Guide on Educational Loan for MS in New Zealand

How Much Does MS in New Zealand Cost?

First things first, to know how much education loan you will need for MS in New Zealand, you should have a fair idea of how much an MS in the country costs.

Below are the top five universities in New Zealand for Masters in Science with their corresponding approx. tuitions. 

• University of Auckland: NZ$42,814*
• University of Otago: NZ$34,750*
• Victoria University of Wellington: NZ$ 34,893.60*
• University of Canterbury: NZ$38,400*
• University of Waikato: NZ$34,930*  

*Most colleges in NZ calculate the fee on the basis of points and stream selected. The ones listed above are for full-time study worth 120 points. A fee may differ with courses.

While the college fee makes for a substantial chunk of the expenses, living in a foreign country is another humongous cost which needs to be taken into account. The precise cost of living in NZ depends upon the location and the student’s lifestyle choices, but on an average, it falls somewhere between NZ$15,000 to NZ$25,000 a year. 

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What are Your Choices for Education Loan for MS in New Zealand?

The figures prove that as compared to the US, the cost of studying in NZ is slightly affordable. Yet sometimes, financial aid may be required. Moreover, the New Zealand immigration department asks students to deposit either a year’s living expenses (around INR 6.74 Lakhs) or a loan sanction letter as proof of funds. These formalities have to be completed before the student visa process. Considering this substantial amount and all the other expenditures you have to bear for enrolling in a New Zealand university, an education loan may become necessary.

If you want detailed information on education loans, this article will help. For the purpose of this write-up, all you need to know is that study loans are bifurcated into:

• Unsecured or Without Collateral
• Secured or With Collateral

Let’s look at them in detail.

What are the Options for Unsecured Education Loan for New Zealand?

An education loan which has been applied for without pledging security is an unsecured loan. Both public and private banks offer them along with several Non-Banking Finance Companies. When shopping for a student loan, keep in mind that the nationalised banks sanction a minimal amount of unsecured loans (only INR 7.5 Lakhs), which is not sufficient to fund the entire course. Private banks, NBFCs, and international lenders offer more, but the NZ embassy prefers international students to get secured loans as compared to unsecured loans. 

Unsecured Education Loan Options for MS in NZ

* As of 03/12/2019

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Features like repayment period, processing time, documents required and so on vary as per the types of lenders.

We have given a detailed breakdown of all these features for all the lenders below:

• Repayment Period: For an education loan without collateral for MS in New Zealand, the repayment period is 20 years, if it is taken from a private bank. The period changes to 10 years for NBFCs. That said, GyanDhan comes with the provision to extend the repayment term if required. We inform the lender of the same and help get a customised loan offer that fits your requirements the best.
• Processing Time: It takes 5-7 days for private banks to process an unsecured educational loan, while NBFCs take 3-4 days. We come in handy if there is a delay from the lender’s side. Our loan counsellors contact the lending institution’s upper management directly to ensure the loan is processed and sanctioned as quickly as possible.  
• Expenses Covered: NBFCs cover 100% of the expenses in unsecured education loans for MS in NZ, but private banks can cover as much as 85% of the expenses. Read more about: Expenses Covered Under Education Loan
• Co-applicant Income Requirement: The minimum co-applicant income requirement isINR 35,000 for private banks and NBFCs. Do note that the precise income requirement depends on the loan amount. Therefore, the percentage is a more accurate representation. To pay off interest per month of a loan from NBFC for New Zealand, 50% of the income should be more than the monthly EMI. In the case of banks, 65% of the income should be greater than the interest per month. Some lenders may give a provision to combine several co-applicants too. Request a call back for details. 
• Common Decline Reasons: The biggest reason why banks and NBFCs decline an educational loan without collateral for New Zealand is low family income. Another rejection criterion is an ineligible course or poor CIBIL history. 
• Documents Required: To get unsecured education loan, an applicant has to submit all supporting documents. This includes previous mark sheets and degrees, the letter of enrolment, KYC documents, income proof, bank statements, fee structure, etc. Read more about: Documents Required for Education Loan

The paper formalities vary as per the lender. The absence of a single document increases the chances of loan rejection. Altogether, the process of finding the right student loan without collateral for New Zealand can turn the head around. We counsel students to get rid of all the roadblocks in their way to securing an education loan. 

