The Role of Co-applicants in Securing Education Loans for New Zealand Studies

Getting an admission letter from a New Zealand university is a significant milestone, but for many Indian students, the real challenge begins with the financial documentation. Since tuition costs up to ₹23.5 Lakhs and there are only two intake periods (February and July), it’s important to get your application right the first time.

An underperforming co, applicant profile is among the frequently cited reasons for postponed loans that are not anticipated, hence resulting in visa slots being lost and consequently losing a whole academic year. This article assists you in figuring out the suitable co, applicant, getting the bank perspective (like SBI and HDFC Credila) on co, applicants, and making sure that your Education Loan for New Zealand is expedited for the next intake.

1. Why Co-applicants Matter

Immigration New Zealand (INZ) has strict rules about “Proof of Funds.” You need to be able to pay for both education and living expenses of at least ₹10.4 Lakhs a year.

• Risk Mitigation: The co, applicant ensures that the student is able to meet their expenses as students generally do not have a source of income.
• Speed of Approval:A co, applicant with a strong profile reduces the risk perception of the bank, hence, the approval letter is obtained within a shorter time period. This is necessary to be able to get a visa. The academic record of your co, applicant is equally important as yours for a quality Study Abroad Education Loan.

 

2. What Banks Assess in Co-applicants

Lenders look beyond just a “relationship” with the student. They focus on three “Cs”:

• CIBIL Score:A score of 700+ is generally required. Anything lower can trigger manual reviews and delays.
• Capacity (Income):They check for stable, verifiable income through ITRs (usually the last 3 years) and salary slips.
• Continuity:Banks are more likely to approve co-applicants who have been at the same job or business for at least three years.

 

3. SBI vs. HDFC Credila: What to Expect

Choosing the right lender depends heavily on your co-applicant’s profile and your available assets.

Feature	SBI Secured Education Loan	HDFC Credila Education Loan
Co-applicant Role	Primary focus is on the Collateral provided.	Primary focus is on Co-applicant Income.
Acceptable Relations	Parents/Spouse/Guardians.	Parents/Siblings/Spouse/Uncles & Aunts.
Margin Money	Requires 15% margin for most cases.	Offers 0% margin (100% funding).
Processing Time	2–3 weeks (due to property valuation).	7–10 days (Fast-track/Digital-first).

 

4. Common Co-applicant Mistakes

Avoid these pitfalls to prevent your application from getting stalled:

• Inconsistent ITRs: Discrepancies between the income declared and the income reflected in tax filings.
• Existing Debt: If the co-applicant already has high EMIs (home or car loans), their repayment capacity for your loan decreases.
• Poor documents such as missing “Form 16” or bank records that don’t match the salary slips.
• Multiple Applications If you apply to 4 or 5 banks at the same time, the co-applicant’s credit score may go down because of “hard inquiries.”

 

5. How to Choose the Right Co-applicant

The “strongest” relative isn’t always the one with the most money, but the one with the most verifiable money.

1. Prioritize Steady Pay: A co-applicant with a steady government or company job is often accepted faster than someone whose business income isn’t steady.
2. Look at Your Credit History Early: Before you apply, ask your possible co-applicant for their CIBIL report so you aren’t surprised.
3. Ready to Pledge Assets: Choose someone to co-sign your Education Loan for New Zealandwho is willing to put up something of value, like a house, if you need to borrow more than NZD 40,000 for your master’s degree. This will get you a better interest rate on an SBI protected education loan.

 

FAQs