Learn More about Bank Loans for Students Before You Apply !
Many banks have come up with a solution to this problem by providing bank loans for students. As a student, the main requirement for you to get a student loan from the bank is a co-signer who will back up your credit.
Types of bank loans available In NZ
Banks in New Zealand offer a range of loans to students, including personal loans, credit cards and overdrafts. Students should shop around for the best deal on a loan that suits their needs.
The benefits of bank loans for students
There are several benefits of bank loans for students, including:
1. Low interest rates Interest rates on bank loans for students are typically lower than those on private loans. This can save you money over the life of your loan.
2. Fixed interest rates Interest rates on bank loans for students are typically fixed. This means your monthly payments will stay the same for the life of the loan, making budgeting easier.
3. No origination fees Most bank loans for students do not have origination fees. This can save you money up front.
4. Flexible repayment terms Repayment terms on bank loans for students are typically more flexible than those on private loans. This means you can choose a repayment plan that fits your budget.
The drawbacks of bank loans for students
The main disadvantage of bank loans for students is the high interest rates. This means that the overall cost of the loan will be much higher than if you had taken out a government loan. Additionally, banks typically require a co-signer, which can be difficult to find.
1. High interest rates
2. Strict repayment terms
3. Requires a good credit history
4. May require a co-signer
5. May have origination fees
Things to consider
There are a few things to consider when choosing the right bank loan for students in NZ.
The first is the interest rate. Make sure to shop around and compare interest rates from different banks before choosing one.
The second is the repayment period. Most student loans have a repayment period of 10 years, but some banks may offer a shorter repayment period.
The third is the fees. Some banks charge an application fee, an origination fee, or both. Make sure to compare these fees before choosing a bank loan.
The fourth is the repayment options. Some banks offer a grace period, where you don’t have to make any payments for a certain period of time after you graduate. Others offer deferment, where you can postpone your payments for a certain period of time.
The fifth is the cosigner. If you have a cosigner on your loan, they will be responsible for repaying the loan if you can’t. Make sure you choose a cosigner you trust and who has a good credit history.
STUDENT LOANS FROM ANZ
ANZ bank operates in 34 countries in addition to Australia and New Zealand. The main aim of ANZ bank to shaping the world by striving to come up with a balanced and sustainable economy where everybody can participate and build a better life. It is among the banks that offer loans to students.
Bank loans for students lie in the category of personal loans — the amount you can borrow range from $3000 to $4000. ANZ has come up with another class called jumpstart customers made for customers under the age of 21 years and students, whereby you can borrow as little as $1000.
ANZ has a standard interest rate which applies to all personal loans of 13.90% p.a. However, in case you do not pay the loan in the agreed period, you will be charged an extra 5% on the amount due.
To apply for bank loans for a student at ANZ, you should visit the nearest branch with the following documents;
- Your financial commitment details.
- Provide your driving license if you have it.
- Personal ANZ account number.
- Financial statement for the previous year in case you are self-employed.
- Personal or business tax returns.
WESTPAC BANK STUDENT LOANS
Westpac is among the first and oldest companies in New Zealand. Westpac is committed to assisting students, who are the future generation partake their studies by providing them with education loans.
Bank loans for students lie in the category of education loans. The amount you can borrow up to $50000 unsecured loan payable within five years. You will be charged a loan processing fee and an interest ranging from 13.95% to 18.95% pa.
Student loan application process at Westpac bank is transparent, efficient, and straightforward. You can either apply online or in any branch Westpac near you. You will be required to provide the following documents during the application;
- A copy of identification card
- Financial statements as proof of your income
- In case you had borrowed money with other lenders you should provide your repayment statements for the last month.
HDFC CREDILA BANK LOANS
At HDFC Credila bank funds various levels of Zealand Education with their specialized products. The good thing is that HDFC is among the banks that offer loans to students before receiving a confirmed admission letter.
Bank loans for students lie in the category of education loans — the amount you can borrow range from $50000 to $70000. An interest rate of 12.75% and processing fee is charged on the applied amount.
To apply for a loan at HDFC Credila bank, you should follow only three necessary steps;
Step 1: You should fill the online application form available at their website.
Step 2: Submit the supporting documents to any HDFC Credila bank branch.
STEP 3: The third step is to review and approval of your loan.
Step 4: Money is transferred into your account.
REQUIREMENTS DURING APPLICATION
Present a filled and signed application.
A passport size photo of the applicant and the co-applicant
Applicant’s and co-applicants photo ID
Applicant’s and co-applicants photo proof of residence
A printed letter of application in case you have it
All your academic documents
Bank statements of the co-applicant for the last 8 Months
Proof of co-applicants income
Alternatives to bank student loans
Most students in New Zealand are eligible for a student loan from the government, which is interest-free as long as you remain enrolled in your studies.
You can apply for a student loan at any time during the year and your payments will be automatically deducted from your salary once you start working.
There are also a number of private lenders in New Zealand that offer student loans, although these will usually come with interest charges.
- Borrowing Money from Family and Friends If you need to borrow money for your studies but don’t want to take out a loan, you could ask your family or friends for a loan instead. This is often a cheaper option than taking out a student loan, although it can put a strain on your relationships if you are not able to repay the money on time.
- You should always draw up a written agreement with anyone you borrow money from, setting out the terms of the loan and when you will repay the money. This will help to avoid any misunderstandings later on.
- Scholarships for Study in New Zealand If you are planning to study in New Zealand, you may be able to get a scholarship to help pay your tuition fees and living expenses. There are scholarships available from the New Zealand government, as well as from a number of private organisations. You can search for scholarships at the Education New Zealand website.
- Study Grants for Students in New Zealand If you are on a low income or have a disability, you may be eligible for a study grant from Work and Income New Zealand. This is a one-off payment to help with the cost of your studies and is not repayable.
- You can find out more about study grants at the Work and Income New Zealand website.