New Zealand is one of the most preferred destinations for higher studies. Some of the top courses to study in New Zealand are MBA, Artificial Intelligence, Master of Science, Civil Engineering, etc. Every year around 20,000 students from India go to New Zealand for studies.
As every student and their parents can’t fund higher education abroad, an education loan is the best option in these cases. A lot of banks provide education loans to study in New Zealand at affordable interest rates. Check some of the top banks in India providing education loans for New Zealand.
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Top Banks for Education Loans for 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 education loans to study in New Zealand.
Also Read: Check here all about SBI Zero Balance account for students
State Bank of India
SBI is the largest public sector bank in India that provides study-abroad education loans of 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.
Bank of Baroda
Bank of Baroda is one of the most popular banks for overseas education loans. The bank provides education loans to study abroad 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.
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 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 starts from 9.50% 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.
Also Read: Check here all the important details about the Karnataka Bank Education Loan to study abroad
ICICI Bank
ICICI Bank offers up to INR 2 crore in education loans with collateral to study in New Zealand. 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%).
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.
FAQs
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.
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 14% 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.
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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