Australia is a world-class destination for overseas students to pursue higher studies, thanks to its global education standards, cultural diversity, and warm hospitality. But the cost of studying in Australia can be high. This blog is designed to give a comprehensive insight into study loans for overseas students, particularly Indians, to pursue their studies in Australia.
Understanding the Cost of Education in Australia
Before taking a look at loan options, it's essential to comprehend the various expenses associated with studying in Australia:
-
Tuition Fees: Depending on the course and institution, annual tuition fees can range from AUD 25,000 to AUD 35,000, with top-tier universities charging up to AUD 45,000 per year.
Also Read: Cost of Studying in Australia
-
Living Expenses: The Australian immigration authorities mandate that international students demonstrate access to at least AUD 21,041 annually to cover living costs, including accommodation, food, transportation, and other personal expenses.
Also Read: Cost of Living in Australia
- Health Insurance: Overseas Student Health Cover (OSHC) is mandatory for overseas students, providing them with access to hospital and medical treatment while in the country.
Given these expenses, many students turn to education loans to bridge the financial gap.
The following table shows the annual tuition fees and living expenses in Australia:
|
University |
Annual Tuition Fees (AUD) |
Annual Living Expenses (AUD)Approx |
|
University of Melbourne |
$20,000 - $45,000 |
$20,290 - $31,870 |
|
Monash University |
$20,000 - $45,000 |
$30,000 - $45,000 |
|
University of Sydney |
$20,000 - $45,000 |
$26,000 - $44,500 |
|
Australian National University (ANU) |
$20,000 - $45,000 |
$26,000 - $42,560 |
|
University of Queensland |
$20,000 - $45,000 |
$24,000 - $73,204 |
|
University of Notre Dame |
$20,000 - $45,000 |
$20,000 - $25,000 |
|
Carnegie Mellon University |
$20,000 - $45,000 |
$40,000 - $62,250 |
|
Bond University |
$20,000 - $45,000 |
$43,200 - $64,872 |
|
Kenvale College |
$20,000 - $45,000 |
$26,000 |
Types of Education Loans Available
International students have several financing options to consider. Many banks and financial institutions offer education loan for international students in Australia to help cover tuition fees and living expenses. The study loan for Australia interest rate varies between 8.5% and 14%, depending on the lender and whether the loan is secured or unsecured.
1. Secured Education Loans
These are collateral-based loans, e.g., property, fixed deposits, or other assets of value. The essential characteristics are:
Loan Amount: Generally, up to 100% of the value of the collateral, to cover living costs and tuition.
Interest Rates: Typically lower because the lenders' risk is less.
Repayment Terms: Flexible, usually after completion of courses.
|
Parameter |
Details |
|
Loan Limit |
Up to INR 1.5 crore |
|
Interest Rate |
8.5% to 11% |
|
Moratorium Period |
Course duration + 6 to 12 months |
|
Repayment Duration |
Up to 15 years |
|
Repayment Policies |
Simple interest or EMI-based repayment during moratorium |
|
Collateral Required |
Yes (property, FD, insurance, etc.) |
|
Co-applicant Salary |
Minimum INR 4.5 LPA (varies by lender) |
|
Processing Time |
15-30 days |
2. Unsecured Education Loans
For students unable to provide collateral, there are options for an education loan for Australia without collateral, especially for those admitted to reputed universities. These are called Unsecured Educational loans, also known as non-collateral loans as they do not need any security. The common features include:
Loan Amount: Up to INR 50 lakhs, depending on the lender and the student's profile. Interest Rates: It is slightly higher due to increased risk for lenders.
Repayment Terms: May require immediate repayment or offer a moratorium period.
|
Parameter |
Details |
|
Loan Limit |
Up to INR 50 lakhs |
|
Interest Rate |
10.5% to 14% |
|
Moratorium Period |
Course duration + 6 to 12 months |
|
Repayment Duration |
Up to 12 years |
|
Repayment Policies |
Full simple interest or partial EMI during moratorium |
|
Collateral Required |
No |
|
Co-applicant Salary |
Between INR 6 to 8 LPA (varies by lender) |
|
Processing Time |
7-15 days |
3. Government-Sponsored Loans
Schemes such as the Vidya Lakshmi Portal Education Loan provide financial support with interest rates beginning at 8.40%. The loans are meant to finance students seeking higher education overseas without collateral.
Eligibility Criteria for Education Loans
It is important to note that eligibility criteria varies for each loan provider but, common criteria include:
Academic Performance: A strong academic record enhances loan approval chances. Admission Confirmation: Proof of admission into a recognized Australian institution.
Co-applicant Requirement: Often, a parent or guardian with a stable income is required as a co-applicant.
Collateral (for Secured Loans): Ownership documents of the asset to be pledged.
Must Read: Scholarships in Australia for Indian Students
Top Indian Banks Offering Education Loans for Australia
If you are looking for a study loan for Australia in India, several banks like SBI, ICICI, and HDFC Credila provide financing options for Indian students.
State Bank of India (SBI): Offers loans up to INR 1.5 crores with competitive interest rates.
Axis Bank: Provides unsecured education loans for select Australian universities.
ICICI Bank: Offers unsecured loans for institutions like the University of Melbourne and the University of Queensland.
HDFC Credila: Specializes in education loans with customized solutions for students.
