Study Loan for Australia

A study loan provides a practical solution, offering financial support that allows you to focus on your education without worrying about the immediate financial burden. With the right loan, you can gain access to education in top-tier Australian universities in Melbourne, Brisbane, Sydney, etc., with easy and effective management of finances. 

 

An education loan for Australia usually comes with flexible repayment options and a moratorium period, tailored to suit your monetary requirements and situation. You can use the loan amount to cover various essential expenses like tuition, accommodation, and more. This ensures you can pursue your academic goals without compromising on financial stability.

Several lenders provide study loans for students planning to study in Australia on Bajaj Markets. These include:

When planning to study in Australia, understanding the different types of funding options can help you choose the one that best fits your financial situation. Here are some of the main types of study loans available: 

Secured Education Loans – With Collateral

These loans are backed by a security, such as property, fixed deposits, or insurance policies. Because the lender has collateral, you can generally access higher loan amounts and lower interest rates. This option can be ideal if you need significant funding for tuition and living expenses in Australia. 

Unsecured Education Loans – Without Collateral

Unsecured loans don’t require any assets as security. They’re approved mainly based on your academic profile, course selection, and the co-applicant’s income. While the loan amount may be lower and interest rates slightly higher, they offer flexibility to students who lack collateral but have strong academic potential. 

Specialised Loans for International Students

Some banks and financial institutions can offer customised education loans designed specifically for students studying abroad. These often include benefits like deferred repayment options, coverage for travel and living costs, and tie-ups with Australian universities for simplified disbursal. Such loans can make overseas education more accessible for Indians. 

There are a number of eligibility requirements that a student applicant, as well as their co-applicant, must qualify for when they apply for an education loan for Australia. 

Eligibility Criteria for Indian Students

If you’re an Indian student seeking a study loan for Australia, here are the general eligibility criteria you need to keep in mind. These are approximate and subject to each lender’s policy. 

• Nationality / Residence: You are usually required to be an Indian citizen. 

• Age: Applicants are often required to be at least 18 years old. 

• Admission: You should have secured admission (or a valid offer) to a recognised overseas institution in a full-time program (UG/PG/diploma) before the final disbursement. 

• Academic Record: A satisfactory academic performance (for example, good marks in previous qualifying exams) is commonly required. 

• Recognised Course/Institution: The overseas course must be at a recognised institution and often job-oriented as per lender guidelines. 

• Collateral/Security: For larger loan amounts, the lender may ask for collateral (property, fixed deposits, etc). For smaller amounts or for selected plans, the requirement may be waived. 

Eligibility Criteria for Co-applicants

A co-applicant is mandatory for most education loans, especially unsecured ones. Lenders assess the co-applicant's financial background to guarantee the loan. 

• Relationship: The co-applicant must be a close family member, such as a parent, legal guardian, sibling, spouse, or grandparent.

• Income: A stable source of income is crucial for loan approval. The co-applicant must provide proof of income, which includes salary slips or Income Tax Returns (ITR).

• Repayment Capacity: The lender will evaluate the co-applicant's ability to repay the loan, which includes assessing their income, existing liabilities, and bank statements.

Other Criteria to Remember

• Financing Eligibility: Many lenders indicate that loans can cover up to 100% of tuition fees and sometimes a portion of living/travel expenses for abroad studies. 

• Moratorium Period: The repayment tenure often extends up to around 10-15 years after completion of the course (or after a moratorium) in overseas education loans. 

• Margin Money: This is the amount you must contribute yourself, which may apply especially for overseas studies. For example, above a certain threshold, a borrower may need to fund a, say, ~5-15% margin. 

   

Disclaimer: The points above are intended as general eligibility guidelines. Individual lenders (banks/NBFCs) may change or tighten criteria, and additional requirements can apply based on your profile, course, or policy updates. Always verify the current policy and documentation checklist on the lender’s official site and relevant government portals before applying.

If you’re an Indian student planning to study in Australia, lenders typically ask for the following documents (exact requirements vary by institution and loan type). 

Academic Documents

• Marksheets/certificates for Class 10, 12, and the latest degree; 

• Relevant entrance/test scores (e.g., IELTS/TOEFL/GRE/GMAT, if applicable). 

• Offer/Admission letter from the overseas institution and the official fee/cost estimate. 

• Any gap/experience documents, if there’s a break in studies. 

Financial & Income Proofs

• Co-applicant/guarantor income proof, including recent salary slips, Form-16/ITR (last 1-2 years), and bank statements (last 6 months). 

