Is a collateral loan preferred over a non-collateral loan for New Zealand student visa applications?

Yes, a collateral (secured) loan is generally preferred over a non-collateral (unsecured) loan for New Zealand student visa applications.

- Collateral loans (secured against assets like property) from nationalized or multinational banks are more readily accepted by Immigration New Zealand. The sanction letter should clearly mention the security, moratorium period, interest, and repayment terms.
- Unsecured loans (especially from NBFCs or smaller banks) are viewed cautiously. If you use one, the full loan amount must be disbursed into your account and held for 3-6 months before applying. A sanction letter alone is not enough.

For the strongest visa application, provide a collateral loan with detailed documentation from a reputable bank. If you need help preparing your financial documents, connect with your LeapScholar counsellor.