How to get a loan in New Zealand
Getting a loan in New Zealand can open the door to achieving your goals — whether it’s buying a car, renovating your home, paying tuition, or covering unexpected costs.
However, the lending system in New Zealand has its own structure and regulations that make it unique.
Banks, credit unions, and online lenders operate under strict consumer laws, ensuring safety but requiring careful comparison before applying.
In this guide, you’ll discover how to qualify, where to apply, and how to choose the right lender.
You’ll also find verified contacts and official websites for the main financial institutions across the country.
✅ Eligibility & Criteria
To get approved for a loan in New Zealand, you’ll need to meet a few essential conditions.
Basic requirements:
- Be at least 18 years old.
- Be a New Zealand citizen or permanent resident, or hold a valid work visa (usually two years or more).
- Have a regular income (from employment, business, or government payments).
- Provide proof of identity and bank statements showing your financial stability.
- Maintain a good credit record — though some lenders offer options for borrowers with poor credit.
Each institution may have its own criteria. For instance, ANZ, Westpac, and ASB require verifiable income and valid photo ID, while Gem Finance and Harmoney provide online pre-qualification without affecting your credit score.
💰 Main Types of Loans Available
There are several loan categories in New Zealand. Choosing the right one depends on your needs and financial profile.
1️⃣ Personal Loans
Used for travel, home upgrades, debt consolidation, or emergencies.
- ANZ Bank: From NZ $3,000 to $50,000.
- Gem Finance: Online application, quick approval, and flexible terms.
- MTF Finance: Offers both secured and unsecured options.
2️⃣ Car Loans
Designed specifically for vehicle purchases.
- Westpac and Co-operative Bank offer competitive rates for new or used cars.
- Some lenders let you use the car as collateral, reducing your interest rate.
3️⃣ Home Loans / Top-Up Loans
Borrow against your home’s value to finance renovations or major expenses.
- Many banks offer “top-up” options if you already have a mortgage.
- Always check the loan-to-value ratio (LVR) limits.
4️⃣ Business Loans
Ideal for entrepreneurs or small businesses.
- Available through banks like ASB and BNZ, or alternative lenders.
- Require business plans, cash-flow forecasts, and financial statements.
5️⃣ Student Loans
Managed by StudyLink and Inland Revenue (IRD).
- Interest-free while you live in NZ.
- Repayments begin once your income exceeds NZ $22,828 per year.
- Interest applies if you move overseas for more than six months.
📝 How to Apply — Step by Step
Applying for a loan in NZ is straightforward, but attention to detail matters.
Here’s the typical process:
- Compare lenders and rates — use official sites such as interest.co.nz or bank portals.
- Check eligibility — most sites have an online pre-check tool.
- Gather documents — ID, proof of income, address verification, and bank statements.
- Apply online or at a branch — nearly all major lenders allow digital applications.
- Verification process — lenders assess your credit, employment, and repayment ability.
- Approval and funding — if approved, funds are deposited directly to your account, often within 1–2 business days.
Tip: Lenders like Harmoney and Gem Finance provide digital contracts and same-day transfers.
💹 Comparing Offers and Interest Rates
Interest rates in New Zealand vary based on credit history, loan type, and security.
Things to compare before choosing:
- Interest rate (fixed vs variable).
- Fees (establishment, early repayment, late).
- Repayment flexibility (extra payments, frequency).
- Total cost of credit (including fees and interest).
Example ranges (2025):
- ANZ: from 9.95 % p.a. to 18.95 % p.a.
- Westpac: from 8.49 % p.a. (secured) to 17.99 % p.a. (unsecured).
- Gem Finance: between 8.99 % and 29.99 % p.a.
- Co-operative Bank: approximately 9.95 % – 17.75 %.
Using an online loan calculator can help you see repayment amounts before committing.
💡 Tips to Boost Approval & Avoid Mistakes
Getting approved is about preparation. Here’s how to strengthen your chances:
- ✅ Maintain a clean credit record — avoid missed payments.
- ✅ Borrow only what you need to reduce your debt ratio.
- ✅ Avoid multiple applications at once — too many inquiries can lower your score.
- ✅ Show proof of stable income — recent payslips or tax statements help.
- ✅ Read the fine print — understand all terms before signing.
- ✅ Use pre-approval tools to check rates safely.
If you struggle with repayments, contact your lender early. Many banks offer hardship assistance or temporary payment holidays.
📞 Resources and Useful Contacts
| Institution | Type | Contact / Website |
|---|---|---|
| ANZ Bank NZ | Personal Loans | anz.co.nz/personal/loans • 0800 837 123 |
| Westpac NZ | Personal Loans | westpac.co.nz/personal-loans • 0800 177 277 |
| ASB Bank | Personal Loans | asb.co.nz/personal-loans |
| MTF Finance | Secured Loans | mtf.co.nz/personal-loans |
| Gem Finance | Online Loans | gemfinance.co.nz |
| Harmoney | Digital Loans | harmoney.co.nz |
| The Co-operative Bank | Consumer Loans | co-operativebank.co.nz |
| IRD (New Zealand Inland Revenue) | Student Loans & Repayments | ird.govt.nz/student-loans • 0800 775 247 |
| StudyLink | Student Loan Applications | studylink.govt.nz |
❓ FAQ / Frequently Asked Questions
1. Can I get a loan if I’m not a citizen?
Yes — many lenders accept visa holders with valid work visas (usually two years or more).
2. How long does approval take?
Online lenders often approve within 24 hours; banks may take 2–5 business days.
3. What is the typical loan amount in NZ?
Most personal loans range from NZ $2,000 to $50,000, depending on credit and income.
4. Are student loans really interest-free?
Yes, while you live in NZ. Interest applies if you move overseas for more than six months.
5. Can I pay off my loan early?
Most banks and digital lenders in NZ allow early repayment without extra fees — always confirm in your contract.