Education Loan For Australia
Education Loan

Education Loan for Australia 2023 - 2024

Education Loan for Australia 2023 - 2024

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Explore different education loan for Australia. GyanDhan brings you study loan for Australia incusing different lenders, processes, eligibility, documents required & more.

GyanDhan

Rohit Gidwani

Updated on: 23 Feb 2024
Education Loan for Australia

 

In 2022, the number of international students studying in Australia saw a 7% increase, reaching a total of 613,327. Notably, a significant portion of this population, with over 99,000 students, consisted of Indian students who showed a strong inclination towards pursuing Master's and MBA programs. Master’s degrees alone saw a 24.5% rise as compared to last year’s enrolment figures. Australia is home to 38 universities that have been recognized and listed in the QS World University Rankings giving more reasons on why you should study in Australia.

Australia offers diverse specializations in both Master's and MBA programs with promising post-study work opportunities, making it an attractive choice for studying abroad. However, before deciding to pursue education in Australia, consider the crucial financial aspects and ask yourself ‘Can I get a student loan to study in Australia?’ Many students rely on education loans, highlighting the importance of exploring available options to make an informed decision about your educational journey.

Australia offers diverse specializations in both Master's and MBA programs with promising post-study work opportunities, making it an attractive choice for studying abroad. However, before deciding to pursue education in Australia, consider the crucial financial aspects. Many students rely on education loans, highlighting the importance of exploring available options to make an informed decision about your educational journey.

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Cost of studying in Australia

Before exploring the various lending options available, let's first understand why a study loan for Australia is required. Studying in Australia can be slightly expensive, as the tuition fees and cost of living for a period of 2 to 4 years can still amount to a substantial sum. Therefore, obtaining an education loan for Australia is often considered a wise decision. The average cost of tuition fees for various programs offered in Australia is as follows:

Degree Level Average Cost Per Annum 

Vocational education and training

(Certificates I to IV, diploma and advanced diploma)

AUD 20,000 - AUD 22,000

Bachelor's degree

AUD 35,000 - AUD 45,000

Masters degree

AUD 40,000 - AUD 50,000

MBA degree

AUD - 59,000 - AUD 70,000

Doctoral degree

AUD 25,000 - AUD 40,000

 

Check Your Education Loan Eligibility

Apart from the tuition fees, cost of living is yet another aspect that needs to be considered when deciding on an education loan. The general cost of living is-

cost of living in australia for international students

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Types of study loan for Australia

Now answering one significant question i.e. Can I get a student loan to study in Australia? To get the answer to this you would have to know the types of loan. Broadly there are 2 types of education loans that one can take to study in Australia. They are -

  • list items An education loan with collateral, also called a secured education loan, requires the borrower to provide security or collateral as part of their loan application. The collateral can include assets such as property fixed deposits (FDs), insurance policies, and other valuable possessions.
  • list items An education loan without collateral is a loan category where the collateral is not required from the borrower as security. These loans generally carry higher interest rates due to the increased risk involved. Moreover, they usually necessitate a co-applicant or co-signer, and the loan amount is determined based on the co-applicant's income and credit score as assessed by organizations like CIBIL.
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Secured education loan for Australia 

The different lenders that can provide secured education loans mainly consist of

  • list items SBI 
  • list items UBI

Let’s now have a look at the loan amount and other important details about their loan services.

Lender Name Maximum Loan Amount (in INR) Rate of Interest Margin Money

SBI

Up to 1.5 Cr

10.65% (for girls)


11.50% (for boys)

10%

UBI

Up to 1.5 Cr

10.5% - 10.85%

10%

(listed university)


15%

(non-listed university)

 


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Unsecured education loans for Australia

When it comes to unsecured education there are majorly three categories of lenders that can provide you with an education loan for Australia are - 

  1. list items Private banks - Axis Bank, ICICI Bank, and IDFC FIRST Bank
  2. list items NBFCs - HDFC Credila, Avanse, Incred, and Auxilo
  3. list items International lenders - MPOWER Financing and Prodigy Finance

Now, let's examine the loan amounts and other essential details regarding their loan services.

Lender Name Maximum Loan Amount  Rate of Interest Margin Money

Axis Bank

Up to 50 Lakhs INR

11% - 13.50%

5%

ICICI Bank

Up to 50 Lakhs INR

10.85% - 12.50%

0 - 15%

IDFC FIRST Bank

Up to 35 Lakhs INR 

11.75% - 13.25% 

Nil

HDFC Credila 

Up to 20 Lakhs INR (Only STEM Courses)

12% - 13%

Nil

Avanse 

Up to 20 Lakhs INR (Only STEM Courses)

12.75% - 13.25%

Nil

Prodigy Finance

Up to 100,000 USD

12% - 14%

Nil

MBA in Australia: Education loan for professionals

ICICI Bank provides a loan option for applicants with experience that can be useful when you are planning to pursue MBA in Australia. If the applicant has a minimum of 3 years of experience, they do not require a co-applicant. The loan amount and other variables remain the same as shown in the table above. Two additional requirements are a minimum monthly income of INR 35,000 (which may increase for higher loan amounts) and the need to create a Fixed Deposit (FD) for the total simple interest payable during the moratorium period to obtain a free moratorium.

Key considerations for pursuing MS in Australia

When pursuing a Master's degree in Australia, there are several essential considerations that you should keep in mind. They are as follows - 

  • list items The Master's degree in Australia typically takes 1 to 2 years to complete.
  • list items If you are planning to pursue an MS in Australia, you would need a score of 300 or more in the GRE.
  • list items You would also be required to have a CGPA of 4.0 on a 5-point scale or 60% in a bachelor’s program.
  • list items The application period for MS in Australia starts from late October to mid-November and mid-April to mid-May.
  • list items The academic year for MS in Australia begins in February and has two semesters: February to June as the first semester and July to November as the second semester.
  • list items The chances for admission increase if you have one or two academic recommendations.
  • list items Having a distinctive SOP with proper goals, rationale for studying, and more would also benefit you in getting admitted to MS in Australia.
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How to choose the best lender to study in Australia?

