Ranking second on the Global Peace Index 2019, New Zealand is undoubtedly the safest country to study in. It provides the right blend of opportunities, culture, economy, and climate for an international student to succeed, with globally rated universities and a competent education system.

In order to study in New Zealand, it is essential to have sufficient information about the various stages of getting there. A lot of students fund their higher studies in New Zealand with the help of education loans since students are required to fulfill the financial requirement before their student visa process.

Today’s article will give you information about the entire New Zealand student visa process as well as the process of taking loans for higher study in New Zealand. 

Or you can also watch this 25th episode of Loanflix, a comprehensive web series on education loans, developed and presented by the WeMakeScholars team. The 25th episode will give you a complete insight into how you can study in New Zealand with the help of abroad education loans.

As mentioned in our previous articles, education loans are bifurcated into two types, based on the kind of collateral security required. The two major types of bank loans in India have 

When it comes to opting for education loans, it is preferred to take a secured loan from Government banks and unsecured loans from private lenders. 

How much are the living expenses in New Zealand for students?

The average living expenses required for students to study in New Zealand are estimated to be NZD 15000 (approx INR 7.5 lakhs) for the entire course duration or a monthly sum of NZD 1250 (approx INR 60K), for the duration of the course. 

A student loan takes care of these living expenses. Candidates are expected to deposit their living for a year according to the payment methods approved by the New Zealand immigration department prior to their visa process. A loan sanction letter stating the approval of your education loan can also be submitted to the New Zealand embassy as proof of funds.

Acceptance of type of education loans in New Zealand

An important point to keep in mind is that although government banks do grant education loans on third parties' collateral, the New Zealand embassy does not accept this as a funding source. Hence, it is recommended that you avoid borrowing an education loan by pledging a third party's assets as collateral security.

Candidates who plan to borrow education loans against Fixed Deposits as security need to ensure that their FDs are 6 months old. The embassy only accepts education loans taken against 6 months old FDs as a funding option.

The New Zealand embassy likewise the Australian embassy generally discourages choosing unsecured education loans as a funding option for higher education in New Zealand for international students.

So, taking an education loan on third-party collateral, on FD opened within 6 months, or an unsecured education loan may create an issue during your student visa process. 

When do students need funds to study in New Zealand?

There are many ways to fund your education in New Zealand. A major percentage of candidates prefer to borrow education loans for studies in New Zealand, as opposed to self-funding their higher education in New Zealand due to a lot of reasons. 

In order to study in New Zealand, the first major step is to secure admission into a university of your choice. It is only after you have received an admission letter that you can proceed with your loan application process.

Before we delve into the details of the education loan process to study in New Zealand, It is essential that you get a clear picture of the New Zealand student visa process. 

The New Zealand student visa process

Obtaining a New Zealand student visa is the gateway to pursuing higher education in New Zealand for international students. The student visa process consists of the following steps:

  1. Secure admission into a good university in New Zealand.
  2. Arrange the documents mentioned in the checklist for a New Zealand student visa.
  3. Undergo certain medical tests mentioned on the New Zealand immigration department’s official website.
  4. Candidates will also be required to arrange for a police clearance certificate from their local police station or the regional passport office.
  5. Candidates are required to fulfill certain financial requirements before they can qualify for a New Zealand student visa.

Know More about the New Zealand Student Visa Process

Basic documents required from candidates for a New Zealand student visa

  1. Duly filled New Zealand student visa application form.
  2. Identity proof.
  3. Study plan proof and admission letter from the respective university.
  4. Statement of fees
  5. Proof of finances.

A loan sanction letter can be submitted as proof of finance by candidates for a New Zealand student visa process.

Financial requirements for a New Zealand student visa

Candidates are required to fulfill certain financial requirements before they can qualify for a student visa to New Zealand.

  1. Deposit the one-year living to a bank based in New Zealand.
  2. Pay the one-year tuition fees before their visa process.

