Education Loan

Guide on Educational Loan for MS in Australia

Guide on Educational Loan for MS in Australia

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Going to Australia for MS? Apply your abroad education loan with the lowest interest rate, minimum hassle, free doorstep service & other benefits.

GyanDhan
Rohit Gidwani
Updated on:  10 Oct 2023  | Reviewed By: 
Aman 
| 10.1K | 11  min read

Australia has around 6 lakh, international students, right now with enrolments in master’s degrees constituting a large portion of admissions in graduate programs. Of this, India accounts for over 1 lakh enrolments which mark a 24.5% rise as compared to last year’s enrolment figures. The numbers clearly suggest that the Land Down Under is slowly rising as a preferred destination for higher education for Indian students.

If you’re thinking of adding to this number and studying a STEM course in Australia, then you’ll want to know all the options for education loan for MS in Australia to finance the cost of education in the country. That’s what we explore in this write-up.

Check Your Education Loan Eligibility

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How Much Does MS in Australia Cost?

The first step in the process of choosing a education loan for Australia is knowing the cost of studying, which comprises of tuition and living expenses

Listed below are the top five Australian colleges for Masters with their indicative fees. The tuitions given are yearly and for full-time graduate coursework programme.
  • list items University of Melbourne: A$44,736
  • list items University of New South Wales: A$49,360
  • list items The University of Sydney: A$46,000 
  • list items The Australian National University: A$47,880.00
  • list items Monash University: A$42,800
  • Living expenses in Australia vary widely, depending upon the city you are living in, but typically, you will need to shell out about A$20,290 per year.

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    What are the Options for Education Loan for MS in Australia?

    With tuition fees and living costs at par with those of the US, funding your studies in Australia with financial aid is a must. While scholarships are one way to go, education loans are another. Student loans pay off tuition and connected expenses. These loans are a sound funding alternative because the interest for these is paid only on the money the student uses. (Swing over to this brief article to understand student loans better).
    Education loan for Australia to international students are of two types::

  • list items Unsecured or without collateral
  • list items Secured or with collateral  
  •  

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    Study Loan for Australia Without Security: What are the Choices?

    A loan without collateral is one where the student doesn’t guarantee a financial asset like a property or FD. These loans are also known as unsecured loans. Nationalized banks offer only ₹ 7.5 lakhs for student loans without collateral. The amount is too low to cover the expenses of studying in Australia. This leaves either a private bank or an NBFC for an unsecured loan, both of which authorize higher amounts. 
    The Australian embassy recognizes only a select few private banks and barely any non-banking financial company. Therefore, if you are looking for an education loan without collateral for the country, ask for guidance from a GyanDhan counsellor. They’ll give you a clearer picture of the acceptable banks or NBFCs with a low-interest rate.

    Educational Loans for MS in Australia: Without Collateral 

    Example Lenders

    SBI, BOB

    Axis Bank

    Avanse, Incred

    Loan Amount (INR)

    PSUs don't give loans more than INR 7.5 Lakhs for studying abroad.

    Upto INR 40 lacs

    Upto INR 25 lacs

    Interest Rate Range

    11.5%-13.5%

    12%-16%

    Processing Fees (INR)

    INR 0 is the loan is less than INR 20 lacs; INR 750 on every lac above a loan of INR 20 lacs

    1%-2% loan amount

    Number of Colleges Supported

    More than 10

    More than 15

    Calculate Your Education Loan EMI

    Features like repayment period, processing time, documents required and so on vary as per the types of lenders. We give a detailed breakdown of all these features for all the lenders:

