Australian Student Loans for Overseas Studies – Amount, Process, Eligibility

australian student loans for overseas studies
Home » Education Loan » Australian Student Loans for Overseas Studies – Amount, Process, Eligibility

Australian universities offer a plethora of courses for international students. The stress-free visa procedure and availability of a diverse range of academic programmes encourage thousands of Indian students to pursue their higher studies on this continent. Indian students can study in some of the top universities of the island nation with education loans from the government of India, private banks, and non-banking financial companies (NBFCs). Students opting for Australian student loans for overseas studies need to meet the prescribed eligibility criteria and submit the mandatory documents to avail of the loan at financial institutions.

Types of Australian Student Loans for Overseas Studies

Two types of education loans are available to students studying in Australia: Secured and Unsecured loans. Here is a brief description of the different types of loans for studying abroad in Australia:

Secured Loans

Applicants can secure these loans at nationalised banks of India, private banks, and NBFCs. Students are required to offer security or collateral for secured loans. These loans are accepted by all approved universities in Australia.

Unsecured Loans

An education loan that does not require collateral is termed an unsecured loan. These loans are disbursed with the signature of a co-borrower. In comparison to secured loans, the interest rates of these loans are much higher due to no collateral. Private banks and NBFCs provide this loan with a guarantee from a co-applicant. 

Also Read: Axis Bank Education Loan without Collateral for Studying Abroad

Overseas Education Loans for Studying in Australia

Nationalised Banks of India

Nationalised Banks like the State Bank of India (SBI) and Bank of Baroda (BOB) provide Australian student loans for overseas studies. These banks generally cover up to 90% of 90% of the cost of studying in Australia. Nationalised banks provide loans at lower rates in comparison to private banks and NBFCs.  Additionally, procuring education loans from these financial institutions saves an extra charge on the interest rate. 

Let us have a look at the loan specifications of the State Bank of India, Bank of Baroda, and Union Bank of India

BanksSBIBOB
Secured LoanUp to INR 1.5 crUp to INR 1 cr
Interest Rate10.09% to 11.50%10.06% to 11.25%
Repayment PeriodUp to 15 years Up to 15 years
Margin MoneyUp to INR 4 lakh: No Margin Money; Above INR 4 lakh: 15% on the amount above INR 4 lakhNil
Processing FeesUp to INR 20 lakh: No Processing Charge; Above INR 20 lakh: INR 10k+TaxesNo Processing Fee
SecurityUp to INR 7.5 lakh: Only a co-applicant/parent/guardian; Above INR 7.5 lakh: Guardian or either as co-borrower and collateral securityUpto INR 4 lakh: Only co-obligation of either parent/guardian; Above INR 4 lakh: Guardia/either parent as a co-signers and collateral security

Private Banks

In comparison to nationalised banks, private banks such as Axis Bank, ICICI, and IDFC disburse loans at a faster rate. This is on account of the availability of a dedicated relationship manager at these financial organisations. However, these banks’ interest rate and processing fees are usually at a higher end. Unlike national banks, private banks offer both secured and unsecured Australian student loans for overseas studies.

Given below are the details of some of the private banks offering financial assistance to overseas students who have bagged a seat in eminent Australian universities:

BanksAxis BankICICI BankIDFC Bank
Secured Loan AmountNo capUp to INR 2 crUp to INR 1 cr
Unsecured Loan AmountUp to INR 40 lakhUp to INR 40 lakhUp to INR 50 lakh
Interest Rate(Floating)13.70% to 15.25%9.50% to 15.85%9% to 15%
Processing Fee2% of the loan amount + GST1% of the loan amount1% of the loan amount
Loan TenureUp to 15 yearsUp to 12 yearsUp to 12 years
Margin MoneyNilNilNil
SecurityCo-applicant and a third-party guarantorUp to INR 1 cr: Only parent/guardian as co-signer; Above INR 1 cr: Co-signer and tangible collateral securityUp to INR 75 lakh: Parent/guardian as a Co-applicant; Above INR 75 lakh: Co-applicant and a collateral security

Non-Banking Financial Companies (NBFCs)

If students fail to secure a loan from nationalised banks and private banks, they can apply for Australian student loans for overseas studies at any of these NBFCs: Avanse, InCred, HDFC Credila, and Auxilo. These organisations offer education loans to applicants only after final confirmation from the Australian High Commission.

