Study Loan for Australia for International Students: Complete Details!

More than 700,000 international students, just like you, are currently studying in Australia, showcasing its appeal as a top choice for higher education. However, studying abroad can be a significant hurdle, with high tuition fees, living expenses, and other essential costs to consider.

You’ll be glad to know that numerous options are available to help with these expenses. Whether you need a loan for international students in Australia or are looking for an education loan specifically designed for Australian universities, you have plenty of options. 

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You might also consider a study loan for Australia without security to find the best fit for your financial needs. This blog will discuss all the possibilities, including study loan for Australia in India, their interest rates, and even personal loans for international students like you.

Key Highlights

This table highlights the main points you’ll hit in this blog about securing a study loan for Australia.

Types of Loans for Studying in Australia

When planning to study in Australia, understanding the different types of loans available is essential. Each loan type has unique features, benefits, and requirements.

Here is an overview of the most common types of loans to help you choose the best option for your needs.

Top Study Loans for Australia

Finding the right study loan for Australia is crucial to managing the costs of your education abroad, including tuition, living expenses, and other essential fees.

With tens of thousands of Indian students choosing Australia as their study destination, demand for financing options like loans for international students has never been higher.

This table will help you find the most suitable loan to finance your dream of studying in Australia.

1. Bank of Baroda Education Loans for Studying in Australia

The Baroda Scholar Education Loan offers a range of benefits for Indian students like you who are planning to study in Australia. 

Here are the key features you should know.

• Processing Fees: No processing charges for loans up to INR 7.5L; a 1% fee on larger loans, refundable upon first disbursement to premier institutions​.
• Repayment Tenure: Up to 15 years, including a moratorium period covering the course duration plus one year.
• Disbursement: Direct payment to universities and service providers, ensuring timely transactions.

Here are the eligibility criteria for this loan.

• Nationality: Must be an Indian citizen.
• Courses: Covers professional and technical courses (for example, MBA, MCA, MS) and diploma courses (such as aeronautical, pilot training, shipping) recognised by relevant authorities.
• Admission: Requires secured admission to a recognised foreign university through merit or entrance exams.

2. State Bank of India (SBI) Education Loan for Australia

The SBI Global Ed-Vantage Loan is specifically designed for Indian students planning to pursue full-time regular courses abroad, including in Australia. 

Here are the key details.

• Processing Fees: INR 10,000 per application.
• Repayment Tenure: Up to 15 years, with repayment starting six months after course completion or upon securing a job, whichever is earlier.
• Security: The loan requires tangible collateral security. Collateral provided by third parties (other than parents) can also be accepted.
• Coverage: Includes tuition fees, accommodation, travel expenses, study materials, and other course-related costs such as study tours and project work. Living expenses can be transferred to an SBI Foreign Travel Card.

Here are the eligibility criteria for this loan.

• Nationality: Must be an Indian citizen.
• Courses: The loan is available for regular graduate, postgraduate, doctorate, and diploma courses in disciplines such as science, technology, engineering, mathematics, and management.

These courses are offered by recognised foreign universities in countries like the USA, UK, Australia, Canada, Europe, and more.

• Admission: Requires secured admission through a merit-based selection process or entrance test​.

3. HDFC Bank Education Loan for Studying in Australia

The loans cover 100% of educational expenses for a wide range of courses, ensuring you have the financial support needed for your studies.

Here are the key features you should know.

• Repayment Tenure: Up to 14 years, including a moratorium period covering the entire study duration plus an additional 12 months.
• Processing and Collateral: Collateral may be required depending on the loan amount and whether it is secured or not. A simple and minimal documentation process allows for loan sanction even before admission confirmation​.

Here are the eligibility criteria for this loan.

• Nationality: The borrower and co-applicant must be Indian citizens.
• Co-borrower Requirements: The co-borrower must have a bank account in India with cheque-writing facilities.
• Admission Requirement: Must have secured or guaranteed admission to a recognised course, such as MS or MBA, at a foreign university.

4. ICICI Bank Education Loan for Studying in Australia

These loans are designed to cover all essential expenses such as tuition fees, travel costs, accommodation, and study materials, providing you with the financial support needed for your education.

Here are the key features you should know.

