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Education Loan for Australia- Study in Australia with scholarships and loans

Education Loan for Australia – Financial aid for studying in Australia

by Ankur Gupta
Reading Time: 6 minutes

Education Loan for Australia – Australian Universities are witnessing rising popularity among Indian students who wish to study abroad. The difficulties of getting a student visa for studies in the USA, or in UK, have resulted in more students seeking options in countries like Australia and New Zealand. Besides an easy Australian student visa application process, the country also has lower cost of living and education. Students who wish to study in Australia also get to avail the easy work visa and benefits of permanent residence.Colleges Admissions, Study Abroad, Login with user details, find Courses, Exams, Scholarships

Apart from the financial benefits, the quality of higher education in Australia is another reason for its popularity. Currently 18 Australian Universities are listed in the Top 500 Global Institutions of the QS Rankings. These include 8 institutions which are in the top 100. The admission process for International Admissions to Premier Universities for higher education in Australia is also not as complicated as other countries. Even, getting an education loan to study in Australia is easier as compared to getting an education loan to study in USA or in Canada. Perhaps these are the reasons why Australia is among the 3rd most visited country by Indian students for higher education. (MEA Annexure 1 Q964, 26-07-2018).

In addition, there are more scholarships to study in Australia as compared to other study abroad destinations for Indian students. But scholarships in Australia are rarely free-rides, which means they don’t pay for complete academic expenses. Thus, an Education loan for Australia becomes a necessity for any Indian aspirant. It is only coincidental that students can suffice with lesser education loan amount in Australia as compared to international admission programs in USA, UK, Canada, Ireland, etc. Here we will inform you about the information of eligibility, interest rates and key factors to keep in mind for student loans in Australia.

Education Loan for Australia – Cost of Education and Living Expenses

Apart from the academic fees and living expenses, Indian students require a mandatory health insurance to study in Australia. Students are required to show proof of funds to cover academic and living expenses to get an Australian Student Visa. The respective cost of education in Australia for Indian students is:-

Cost of Education in Australia for Indian Students
Academic Level Cost in Australian Dollars (approx.) Cost in Indian National Rupee (approx.)
Undergraduate courses AU$34,000 ₹17.00 Lakhs
Post Graduate courses AU$37,000 ₹19.00 Lakhs
Doctoral Degree Courses AU$40,000 ₹21.00 Lakhs
Average award amount Scholarships to Study in Australia AU$20,000 ₹10.00 Lakhs

ALSO READ: TOP AUSTRALIA SCHOLARSHIPS FOR INDIAN STUDENTS

Under the recently updated Simplified Student Visa Framework (SSVF) students from India are required to get a GTE visa. GTE/’Genuine Temporary Visa’ requires students to show proof of funds for at least 1 academic year to study in Australia. This requirement for proof of funds can be satisfied by getting an education loan for Australia from approved list of banks. Here are the details of fund requirements for an Australian Student Visa.

Evidence of Funds for Australian Student Visa
Type of expense Details
Students’ Living expenses (per student) AU$20,290
Partner/Spouse Living expenses (per member) AU$7,100
Children (per child) Living expenses AU$3,040
Tuition Fees (Course duration less than 12 months) Total Course Fees
Tuition Fees (Course duration more than 12 months) Monthly Fees x 12 or yearly fees or complete course fees pro-rated by each year
Travel Cost AU$1500
OSHC (Overseas Student Health Cover) AU$3000 to AU$7000

ALSO READ: STUDY IN AUSTRALIA: ALL YOU NEED TO KNOW

Education Loan for Australia- Key factors 

Many education loan providers cover cost of living in Australia for Indian students along with their academic expenses. Australian Student Visa application process is also hard-linked to financial ability of the applicant. Thus, it becomes necessary for an Indian student to get a loan, international scholarship or personal funding to Study in Australia.

The key points to consider before getting any education loan for Australia are:

  • Always check if your education loan covers medical insurance (OSHC Australia) expenses or not
  • Confirm if the education loan service is scholarship adjustable* or not
  • Would the loan be still applicable if the student gets PR-Visa in Australia (permanent resident)?
  • Check for Interest rates and Indian Government Education Loan Subsidy norms for Overseas Education need to be checked

*Scholarship Adjustable Loans are those loans which allow students to pay margin money by using their scholarship sum. Some banks require students to pay a percentage of academic fees along with disbursed loan amount to proof financial viability. This percentage amount is called ‘Margin Money’.

