Education Loan for Australia

When one thinks of Australia, its distinct local accent and stunning natural beauty come to mind. But that is not all the country is famous for – the Land Down Under also boasts world-class Universities, top-notch industry collaborations, and a diverse cultural crowd. The state-of-the-art educational infrastructure draws thousands of young aspirants from all over the world. While the cost of studying in Australia is significant, the scope of opportunity in the country more than makes up for it. Financing an Australian education becomes easier when you introduce overseas education loans to the picture.

Whether one is looking for an overseas education loan against collateral or without collateral, one can find a scheme perfect for their needs. Education loans enable students to have a steady stream of funds to meet tuition fees and day-to-day expenses without stress. In this article, we will learn about all the insights needed by international students before they start applying for an overseas education loan.

Cost of Education in Australia

When seeking student loans for studying abroad in Australia, it is crucial to decide on a loan amount as per one’s needs. To find that out, one should have an idea about the major expenditures that students incur. Let us have a look at the various estimated costs below.

• Master’s Tuition Fees: AU$ 22,000 to AU$ 50,000 per year
• Bachelor’s Tuition Fees: AU$ 20,000 to AU$ 45,000 per year
• Aggregate Cost of Living: Around AU$ 29,710 per year
• Travel Expenses: Public transport costs around AU$ 150 per month
• Health Insurance: Around AU$ 1,300 for 2 years

These aggregate costs may vary based on the city chosen and the student’s standard of living. However, they can still help students make an estimate and apply for the loan of their choice. Next, we will discover the different types of Australia student loans available.

Types of Australia Student Loans for Indian Students

Students must have come across terminology like ‘secured education loan’ and ‘unsecured education loan’ in their research so far. The distinction between these two types of loans is simple enough, with secured loans requiring collateral while unsecured loans require income proof to approve the loan. Secured loans can be borrowed from Nationalized and Private Banks at an attractive quantum of finance. Interestingly, Australian embassies seem to prefer secured education loans, especially from Nationalized Banks.  

However, unsecured education loans are still accepted for student visas for Australia. They can be found at Nationalized Banks, Private Banks, and Non—Banking Financial Companies (NBFCs). Although there are many attractive unsecured education loan offers and schemes, the applicants must have a strong financial profile and credit score to apply. Next, let us glance through the lenders that students approach most often for Australian student loans.

Popular Lenders Offering Australia Student Loans

The overseas education loan market is filled to the brim with various lenders, all offering loan options tailored to the unique needs, requirements, and financial profiles of international students. Since checking each lender can be time-consuming, students can see some names of the best banks for education loan for abroad studies, as well as other lenders below.

• Bank of India
• Union Bank of India
• Axis Bank
• ICICI Bank
• IDFC First Bank
• Yes Bank
• Credila*

This short list of excellent lenders for Australian student loans will help students narrow down their research and choose the best possible offer as per their profile. It is important to pay attention to the basic requirements for one’s profile to be approved by the lender, which we will further learn about in the upcoming section.

Eligibility Criteria for Australia Student Loans

Applicants who meet the eligibility criteria given by lenders are more likely to have their loans approved and sanctioned without any hassle. While each lender has different specifications, students need to meet the following basic eligibility criteria:

• Academic records that meet the requirements of the student’s preferred University and a confirmed admission letter
• Valid entrance exam scores
• The co-applicant, if required, must be a parent or guardian of the student/applicant
• The co-applicant must have a strong financial record and credit score
• Collateral for secured loans must meet the specifications of the lender

After running through this checklist, one can start gathering the documents needed for the loan application process. This includes the academic record and marksheets of the student, financial statements of both applicants, a statement of expenses, and government-issued ID proof from both applicants.

To bring it all together, Australia student loans require a lot of research and meticulous preparation. The journey from application to disbursement gets a little easier with the expert guidance of the top overseas education loan consultants, whose experienced teams can focus on the nitty-gritty of the loan application while students get together other necessities.