Overseas Education Loan to Study in Australia

Pursuing higher education in Australia is a common aspiration for many students worldwide. Renowned for its premium quality education, research opportunities, course options and fantastic lifestyle, Australia welcomes students from all corners of the globe. However, one major hurdle that often stands in the way of this dream is the cost of higher education in Australia. According to recent revises, the average annual tuition fee for international students in Australia ranges from AUD 22,000 to AUD 45,000. Depending on the course and institution, it might further vary. Apart from this major expense, there are expenses of accommodation, other living costs, utility bills and miscellaneous expenses, and the total cost can be overwhelming for many aspiring students.

However, don’t worry as we have a great solution to this problem. While self-funding is an option for limited applicants, taking an education loan is a go-to option for many. Thus, to help you stay informed about the education loan process, we have jotted down all the essential aspects in this article. So, without any further delay, let’s begin.

Types of Overseas Education Loan Options to Study in Australia

1. Collateral Based Education Loans (Secured) Collateral-based education loans, popularly known as secured loans necessitate the loan applicant to pledge assets such as property, fixed deposits, or other valuable collateral against the loan amount. This loan type usually offers lower interest rates and higher loan amounts compared to unsecured loans. However, you can only take this loan if you have substantial collateral security for the estimated cost of education.
2. Collateral Free Education Loans (Unsecured) In contrast to the above-mentioned loan option, collateral-free education loans or unsecured educational loans do not require any collateral but are granted based on the applicant's creditworthiness, academic record, and potential for future earnings. The co-applicant's profile is also thoroughly checked for loan approval. While these loans offer great support and advantages for applicants who don’t have any assets, they often come with higher interest rates and lower loan amounts when compared to secured education loans.

These are the two prevent loan types which you can opt from as per your availability of assets. However, not all Australian universities accept unsecured education loans, so ensure that you adhere to the given guidelines. Now let’s check the leading loan providers and their study loan for Australian interest rates.

Popular Financial Lenders Providing Education Loans & their Interest Rates

Now that we know the fundamentals of these popular financial institutions, let’s check the eligibility criteria and more details for each application process.

Eligibility Criteria for Collateral-Based Education Loans (Secured)

• The age of the loan borrower must be 18 years or above.
• He/she must be an Indian.
• The borrower or co-borrower must provide suitable collateral, such as property, fixed deposits, or other assets.
• The borrower must have a good credit history.
• Some lenders may require a co-borrower or guarantor with a stable income and a good credit history.

Eligibility Criteria for Collateral Free Education Loans (Unsecured)

• The age of the loan borrower must be 18 years or above.
• He/she must be an Indian.
• The borrower must have a strong academic record, be enrolled in a recognised institution abroad and demonstrate potential for future earnings for a study loan for Australia without security.
• The borrower's creditworthiness must be strong.
• Some lenders may require a co-signer or guarantor with a stable income and good credit history.

The Overseas Education Loan Application Process

1. Research, Compare and Shortlist: Begin by researching and comparing various lenders offering education loans for studying in Australia. Factors to consider include interest rates, loan terms, processing fees, repayment options, and additional benefits offered by each lender. Shortlist the most suitable options as per your preferred loan type.
2. Document Check and Preparation: Collect all necessary documents required for the loan application process. These may include academic records, an admission offer letter from an Australian educational institution, income proof, identity proof, and collateral documents (if applying for a secured loan).
3. Initiate Application and its Submission: Choose the preferred mode of application – online or offline – and submit the completed application form along with the required documents to the chosen lender. Ensure that all information provided is accurate and up to date.
4. Profile Verification and Approval: After submission of the application, the lender will initiate the verification process, which may include a credit history check, assessment of the documents and repayment capacity. Once the application is approved, the loan amount will be sanctioned and disbursed directly to the educational institution to cover tuition fees and other related expenses.

Now that you gained complete knowledge, here are some things that you must be mindful of amidst your overseas education loan application process for Australia.

Things to Keep in Mind During Loan Application Process

• Early Application: Initiate the loan application process as early as possible so that you have sufficient time for the processing, sanction, and disbursement of funds before the commencement of the academic program. At times, education loan for abroad studies by Indian government banks take more time to process, when compared to private banks.
• Understanding Terms and Conditions: Thoroughly review and comprehend the terms and conditions of the loan agreement, including interest rates, repayment schedule, prepayment penalties, and any other associated fees. So that you don’t land into some major troubles after taking the loan.
• Financial Planning: Develop a comprehensive financial plan that encompasses the loan amount, expected expenses, potential earnings post-graduation, and a feasible repayment strategy to ensure timely repayment of the loan.
• Seek Expert Guidance: If unsure about any aspect of the loan application process or loan terms, seek guidance from financial advisors or overseas education loan counsellors to make informed decisions.

Summing up, this is everything that you need to know about securing an overseas education loan to pursue higher education in Australia. By understanding the details and key considerations outlined in this article, we hope that you are now confident to commence your education with the financial assistance of an education loan.

So, grab your laptop and research the top overseas education loan advisors so that you find the right expert who can guide you through the process of finding a suitable loan provider. Informed decision-making is essential for a successful and rewarding education experience abroad. Good luck!

RiyaNiar Member since March 13, 2024