Education Loan for Australia

Education Loan for Australia

Education Loan for Australia is given to students who have secured admissions in Australian universities for their higher education. There are several education loans available for students who want to study in Australia. But how do you choose the best student loans to study in Australia? This blog is a guide for students looking for the best Education Loan for studying in Australia.

Most Australian universities admit Indian students for their UG and PG courses. International students prefer to study in Australia for its top quality education, placement opportunities, diverse campuses and work opportunities. Students have easy access to student visas and also will be able to to easily communicate with the people as the major language is English. If you are a study abroad aspirant or someone who has already secured admissions in one of the Australian colleges, then read on to learn how to secure an Education Loan for Australia.

What is a Simplified International Student Visa Framework (SSVF)?

Before you apply for a student visa or an education loan for Australia you have to learn about the SSVF. The Australian government has scrapped the old streamlined visa processing (SVF) and has brought in a new set of student visa rules known as the Simplified Student Visa Framework (SSVF). This framework includes a list of changes in the student visa rules made by the Australian government. These changes came into effect from 1st July 2016 and were intended to simplify the visa application process for international students. Not all the rules have changed from the SVF. Take a look at what has changed in the SSVF.

Recent Changes in the SSVF

The SSVF has made the Australian student visa process simpler by making the following changes. See below to know the new rules. 

1.The number of visa subclasses have been reduced to 2 from 8. From now these visas will be Student Visa (subclass 500) and Student Guardian Visa (subclass 590). 
2.A single immigration risk framework has been developed where all the international students will be assessed regardless of what course they choose.
3.A new portal - ImmiAccount - will be used where all the student visas and student guardian visas will be processed online.

Education loan for Australia - Cost of Studying in Australia for International Students

Education Loan For Australia :Cost of Studying In Australia For International Students

Education loan for international students in Australia are provided based on the tuition fee. The tuition fee for international students studying in Australia varies depending on the courses chosen by the student. The cost of studying will also vary based on the city you live in and the level of study such as UG, PG etc. Based on the cost of education and living, the Education loan for Australia is calculated. 

SI. NO. Australian Degree Level Cost in Australian Dollars(AUD) Cost in Indian National Rupees(INR)(approx)
1 Bachelors's degrees Between 20,000-45,000 11-25 lacs
2 Masters's and PhD degrees Between 22,000-50,000 12-28 lacs

Educational Loans offered for Studying in Australia

Education Loans Offered for Studying in Australia

Most of the banks provide student loans for studying in Australia. Here is a list of banks that provide Education Loan for Australia. Education loan interest rate in Australia may vary based on the banks. Banks also provide education loan for working professionals who want to study in Australia.  If you are looking for a study loan for abroad studies in Australia then check out these banks. 

1.Indian Nationalised Banks

  • Bank of Baroda
  • State Bank of India
  • Union Bank of India

2.Private Banks

  • Axis Bank
  • ICICI Bank
  • HDFC Bank

3.NBFC or Non-Bank Financial Companies

  • HDFC Credila
  • Avanse
  • Incred 
  • Auxilo

Process to Apply for an Education loan for Australia

After you successfully get admission in an Australian university, your next step will be to find sufficient funds to assist your education in Australia. For this you have to apply for an Education loan for Australia. Check if you have the required eligibility to apply for an Education loan for studying in Australia. If yes, arrange all the important documents that need to be submitted during the loan application. Check all the expenses that's covered under the loan. Shortlist the loan providers and check the terms and conditions provided before applying for the student loan. You should only approach approved banks in India for Australia student visa. 

Australia Education Loan Timeframe

Usually it takes 40 to 60 days for banks in India to process an education loan for Australia. It is better to start your loan application as soon as you receive your admit card from the college. See below to understand how much time it will take for a bank to sanction your education loan for your studies in Australia.

  • 1 to 2 weeks to arrange all the documents and apply for an education loan.
  • 2 to 3 working days for mortgage creation after which the loan will be disbursed to the student.

Australian Embassy Requirements from Indian Students for Educational Funds

The Australian Embassy will require your university account details with which you have applied for the education loan for Australia. Students have to provide these details to which the tuition fee and the health insurance fee have to be sent before the loan is sanctioned by the bank. 

1.After the amount has been transferred to the university account, you have to submit the payment receipt to the university.
2.The university sends a Confirmation of Enrolment (CoE), after they receive the receipt. This is required to be submitted in the Australian Embassy for the purpose of getting the student visa.
3.The amount for living expenses will be transferred to the student's savings account in India. 
4.Until they start the course, the student cannot make any transactions through this account.
5.After this the student can attend the visa interview with the necessary documents.