Since we partner directly with banks and NBFCs, we can quicken the loan sanction process. We will also provide you with the exact document checklist customised to profile and a preferred lender.

What are the Choices for Secured Education Loan for MS in NZ?

A student loan where the applicant promises some sort of collateral as security to the bank is a secured education loan. Such loans sanction higher amounts than study loans without collateral and have a lower interest rate. GyanDhan has fixed-rate secured loan options for New Zealand, check your loan eligibility to know more.

Secured Education Loan Options for MS in NZ

* As of 03/12/2019

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Features like repayment period, processing time, documents required and so on vary as per the types of lenders. We have given a detailed breakdown of all these features for all the lenders below:

• Repayment Period: The repayment period is up to 15 years for an education loan for MS in New Zealand from public banks. For private banks, the period changes to 20 years, while NBFCs will ask you to repay it within 10 years. 
• Processing Time: A secured education loan from a public bank can take 12-15 days to process. The processing period of NBFCs is 7-8 days and for private banks about 10-12 days. This is because of the valuation of property/collateral consumes time.
• Expenses Covered: If you opt for a student loan with collateral from a public bank, about 90-100% of the expenses will be covered. Private banks pay for 85% of the expenses incurred, while secured loans from NBFCs include 100% of the expenses.
• Common Decline Reasons: A weak CIBIL score is the number one reason public and private banks reject an application for a secured educational loan. Another criterion is incomplete collateral documents. NBFCs, in comparison, cite insufficient income as the most common reason followed by poor credit history.
• Documents Required: All academic records, KYC documents, enrolment confirmation and fee structure are the basic paperwork required for the student. The co-applicant has to submit KYC documents, proof of sufficient income and complete paperwork of the pledged security to get an education loan with collateral. You can contact us for a customised list of documents for your loan application so it doesn’t get rejected.

Which Education Loan is Best for MS in New Zealand?

A secured loan from a public sector bank should be your priority if you’re seeking an education loan for MS in NZ. However, if you don’t have a collateral to offer, an unsecured loan from a private bank should be your preference over NBFCs. You will not only incur less interest and processing fee but also enjoy tax savings. Most importantly, unsecured loans from NBFCs of more than INR 7.5 Lakhs are not acceptable by the Visa authorities of New Zealand. 
However, if your academic performance, choice of college, or CIBIL history does not qualify for an unsecured loan from a private bank, your only choice will be an NBFC. But, you must apply at least 7 months before applying for your visa. You will have to wait for loan disbursement and for the amount to reflect in your bank account. Furthermore, you will have to keep it in your account for a minimum of 180 days to apply for a kiwi visa.

What is the Loan Application Procedure for New Zealand?

The process of applying for a loan for New Zealand includes these six steps:

 

Like we said before, to study in New Zealand, you have to fulfil pre-financial requirements to avail the student visa. It means depositing living expenses and the tuition fee for one year. If the student doesn’t have the funds, then they can submit a loan sanction letter as proof of funds to the New Zealand embassy.

Banks and NBFCs generally want reliable proof (read: a visa) before they approve an Abroad Education Loan. Since this is not possible when applying for education loan for New Zealand, the student has to depend on the benevolence of the presiding bank officer to get one. The cycle of ‘loan first or visa first’ creates problems in loan sanction.

This is where GyanDhan steps in. As partners, we ensure that the lender is aware of the pre-visa disbursement rule and doesn’t cite it as a reason for rejection.

Read Also:

• Educational Loan options for MS in USA
• Educational Loan options for MS in Canada
• Educational Loan options for MS in Australia
• Educational Loan options for MS in Ireland
• New Zealand Universities Application Deadline
• Education Loan to Study in New Zealand
• Cost of Living in the New Zealand

How to Select the Best Education Loan for MS in New Zealand?

Without a doubt, an education loan is the soundest method of funding your Master’s in New Zealand. However, the hitch is in finding the best possible option. With so many lenders and loan schemes available, you have to analyse several factors like:

• Interest Rate
• Processing Fee
• Processing Time
• Margin Money
• Moratorium Period 
• Tax Benefitsjavascript:void(0) 
• Loan Duration
• Expenses Covered & Prepayment Terms