Australia is one of the most preferred destinations for Indian students who want to study abroad. The rate of admission of Indian students to Australian universities is growing at a rate of 5-6% per year. As of July 2022 around 96,000 Indian students are currently studying there which makes it the second largest student group after China. Education loans for most of the Universities in Australia can be taken easily.
In your study abroad journey there are a lot of government banks and financial institutions which provide you with education loans. The Government Education loans to study in Australia come with affordable interest rates and easy repayment options. Let’s check all the details about getting a study abroad loan for Australia.
Table of contents
- Government Banks Providing Education Loans to Study in Australia
- Major Eligibility Criteria for Government Education Loan to Study in Australia
- List of Documents Required to Apply for Government Education Loans to Study in Australia
- Expenses Covered under Government Education Loans to Study Abroad in Australia
- FAQs
Government Banks Providing Education Loans to Study in Australia
It’s often a dilemma to choose the right lender for your education loan to study abroad. There are a lot of government and private banks that provide education loans with attractive offers and schemes. However, when you decide to choose the lender you must consider factors like rate of interest, repayment system, review of the particular lender processing time etc. Check here for some of the most preferred lenders:
SBI Education Loan for Study in Australia
SBI is one of the most popular banks when it comes to loans for study abroad. You can apply for an education loan to study in Australia under its SBI Global Ed-Vantage scheme. This overseas education loan is for students who want to pursue full-time regular courses in foreign universities. The minimum loan amount should be 7.5 lakhs and students for a maximum of 1.5 crores.
- The bank will demand a tangible collateral asset in order to process the loan
- The rate of interest will be around 9-10%.
- As per the SBI official website, the moratorium period will be the course period + 1 year or 6 months after getting a job, whichever is earlier.
Bank of Baroda Education Loan for Study in Australia
Bank of Baroda is another popular government bank which provides education loans to study in Australia. You can apply online on the bank’s official website or can visit your nearest branch. Under the ‘Baroda Scholar Loan’ to study abroad you are not required to pledge any security for an amount up to INR 7.5 lakh. Let’s check some attractive features of the Bank of Baroda Study abroad loan:
- The processing charge will be 1% recovered up front for loans above INR 7.5 lakh.
- The processing charge will be refunded on availament of loan (first disbursement) for premium institutions.
- A free debit card will be provided with the loan
- The bank will not charge anything for documentation.
- The maximum loan amount under the Baroda Scholar Loan scheme will be INR 1.5 crore.
Punjab National Bank Loan to Study in Australia
The Punjab National Bank provides loans to study graduate and postgraduate programs in Australia under its PNB-Udaan scheme. Under this scheme, the bank provides education loans up to INR 1.5 crores with a maximum repayment period of 15 years. Check all the key highlights of the PNB Udaan loan to study in Australia below:
- No Tangible security is required up to INR 7.5 lakhs
- The loan will cover all the fees payable to the college and library, insurance, security deposits for accommodation etc.
- Education loans for students who want to pursue Diploma and certificate courses other than aeronautical, pilot training, shipping etc. from abroad, may be considered, only if the loan is backed by liquid security valuing 125% of the loan.
- A 15% margin money will be required for the amount of loan exceeding INR 4 lakhs.
Also Read: Education Loan for International Students
Major Eligibility Criteria for Government Education Loan to Study in Australia
The government of India has come up with a lot of schemes for students who want to study in Australia. Affordable interest rates, moratorium period after finishing education, scholarships etc. are easily available to students. However, in order to get all these you need to fulfil some basic eligibility criteria mentioned below:
- The student must be an Indian citizen holding an Indian passport.
- The age limit for a student to apply for an education loan to study in Australia is between 18 years to 35 years. He/She shall not be more than 35 years old.
- You are required to submit an admission approval letter from a recognised Australian university
- The co-applicant must be either a parent, spouse or a legal guardian and they must have a stable source of income.
Also Read: Education Loan Disbursement Process
List of Documents Required to Apply for Government Education Loans to Study in Australia
The Documentation process is one of the most important parts of your study abroad journey. You will go through the verification process at almost every step. The university will demand a lot of documents like your marksheets, loan sanction letter, health insurance proof etc. loan capability letter etc.
On the other hand, the bank will demand an admission confirmation letter, PAN card and UID, income proof etc. Hence, you should keep all your documents handy and there shall be no mistakes. Let’s check the list of documents required to apply for an education loan to study in Australia:
- Loan application form from the bank/lender
- University approval letter which confirms the admission
- ID cards like PAN, UID, etc.
- Marksheets of previous degrees and board-level
- Passport sized photographs
- Income proof of parent/sponsor
- Address proof
- Bank statement for the last 3 months (some lenders may demand more)
- Documents showing the arrangement of accommodation
- Scholarship Letter (if any)
Expenses Covered under Government Education Loans to Study Abroad in Australia
The banks cover most of the expenses which are essential for a student to study in Australia. Most of the banks transfer the fee amount and the cost of accommodation directly to the university. However, if the student does not get accommodation provided by the university then the bank will cover accommodation outside the campus. Check below some of the major things that are covered under an education loan to study in Australia:
- Tuition fees of the university
- Examination fee, library membership or lab expenses (if required)
- Cost of books and study materials
- A refundable deposit is required to get an accommodation
- Travel expenses of the student.
FAQs
Bank of Baroda does not provide education loans to study abroad without any collateral. However, if your loan amount is not exceeding INR 7.5 lakhs then you are not required to pledge any collateral or asset.
Sometimes your loan gets rejected due to insufficient documents of income or your admission approval. But this cannot stop you from applying again. You can even change the bank and apply again with proper documents.
The rate of interest varies with the banks or the NBFCs. Usually, the government bank charges around 10-12% floating interest rate.
Government education loan to study in Australia comes with a lot of benefits. For most of the PSU banks, the students can apply for an education loan online on the official website. Most of the lenders provide a moratorium period of one year apart from the duration of the program to repay the loan. The bank loan covers tuition fees, accommodation fees, library membership etc. which makes it quite easy for the students to study abroad.
To know more about the government education loans to study in Australia, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience. Follow our social media handles on Twitter, LinkedIn and Instagram.