  • list items Repayment Period: When it comes to education loans without collateral for MS in Australia from private banks, the repayment period is 20 years. NBFCs normally require you to repay such loans in 10 years. However, with GyanDhan, you also have the provision to get the repayment term extended. We inform the bank about your requests and also get your customized loan offers which completely fits your requirements. 
  • list items Processing Time: Private banks take 5-7 days to process educational loans with collateral, whereas NBFCs take 3-4 days. In the case of any delay from the bank’s side, we get in touch with the lending institution’s upper management and see to it that the loans are processed and sanctioned immediately.  
  • list items Expenses Covered: Private banks cover 85% of the expenses in case of educational loans with collateral, whereas NBFCs cover 100% of the expenses. 
  • list items Co-applicant Income Requirement: The co-applicant income requirement in the case of private banks is a minimum of 35k, whereas in the case of NBFCs is at least 30k. However, the exact income requirement will be dependent on the amount of loan. Generally, 50% of the income of the co-applicant is enough to pay the interests per month in the case of NBFCs. For banks,  65% of the income should be adequate to pay off the interests. There is also a provision to combine multiple co-applicants. 
  • list items Common Decline Reasons: The common reasons why private banks and NBFCs decline educational loans without collateral are low family income and ineligible courses. This is where GyanDhan comes to your rescue. We can find solutions to ensure that your education loan is not denied due to such reasons. Normally, it has been observed that those who apply for loans with our help have 50% more chances of getting their loans approved over those who approach the bank directly. Our experienced and dedicated loan counsellor meticulously evaluates your profile and gets in touch with that lender first who is most likely to provide you with the loan as per your requirements.  
  • list items Documents Required:  Broadly an applicant will have to submit Confirmation of Enrolment (CoE) issued by the Commonwealth Register of Institutions and Courses for Overseas Students, mark sheets and degrees, KYC documents, income proof, bank statements, etc. 
  • The precise paper formalities vary from bank to bank, making the procedure painstaking. GyanDhan can provide a customized document checklist for every bank and NBFC to hasten the process of loan sanction.


    Read more about: Education Loan For Management Quota Students

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    Education Loan With Collateral for MS in Australia: What are Your Options?

    Education loans with collateral have two advantages over unsecured loans – they are sanctioned for a higher amount and are granted at lower interest rates. This happens because the applicant submits to the bank or NBFC security against non-repayment. 

    Education Loan for MS in Australia: With Collateral 

    Example Lenders

    SBI, BOB

    Axis Bank

    Avanse, Incred

    Loan Amount (INR)

    Upto INR 1.5Cr

    Upto INR 60 lacs

    Upto INR 60 lacs

    Interest Rate Range

    9.2%-10.5%

    11.5%-13.5%

    12%-14.5%

    Processing Fees (INR)

    INR 11800

      INR 0 for loans below INR 20 lacs, INR 750 on every lac above INR 20 lacs  

      1%-2% loan amount  

      Payment During Study Period  

    None

    Simple Interest

    Simple Interest

    Features like repayment period, processing time, documents required and so on vary as per the types of lenders. We give a detailed breakdown of all these features for all the lenders:

  • list items Repayment Period: When it comes to education loan options for MS in Australia from public banks, the repayment period is 15 years. For private banks, it is 20 years. NBFCs normally require you to repay such loans in 10 years. 
  • list items Processing Time: Public banks take 12-15 days to process educational loans with collateral, whereas private banks take 10-12 days. In the case of NBFCs, the processing time is 7-8 days. 
  • list items Expenses Covered: Public banks cover 90-100% of the expenses in case of educational loans with collateral, whereas private banks cover 85% of the expenses. NBFCs cover 100% of the expenses.
  • list items Common Decline Reasons: The common reasons why public and private banks decline educational loans with collateral are Poor CIBIL, incomplete collateral documents. NBFCs cite low income and poor CIBIL as common reasons to decline loans.  
  • list items Documents Required: Besides others, the KYC documents of the co-applicant and student, all academic records, confirmation of enrolment from CRICOS, fee structure, income proof and complete documents of the pledged security are necessary for an education loan with collateral. The collateral documents requested differ as per banks. Absence of even a single paper can diminish the odds of a loan sanction. GyanDhan’s counsellors are deeply aware of this fact and make sure that the applicant is too. This is why students who take our help during the loan process enhance their chances of loan approval by 50%.
  • To knoe more about Documents Required for Education Loan, click here.