• Repayment Tenure: Up to 10-12 years for undergraduate courses and 12-14 years for postgraduate courses.
• Collateral Requirements: Collateral, such as fixed deposits, property, or other assets, is required for loans above INR 1 crore. However, ICICI Bank offers unsecured loans with no collateral requirement for students at premium institutes.

Here are the eligibility criteria for this loan.

• Nationality: Applicants must be Indian citizens.
• Age: Between 16 and 35 years.
• Academic Requirements: Must have completed 10+2 (12th standard) or a diploma and have a proven good academic record.
• Courses Covered: Applicable for students pursuing undergraduate, postgraduate, or PG diploma courses in professional education at recognised institutions abroad.

5. Axis Bank Education Loan for Studying in Australia

This loan provides up to 100% financing, ensuring you have the necessary funds to cover tuition, accommodation, travel, and other academic-related expenses. The bank also offers quick disbursal of funds, typically within two days, and provides a pre-admission sanction letter to help with your admission and visa applications.

Here are the key features you should know.

• Repayment Tenure: Flexible repayment terms of 10 to 15 years, with a moratorium period covering the course duration plus an additional six months.
• Processing Fees: Up to 2% of the loan amount, plus applicable taxes.
• Collateral: No collateral is required for loans up to INR 50 lakhs. For amounts above this, collateral such as property or fixed deposits may be required, depending on the specific loan conditions.

Here are the eligibility criteria for this loan.

• Academic Requirements: Minimum of 50% marks in Higher Secondary Certificate (HSC) and graduation.
• Admission: Must have secured admission to career-focused courses (e.g., medicine, engineering, management) at the undergraduate or postgraduate level through entrance exams or a merit-based selection.
• Co-Applicant: The co-applicant, such as a parent, sibling, or guarantor, must provide proof of regular income, such as bank statements or Form-16, for the last 2-3 years.

6. Auxilo Education Loan for Studying in Australia

Auxilo Finserve Pvt. Ltd., established in 2017, provides customised education loans for Indian students wishing to study in Australia. With flexible terms and benefits like pre-approved loans, competitive interest rates, and quick disbursal, Auxilo aims to simplify the financial planning process for your overseas education.

Here are the key features you should know.

• Processing Time: The loan application is processed quickly, typically within 3 to 4 days.
• Repayment Tenure: Up to 15 years, with negotiable payment terms depending on your financial situation.

Here are the eligibility criteria for this loan.

• Nationality: Must be an Indian citizen and at least 18 years old.
• Admission Requirement: Must have secured admission to a recognised university abroad.
• Co-Applicant: A co-borrower with a steady income and good credit history is required, typically a parent, guardian, sibling, or other close relative.

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Personal Loans for International Students in Australia

While personal loans are less common for international students, they can be an alternative funding option if you need additional financial support beyond an education loan for Australia.

A personal loan for international students in Australia typically has higher interest rates and shorter repayment periods than traditional study loans.

These loans do not require you to provide collateral, but you may need a strong credit history or a guarantor to qualify. Personal loans can help cover expenses not included in a study loan, such as emergency costs or personal expenditures, making them a flexible option for managing your finances while studying abroad.

Living and Study Costs in Australia

Securing a study loan for Australia is often crucial for Indian students like you aiming to pursue higher education in this sought-after destination. 

Before applying for a study loan for Australia, it’s essential to understand the overall expenses involved. This section provides detailed insights into the various study loan options, benefits, and eligibility requirements, helping you make an informed decision.

The below table summarises the key expenses for Indian students studying in Australia.

Here is a table detailing the top universities in Australia and their tuition fees.

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Documents Required for an Education Loan to Study in Australia

Several documents must be submitted to the bank to apply for an education loan. When applying for an education loan, you must provide several key documents to the bank. These documents are required to verify your identity, confirm your admission, and assess your financial situation and repayment capacity. 

For instance, nationalised banks like the State Bank of India (SBI) offer education loans up to INR 20L to eligible students, but the following documents are usually required.

