Study Loan for Australia in 2025

Australia is home to 38 universities that have been recognized and listed in the QS World University Rankings giving more reasons 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 critical financial aspects. Many students depend on education loan Australia, thus, it is very important to understand the various loan options available.Recently, SBI has started offering unsecured education loan for Australia upto INR 50 Lakhs which is a great relief for students who do not have a collateral to offer for education loan.

Cost of Studying in Australia

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

Apart from the tuition fees, the cost of living is yet another aspect that needs to be considered when deciding on an education loan. The general cost of living is AUD 1400 to AUD 2500, but please note that the cost of living varies from city to city. For example, the cost of living in cities like Sydney and Melbourne is considerably higher as compared to cities like Adelaide or Perth.

Types of Study Loan for Australia

When it comes to education loans, there are mainly 2 types of education loans. One is a secured education loan and the other is an unsecured education loan. Let us understand them, one by one:

Secured Education Loan:

An education loan with collateral, also known as 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.

Unsecured Education Loan:

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 require 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.

Loan Options for Specific Universities in Australia

Let us see various secured and unsecured loans available for Australian universities. We will start with secured loan options and then proceed with unsecured loans:

Secured Education Loans for Australia:

Public banks are the major lenders for secured loans for universities in Australia. Let us understand that from the table below:

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 -

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  Private banks: Axis Bank, ICICI Bank, IDFC FIRST Bank and more.
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  NBFCs: HDFC Credila, Avanse, Incred, and Auxilo
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  International lenders: MPOWER Financing and Prodigy Finance

Now, let us see various features of these unsecured education loan options from the table below:

Education Loan for Different Degrees 

Now, let us understand the various education loans available for different courses and degrees in Australia. We will explain using the table below:

Loan Considerations for Popular Fields

Banks and lenders usually prefer STEM and management courses rather than other non-popular courses. However, some popular courses like healthcare courses come under special consideration. Let us understand that from the table below:

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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  Interest Rate
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  Processing fee and time
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  Margin Money
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  Moratorium Period
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  Tax Benefit
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  Loan Duration
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  Covered Expenses
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  Prepayment terms and conditions

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 an 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 -

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  The Master's degree in Australia typically takes 1 to 2 years to complete.
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  If you are planning to pursue an MS in Australia, you would need a score of 300 or more in the GRE.
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  You would also be required to have a CGPA of 4.0 on a 5-point scale or 60% in a bachelor’s program.
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  The application period for MS in Australia starts from late October to mid-November and mid-April to mid-May.
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  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.
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  The chances for admission increase if you have one or two academic recommendations.
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  Having a distinctive SOP with proper goals, rationale for studying, and more would also benefit you in getting admitted to MS in Australia.

Expenses Covered in Education Loan for Australia

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

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  Tuition fees
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  Travel expenses 
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  Caution deposit money
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  Accommodation expenditures
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  Purchase of bo