Education Loan For Australia

Applying for an education loan for Australia can be time-consuming and lengthy. This is why students are recommended to apply for one at the earliest. 

Process for Applying for an Education Loan 

The ideal time would be right after receiving the admission confirmation/letter from the university. Based on the university, need for residency, etc., students can get a good estimate of the total cost of attendance. 

Then it’s time to calculate the amount that needs financing and that the applicant can spend out of their own pockets. Aspirants must research the loan options available and compare the bank interest rates. Other parameters for comparison may include:

• Processing Fee
• Expenses the Education Loan covers 
• Loan Processing duration 
• Prepayment tenure and terms 

Once a bank has been selected, it is important to check the eligibility criteria and apply. Some financial institutions may customize loan options based on the applicant’s university. 

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List of Documents Required while Applying for an Education Loan 

Whether the applicant is planning to apply for an education loan in Australia without collateral or with, they may need to submit the following documents for loan approval. These documents confirm the applicant’s loan eligibility and repayment capabilities. They include: 

• Results of Entrance Examination (if applicable) 
• The application form duly filled out and signed 
• Marksheets of the qualifying examinations 
• Letter of Admission from the university 
• Statement of the cost of education 
• Two passport-sized applicant photographs 
• PAN and Aadhaar Cards of both the applicant and their parent/guardian 
• Identity proof documents – PAN, Aadhaar, Passport, etc. 
• Address proof documents – utility bills, Aadhaar Card, etc. 
• Past six months’ bank statements 
• Parent/guardian’s IT returns for the previous two years 

Those mentioned above are some of the basic documentation requirements. Other lender-specific requirements may also exist. 

Eligibility Criteria to Apply for an Education Loan to Study in Australia 

It is important to note that the eligibility criteria for an education loan for studying in Australia may vary among banks and financial institutions. In general, the following may be the loan eligibility requirements:

• The student must be a citizen of India. 
• Most banks will demand that the student already secure admission to an Australian university at the time of loan application. 
• The student must have secured admission to a bank-recognized course. For instance – The SBI Global Ed-Vantage scheme is offered only to those students pursuing a regular full-time course. 

Other bank-specific eligibility requirements might exist. 

Expenses Covered under Education Loan 

Applicants are advised that they always go through each bank’s scheme carefully. This is because the education loan for international students in Australia differs in terms of the expenses covered. Applicants must choose a scheme that best responds to their unique needs. The college tuition fee is the most basic expense covered under each education loan scheme.

Other than that, the following expenses may also be covered under different schemes –

• Travel expenses 
• Cost of books and study materials 
• Laboratory, Library, or Examination fees 
• Residency housing expenses 
• Caution deposit 
• Cost of a new laptop or desktop (if applicable) 
• Expenses involved in project or research work 

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Top Loan Providers 

Since educational expenses for studying in Australia can be considerable, applicants can seek the help of study loans for international students in Australia. Some of the top education loan providers for studying abroad include: 

HDFC Credila

Aspirants can find customized education loans with HDFC Credila. This financial institution allows applicants to apply even before university admission confirmation. The simplified loan solutions are largely secure, with collateral-free loans available for select courses. 

The loan amount can be transferred to the applicant’s account in Australian dollars. 

The SBI Global Ed-Vantage Scheme 

Nationalized banks like the State Bank of India offer education loans of up to Rs. 1.5 crores for Australia and other foreign. However, the student must pursue a regular full-time course overseas to be eligible. The scheme charges simple interest during the course period and the moratorium and offers tax benefits under Section 80 (E). Students should keep in mind that this scheme requires collateral above Rs. 7.5 lakhs as well as parent/guardian as the co-applicant. 

ICICI Bank iSmart Education Loans 

The ICICI Bank’s iSmart Education Loan option is offered to aspirants pursuing any UG, PG, Doctoral, Diploma, or professional courses from Australia’s reputed institutions. This scheme covers expenses like tuition fees, hostel fees, travel expenses, caution deposits, and more. Applicants can apply for an amount up to Rs. 2 crores, however, the scheme automatically converts to secured over Rs. 50 lakhs.