Australia is undoubtedly one of the most eye-catching locations in the world for students who want to pursue their higher education abroad. According to reports, Australian universities have stated that their enrolment has increased from 4% to 5%. Currently, more than 450,000 international students are pursuing their higher education at Australian universities. India has the second highest spot, with over 77,000 pursuing their education. If you have plans to study at an Australian university but don’t have the necessary fund, you don’t need to worry. This is where education loan for Australia comes into the picture.
Education loan for Australia is one of the most effective ways to fund your higher education. Here’s the complete guide you need to know about education loans for Australia.
Reasons to Get an Education Loan for Australia
Australia is always present on the list of top expensive countries to study. Despite the higher education cost, Australian universities are seeing a massive number of international applications every year. If you’re an international student and you have a dream of completing your higher education at an Australian university, you might need a large sum of money including tuition fees, accommodation, transportation, medical costs, stationary, and other expenses. But when you obtain an education loan for Australia, you can mitigate your expenses. Here are the reasons why you need to apply for an education loan in Australia:
- The education loan will cover numerous expenses such as housing fees, tuition fees, stationery, groceries, medical cost, and other things that are needed during your time in Australia.
- Unlike the other types of loans, education loans come with lesser interest rates. On top of that, female students will receive additional discounts.
- Instead do liquidate the assets to recover the costs of studying in Australia, you can obtain an education loan.
Also Read: All About Students Loans to Study in Italy 2023
What are the Different Types of Education Loans for Australia?
Keep in mind that there are two primary types of education loans available for international students who want to complete their higher education in Australia. Here are the education loans you need to consider.
Collateral Education Loan
The collateral education loans are secured where the students need to provide collateral or security while obtaining the loan. The security you provide might be tangible or intangible like s fixed asset as houses or properties.
You also need to provide collateral security so that you can obtain this loan. The interest rate for secured education loans is always lower than unsecured loans.
Must Read: Loan-Related Terms Every Student Should Know
Non-Collateral Loan
This is one type of unsecured loan provided to students for study in Australia. When you choose this education loan for Australia, you don’t need to provide any type of collateral or assets. However, keep in mind that the loan amount you receive through a non-collateral loan will be lesser than a collateral loan. In addition, the interest rate will also be higher.
Eligibility Criteria
If you’re looking for an education loan for Australia, you need to make sure you’re fulfilling the eligibility requirements as well as the basic requirements. Even though the eligibility will depend on the bank you’re choosing, the basic criteria will always be the same. Here are some important points you need to remember:
- The candidate should be an Indian citizen
- The candidate should be between the age of 18 and 35 years old
- The candidate needs to showcase their university acceptance letter
- The co-applicant should be either a spouse or a parent
- They need to showcase their income
Required Documents
Once you fulfil the eligibility criteria, you need to present numerous documents to back up your claim. The documents you provide will either make or break your claim. Therefore, you need to make sure you’re not making mistakes. Here are the documents you need to provide:
- Admission proof
- Application form
- Passport sized photograph
- Age proof
- Aadhar card
- Income proof
- Marksheets
- Bank statement
- Copy of scholarship letter
- Financial documents
Also Read: How to Get Student Loans to Study in Singapore
How Can You Get Education Loan for Australia?
Remember that applying for a student loan to complete your higher education in Australia might prove to be an extensive process. Therefore, you need to start the application process six months prior to the start of your course. Here’s the essential information you need to know:
- Choose the banks that are offering education loans
- Calculate your expenses thoroughly
- Contact the university and get your acceptance letter
- Shortlist the availability of the options
- Once you choose the perfect bank, choose the perfect loan amount as per your expenses
- Provide valid documents
Education Loan Provider: Indian Nationalized Banks
Depending on the INB you choose, you might be able to receive 90% to 100% of secured loans so that you can complete your studies in Australia. The advantage of choosing INB is that the processing fee is comparatively lower. However, keep in mind that the application process might take a significant time to complete.
The Bank of Baroda provides 100% secured loans to Indian students. Here’s a table that would help you understand better.
| Secured Loan | Upto 1 Crore |
| Processing Fee | INR 12,000 |
| Unsecured Loan | 0 |
| Margin | 10% |
| Loan Tenure | 15 years |
Education Loan Provider: Private Banks
Unlike the Indian Nationalised Banks, the processing time for the education loan for Australian provided by the private banks is faster. In addition, the follow-up process for the loans is also better. However, the additional charges such as processing fees and interest rates might be higher. Some of the most popular private banks that provide students loans are:
Axis Bank
| Secured Loan | No Upper Limit |
| Repayment Charges | 0 |
| Unsecured Loan | Up to 40 lakh |
| Margin | 0 |
| Loan Tenure | UP to 15 years |
ICICI Bank
| Secured Loan | Up to 1 Crore |
| Repayment Charges | 0 |
| Unsecured Loan | Up to 40 lakh |
| Margin | 0 |
| Loan Tenure | UP to 12 years |
What Expenses Education Loan for Australia Will Cover?
When you obtain an education loan to complete your higher education in Australia, the loan provider will be able to cover different types of expenses including but not limited to the:
- Tuition fees
- Additional university fees
- Travel expenses
- Refundable deposits
- Study expenses
FAQs
Yes, you can. But don’t forget to provide sufficient documents to support your claim.
The Union Bank of India will take only 7 days to sanction your loan.
Depending on the university you choose, you need an average of AUD 62,222 (INR 34.10 Lakh) to pursue your education in Australia.
This is everything you needed to know about an education loan for Australia. If you’re looking for an education loan to pursue your dream of studying abroad, make sure you visit Fly Finance.