• Net-worth/Assets & Liabilities statement of co-applicant/guarantor (for higher loan amounts). 

• Collateral documents (property/other security), if the loan is secured. 

Passport & Visa Documents

• Passport (generally mandatory for overseas study); 

• Recent passport-size photographs and standard KYC (PAN/Aadhaar, address proof). 

• Student visa/e-visa copy, when issued; Pre-visa sanction may be based on admission and other documents, depending on the lender. 

   

Disclaimer: Banks/NBFCs may request additional items during appraisal (e.g., updated fee letter, scholarship letters, or extra income proofs). Always cross-check the specific checklist shared by your lender to facilitate the loan approval and disbursal process.

Here are some important factors to consider before choosing a loan option: 

• Interest Rates and Loan Amount

Look for a lender that offers low interest rates with sufficient loan amounts to cover both tuition fees and other associated costs. If you wish to study in Australia, it’s important to ensure the loan amount is enough to cover all expenses, including living costs, without stretching your budget.

• Moratorium Period and Grace Period

Check if the lender provides a moratorium period, where repayments begin only after you complete your course. This gives students enough time to find a job before starting loan repayments. A longer grace period can be a huge relief, allowing you to ease into your post-graduation life without any financial stress.

• Collateral and Security Requirements

Understand the collateral requirements for the loan. Some lenders offer unsecured education loans, which can be beneficial if you do not have sufficient collateral or property to pledge. However, in order to access a higher amount (above ₹80,000, in the case of InCred Finance), you may be asked to submit some collateral.

• Processing Fees and Hidden Charges

Be aware of any processing fees or hidden costs associated with the loan. Some lenders may charge higher processing fees, which could add to the overall cost of your loan. Make sure the lender is transparent about all charges upfront, so there are no surprises later.

• Availability of Repayment Flexibility

Find out if the loan offers flexibility in repayments. This could include features like step-up repayment plans or flexible EMI options that adjust according to your income capacity after graduation. Such flexibility can make managing your post-study finances smoother and more manageable.

• Loan Coverage Beyond Tuition

Consider a lender that covers a wide range of expenses beyond just tuition fees. Study loans should ideally include living costs, travel expenses, health insurance, visa fees, and even study materials. This ensures that you are fully financially supported while studying in Australia.

To expedite the loan approval process, consider these financial planning tips:

• Maintain a Strong Credit Score

A good credit score boosts your chances of quick loan approval. Ensure that your co-applicant or guarantor (if required) also has a solid credit history. A higher score can also get you better loan terms, such as lower interest rates.

• Keep All Required Documents Ready

Gather all necessary documents before applying, including your admission letter, proof of funds, identity documents, and any collateral papers (if required). Having these ready reduces processing time as there will be no delays in document verification.

• Choose Lenders with Quick Processing Times

Opt for lenders known for their faster loan approval processes, such as digital lenders or NBFCs. These lenders often have streamlined processes and less paperwork, which can significantly cut down waiting times.

• Apply for the Right Loan Amount

Ensure the loan amount you request aligns with your actual financial needs and eligibility. Asking for a loan amount that is too high compared to your financial profile could delay approval. Always consider how much of the loan you genuinely need to cover your educational expenses.

• Provide a Co-applicant or Guarantor if Required

Having a co-applicant or guarantor with a stable income and a strong financial background can increase your chances of approval. This reassures the lender about your ability to repay the loan.

Here are some common education-related expenses that may be covered with an education loan:

Tuition Fees

Study loans in Australia typically cover course fees at universities, ensuring that students can focus on their education without financial strain. These loans can directly pay for tuition, allowing students to manage their finances more effectively.

Living Expenses

Study loans can also cover essential living expenses such as accommodation, food, and daily necessities. This support is vital for international students who may not have additional income sources while studying abroad.

Other Expenses

Additional costs that study loans may cover include:

• Travel: Flights to and from Australia

• Study Materials: Books, software, and other educational resources

• Health Insurance: Required health coverage for international students

• Visa-related Costs: Fees associated with obtaining a student visa

Here are various ways in which you can enjoy flexibility when repaying your education loan:

Repayment Tenure and Interest Rate

The average loan tenure for study loans in Australia ranges up to 15 years. The education loan interest rates vary based on the lender and market conditions. On Bajaj Markets, the interest charged starts from just 10.25% p.a., making the loan affordable and easy to repay. Understanding these terms is crucial for effective financial planning.

Moratorium Period

Many study loans offer a moratorium period, which is a grace period before repayments begin. This allows you time to complete your education and secure employment before starting your repayment journey.

