Australia is known to be a leading global powerhouse of education and offers some of the world's best educators and facilities to international students looking for quality education. It is home to some of the best universities in the world providing undergraduate, graduate, and doctoral degree courses in various study areas. However, pursuing higher education in Australia is considered expensive for international students that depend on the program costs and standard of living of the student. International students can avail themselves of financial aid such as an education loan for Australia to bear the tuition fees and living expenses for the duration of their studies.

International students can choose from over 22,000 courses across 1,100 institutions in Australia with innovation, creativity, and independent thinking deeply embedded in the core syllabus of higher education in Australia. It is one of the most preferred study destinations for international students due to its high quality of education, friendly natives, and culturally diverse student community.

The average cost of pursuing higher education in Australia ranges between AUD $34,000- AUD $40,000 for different courses. Additionally, international students should also bear the living expenses and other related costs to pursue their dream of studying in Australia. More details about an education loan for Australia along with the application process, documents required, and expenses covered are discussed.

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Eligibility Criteria for Education Loan for Australia

International students who have secured admission to the Australian universities of their choice should be focused on arranging the funds required for their educational expenses. The cost of pursuing studies in Australia is at par with other top countries such as the US and the UK and is expensive as compared to education in India. Many banking and non-banking institutions in India offer education loans to students interested in pursuing higher education in Australia. Given below are the basic eligibility criteria to apply for an education loan for Australia:

  • The applicant should be an Indian citizen
  • He/ she should have obtained admission in a recognized Australian university
  • The student should be enrolled in a course that has been recognized by the funding institution (job oriented professional degree, technical degree, and diploma courses)

Documents Required to Apply for Education Loan for Australia

Several nationalized banks in India such as the State Bank of India provide education loans of up to Rs. 30 Lakhs to deserving students willing to pursue higher studies in Australia. Students will have to provide supporting documents for the bank to be able to process the loan amount. Listed below are the important documents needed to apply for an education loan for Australia:

  • Admission letter from the chosen Australian university
  • Completed loan application form
  • Documents related to the total cost of studies
  • ID proof
  • Residence proof
  • PAN details of the applicant
  • Bank statement of the student/ co-borrower/ guarantor
  • Statement of asset of the student/ co-borrower/ guarantor
  • Income proof of the student/ co-borrower/ guarantor

How to Apply for an Education Loan for Australia?

Students willing to pursue education in Australia can avail themselves of education loans from Indian Nationalised Banks (Private and Govt.) or Non-Banking Financial Banking Corporations (NBFCs). Students should closely coordinate with visa offices, international admission offices, and bank authorities for a smooth application process. The detailed application process for an education loan for Australia is as follows:

  • The applicant should first choose a banking institution to get an education loan for Australia
  • He/ she should apply for the education loan by providing initial KYC documents, collateral documents, and academic records
  • The student should also get an electronic Confirmation of Enrolment (eCoE) from the respective Australian university
  • The candidate should get a student visa application confirmation from the Australian embassy in India
  • The next step is to get a Loan Sanction Letter along with a signed agreement by submitting the required documents to the banking institution
  • The applicant should submit the Loan Sanction Letter to the Embassy and complete other processes to get the Australian Student Visa
  • He/ she should then submit the Australian Student Visa confirmation to the university to confirm the intake session details and fee payment schedule. These details should finally be shared with the bank to start loan disbursement

Expenses Covered under the Education Loan for Australia

An education loan for Australia sanctioned by an educational institution can be solely used for educational purposes and does not cover personal expenses. Some of the expenses covered under the education loan for Australia for Indian students include:

  • Tuition fees
  • Accommodation charges
  • Caution deposit
  • Travel expenses
  • Costs incurred for project work and study tours for the academic year
  • Books, stationery, and laptop costs
  • Other reasonable course-related expenses 

Repayment of Education Loan for Australia

The loan amount ranging between INR 4-7.5 lakhs should be repaid in full within 10 years. Students who have taken an education loan above 7.5 lakhs are given 20 years to repay the entire amount. The time given for repayment of the education loan for Australia varies for different loan-providing institutions.

Top Indian Banks Offering Education Loan for Australia

An education loan for Australia is provided by Indian Banks, NBFCs, and Private Education Loan Experts. Top Indian banks provide loans with an interest rate of 7%-18% to students interested in pursuing studies in Australia. Some of the top banks in India offering education loan to study in Australia along with the maximum loan amount are shown below:

Bank Name

Maximum Loan Amount (in INR)

Union Bank of India

15 Lakhs

Allahabad Bank

20 Lakhs

Punjab National Bank

20 Lakhs

Indian Bank

20 Lakhs

Dena Bank

20 Lakhs

State Bank of India

20 Lakhs

Bank of Maharashtra

20 Lakhs

Key Factors to Consider while Applying for an Education Loan for Australia

Most of the education loan providers cover the cost of living in Australia for Indian students along with their academic expenses. The Australian student visa application process is directly linked to the financial ability of the applicant. So, it is highly necessary for Indian students to get a loan, international scholarship, or personal funding to study in Australia. Some of the key factors to remember while applying for an education loan for Australia are listed below:

  • One should always check if the education loan provider covers the medical insurance (OSHC Australia) expenses or not
  • The applicant should confirm if the education loan service is scholarship adjustable
  • One should check if the loan is still applicable if the student gets a PR-Visa in Australia
  • The interest rates and Indian government education loan subsidy norms for overseas education needs to be checked


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