Student Loan New Zealand - All You Need To Know

New Zealand is arguably the safest country to study in, ranking second on the Global Peace Index 2019. With globally ranked universities and a competent education system, it gives the ideal mix of opportunities, culture, economy, and environment for an international student to excel. The country experiences an average 5% rise in student numbers each year due to its world-class education system, great teaching facilities, and student infrastructure. This increased student intake has expedited the quest for the best New Zealand education loan, which helps students fund higher education and cover living expenses.

The New Zealand Embassy only accepts parents, siblings, or grandparents as sponsors for an overseas education loan, and any third-party sponsors are not accepted. All financial institutions registered with the RBI accept New Zealand education loan applications. In order to meet student loan eligibility in NZ, students are required to meet a set of application requirements. Listed below are the major requirements that applicants must be aware of when applying for a New Zealand education loan -

1. The applicant must be a citizen of India.
2. Admission to professional/technical courses must be obtained through an approved entrance test/selection process.
3. Depending on the type of loan and lender, the borrower should have the necessary financial and academic credentials.

While each bank and financial institution has its own paperwork requirements and procedures, here is a typical list of documents you should have on hand when applying for a student loan in New Zealand-

1. Identification/KYC Documents 

PAN Card 
Aadhar Card / Passport / Driving Licence / Voter ID
Address Proof
PIO/NRI Identification bills (if applicable)

2. Financial Documents

Bank statements (recent 6 months)

3. Academic Documents

Official Transcripts
Offer Letter
Standardised Test scores
English Language Proficiency scores
Class 10th and 12th mark sheets

4. Collateral Documents (depending upon the type of collateral)

Security - DE mat account statement, Insurance Policy receipt, the original policy certificate
Property - Property deed/lease, property tax statements
Deposits - Original FD/RD/Gold Deposit/Bond certificate, interest statement
Third-party guarantee - Certificate of a third-party guarantee 

5. VISA and immigration letters
6. Scholarship/Foreign education records (if applicable)

University costs in New Zealand vary based on your study level, subject, and student status, with overseas students paying more than domestic students. International undergraduate students may expect to pay roughly NZ$22,000-32,000  each year, according to the official Study in Zealand website, with additional costs for areas such as medicine and veterinary science. Annual costs for overseas master's students range from NZ$26,000 to NZ$37,000 per year. In order to cover a major chunk of their expenses, most overseas students prefer obtaining a New Zealand student loan.

The best part of taking a New Zealand education loan with UniCreds is that you can get up to 100% financing implying that all your expenses will be covered by the loan. The following are the things you can expect a student loan in New Zealand to cover -

1. Tuition Costs
2. Travel & Transport including the tickets
3. Accommodation & Rental expenses
4. University fees & additional course costs
5. Food expenditures
6. Living expenses
7. Laptop
8. Other research, thesis, and project-work-related expenses
9. Any other expense required for your education

In New Zealand, there are primarily 2 types of loans available to students. What type of New Zealand education loan you apply for, however, will depend on the financial institution and your eligibility -

Secured Education Loans: In New Zealand, a secured student loan is one for which the applicant must offer security or collateral. Apartments and retail stores are instances of tangible assets, whereas fixed deposits and government bonds are examples of intangible securities.

Unsecured Education Loans: A New Zealand education loan without collateral is an unsecured loan for the UK. As the name implies, applying for an unsecured student loan in the UK. However, it is important for students to note that the New Zealand student loan interest may be higher for unsecured education loans due to no collateral.

Applying for a New Zealand education loan involves a lot of research and requires a set of steps to be followed. The procedure may seem cumbersome at first, and the student may get overwhelmed when applying. However, UniCreds makes it easier for students with expert counsellors assisting students at every step of the process at no extra cost. There are some tips that students should be aware of when applying for a student loan nz and they include -

Selecting A Financial Institution
Selecting a bank or NBFC that offers the best loan terms is more important than ones that give more finances. It is also important to verify if the lender gives the option to make the EMI payments in advance or allows for partly payments of the loan. Knowing the service charges and prepayment penalties is a must.

Total EMI Cost
The EMI paid for a New Zealand education loan depends on how a student chooses to repay the loan. Some students choose to borrow money for a longer period of time since the EMI would be lower. The cost of the loan and the interest paid, however, will be significantly greater in this case. Therefore, if the chances of finding a well-paying job following the course are strong, choosing a shorter loan term is better. 

Moratorium Periods
Moratorium periods are sabbaticals that typically last the length of the course plus an additional year or six months after finishing the course, whichever comes first. Students are not required to make loan payments during this time, although interest will continue to accrue. Students are permitted to pay down the interest during the moratorium period, which will lighten the burden of the loan and reduce the cost of the loan once they must begin making EMI payments.

Pay In Installments
Banks tack on interest on the amount of money sent. Typically, a student must pay for the course once per year or once per semester. Therefore, it would be wiser to apply for a loan when needed. In this manner, substantially less interest will accrue. Make sure that the money is distributed as and when it is needed, rather than having it sanctioned in one lump sum.

Tax Benefits
Under Section 80E of the Income Tax Act, students can get tax benefits on the interest they pay on student loans. The loan must be obtained from an Indian scheduled bank or a gazetted financial institution in order to qualify for this deduction. Eight years is the maximum time for a tax deduction. Therefore, choosing a longer loan implies that students will only receive the tax deduction for the first eight years.

UniCreds, unlike any other platform, makes securing student loans easy. Here are some of the reasons why receiving a New Zealand education loan with UniCreds is the best choice -

1. Full financing (up to 100 %) for tuition and living expenses
2. No margin money
3. Immediate sanctions in the event of an emergency
4. Options for customised financing
5. Comparing education loans
6. Tracking of loan applications
7. Loans with no collateral
8. Doorstep delivery of services
9. Paperless approval of loans