Education Loans for Australia: Amount, How to Apply, Top Banks, Private Companies, NBFCs

To qualify for an education loan to study in Australia, you generally need to meet the following criteria:

• Indian Citizenship: Only Indian citizens are eligible to apply.

• Age: Typically between 18 and 35 years.

• Academic Record: A good academic record, usually a minimum of 60% in previous studies.

• Admission: Secured admission to a recognized Australian institution.

• Co-applicant: A co-applicant (parent, guardian, or spouse) with a stable income.

• Credit Score: A good credit score for both the applicant and co-applicant.

Ensure you review specific requirements for an education loan for Australia with your lender.

When securing an education loan for study in Australia, it's crucial to understand the available loan amounts. The amounts of education loans for Australia differ significantly based on the lender and the details of your course. For an education loan for MS in Australia, you may be eligible for loans covering up to 100% of your expenses, including tuition and living costs.

• Public Banks: Banks like SBI offer the Global Ed-Vantage Scheme for students pursuing education abroad. This scheme provides loans ranging from INR 20 lakhs to INR 1.5 crores, covering tuition, living expenses, travel, and more, with collateral required.

• Private Banks: For a non-collateral education loan for Australia, private banks like Axis Bank, ICICI Bank, and IDFC FIRST are prominent lenders. These banks offer loans of up to INR 50 lakhs to cover tuition fees, living expenses, and other educational costs.

• NBFCs: Non-Banking Financial Companies (NBFCs) such as Incred, Avanse, and Auxilo provide education loans for Australia without collateral, offering amounts up to 20 lakh INR with interest rates ranging from 12.50% to 13.50%.

Interest rates for education loans for Australia vary between public banks, private banks, and Non-Banking Financial Companies (NBFCs). Public banks typically offer lower rates for education loans for Australia, while private banks and NBFCs may provide options for education loans for Australia without collateral, but often at higher interest rates.

• Public Banks: Interest rates for education loans for study in Australia generally range from 7.30% to 11.45%, depending on the bank and the category of the educational institution.

• Private Banks: These banks offer non-collateral education loans for Australia with interest rates typically ranging from 9% to 14%. The rates can vary significantly based on the borrower’s profile and the specific bank.

• NBFCs: Non-Banking Financial Companies (NBFCs) provide education loans for Australia at interest rates between 12% and 14%. While these rates might be higher, NBFCs often offer more flexible terms or quicker processing for non collateral education loans for Australia.

Calculating EMIs manually for an Education Loan for Study in Australia can be complex and time-consuming. To make it easier, use the following formula to calculate your EMI for education loans for Australia:

EMI = [P x R x (1 + R) ^ n] / [(1 + R) ^ n - 1]

where:

P= Principal loan amount

R= Applicable rate of interest

N=  Number of monthly installments.

This formula helps you estimate your monthly payments and manage your education financing more effectively.

The loan application process for Education Loans for Australia involves steps to ensure a smooth and efficient experience. Whether you're applying for an Education Loan for study in Australia or a specific program like an Education Loan for MS in Australia, you'll need to gather the required documentation, complete the application, and undergo an assessment. The loan application process typically involves the following steps:

1. Research: Choose a suitable lender and understand their requirements.

2. Eligibility Check: Ensure you meet the lender's eligibility criteria.

3. Document Collection: Gather the necessary documents.

4. Application Submission: Submit the application form along with documents.

5. Verification: The lender will verify your application and documents.

6. Approval: Upon successful verification, the loan will be approved.

7. Disbursement: The funds will be disbursed as per the institution's requirements.

With education loans for Australia, you can benefit from significant tax deductions. Under Section 80E of the Income Tax Act, you can claim a deduction on the interest paid on your education loan for study in Australia, including education loans for MS in Australia. There is no upper limit to the amount you can deduct, which helps lower your overall tax liability and makes loan repayment more manageable. Additionally, you can claim these deductions for up to 8 consecutive years from the start of repayment, reducing your taxable income over time.

To secure education loans for Australia, you must present several important documents. Commonly requested documents are:

• Admission letter from your selected Australian university

• Completed loan application form

• Documents detailing the total cost of studies

• Proof of identity

• Proof of residence

• Bank statements of the student, co-borrower, or guarantor

• Statement of assets of the student, co-borrower, or guarantor

• Proof of income of the student, co-borrower, or guarantor

Understanding the repayment terms for Education Loans in Australia is just as crucial as obtaining the loan itself. Generally, repayment on an Education Loan for study in Australia starts 6 months to 1 year after course completion or once the borrower secures employment, whichever occurs first.

• Public Banks:  Typically offer a moratorium period that includes the course duration plus an additional 6-12 months. Repayment tenures for an education loan to study in Australia can extend up to 15 years.

• Private Banks: Usually offer more flexible repayment options for an education loan for Australia without collateral, featuring shorter tenures and higher EMIs. However, some may provide tenures extending up to 10-15 years, depending on the loan amount.

When considering financing for your education abroad, it's important to explore various loan providers to find the best option for your needs. Here’s a brief overview of notable lenders and their education loans for Australia.

Public Banks:

• State Bank of India (SBI): Provides education loans for Australia up to INR 1.5 Crore for premium institutions under the SBI Scholar Loan Scheme. Interest rates range from 7.30% to 10%, making it a viable option for an education loan for MS in Australia.

• Punjab National Bank (PNB): Punjab National Bank (PNB): Provides education loans for Australia up to INR 30 lakhs with collateral at an interest rate of 11.45%. This option is designed to cover tuition fees, living expenses, and other costs. 

Private Banks:

• ICICI Bank: Features education loans with customized repayment plans and interest rates. ICICI’s loans cover tuition fees, accommodation, and other study-related expenses.

• Axis Bank: Offers education loans with flexible repayment options and comprehensive coverage for education costs, including international studies.

NBFCs:

• Credila: A popular choice for education loans for studying abroad with flexible terms and competitive interest rates.

• Avanse: Another NBFC offering customized education loan solutions for international studies.

Ques.1: Who is eligible for a student loan in Australia?

Answer: To be eligible for a student loan in Australia, you must be at least 18 years old, have approved employment or a permanent source of income, and hold an acceptable visa or be a permanent resident in Australia. Additionally, you must be enrolled in an approved course at an accredited institution, whether full-time or part-time.

Ques.2: How much loan is required for the Australia student visa?

Answer: As of 2024, securing an Australian student visa requires an education loan for Australia of approximately AUD 53,041. This amount includes AUD 21,041 for living costs, AUD 30,000 for tuition fees, and AUD 2,000 for travel expenses. Ensure this total is available in a savings account or provided by a recognized financial institution.