Prepayment Options

Prepaying loans can help you save on interest costs. Many lenders offer options to make additional payments without penalties, helping you close your loan sooner.

Australia offers world-class universities and excellent career opportunities. With scholarships and strong post-study work options, it's an ideal destination for acquiring quality education.

Top Reasons to Study in Australia

Australia is an attractive destination for higher education due to several factors:

• World-class Universities: Home to some of the top-ranked universities globally

• Multi-cultural Environment: A diverse student body fosters an inclusive atmosphere

• Availability of Scholarships: Numerous scholarships and financial aid options are available to support international students

Here are some issues you may face in your journey to fulfill your academic ambitions in Australia. Let’s see what they are and how to tackle them:

Managing High Interest Rates

To combat high interest rates, consider negotiating with lenders or exploring government subsidies designed to assist students

Collateral and Guarantor Issues

If you lack sufficient collateral or a co-signer, consider options like peer-to-peer lending or alternative financing solutions that may not require traditional guarantees

Exchange Rate Fluctuations

Be aware of how currency exchange rates can impact loan repayments. Consider locking in rates or using financial tools that mitigate exchange rate risks during your studies abroad.

Discover various scholarships and financial aid options available to help ease the cost of studying in Australia:

Scholarships Offered by Australian Universities

Australian universities offer various scholarships for international students, including those from India. Here’s a breakdown of some key options: 

• Australia Awards Scholarships

Funded by the Australian government, these scholarships cover full tuition, living costs, and travel for undergraduate and postgraduate students. Applicants need a minimum CGPA of 7.5 and an IELTS score of 6.5 or higher. 

• University-Specific Scholarships

Many universities offer their own scholarships, such as:

• University of Sydney International Scholarships: Offers AUD 41,753 annually for postgraduate research students

• Melbourne Research Scholarship: Covers tuition and offers a fortnightly stipend of AUD 37,000 per year for research students

• Deakin Vice-Chancellor’s International Scholarship: Covers up to 100% of tuition fees for top-performing students 

• Merit-Based and Need-Based Scholarships

Institutions like Griffith University offer merit-based scholarships for students with strong academic records. These scholarships often consider both academic achievements and community involvement. 

Indian Government Scholarships for Studying Abroad

The Indian government also offers scholarships to support students studying overseas, including in Australia:  

• National Overseas Scholarship Scheme

For economically weaker sections, this scholarship covers tuition, living expenses, and travel for postgraduate studies abroad

• P.G. Indira Gandhi Scholarship for Single Girl Child

This scholarship supports single girls, up to 30 years of age, pursuing postgraduate education, covering tuition and related expenses

• JN Tata Endowment for the Higher Education of Indians

Since 1892, the J N Tata Endowment has awarded loan scholarships to over 5,700 Indian students for higher studies abroad, including in Australia

Combining scholarships with study loans can greatly reduce financial stress. Here’s how to manage both:

Start Early

Research scholarships and loans 8–12 months before the start of admissions. Be aware of the eligibility criteria and deadlines for both.

Prepare Documents

Keep essential documents like transcripts, proof of English proficiency, personal statements, and recommendation letters ready to speed up applications

Apply Simultaneously

Submit both scholarship and loan applications at the same time to ensure you cover as many of your expenses as possible

Tailor Your Applications

Customise your essays and personal statements to fit each scholarship’s requirements. Highlight your achievements, community involvement, and future goals.

Seek Guidance

Use educational consultants or university advisors to help with the application process. They can provide valuable tips and insights.

 By combining scholarships and study loans effectively, you can finance a significant portion of your education in Australia with ease.

Here are 5 popular universities in Australia known for their academic excellence:

Alongside the finances required, it is important to check the visa requirements when planning to study in Australia.

Process Overview

To study in Australia, you must apply for a student visa (subclass 500). The application involves submitting proof of enrolment in an approved course and meeting health insurance requirements.

Visa Requirements

Key requirements include:

• Confirmation of enrolment (CoE)

• Proof of sufficient funds

• Health insurance coverage (OSHC)

Post-course Implications on Visa

After completing your course, you may be eligible for post-study work rights depending on your qualifications and duration of study.

Visa Fees and Charges

Visa application fees vary but typically range from AUD 620. Additional costs may include health insurance premiums and other administrative fees.

Duration of the Study Visa

The duration of the student visa generally aligns with the length of your course plus an additional period (usually up to two months) after completion.

The tuition fee usually depends on the specific course you wish to pursue and the university. Here is an estimated range of the fees you may have to pay, depending on the level of qualification you wish to get: