Educational loan for New Zealand- A Complete Guide

Studying in New Zealand, a sought-after destination for aspiring individuals, is a dream come true. However, one critical aspect in fulfilling this dream is ensuring the availability of the requisite finances. In this comprehensive guide, we will address all concerns pertaining to accessing an education loan for New Zealand as an overseas student. We will cover student loan eligibility, types of education loans, top New Zealand education loan providers, the application process, required documents, and repayment options.

Educational loan for New Zealand

Understanding the Loan Amount for New Zealand Education


Before applying for a study loan in New Zealand, it’s essential to estimate the loan amount needed. This estimation can be done by considering the tuition fees of the course you plan to study. For undergraduate degrees, the tuition fees typically range between 11.5 to 16.8 Lakhs INR. Specialized courses such as MBBS, Veterinary Sciences, and Engineering may have higher fees.

Additionally, you must budget for overhead expenses, which include utilities, internet, phone plans, insurance, food, transport, and entertainment. An overhead budget of 1 to 1.5 Lakhs INR is recommended. Keep in mind that accommodation expenses will be separate and can range from 14,000 to 16,000 INR per week for in-house living. Procure a New Zealand student loan based on the tuition fee, overhead expenses, and accommodation costs.

Types of Education Loan for New Zealand

Education loans for New Zealand are available based on different circumstances and needs. The following categories of education loan types exist:

  • Undergraduate Education Loan New Zealand: Available for students pursuing undergraduate studies for 3 or 4 years in New Zealand.
  • Professional/Graduate Education Loan: Designed for students pursuing further education or advanced degrees abroad.
  • Career Education Loan New Zealand: Offered to students pursuing career-oriented programs such as technical education.
  • Loans for Parents: Unsecured loans taken by parents for their child’s education and other overhead expenses.

International Student Loan NZ – Based on Eligibility Requirement:

  • Bridge Loans: Cover pre-application processes like examinations, applications, interviews, and student tours at a reasonable rate of interest.
  • Pre-Visa Loans: Provided based on conditional offer letters from institutions for New Zealand student visa applications.
  • Pre-admission Loans: Cover academic and in-flight expenses, overseas travel expenses, and costs of admission processes before the commencement of educational courses.
  • Refinancing Loans: Beneficial for those facing financial limitations, with options to extend the loan tenure.
  • Consolidated Loans: Cover all educational expenses, providing the facility to connect with other banks’ loans under one channel for a meagre processing charge.

Top New Zealand Education Loan Providers

Several popular banks provide international student loans for New Zealand. Here are some of the top providers along with their loan amounts and interest rates:

State Bank of India (SBI)

  • Maximum Loan Amount: 20 Lakhs INR
  • Interest Rate: 10.70%


  • Maximum Loan Amount: 36 Lakhs INR
  • Interest Rate: 14.88%


  • Maximum Loan Amount: 3 Crore INR
  • Interest Rate: 11.50%

Punjab National Bank (PNB)

  • Maximum Loan Amount: 1 Crore INR
  • Interest Rate: 11.10%

Canara Bank

  • Maximum Loan Amount: 36 Lakhs INR
  • Interest Rate: 10.70%

Axis Bank

  • Maximum Loan Amount: 75 Lakhs INR
  • Interest Rate: 13.70%

Eligibility for Obtaining a Student Loan for New Zealand

To be eligible for a student loan for New Zealand, you need to fulfil the following four conditions:

  • You must be an Indian national (Children of PIO/NRIs accepted).
  • Provide acceptance from educational institutions and proof of admission.
  • Possess a valid student visa for New Zealand.
  • Demonstrate the ability to repay the loan, usually requiring a bank balance of around 8 Lakhs INR at the time of application.

How to Apply for a Student Loan in New Zealand

To apply for a student loan in New Zealand, you can either visit the official website of your loan provider or use government channels such as the Vijayalakshmi Portal.

During the application process, you will need to submit various documents. Here are the essential documents required:

Identification/KYC Documents

  • PAN Card
  • Aadhar Card/Passport/Driving Licence/Voter ID

Residence Proof

  • PIO/NRI Identification bills (if applicable)

Financial Proofs

  • Bank statements (recent 6 months)

Academic Scripts

  • Admission Letter
  • SAT/ACT/GRE/GMAT scores
  • TOEFL/IELTS/PTE scores
  • Class 10th and 12th marksheets

Collateral documents vary depending on the type of collateral provided

  • To secure collateral based on securities, you will need to provide the DE mat account statement, insurance policy receipt, and the original policy certificate as the essential documents.
  • When offering property as collateral, you’ll need to submit the property deed or lease agreement along with property tax statements.
  • Collateral in the form of deposits necessitates the submission of original certificates for Fixed Deposits (FD), Recurring
  • Deposits (RD), Gold Deposits, or Bonds, along with the corresponding interest statements.
  • In the case of collateral provided through a third-party guarantee, you must present a Certificate of Third-Party Guarantee, duly signed and verified by an appropriate authority.
  • VISA and immigration letters
  • Scholarship/Foreign education records (if applicable)

Repayment Options for New Zealand Student Loans

Student loans can be repaid within 5 to 10 years, with repayment typically starting one year after completing the course of study or six months after finding employment.

Repayment of the student loan can be done using the EMI option of your bank. Additionally, there are six additional methods available:

  • Moratorium: Repayment starts after completing education or securing employment.
  • Student Loan EMI: Fixed monthly repayment.
  • Education Loan Part-payment: Repay a consolidated sum to decrease the burden of interest rates.
  • Education Loan Pre-payment: Repay the complete loan before its tenure, irrespective of fixed monthly EMIs.
  • Education Loan Extension: Extend the loan tenure or lower the EMI based on affordability.
  • Education Loan Refinancing: Add to the loan amount based on existing loan and credit record, providing extra financial assistance.

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Can I get an education loan to study in New Zealand?

Yes, you can obtain an education loan to study in New Zealand from public banks as well as private banks, with loan amounts ranging up to 1.5 Crore INR.

Who is eligible to apply for an education loan in New Zealand?

Students applying for an education loan for New Zealand should be Indian citizens and must have secured admission into a university in New Zealand.

What is the minimum income requirement for a co-applicant in a student loan application?

The minimum income or salary of the co-applicant varies depending on the lender. Public banks usually do not require co-applicants with higher incomes.

How much money do I need to study in New Zealand?

To study in New Zealand, you need to have funds to cover living expenses of 7 lakhs per annum, tuition fees, and miscellaneous expenses like travel expenses.

What is the bank balance required for a student visa in New Zealand?

To obtain a student visa for New Zealand, you are required to demonstrate a Financial Transfer Scheme (FTS) of 7 lakhs INR.

What types of education loans are available for studying in New Zealand?

Various types of education loans are available, including undergraduate education loans, professional/graduate education loans, career education loans, and loans for parents.

Are there different loan options for pre-application processes and admission-related expenses?

Yes, there are loan options like bridge loans and pre-admission loans that cover pre-application processes, in-flight expenses, overseas travel, and admission-related costs.

How long is the repayment period for a student loan in New Zealand?

Student loans can typically be repaid within a period of 5 to 10 years. Repayment starts either after completing the course or six months after securing employment.

Can I choose between different repayment methods for my education loan?

Yes, there are various repayment options available, including moratorium, student loan EMI, part-payment, pre-payment, loan extension, and loan refinancing.

Which banks are the top providers of education loans for New Zealand?

Some of the top education loan providers for New Zealand include State Bank of India (SBI), HDFC Bank, ICICI Bank, Punjab National Bank (PNB), Canara Bank, and Axis Bank.

What documents are required to apply for an education loan for New Zealand?

The essential documents required for an education loan application include identification/KYC documents, residence proof, financial proofs, academic scripts, collateral documents (if applicable), VISA and immigration letters, and scholarship/foreign education records (if applicable).

Can I repay my education loan through EMIs?

Yes, education loans can be repaid through Equated Monthly Installments (EMIs). However, there are also other repayment methods available, as mentioned in the complete guide.


Pursuing your desired course in New Zealand is now within reach, thanks to education loans that make it easier to finance your dreams. By understanding the various loan types, eligibility criteria, application process, required documents, and repayment options, you can embark on your journey to study in New Zealand and make your aspirations a reality.

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