to 1.5 crore in education loans by providing any collateral. Check the major features of the Union Bank education loan below:
- Union Bank education loan processing time is 48-72 hours after loan sanction and the amount is transferred directly to the university.
- The bank provides education loans to students who are Indian citizens who are admitted to full-time graduate or undergraduate courses abroad.
- Union Bank education loan interest rate ranges between 9-13% depending on various factors like loan amount, value of collateral, credit score etc.
HDFC Bank
HDFC Bank is a leading private sector bank in India offering education loans of up to INR 1.5 crore. You can get an education loan to study in New Zealand by pledging some kind of collateral. The bank also provides education loan insurance through credit protection from HDFC Life. Check the major features of HDFC Bank education loan below:
- For a secured education loan to study in New Zealand, students can choose from a wide range of collateral like residential Property, HDFC Bank Fixed Deposit, select Debt Mutual Funds, Insurance Policies and NSC / KVP.
- HDFC Bank’s education loan interest rate Varies typically between 10.5% – 14% and it may vary depending on the loan amount, monthly income and the credit score of the co-applicant
- The processing fee for the education loan will be up to 1% of the net loan amount.
ICICI Bank
ICICI Bank offers up to INR 2 crore in education loans to study in New Zealand with collateral. This bank is one of the most popular private banks in India and is renowned for financial services such as education loans, international money transfers, foreign exchange etc. You can also get an ICICI Bank Forex card easily so that you can manage expenses easily in a foreign country. Check the major features of ICICI bank education loan below:
- One of the most important features of ICICI Bank education loan is that it provides loans to students who are 16 years and above. However, most of the banks provide loans to students who are 18 years and above.
- You can pledge property i.e. house or flat, fixed deposit, existing ICICI Bank home loan for cross collateral.
- ICICI Bank’s education loan interest rate starts from 9%. It is calculated by adding the RLLR with spread (3.75%).
Axis Bank Education Loan
Axis Bank offers up to INR 75 lakh for education loans to study in New Zealand with interest rate around 11%. Check the major features of Axis bank education loan for New Zealand below:
- Loan Amount: Up to INR 75 lakh
- Interest Rate: Starting from 11%
- Repayment Tenure: Up to 15 years
- Collateral Requirement: Required for loans above INR 7.5 lakh
- Processing Fee: 1% of loan amount
Also Read: Check here all the important details about the Karnataka Bank Education Loan to study abroad
NBFCs Providing Education Loans for New Zealand
Apart from to privet and public sector banks, several Non-Banking Financial Companies (NBFCs) offer international student loans with flexible terms. Below, we have provided a list of NBFCs offering top education loans to study in New Zealand. Please have a look.
1. Avanse Financial Services
- Loan Amount: Up to INR 40 lakh
- Interest Rate: 12% – 16%
- Processing Fee: 1% – 2%
- Repayment Tenure: Up to 15 years
2. InCred Education Loan
- Loan Amount: Up to INR 40 lakh
- Interest Rate: 11% – 15%
- Processing Fee: 1% – 2%
- Repayment Tenure: Up to 15 years
3. HDFC Credila
- Loan Amount: No upper limit (based on collateral & applicant profile)
- Interest Rate: 10.5% – 14%
- Processing Fee: Varies
- Repayment Tenure: Up to 15 years
Eligibility Criteria for Education Loans to Study in New Zealand
Securing an education loan to study in New Zealand is a crucial step for Indian students. Banks and other lenders have specific eligibility requirements that applicants must meet to qualify for financial assistance. To qualify for a student loan for New Zealand, applicants must meet certain criteria:
- Must be an Indian citizen
- Minimum age requirement: 18 years
- Must have secured admission to a recognized New Zealand university
- Co-applicant (parent/guardian) is usually required
- A strong academic record improves approval chances
Application Process for Study Loans to New Zealand
Applying for an education loan for New Zealand involves a step-by-step process. It is crucial to understand this process to avoid delays in securing your finances. Follow these steps to successfully apply for Top Education Loans to Study in New Zealand and ensure smooth financing for your education abroad.
- Choose the Right Loan: Compare loan options based on interest rates, repayment tenure, and loan amount.
- Check Eligibility: Ensure you meet the bank’s eligibility requirements.
