As an Indian student planning to pursue a Master's in Australia, can I get an education loan to cover both my tuition fees and living expenses?

A sanctioned loan does more than pay the university; it also becomes one of the acceptable forms of evidence for your Australian visa's financial-capacity test, which is a separate hurdle from getting the bank to approve the amount in the first place.

What Indian Lenders Typically Cover

Depending on the lender, an overseas education loan can include tuition, accommodation, travel, books, equipment, and insurance. SBI's Global Ed-Vantage scheme currently advertises loans up to ₹3 crore, with collateral-free loans up to ₹50 lakh for select premier institutions. HDFC Credila's unsecured foreign-education loans can go up to ₹75 lakh, subject to its own underwriting criteria.

Collateral and the Australian Visa Fund Test

Without collateral, loan amounts are generally lower and depend heavily on the university and course. With collateral, you can typically access substantially larger sums. For the Subclass 500 visa itself, Australia's Department of Home Affairs recognises loans from financial institutions as acceptable evidence of funds, alongside AUD 29,710 in living costs for 12 months, the first year of tuition, and travel costs.

My Advice

Compare at least three lenders, since collateral-free limits vary significantly by university tier and are not standardised across banks. Ask for loan-sanction paperwork that spells out security, moratorium, interest and repayment terms in detail, since Australian visa officers assess the documentation's completeness, not just the headline sanctioned amount.

This Information Is Also Available On

State Bank of India (Global Ed-Vantage Scheme), Australian Department of Home Affairs (Subclass 500 Student visa), and the Vidya Lakshmi portal (Government of India education loan platform).