Top Universities in Australia for Educational Loan

We went through the different banks that provide Education loans in India. So what are the top universities for which you can get Education loan for Australia? 

Sl. No: University About Tuition fee for international students Secured loan providers Unsecured loans providers
1 Australian National University Performs well to rank the best among top universities in the world.  60 L

All banks

 

 

Private banks & NBFC
2 University of Sydney     3rd best university in Australia. Large number of international students study here. 57L

All banks

 

 

Private banks & NBFC
3 University of New South Wales Founding member of Australian research-intensive universities. One of the top recommended universities of aspiring students. 45L

All banks

 

 

Private banks & NBFC
4 University of Queensland Top Australian university. Ranks among the top 50 universities in the world. 59L

All banks

 

 

Private banks & NBFC
5 Monash University Situated in Melbourn and has an additional five campuses all over Australia, this university is among the hit list for international students.     58L

All banks

 

 

Private banks & NBFC
6 University of Western Australia This university is best in terms of the strength of international students and education quality.
60L

All banks

 

 

Private banks & NBFC
7 University of Adelaide Best University for innovation in many areas by ERA and the top 100 universities of the world. 46L

All banks

 

 

Private banks & NBFC
8 University of Technology Sydney One of the youngest universities in Australia. Also among the best 100 universities in the world.     68L

All banks

 

 

Private banks & NBFC
9 University of New Castle Has nearly 27,000 students This university is well known to deliver education in courses like engineering, medicine, and more.     47L

All banks

 

 

Private banks & NBFC
10 University of Melbourne 40% of students studying in this university come from abroad.  58L

All banks

 

 

Private banks & NBFC

Types of Funding Options Available for Studying in Australia

There are several ways to fund your tuition fee like education loans for Australia studies. Lets see what are the funding options available for Indian students to study in Australia. 

  1. Self funding
  2. Secured Education loan
  3. Unsecured Education loan
  4. Personal loan

Funds Necessary for Australian student VISA application

To be able to get your Australian student visa approved you should show proof that you have the funds to cover the first year's tuition fees, living expenses, health insurance and travel expenses. For a lodging student visa, you only need the 2nd semester tuition fee and the first year living expenses. The travel cost is almost AUD$ 2000 and you should show at least AUD$ 21041 as bank balance for the first year tuition fee. You can get help for funding your tuition fee by applying for an Education Loan for Australia.

Various options of Education Loan for Australia in India

Getting an education loan is a necessity for most of the students who want to study in Australia. The education loans for Australia can be availed in 2 ways - (1) study loan for australia without security, (2) study loan for australia with security. Check out the options available for you for availing education loan for Australia in India.

Education loan for Australia without collateral

Education loan given with any collateral is also called an unsecured loan. This type of loan is given without asking for any collaterals like properties or FDs. 

Features Public Banks Private Banks NBFCs
Example Lenders SBI,BOB Axis Bank Avanse, Incred
Loan Amount(INR) PSUs don't give loans more than INR 7.5 Lakhs for studying abroad Upto INR 40 lacs Upto INR 25 lacs
Interest Rate Range  
11.5%-13.5%
12%-16%
Processing Fees(INR)   INR 0 is the loan is less than INR 20 lacs; INR 750 on every lac above a loan of INR 20 lacs 1%-2% loan amount
Number of Colleges Supported   More than 10 More than 15

Education loan for Australia with Collateral

These are secured loans where the applicant must submit a security against the loan they take. For secured loans you can apply for higher amounts at a lower interest. 

Features Public Banks   Private Banks NBFCs
Example Lenders SBI, BOB Axis Bank Avanse, Incred
Loan Amount (INR) Upto INR 1.5Cr Upto INR 60 lacs Upto INR 60 lacs
Interest Rate Range 9.2%-10.5% 11.5%-13.5% 12%-14.5%
Processing Fees (INR) INR 11800 INR 0 for loans below INR 20 lacs, INR 750 on every lac above INR 20 lacs   1%-2% loan amount  
Payment During Study Period   None
Simple Interest
Simple Interest

Eligibility Criteria for an Education loan for Australia

Are you eligible to apply for an education loan for Australia? Check out the list of eligibility criteria and find out.

  • The applicant should be an Indian citizen.
  • The applicant must have secured an admission in an Australian university.
  • The applicant must have enrolled in a course that is recognised by the bank.
  • The applicant should be above 18 years of age.
  • The applicant must have scored above 5.5 band score in IELTS.
  • There needs to be a co-applicant who can be your parent or guardian.