- Gather Documents: Commonly required documents include:
- Admission letter from a New Zealand university
- Academic records
- KYC documents (Aadhar, PAN, passport)
- Income proof of co-applicant
- Collateral documents (if applicable)
- Apply for the Loan: Submit your application online or visit the bank’s branch.
- Loan Approval & Disbursement: Once approved, the bank will disburse the loan amount directly to the university.
Education Loan Repayment Terms & Interest Considerations
Most education loans to Study in New Zealand come with a moratorium period (course duration + 6-12 months) before repayment begins. Key factors to consider:
- Simple Interest vs. Compound Interest: Some banks charge simple interest during the moratorium period, reducing overall costs.
- Prepayment Options: Some lenders allow early repayment without penalties.
- Government Subsidies: Schemes like interest subsidies for economically weaker sections may be available.
Alternatives to Education Loans for New Zealand
Besides student loans, consider the following financing options:
1. Scholarships: Several scholarships can help reduce the financial burden, including:
- New Zealand Excellence Awards
- New Zealand Commonwealth Scholarships
- Victoria University of Wellington Scholarships
2. Part-Time Work: New Zealand allows international students to work up to 20 hours per week, helping them manage living expenses.
3. Financial Aid from Universities: Many universities provide tuition fee waivers and financial assistance to international students.
Benefits of Education Loan with Collateral to Study in New Zealand
Education loans with collateral to study in New Zealand give you access to better loan terms, such as lower origination fees or more favourable terms and conditions, compared to unsecured loans. Check some of the major benefits of a secured education loan to study in New Zealand below:
- Education loans with collateral come with lower interest rates as compared to unsecured education loans as the bank considers the loan account less risky.
- Collateral allows you to borrow higher amounts so that you can cover not only tuition fees but also living expenses, travel costs, and other educational expenses more efficiently.
- Banks and financial institutions offer more flexible repayment terms such as longer repayment periods or the option to defer payments until after graduation if you have taken a secured education loan.
- If you have a limited credit history or a low credit score then also you can get an education loan by providing collateral. Banks or lenders may be more willing to extend credit when they have assets to secure the loan against.
Pursuing higher education in New Zealand is a dream for many, and securing the right education loan for New Zealand can make it a reality. Whether you choose a secured or unsecured student loan, comparing interest rates, repayment terms, and processing fees is crucial. Explore your options, apply for a suitable study loan for New Zealand, and take a step closer to your academic aspirations!
FAQs on Education Loans to Study in New Zealand
Some of the top banks offering education loans with collateral for studying in New Zealand are the State Bank of India (SBI), HDFC Bank, ICICI Bank, Bank of Baroda, etc.
A secured education loan requires collateral, such as property or fixed deposits, while an unsecured loan does not. Secured loans generally have lower interest rates and higher loan amounts.
The top education loans to study in New Zealand include secured and unsecured loans offered by banks like SBI, HDFC Bank, ICICI Bank, and NBFCs like Avanse and HDFC Credila.
Collateral requirements can vary among banks, but commonly accepted collateral are residential property, fixed deposits, government securities, and in some cases, liquid assets like shares and bonds.
Interest rates may vary based on factors such as the loan amount, collateral value, and the applicant’s creditworthiness. However, interest rates typically range from around 9% to 16% per annum.
Repayment tenures can vary depending on the lender. Most of the public and private sector banks offer flexible repayment periods of up to 15 years, depending on the bank and the loan amount.
Many banks offer additional benefits such as rebates on interest rates for female students, moratorium periods for course duration plus an additional grace period.
Yes, many banks and NBFCs offer unsecured education loans to study in New Zealand. However, these loans may come with higher interest rates and shorter repayment periods.
To qualify, you must be an Indian citizen, 18 years or older, with an admission offer from a recognized university in New Zealand. A co-applicant with a stable income is typically required.
Banks like SBI, ICICI, and HDFC offer up to INR 1.5–2 crore in secured education loans, while NBFCs provide up to INR 40 lakh in unsecured loans.
You can apply online through the Vidya Lakshmi portal, bank websites, or by visiting a branch. Ensure you have required documents like admission letters, financial proof, and identity verification.
Yes, many top education loans to study in New Zealand cover tuition fees, accommodation, travel, and other educational expenses.
This was all about some of the top education loans to study in New Zealand. At the time of applying for an education loan, compare various banks based on parameters such as interest rate, loan amount, repayment period etc.
To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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