International students frequently choose New Zealand as it provides top-notch education and a good standard of living. However, you must fulfill some financial requirements to get a student visa, which will allow you to begin your studies in New Zealand.

Before approving a Study Visa, New Zealand's immigration department requires that each International Student coming to the country have enough funds to pay the Tuition Fees and Living Expenses. This blog will cover the financial requirements you need to meet, how to demonstrate your financial capacity, and the key points to consider before applying for your New Zealand Student Visa.

Why Financial Requirements Matter

While Students are studying in New Zealand, the government wants to make sure they can support themselves financially. This helps to reduce the risk of student facing financial issues during their stay and they can concentrate on their academics without worrying about basic needs like food, transport, and accommodation.

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Key Financial Requirements for a Student Visa

The financial criteria you must meet will depend on the duration of your course, and the type of study you’re undertaking. Here are the key financial requirements:

  1. Tuition Fees

You have to show that you have enough funds to cover your tuition fees for the duration of your studies. The specific program and the institution you’re enrolling in will determine how much is required. Usually, you will need to provide evidence that you can afford to pay for the first semester or the entire year of your studies.

  1. Living Cost & Travel Cost

In addition to tuition fees, you need to provide the funds for travel expenses and how you will support yourself financially during your time in New Zealand. The New Zealand government has set a minimum amount for living costs.

  • If the course duration is less than or equal to one academic year, provide documentary evidence of funds for the tuition fee for the entire course duration + NZD 20,000 towards living expenses in New Zealand.
  • If the course duration is longer than one academic year, then provide documentary evidence of funds for the tuition fee for 1 academic year + NZD 20,000 per annum towards living expenses in New Zealand + payment plan to show the student has access to funds and can meet the remaining of the course cost and living expenses in New Zealand.

In most of the visa applications, New Zealand Immigration is asking for a Fund Transfer to ANZ Bank under the FTS Scheme. In the Funds Transfer Scheme (FTS) the student has to transfer NZD 20,000 from their bank account to ANZ Bank based in New Zealand to prove that they have enough funds for living expenses during their stay in New Zealand. The student gets the amount back in 12 monthly installments of NZD 1,666.

Acceptable Proof of Funds

Bank Statements and balance certificates are mostly used as proof of funds, as they show the transactions and amount of available funds in your bank account. This helps to prove that a student can cover their expenses while staying and studying in New Zealand. The student must provide the latest bank statements of at least 3 months (can provide longer history to strengthen your financial evidence) and have to explain the source of funds to justify them. It should not be more than 1 week old at the time of lodgment of application. It is strongly recommended that bank statements and balance certificates should be duly signed and stamped by a bank-authorized person.

Evidence must be in your name or the name of your financial guarantor or sponsor. Do not include evidence that we cannot confirm as genuine.

Sources from which New Zealand immigration accepts funds from the bank:-

  • Personal Savings
  • Professional/Business Income
  • Other Income with source proof
  • Education Loan sanction letter from a nationalized or multi-national bank.

Fixed Deposits

Fixed deposits play an important role as evidence of funds. However, the New Zealand Immigration Department has some basic conditions and requirements to them before considering them as valid proof.

  • At the time of the visa application, it must be a minimum of 6 months old.
  • It must be liquidated or breakable at any time. Lock–in periods on fixed deposits are not accepted.
  • Source of Funds might be required if the amount of Fixed Deposit is NOT by annual income or is recently made.

Education Loans

  • Education loans as evidence of money are acceptable, but only if they are from nationalized or multinational banks with security against fixed assets that belong to you or your financial guarantor or sponsor.
  • Evidence of your ability to repay the loan is required, and a loan sanction letter that states the security, repayment terms, interest payable, and moratorium period.
  • Public and employee provident fund accounts are accepted as evidence, but only if they are supported by employment-confirming documents.

Sources from which New Zealand immigration does not accept funds from the bank:-

  • Gold Loans
  • KCC Loans
  • Overdraft Limits
  • Loans from Non – Financial Banking Corporations /Companies/Institutions or loans from cooperative banks
  • Agriculture Income
  • Bonds & Volatility / mutual funds
  • Property Sales or statements stating a property may be sold to finance study

Evidence of Financial Guarantor or sponsor

Only one sponsor or financial guarantor is permitted.

If a financial guarantor is your immediate family member (spouse, parents, siblings, grandparents, and parents-in-law) and you can prove your relationship to them, are considered as an acceptable sponsor. Credible sponsorship or financial guarantees are required.

If the sponsor is self-employed, you must submit income tax returns for the last 3 years along with computation. Balance sheet, P&L, Bank Account Statement, and proof of business such as registration or GST Certificate.

If the sponsor is salaried, you must submit salary slips for the last 6 months, Salary Account Statement and Income Tax returns for the last 3 years along with the computation and Form 16 if available.

Conclusion

Applying for a student visa to New Zealand requires a thorough financial plan. The New Zealand government wants to make sure that students can live and study without any financial stress, and fulfilling the financial requirement is an essential part of the visa application process.

Western Overseas will assist you for a successful visa application by understanding these financial requirements. You can begin your exciting educational journey in New Zealand with confidence by contacting us. Our expert team is here to guide you through the study visa application process. Take the first step towards an unforgettable educational experience in New Zealand!