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    Which Type of Lender Should be Preferred? - Secured or Unsecured 

    For a top study destination like Australia, there are multiple education loan options available in the market which can make the process of surfing through the loans and selecting the most appropriate one a  tedious and confusing task. Here are a few suggestions from our side which you can take into account while choosing an educational loan for MS in Australia.

    PSUs is the best educational loan option for an MS in Australia because it is offered at a considerably lower rate of interest. If you are not able to pledge security against the secured loans, then the next best option would be unsecured educational loans from private banks over NBFCs. The interest charged by private banks is considerably lower than that charged by NBFCs. Additionally, loans from private banks offer additional tax benefits which most of the NBFCs do not offer. Private banks also charge lower processing fees as compared to NBFCs.

    Moreover, it is only the sanction letters of select few lenders that are accepted by the Australian High Commission. This is also an important factor that needs to be considered while applying for a loan for Australia. GyanDhan’s education loan counsellor can give you more information on the same. We do a quick and comprehensive analysis of your financial requirements and profile and help you select the options in the market that suit you the most.

    Apply Education Loan

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    What is the Application Procedure for Loans for Australia?

  • list items Find if you are eligible for a loan.
  • list items One of our education loan counsellors for Australia will call you back with a list of loan options. Depending upon the bank or NBFC you choose, the counsellor will walk you through the next steps.
  • list items Submit all the supporting documents. (This is one step where we emphasise taking GyanDhan’s support because acceptance or rejection of an education loan hinges on appropriate paperwork). 
  • list items To make it simpler, we can pick up your documents from your doorstep if you live in a metro city and choose a public bank. In case you are based in another city, we’ll coordinate and arrange an appointment with the respective bank manager. If you choose a private bank, then our banking partner will pick up the documents from your home. For an NBFC lender, you can simply upload the documents through our site.
  • list items The lender reviews the loan application. If all the requirements are met, it is approved. A bank or NBFC may need further information from the applicant and co-applicant prior to loan sanction.
  • list items You and your co-applicant sign the sanction letter and receive a loan from a private or public bank. To accept a loan from an NBFC, you pay the processing fee.
  • list items After signing the agreement, you apply for loan disbursement. 
  • Usually, a bank requires a valid student visa before they disburse the loan amount. The process of getting an Australian student visa is slightly different. Their embassy/university demands “Pre-Disbursement.” What does that mean for the loan applicant? You need to get the tuition for the first semester disbursed before the student visa is approved.
    Maximum lenders are not aware of this procedure which makes getting an education loan for Australia tricky. A majority of applicants suffer from this issue when applying for a student loan for Australia.
    At GyanDhan, we ensure that the bank is aware of the policy and sanctions the disbursement needed for the Australian visa.

    Read Also:

  • list items Top Universities in Australia
  • list items Australian Universities Application Deadline 2023
  • list items Education Loan Options for Australia: A Detailed Guide
  • list items Australian Student Visa Process: The Easy Guide
  • list items Why Study in Australia?
  • list items Scholarships to Study in Australia for Indian Students
  • list items Ms in Australia for Indian students requirements    
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    How to Choose the Best Education Loan for MS in Australia?

    The process of finding an education loan at the lowest interest rate possible is not easy; rather, it demands effort and research. For each bank and loan, you have to scrutinize elements such as:

  • list items Interest rate
  • list items Loan duration 
  • list items Margin money
  • list items Expenses covered
  • list items Moratorium period
  • list items Processing fee and time 
  • list items Prepayment terms and conditions
  •  

    Selecting a loan at random is not a smart choice. So, take the appropriate measures to find the most appropriate education loan for MS in Australia. Utilize our Loan Eligibility tool to get a list of all loan choices that fulfill your criteria. Then go through our customizable EMI calculator. It will help you to compare the study loan for Australia interest rates and monthly payments. You could also get our education loan counsellors involved while making the decision. They will perform a quick analysis of your financial requirements and help you select the best alternative.
    Over the years, GyanDhan has ensured that students searching for MS program loans for Australia (with or without collateral) have found the right fit for them. Let us take over the burden for you too, give us a call.  

    Check Your Education Loan Eligibility


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