Now that we have mentioned several lending options that can provide you with an education loan for Australia, you must have a question in mind - “which of these lenders is best for me?” Do not worry all you have to do is compare some aspects of the loan and you will have the best lender as per your requirements, These aspects are -

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Expenses covered in education loan for Australia

The different expenses which are covered under the education loan for Australia are - 

  1. list items Tuition fees
  2. list items Travel expenses 
  3. list items Caution deposit money
  4. list items Accommodation expenditures
  5. list items Purchase of books, laptop, and stationery
  6. list items Study tours and project work during the academic year
  7. list items Other reasonable expenses that would be required to successfully complete the course

Want to know more about why you should study in Australia, click here!

Check Your Education Loan Eligibility

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Education loan eligibility for Australia

Whether you are enrolled in MS, MBA, or any other course in Australia, the education loan eligibility criteria are generally similar across all programs. To ensure seamless completion of your loan process, it is important to meet certain eligibility requirements. These requirements include - 

  1. list items Confirmation of acceptance from a recognized Australian institution for a full-time program.
  2. list items Minimum age requirement of 18 years.
  3. list items Good academic record.
  4. list items Strong career prospects for unsecured loans, and collateral for secured loans.
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The documents requirements for getting an education loan to study in Australia are shown in the table below:

  1. list items Letter of admission from the University
  2. list items Loan application form filled out in full
  3. list items Documents on the cost of studies
  4. list items Identification proof
  5. list items Residence proof
  6. list items PAN details of the candidate
  7. list items Guarantor/ co-borrower/ student's bank statements
  8. list items Guarantor/ co-borrower/ student's statement of assets
  9. list items Guarantor/ co-borrower/ student's proof of income
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How to get education loan for Australia?

Acquiring an education loan for Australia is a relatively straightforward process. However, managing multiple lenders individually can be overwhelming. To simplify this process, GyanDhan offers assistance in obtaining an education loan for Australia through the following streamlined steps:

  • list items Step 1: Evaluate your eligibility for a study loan for Australia on GyanDhan's platform.
  • list items Step 2: Connect with a dedicated loan expert who will assist you throughout the application process and suggest suitable lenders.
  • list items Step 3: Receive a personalized document checklist to simplify the organization of required documents.
  • list items Step 4: Submit the necessary documents either in hard copy or soft copy, following the lender's guidelines.
  • list items Step 5: Await verification, which typically takes 7 to 15 days. Once approved, sign the agreement letter and monitor progress through GyanDhan's user dashboard.
  • list items Step 6: Initiate the loan disbursement according to the lender's procedures, with funds being directly deposited into your account or disbursed to the university by international lenders.
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Repayment of education loan for Australia

When obtaining an education loan for studying in Australia, it is vital to take into account the terms of repayment. The duration of repayment and options for a moratorium period are important factors to consider when choosing a lender. Different repayment choices are accessible, such as partial simple interest (PSI), simple interest (SI), and equated monthly installments (EMI). To assist you in making a well-informed choice, we have developed a comparative guide that emphasizes repayment as a crucial element of securing a loan for studying in Australia.
 

Lender Name Repayment Tenure Repayment option during moratorium

SBI

Up to 15 years

No payment or only SI

UBI

Up to 15 years

No payment or SI

Axis Bank

Up to 15 Years

SI or EMI

ICICI Bank

Up to 10 Years

SI or EMI

IDFC FIRST Bank

Up to 12 years

PSI or SI or EMI

HDFC Credila

Up to 15 Years

PSI or SI

Avanse

Up to 15 Years

SI

Prodigy Finance

Up to 15 Years

SI


Prior to initiating your application for an education loan to pursue a degree in Australia, it is crucial to conduct thorough research and evaluate the offerings provided by different lenders. GyanDhan can simplify this process by offering comprehensive assistance. Our platform collaborates with a variety of lenders, including government banks, private banks, and NBFCs, to provide you with a wide range of choices. Check your eligibility for an education loan to study abroad with GyanDhan and address any concerns you may have regarding the loan application procedure. 

Calculate your Education Loan EMI

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Frequently Asked Questions

Does Australia accept the study gap?

Yes, Australian universities accept study gap but the only condition is that the gap could only be 1-3 years and must be justified with proper reasoning and if possible proofs.

How much money is required to study in Australia?

To study in Australia you will need to consider tuition fees and cost of living which comes at around 60,000 AUD - 70,000 AUD. Thus this will be the amount that you would require to study in Australia. 

Can I get a student loan to study in Australia?

You can get a study loan for Australia just by checking the loan eligibility with GyanDhan. All you have to do is provide a few details and submit it. Education loan counselor will get back to you and you will be able to kick-start your education loan journey.

Do girls applicants get concessions at an interest rate?

Yes, girls applicants can get concessions in interest rates when taking an education loan from public sector banks. Public sector banks like SBI, UBI, or BOB provide a concession of 0.50% on the interest rate to girl applicants. 

How much bank balance is required to study in Australia?

If you are planning to go to Australia then you will have to have approximately 50,000 INR in your bank account. This is the amount that is considered sufficient for initial survival in Australia. 

How much loan can I get without collateral?

The maximum loan that you can get without collateral from private banks is up to 50 Lakhs INR and from NBFC it can be up to 40 Lakhs INR.