ALSO READ: STUDENT LOANS TO STUDY ABROAD: DOCUMENTS CHECKLIST

Student Loans Australia – Eligibility, Interest rates and Documents

Here is a list of detailed parameters for Study Abroad Education Loan schemes provided by Indian Banks, NBFCs and Private Education Loan Experts.

Education Loan for Australia – All parameters
Education Loan Amount
  • ₹10,00,000 (10.00 Lakhs) to ₹1.25 Crores
Education Loan Interest Rate
  • 7.00% to 18% (Nationalized Banks to Private Student Loan providers)
Education Loan Eligibility
  • Indian Citizens
  • Age above 18 years
  • IELTS 5.5 and above or equivalent PTE score
  • Pursuing Graduation, Post-Graduation or doctoral studies in recognized universities
  • Need of Co-applicant
Education Loan tenure
  • Min: 6 months to Max: 15 years
Documents required for Study in Australia Loan
  • Confirmation of Enrolment (CoE) issue by a CRICOS (Commonwealth Register of Institutions and courses for Overseas for Overseas Students) for study in Australia
  • IELTS Scorecard with 6.0 band in all section or equivalent PTE Score  Card
  • Collateral documents for loan security (immovable property lease, ownership documents, society/builder NOC, Fixed Deposit Certificate, Government Bond Certificate, LIC Policy Certificate etc.)
  • KYC Documents and academic records
Education Loan for Australia – Subsidies applicable (Indian Government)
  • Dr. Ambedkar Central Scheme of Interest Subsidy on Education Loan for Overseas studies for OBC & EBC)
  • Padho Pradesh Central Scheme of Interest Subsidy for Minorities

Education Loan for Australia – Application process

Australia has not got any International Student Loan providers which help Indians to get foreign financial aid. This leaves students with two options of Indian Nationalised Banks (Private and Govt.) or Non-Banking Financial Banking Corporations (NBFCs). The application process involves close coordination with visa offices, international admission offices and bank authorities. Here is a step-by-step guideline for Australia Study Loan Application Process.

  1. Choose a banking institution to get an education loan for studies in Australia
  2. Apply for Education Loan by providing initial KYC documents, collateral documents and academic records.
  3. Get an electronic Confirmation of Enrolment (eCoE) from the University in Australia
  4. Get a Student Visa Subclass 500 application confirmation from the Australian embassy in India
  5. Submit your documents to the banking institution and get a Loan Sanction Letter along with Signed agreement
  6. Submit the Loan Sanction Letter to the Embassy and complete other processes to get your Australian Student Visa
  7. Confirm your intake session details and fee payment schedule from the university by submitting the Australian Student Visa confirmation. Share these details with the bank to start loan disbursement
  8. Apply for the Indian Government Education Loan Subsidy Schemes from the Indian Banking Institution

Note: NBFCs and Private International Education Loans to Study In Australia are not eligible for any Indian Government Subsidy Scheme.Colleges Admissions, Study Abroad, Login with user details, find Courses, Exams, Scholarships

ALSO READ: STUDENT LOAN APPLICATION PROCESS- STEP BY STEP APPLICATION GUIDE

Special Education Loan for Australia – Non Australian Citizens from India

Some Indian students can get government aid from Australia in form of loans towards their academic fees. HELP Loan is a scheme by Australian Government to help students pay their expenses to study in Australia. Indian Students with permanent resident status visa may apply for HELP Student Loans or Commonwealth Supported Places (CSP) Loans. Students may check the official Australian Home Affairs Website to check details about Permanent Resident Visa.

Scholarships for Study in Australia and Education Loan Guidance

Scholarships for Australia are provided mostly under Commonwealth Programs and Government Schemes. Admission process and scholarship application process for studies in Australia are more-or-less similar in structure. Some scholarships like Dr. Abdul Kalam Postgraduate Scholarship and School of Chemistry & Molecular Biosciences Indian Scholarship cover up to 50% of tuition fees. But to cover remaining fees students prefer education loans over self-financing. Students can find scholarships to study in Australia on government websites or they can directly find curated lists on Buddy4Study. With the combined provision of study abroad loans and scholarships affordable ‘Study in Australia’ is after all ‘a-dream-not-impossible’ for any student. Happy Learning!

ALSO READ: TOP 5 AFFORDABLE COUNTRIES TO STUDY ABROAD

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