Required documents for an Educational loan for Australia

Required Documents for An Educational Loan For Australia

Check out the documents required for applying for an Educational loan for Australia.

1.CoE (Confirmation of Enrolment) issued by CRICOS (Commonwealth Register of Institutions and courses for Overseas for Overseas Students) for studying in Australia.
2.IELTS score with minimum 6 band score in all sections or equivalent PTE score.
3.Collateral documents for secured loans.
4.KYC documents 
5.Academic records 

Scholarships for Students in India to study in Australia

Even though many students apply for education loan for Australia, there are scholarships available to Indian students who want to study in Australia. Most of the scholarships are provided under the government scheme and Commonwealth programs. Australia Awards Scholarships, Australian Government Research Training Program Scholarships and CSIRO Scholarship Program are some of the scholarships available to Indian students. Some scholarships cover the entire tuition fee but some cover only a part of it. So students have to depend on education loans to fund their studies in Australia. For more details on scholarships you can visit your education consultant in your city or you can visit the official websites for applying to scholarships.

Special Education Loan for Australia – Non Australian Citizens from India

The Australian government provides Special Education Loan for Australia as financial assistance to Indian students. They have introduced the HELP loans to assist students in managing their expenses in Australia. Students from India with PR can apply for the HELP student loans or Commonwealth Supported Places (CSP) loans. You can check the official website of the Australian Home Affairs to check how to apply for a Permanent resident in Australia. 

Scholarship available to study in Australia

If you are looking for financial assistance like an education loan for Australia, you can also check out for scholarships available to study in Australia. Australia is one of the countries that provide scholarships for Indian students to study in their country. Lets see what are the scholarships made available by them.

Tips for choosing the best Education Loan for Australia

As you have seen now there are several vendors that provide Education Loan for Australia. But it is important that you choose the best Education Loan for Australia, as it is crucial for the smooth completion of your studies. Read on how you can choose the best Education Loan for Australia.

1.Choose a lender that is specialised in education loans as they will help you understand the complete process and will guide you through the loan application.
2.Check the possibilities of getting an education loan with collateral as you can get rid of the pain of submitting a loan security. 
3.You must look for a loan provider that provides 100% financing that takes care of your complete expenses in Australia. 
4.Admission processes have deadlines. So it is important that you choose a lender that sanctions your loans quickly. 
5.Look out for penalties and extra charges that you may incur throughout the loan such as late charges for late payment of EMIs.

Difference between student loan and student credit

When you search for education loans for Australia, the terms student loan and student credit are used interchangeably on different online pages. Let's get these terms clear…

A student loan is usually provided to students to cover their study and living expenses like tuition fee, accommodation, travel, food, clothing etc. The loan is paid to students in instalments over a period of time. 

A student credit can be used to cover other larger expenses like buying a phone or books or a laptop. These amounts are handed over to the applicant in total amounts. Student credits are flexible where only the needed amount is borrowed and the repayment is done in any amount of time.

Conclusion

If you want to study in Australias, then definitely you will require the assistance of an education loan. We have covered all the topics that a student must know regarding education loan for Australia. Consider a genuine lender to avail an education loan that takes care of your expenses in Australia. 


FAQs 

1.Can I get an education loan in Australia?
Yes, you can. You have to be eligible for the availing the education loan. Check out the eligibility criteria that's given in this blog to know the eligibility criteria. 

2.How do I get a student loan in Australia?
You can get a student loan for studying in Australia after enrolling in a recognised course in an Australian university. You must apply for a loan in banks or any NBFCs with the CoE that you get from the university.

3.Can international students get an education loan in Australia?
You have to apply for loans from your own country. Australia doesn't provide loans for international students. They provide loans for students from Australia and New Zealand.

4.Can I get an education loan without collateral for Australia?
Yes. It is possible to avail education loans without collateral for Australia. You can approach banks for unsecured loans. 

5.Who can apply for student loans in Australia?
If you are applying for a HECS-HELP loan in Australia, you must be studying in a Commonwealth supported place (CSP). Check HECS-HELP to know more about the eligibility criteria. 

6.Which bank is best for education loans for Australia? 
HDFC Bank, State Bank of India, Axis Bank, Punjab National Bank, Bank of Baroda, Canara Bank, IDBI Bank, Avanse Financial Services are some of the best banks for education for Australia. 

7.How do I fund my Australian student visa?
You can fund your Australian studies by self funding, or by taking secured, unsecured or personal loans.

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