Study Loan for Australia for International Students (2025): Types, Costs, Eligibility & Full Guide

Planning to study in Australia but worried about high tuition fees and living expenses? A study loan for Australia can make your dream of studying abroad affordable and stress-free. Indian students can choose from nationalized banks, private lenders, and NBFCs to finance their education with flexible repayment options and competitive interest rates.

This complete guide covers types of loans, top lenders, required documents, application process, cost of studying, and FAQs—everything you need before applying for an education loan for Australia.

Types of Loans for Studying in Australia

Understanding the different loan categories helps you choose the best financing option. Here are the most common types:

1. Secured Education Loan

• Requires collateral such as property, fixed deposits, or LIC policies

• Lower interest rates

• Higher loan amount approval

2. Unsecured Education Loan

• No collateral required

• Higher interest rates

• Eligibility depends heavily on academics + co-applicant income

3. Personal Loan for International Students

• Covers additional or emergency expenses not covered under education loans

• Higher interest rate

• Faster approval

4. NBFC Loans

• Offered by Non-Banking Financial Companies

• Quick processing and flexible terms

• Suitable for students with moderate profiles or low collateral value

Top Study Loans for Australia

Choosing the right lender helps you secure lower interest rates and higher loan amounts. Below is a quick comparison:

Living and Study Costs in Australia

Before applying for a loan, understanding the cost of studying in Australia helps you plan finances better.

Average Expenses for Indian Students

Popular Australian Universities & Tuition Fees

Documents Required for an Education Loan to Study in Australia

Prepare the following documents to avoid delays:

Student Documents

• Admission letter from Australian university

• Passport & student visa (after approval)

• 10th, 12th, UG mark sheets

• Entrance test scores (IELTS/PTE/TOEFL/GRE/GMAT)

Co-Applicant Documents

• Income proof (ITR, salary slips, bank statements)

• PAN & Aadhaar

• Business proof (if self-employed)

• Latest 6–12 months bank statements

Collateral Documents (if applicable)

• Property papers

• Valuation report

• Ownership proof

Application Process to Apply for an Educational Loan in India for Australia

Follow these step-by-step instructions:

Step 1: Check Eligibility

• University ranking

• Academic profile

• Co-applicant income

• Credit score

Step 2: Choose Secured or Unsecured Loan

Depending on your collateral availability and loan amount.

Step 3: Apply Online or Visit Branch

Submit loan application form along with required documents.

Step 4: Verification Process

Bank verifies academics, income profile, and collateral (if applicable).

Step 5: Loan Sanction Letter

Once approved, you’ll receive a sanction letter required for the visa process.

Step 6: Disbursement

Loan amount is released directly to the university as per fee schedule.

Factors to Consider When Applying for a Study Loan for Australia

• Interest Rate Type: Fixed vs. floating

• Processing Fees: ₹10,000 – ₹25,000 (varies by bank)

• Margin Money: Some banks require 5%–15% contribution

• Moratorium Period: Relaxation on EMI until course + 6 months

• Loan Tenure: Up to 20 years

• Co-applicant Income: Affects loan approval & interest rate

Expenses Covered Under Education Loans

Most lenders cover the following:

• Tuition fees

• Accommodation / hostel expenses

• Books & study material

• OSHC insurance

• Living expenses (depending on bank)

• Travel expenses

• Laptop purchase

• Exam & application fees

• Study tours & project work

Frequently Asked Questions

Q. What is a study loan for Australia, and how can Indian students benefit from it?

A study loan for Australia helps Indian students finance tuition fees, accommodation, health insurance, and living expenses while studying abroad. These loans offer flexible repayment terms and reduce upfront financial burden.

Q. What options are available for a loan for international students in Australia?

Students can apply through:

• Nationalised banks (SBI, Bank of Baroda)

• Private banks (ICICI, Axis Bank)

• NBFCs (HDFC Credila, Auxilo, Avanse)

Q. How can I apply for an education loan for Australia from India?

Submit your application along with an admission letter, financial proofs, cost of study details, ID documents, and collateral (if required). Banks then verify and issue sanction letters.

Q. Can I get a study loan for Australia without collateral?

Yes. Many private banks and NBFCs offer unsecured loans up to INR 40–60 lakhs, depending on your profile and co-applicant income.

Q. What is the typical interest rate for a study loan for Australia?

Interest rates range from 9.55% to 13.25%, depending on lender and loan type.

Q. What expenses are covered under a study loan for Australia?

Tuition fees, living expenses, travel costs, health insurance, books, laptop, exam fees, and other course-related expenses.

Q. What is the repayment period for a study loan?

Typically 10–20 years, including a moratorium period of course + 6 to 12 months.

If you want to study in Australia, get free guidance on Australia student visa with Pacific Educational Consultant.