• Letter of Admission: Confirmation of admission from the Australian university.
• Loan Application Form: Completed and duly signed by the applicant.
• Cost of Study Documents: A breakdown of the total expenses related to the course.
• Identification Proof: Aadhar card, passport, or other government-issued IDs.
• Residence Proof: Utility bills, rental agreements, or other documents proving residence.
• PAN Details: Permanent Account Number (PAN) card of the candidate.
• Financial Documents:

1. Bank statements of the guarantor, co-borrower, or student (last 6 months).
2. Statement of assets of the guarantor, co-borrower, or student.
3. Proof of income of the guarantor or co-borrower (salary slips, tax returns, etc.).

Application Process to Apply for an Educational Loan in Australia

Applying for an educational loan to study in Australia involves a few straightforward steps to ensure you get the financial support you need. 

They are detailed below.

1. Research and Compare Loan Options: Start by researching different lenders, including nationalised banks, private banks, and NBFCs. Compare their interest rates, loan amounts, repayment terms, and other features to find the best loan for your needs.
2. Check Your Eligibility: Make sure you meet the eligibility criteria of your chosen lender. Typically, you need to be an Indian citizen, have secured admission to a recognised Australian university, and have a co-applicant (like a parent or guardian) with a stable income and a good credit history.
3. Gather Required Documents: Collect all necessary documents, as detailed in the previous section.
4. Submit Your Application: Submit the completed application and all documents to the lender, either online or by visiting a local branch. Many lenders now offer an easy online application process for convenience.
5. Undergo Verification: After submission, the lender will verify your documents and assess your creditworthiness. This step may include evaluating your co-applicant’s financial stability and the value of any collateral you provide.
6. Receive Loan Approval: Once your application is approved, you will receive a sanction letter detailing the loan amount, interest rate, and repayment terms. This letter can also serve as proof of funds for your university and visa applications.
7. Get Funds Disbursed: After accepting the loan terms, the funds are disbursed directly to the university to cover tuition fees and other expenses. Additional funds for living costs may be transferred to your account.
8. Plan for Repayment: Familiarise yourself with the repayment terms, including the moratorium period, which usually covers the duration of your course plus 6 to 12 months. Prepare to begin repayment according to the agreed schedule.

Factors to Consider When Applying for a Study Loan for Australia

When choosing a study loan for Australia, consider these critical factors to make an informed decision.

• Interest Rates: Compare rates across different institutions and decide between fixed or floating rates based on risk tolerance.
• Repayment Terms: If you want lower monthly payments, consider longer repayment periods, but be mindful of the total interest paid over time.
• Collateral Requirements: Decide if you prefer a secured loan with collateral for a lower interest rate or an unsecured loan with potentially higher rates but no risk to assets.
• Processing Time: Ensure the bank or NBFC can process your loan quickly enough to meet university or visa deadlines.
• Additional Costs: Be aware of processing fees, prepayment penalties, and other hidden charges that could increase the total loan cost.

Expenses Covered Under the Education Loan

An education loan sanctioned by the bank is designed to cover all the essential expenses of studying in Australia, ensuring you have the financial support needed throughout your academic journey.

These expenses typically include tuition fees, often the largest component, and accommodation costs, whether you choose on-campus housing or private rentals. Additionally, the loan may cover travel expenses, such as airfare to and from Australia, and necessary study materials like textbooks, laptops, and other equipment required for your coursework.

• Tuition Fees: The primary cost covered by the loan.
• Accommodation Expenditures: On-campus or off-campus housing costs.
• Caution Deposit Money: Security deposits are required by universities.
• Travel Expenses: One-time travel costs to and from Australia.
• Study Tours and Project Work: Costs associated with mandatory academic activities.
• Books, Laptop, and Stationery: Purchases necessary for coursework.
• Other Reasonable Expenses: Any other expenses necessary to successfully complete the course.

Conclusion

Securing a study loan for Australia is a vital step for many Indian students aiming to pursue higher education abroad. Various financial institutions, including nationalised banks, private banks, and NBFCs, offer diverse loan options, so it is crucial to understand their benefits, eligibility criteria, and terms.

Australia’s renowned universities, innovative research environment, and dynamic medical education make it a leading destination for international students. At LeapScholar, we’re dedicated to supporting you throughout your journey.

With a team of over 1,500 experts, we help you find the best programs, scholarships, and career paths in Australia. Schedule a free consultation with our experts today and take the first step towards achieving your academic and career goals.

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