Students can apply for a loan from the below-mentioned NBFCs after evaluating all specifications of different types of loans tabulated below:

NBFCsAuxiloInCredHDFC Credila
Loan AmountNo capUp to INR 1 crNo cap
Base Interest Rate12% to 13.5%11.5% to 15%11% to 13%
Loan Tenure10 years15 years12 years
Processing Fees2% of the loan amount1% to 1.5% of the loan amount1% of the loan amount

Top Universities in Australia Eligible for Education Loan

Australian student loans for overseas studies are applicable to most of the recognised universities of the island nation. Students can apply for secured as well as unsecured loans to get financial assistance from nationalised banks, private banks, and NBFCs. The table below enlists s

S.NoUniversitiesQS World University Rankings 2023
1Australian National University30
2Monash University57
3University of Melbourne33
4University of New South Wales45
5University of Western Australia90
6University of Sydney41
7University of Queensland50
8University of Adelaide109
9University of New Castle192
10Curtin University193
11University of Technology Sydney137
12 RMIT University109
13Macquarie University195
14LA Trobe University316
15University of Canberra511-520

Also Read: Corporation Bank Education Loan for Studies Abroad

Expenses Covered

Study abroad student loans for Australian universities cover the below-mentioned expenses:

  • Tuition fees
  • Hostel fees
  • Caution deposit
  • Examination fees
  • Laboratory and Library fees
  • Cost of books, uniform, laptop/desktop, and other utilities

Eligible Courses

Australian student loans for overseas studies are available for the following courses in a recognised university in this island nation:

  • Diploma Courses
  • Skill Development Courses
  • Vocational Programmes
  • Undergraduate Programmes
  • Postgraduate Courses
  • Doctorate Programmes

Eligibility Criteria

Students who have secured admission to an approved university in Australia must adhere to these eligibility criteria to avail of the study abroad education loans:

  • The candidate must of 18 years of age or older
  • The student must be an Indian citizen
  • The applicant should have an offer letter from an accredited Australian university
  • The course must be eligible for student loans

Application Process

A student who has secured admission to any eligible course in an approved university must follow these instructions to apply for Australian student loans for overseas studies:

  • Visit the official website of the banks or NBFCs
  • Download the application form
  • Upload the completed application form
  • Upload the required documents
  • Print a copy of the completed form
  • Visit the physical branch, in the case of banks, to meet the concerned official
  • The official from the loan department will guide you through the remaining process.

Must Read: Student Loan for Canada

Documents Required

Here is the list of documents a candidate needs to submit while applying for Australian student loans for overseas studies:

  • Offer Letter
  • Result of entrance examination, if applicable
  • Loan application form
  • Academic transcripts
  • Statement of tuition fees, living expenses, laboratory fees, library fees, and other relevant fees
  • Passport-size photos of the applicant and parents/guardian/co-applicant
  • Aadhaar Cards of the applicant and parents/guardian/co-applicant
  • PAN Cards of the applicant and parents/guardian/co-borrower
  • ID proof- Passport/PAN Card
  • Address proof- Electricity bill/Utility Bill/Telephone Bill/Aadhaar Card
  • Bank statement (for the past 6 months) of the applicant, if salaried, and parent/guardian/co-borrower
  • IT return (of the past two years) of the applicant, if salaried, and parent/guardian/co-borrower
  • Collateral valuation documents
  • Any other documents asked by the lender

FAQs

How much loan is required to study in Australia?

Students usually apply for a loan of up to INR 35 lakh to INR 40 lakh to study in Australia. 

How to get a loan to study abroad Australia?

You can apply to nationalised and private banks and NBFCs for Australian student loans for overseas studies after getting an offer letter from any recognised Australian university. 

What is the eligibility for education loan for abroad studies?

The applicant must be an adult (18 years or above) selected for an academic programme in an accredited university. He/she/they must have all the academic qualifications, identity proof, and address proof to be eligible for an education loan for abroad studies. 

Discover different types of study abroad education loans with Fly Finance and Leverage Edu. To get a free counselling session regarding studying in Australia contact us at 1800 572 000.

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