The approval in principle student visa for New Zealand

The biggest plus-point of the New Zealand student visa process is the Approval-in-Principle (AIP) visa. Students who wish to study abroad often have to fulfill certain financial requirements before they can qualify for a student visa to the respective countries. In the case of visa rejection, these candidates tend to lose out on a significant amount of money in the form of forex charges and other related expenses.

When it comes to the New Zealand student visa process, students can follow their dream of studying in New Zealand, without losing out on a lot of money, because of the AIP provided to New Zealand student visa applicants. 

  • Candidates need to submit all the necessary documents to the New Zealand embassy.
  • In return, the embassy provides an AIP, which is temporary proof of confirmation of your New Zealand student visa.
  • The actual visa is confirmed once all the necessary financial documents and formalities are verified and confirmed by the New Zealand embassy. 
  • This way, even if a candidate’s visa is rejected, they don’t end up losing a lot of money in the process.

How to apply for bank loans for education in New Zealand?

Candidates are required to deposit their tuition fees for one academic year, along with one-year living expenses, before applying for a New Zealand student visa. Generally, candidates who borrow education loans are required to apply for a pre-visa disbursement from their respective lending institutions.

A pre-visa disbursement refers to any component of your education loan that may be required, to fulfill any financial prerequisites placed by the respective country’s embassy for a student visa, before the visa process.

Common problems encountered by students while applying for a pre-visa disbursement

  • Banks ask you for a solid proof before approving a pre-visa disbursement. 
  • Candidates have a tough time retrieving this disbursement from government banks.
  • Students have to depend on the goodwill of their presiding bank officer to get their loan sanction letter and pre-visa disbursements.

How do you counter these problems?

Our team at WeMakeScholars works very closely with notable public banks and ensures that candidates who have applied for abroad education loans through us do not face the problem of getting their pre-visa disbursements. 

WeMakeScholars is a government-funded organization that helps candidates with their abroad education loan process. Our team provides the necessary assistance at every stage of the abroad education loan process for New Zealand. When you apply for an education loan for New Zealand through our team, about 80% of the process is cut short. 

So what are you waiting for? Request a callback from our team today and avail our team’s assistance for an uninterrupted education loan process.

When to apply for an education loan?

It is always advised that candidates apply at least 1.5 months prior to when they will be requiring funds to study in New Zealand. Most public banks generally approve education loans within 18-20 days of applying. This time period is for those candidates who have submitted the complete and correct list of documents and whose financial profile meets the requirement put down by these government banks. 

Prevention is better than cure. In the case of the abroad education loan process, it will always help you if you stay ahead of the regular schedule by applying for an education loan way ahead. 

Applying 1.5 months prior to your deadline to deposit funds will give you sufficient buffer time to cater to any financial emergencies. And when you apply through our team, you can expect your education loan process to be faster and hassle-free. Request a callback today and pave the way for a stress-free education loan process.

When to repay the education loan for New Zealand?

The repayment procedure of banks for education loans is pretty simple. Every public/government bank grants a moratorium period to candidates who wish to study abroad with the aid of education loans.

A moratorium period refers to that duration in the loan tenure, in which candidates are not required to start their loan repayments. The plus point of such a holiday is that it gives them an ample amount of time to seek and gain employment before their loan repayment begins.

This moratorium period consists of the candidate’s course duration, plus six months post the completion of the course or when the candidate gets employed, whichever happens first. The loan repayment tenure for abroad education loans granted by public banks is 15 years.

Another benefit of applying for an education loan through public banks is that your interest in the entire moratorium period is calculated on the basis of simple interest only. Also, the interest payment doesn’t start until your moratorium period ends. 

An education loan is one of the most pragmatic ways of funding higher education in New Zealand for international students. The entire process may seem to be overwhelming for those who have not done their research on the education loan process. However, it’s never too late. Getting an education loan for New Zealand in India may seem like an impossible process, given the various terms and conditions that you need to fulfill in order to get one. 

However, when you apply through our team, you stand to gain a lot. Your loan processing time becomes shorter, you get personalized assistance for each and every step, and our financial team also advises you about how you can save on your time and effort during your education loan process to study in New Zealand. Click on the apply button now!