New Zealand has become a favorite destination for international students, especially from India and Asia-Pacific. With tuition fees of NZD 22,000 – 40,000 per year and living costs of NZD 15,000 – 20,000 annually, most students require financial support. In 2025, the focus isn’t just on big loan amounts but on low-cost education loan options that keep repayment stress minimal.
This guide highlights affordable study loan providers in New Zealand (2025), both local banks and international lenders.
Why Low-Cost Loans Are Important for Students
- Tuition and living costs are high compared to home countries.
- Visa requirements demand proof of funds.
- Part-time income is limited for international students.
- Lower interest rates make repayment manageable after graduation.
Affordable Study Loan Providers in New Zealand (2025)
1. ANZ Bank (Student Loans)
- Why it’s low-cost: Offers competitive rates for qualified borrowers.
- Highlights:
- Interest concessions for students.
- Covers tuition and living.
- Discounts for existing ANZ customers.
- Best for: Students with guarantors in NZ.
2. BNZ (Bank of New Zealand)
- Why it’s popular: Student banking with affordable lending options.
- Highlights:
- Student overdrafts with lower interest.
- Simple repayment structures.
- Online calculators to estimate costs.
- Best for: Students needing smaller, low-interest loans.
3. Westpac NZ
- Why it’s strong: Offers student-friendly discounts.
- Highlights:
- Flexible loan repayment.
- Low-interest student overdrafts.
- Covers education + travel costs.
- Best for: Students looking for reliable bank support.
4. ASB Bank
- Why it’s affordable: Transparent policies with no surprise fees.
- Highlights:
- Competitive rates.
- Quick online applications.
- Low setup costs.
- Best for: Students preferring digital-first services.
5. SBI Global Ed-Vantage Loan (India)
- Why it’s low-cost: Public sector bank with lower interest rates than private lenders.
- Highlights:
- Up to INR 1.5 crore loan.
- Moratorium until course completion.
- Covers tuition + living + travel.
- Best for: Indian students studying in New Zealand.
6. HDFC Credila (India)
- Why it’s affordable: Focuses on longer repayment terms.
- Highlights:
- Repayment up to 15 years.
- Covers 100% of study expenses.
- Custom EMIs.
- Best for: Students needing extended repayment.
7. Prodigy Finance
- Why it’s unique: No collateral or co-signer required.
- Highlights:
- Interest based on future income potential.
- Covers tuition and partial living.
- For international graduate students.
- Best for: Students without guarantors.
Average Education Loan Costs in New Zealand (2025)
- NZ Banks: 7% – 10% interest.
- Indian Banks (SBI, HDFC): 9% – 13%.
- International lenders (Prodigy): 8% – 14%.
- Repayment: 5 – 15 years.
💡 Example: NZD 40,000 loan at 8% over 10 years = ~NZD 485/month.
Tips for Getting Low-Cost Loans
- Compare rates across banks and lenders.
- Use guarantors (local or family) to get lower interest.
- Check for moratoriums – repayment after graduation.
- Don’t over-borrow – smaller loans save money in the long run.
- Look at university tie-ups – some schools have partner banks.
Final Thoughts
Low-cost study loans in New Zealand are vital for students who want to pursue their education without long-term debt.
- ANZ, BNZ, Westpac, ASB provide local affordable options.
- SBI and HDFC serve Indian students with cheaper overseas loans.
- Prodigy Finance helps those without collateral or guarantors.
By comparing interest rates, repayment terms, and flexibility, students in 2025 can make smarter financial choices while studying in New Zealand.