Find The Best Abroad
Education Loans In The Australia

Lakhs of international students consider Australia a leading destination annually for its high-quality education system and substantial employment opportunities. In the year-to-date February 2024, there were 703,245 enrolments by international students, compared with 578,930 in 2019.

Students worldwide and in India consider Australia one of the most significant places to study. Often, students who wish to study there need the help of education loans. This is because education in an international destination can be expensive and challenging for students without some level of assistance. Several private and public banks in India offer education loans for students for Australia. If not for these two, students can approach NBFCs to secure student loans Australia!

First and foremost, prospective students must meet the eligibility criteria for all loan applications. Once they know their eligibility, they must back themselves with documentation. The section below will help you understand Australia's eligibility criteria for education loans. 

• The applicant must be an Indian national
• A student must be 18 years of age or older, if they are under 18, then the parents must apply for the loans. 
• He/She should have been accepted into a reputable Australian university
• The student must be enrolled in a course approved by the financing institution (job-oriented professional degree, technical degree, and diploma courses)

Several nationalised banks in India provide education loan for study in Australia to qualified students. Students must supply supporting documentation for the bank to process the loan amount. The following are the necessary documents for applying for an education loan to study in Australia -

• Education loan form filled with required details
• Identity proof: PAN card, passport
• Residency proof (choose one):
  • Voter ID Card
  • Bank account statement
  • Passport
  • Electricity Bill
  • Aadhar
  • Ration card
  • Telephone bill
• Co-borrower's 6-month bank statement (Salaried: 1 year of salary credits; Self-employed: 1 year business transactions)
• Personal Asset & Liability Statement (self-attested)
• Applicant academic documents:
  • Marksheets and certifications in 10th, 12th, and degree
  • Proof of enrollment
  • Course cost/fee structure
  • IELTS/GMAT/GRE Scorecard
  • University ranking print-out
• Financial Co-applicant Income documents:
  • Salaried: 3-month salary slips, Form 16 of previous two years, employer ID card, ITR of last two years

The monthly average cost of living in Australia for international students is estimated to range between AU$2,236 and AU$3,190. However, this may vary depending on your lifestyle, accommodations, mode of transportation, etc., when you are a student in Australia. The table below will discuss the costs of surviving in Australia on a student visa and budget.

The best part of taking a study loan for Australia with UniCreds is that you can get up to 100%* financing, implying that the loan will cover all your expenses. The following are the things you can expect a student loan in Australia to cover -

1. Tuition Costs
2. Travel & Transport, including the tickets
3. Accommodation & Rental expenses
4. University fees & additional course costs
5. Food expenditures
6. Living expenses
7. Laptop
8. Other research, thesis, and project-work-related expenses
9. Any other expense required for your education

For Australia, there are primarily two types of loans available to students. What kind of education loan in Australia you apply for, however, will depend on the financial institution and your eligibility -
 

• Secured Education Loans: A secured study loan for Australia requires the applicant to provide security or collateral. Apartments and retail stores are tangible assets, whereas fixed deposits and government bonds are intangible securities.

• Unsecured Education Loans: An education loan for Australia without collateral is an unsecured education loan. However, students should note that the interest rates may be higher for an unsecured education loan for Australia due to the lack of collateral.

Numerous financial institutions in India specialise in offering study loan for Australia without security of up to a certain amount, making it easier for Indian students to pursue their studies at top universities worldwide. Unsecured student loans feature a slightly higher interest rate and a shorter repayment time. Students can apply for a study loan for Australia without security through the following options -
 

1. Public banks like SBI and Bank of Baroda

2. Private banks like Axis Bank, HDFC, and ICICI Bank

3. NBFCs like InCred and Auxilo

4. International lenders such as Leap Finance and Prodigy Finance

Applying for an education loan to study in Australia involves a lot of research and requires a set of steps to be followed. The procedure may initially seem like it could be more convenient, and the student may get overwhelmed when applying. However, UniCreds makes it easier for students with expert counsellors assisting students at every step of the process at no extra cost. There are some tips students should be aware of when applying for an education loan for international students in Australia.
 

1. Selecting A Financial Institution: It is more important to select a bank or NBFC that offers the best loan terms than ones that provide more finances. It is also essential to verify if the lender offers the option to make the EMI payments in advance or allows for partial loan payments. Knowing the service charges and prepayment penalties is a must.

2. Total EMI Cost: The EMI paid for an Australian study loan depends on how a student chooses to repay the loan. Some students borrow money for extended periods since the EMI would be lower. 

The cost of the loan and the interest paid will be significantly more significant in this case. Therefore, if the chances of finding a well-paying job following the course are strong, choosing a shorter loan term is better.

3. Moratorium Periods: Moratorium periods are sabbaticals that typically last the length of the course plus an additional year or six months after finishing the course, whichever comes first. Students are not required to make loan payments during this time, although interest will continue to accrue. 

Students are permitted to pay the interest during the moratorium period, which will lighten the loan's burden and reduce its cost once they begin making EMI payments.

4. Pay In Installments: Banks charge interest on the money sent. Typically, a student must pay for the course once per year or once per semester. Therefore, it would be wiser to apply for the loan when needed.

In this manner, substantially less interest will accrue. Make sure the money is distributed as and when needed rather than sanctioned in one lump sum.

5. Tax Benefits: Under Section 80E of the Income Tax Act, students can get tax benefits on the interest they pay on student loans. To qualify for this deduction, the loan must be obtained from an Indian-scheduled bank or a gazetted financial institution. 

Eight years is the maximum time for a tax deduction. Therefore, choosing a longer loan implies that students will only receive the tax deduction for the first eight years.

A service such as UniCreds simplifies obtaining student loans by offering competitive interest rates for Australian students. Students can easily access these services through a hassle-free and efficient online platform. UniCreds' team takes on the bulk of the workload, allowing students to await their education loan easily.

Several lenders offer education loans for study in Australia with and without Collateral. Below are a few examples, along with their parameters. 

For students considering pursuing foundation, undergraduate, or postgraduate studies in Australia, it is worth consulting university rankings to gain insight into a particular institution's suitability. By understanding these rankings, students can evaluate an institution's academic standing and overall quality, helping them make informed decisions about their education.
 

Australian universities are recognised for offering students an independent, experiential learning experience that equips graduates with the skills necessary to excel in their chosen fields. The country boasts 43 universities, including two foreign universities, one private university, and 40 Australian universities. The fact that six Australian universities feature among the top 100 institutions worldwide highlights the significance of the quality and quantity of education offered in the country.

When seeking to obtain an Australian Student Visa online, creating an account on the Department of Home Affairs' online application system, ImmiAccount is vital. This platform will enable you to complete and submit your student visa application and track its progress. It is recommended that you submit your application at least six weeks before the commencement of your course but not earlier than 12 weeks. Check out the documents below that are required for the visa application.

• Documents Required for Australian Student Visa
• Proof of Enrolment (eCOE)
• Valid Passport
• Visa Application Fee
• Genuine Temporary Entrant (GTE) Statement
• Academic and Work Experience Documents
• Evidence of English Proficiency Skills (e.g., IELTS)
• Evidence of Financial Ability (Tuition, Living Expenses)
• Evidence of Financial Ability (Expenses for Dependents)
• Evidence of Financial Ability (Return Airfare)
• Details of Health Insurance Policy (OSHC)
• Passport-Size Photographs