A common question students have is, "How much education loan I can get for study abroad?" The loan amount typically ranges from INR 20 lakhs to INR 1.5 crores, depending on the financial institution and course.
Must Read: Student Accommodation In Australia
Interest rates for study loan for Australia
|
Bank |
Interest Rate (per annum) |
|
State Bank of India (SBI) |
8.05% to 11.75% |
|
Punjab National Bank (PNB) |
8.55% to 11.25% |
|
ICICI Bank |
Starting from 10.25% |
|
HDFC Bank |
Starting from 9.50% |
|
Axis Bank |
13.70% to 15.20% |
|
IDBI Bank |
8.55% to 11.15% |
|
Bank of Baroda |
8.15% to 12.50% |
|
Bank of Maharashtra |
8.10% to 11.30% |
|
Central Bank of India |
10% to 10.6% |
|
South Indian Bank (SIB) |
12.90% to 13.65% |
Non-Banking Financial Companies (NBFCs)
NBFCs such as Auxilo and Avanse provide flexible loan facilities, usually with faster processing. They can give loans without collateral, subject to the student's profile and the institution selected. Many students ask, "Can I get a student loan to study in Australia?" The answer is yes, as many NBFCs offer education loans with flexible repayment options.
Documents Required for Education Loan for Australia
|
Category |
Required Documents |
|
Identity Proof |
Passport, Aadhaar Card, PAN Card, Voter ID, or Driving License |
|
Address Proof |
Aadhaar Card, Utility Bill, Rental Agreement, or Passport |
|
Academic Documents |
10th, 12th, and latest degree mark sheets, admission letter from university |
|
Proof of Admission |
Offer letter or acceptance letter from the Australian university |
|
Financial Documents |
Last 6 months’ bank statements of applicant/co-applicant, IT returns |
|
Income Proof of Co-applicant |
Salary slips (last 3 months), Form 16, or business income proof |
|
Collateral Documents (for secured loans) |
Property papers, Fixed Deposit receipts, or LIC policy details |
|
Loan Application Form |
Duly filled application form provided by the bank/NBFC |
|
Guarantor Details (if required) |
Identity and income proof of guarantor |
|
Visa Application Proof |
Student visa application/approval document (if available) |
How to get study loan for Australia
-
Research and Compare: Compare different lenders on the basis of interest rates, loan amount, repayment period, and processing charges.
-
Check Eligibility: Ensure you meet the lender's criteria, including academic qualifications and admission to a recognized institution.
-
Prepare Documentation: Commonly required documents include
- Admission letter from the Australian university.
- Academic records and transcripts.
- Proof of identity and residence.
- Financial statements of the applicant and co-applicant.
-
Collateral documents (for secured loans).
-
Submit Application: Complete the loan application form and submit it together with the necessary documents.
-
Loan Processing: The loand process will include an assessment by lender who will review the application. It possibly includes interviews or further paperwork.
- Loan Sanction and Disbursement: Upon approval, the loan amount is disbursed as per the institution's fee schedule.
Interest Rates and Repayment
Interest rates differ depending on the loan type and lender. Based on the latest data
-
Secured Loans: Interest rates may start from 8.5% per annum.
- Unsecured Loans: Rates can range from 10.5% to 14% per annum.
Repayment typically begins after course completion, with a grace period of 6 to 12 months. Loan tenures can extend up to 15 years, depending on the lender's policies.
Education Loans Without Collateral
For students unable to provide collateral, several options are available:
- Axis Bank: Offers unsecured loans for select universities.
- ICICI Bank: Provides non-collateral loans for top-tier institutions.
- NBFCs: Entities like HDFC Credila and Auxilo offer unsecured loans based on the student's academic profile and the institution's reputation.
Factors to Consider When Choosing a Loan
- Interest Rate: A lower rate reduces the overall repayment burden.
- Loan Amount Coverage: Ensure the loan covers tuition, living expenses, and other ancillary costs.
- Processing Time: Faster processing is provided by some lenders, which may be important for timely admission.
- Repayment Flexibility:Opt for features such as moratorium periods and repayment schedules.
Conclusion
Seeking education in Australia is a major investment, but with proper financial planning and knowledge of accessible education loan schemes, students can pursue their academic aspirations without undue financial burden. It's imperative to research thoroughly, compare various loan products, and choose a lender that aligns with your financial needs and future aspirations.
FAQs - Education Loan for Studying in Australia
Q. Can I get a student loan to study in Australia?
A. Yes, many Indian banks and NBFCs offer education loans for studying in Australia, covering tuition fees, living expenses, and other costs.
Q. Which bank is best for an Education Loan for Australia?
A. Some of the best banks for education loans to Australia include SBI, HDFC Credila, ICICI Bank, Bank of Baroda, and Axis Bank, depending on loan amount, interest rates, and repayment options.
Q. How much loan is required to study in Australia?
A. The loan amount depends on the university and course, but typically ranges from INR 20 lakhs to INR 1.5 crore, covering tuition fees and living expenses.
Q. What are the eligibility criteria for Indian students to secure an education loan for studying in Australia?
A. Students must have an admission offer from a recognized Australian university, a co-applicant (for most loans), and meet the bank’s financial and academic requirements.
Q. What documents are required to apply for an education loan for Australian universities?
A. Key documents include admission letter, academic records, identity proof, address proof, income proof of co-applicant, bank statements, and collateral documents (for secured loans).
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