Education Loan for Studying in Australia

6 mins read63.0K Views 34 Comments
Aishwarya Bhatnagar
Study Abroad Expert
Updated on Jun 28, 2023 14:07 IST

Enrolment rates are increasing by 4-5% each year across Australian Universities, and so is the demand for loan applications for study. Students travelling to Australia for higher education have to submit their tuition fees in full before leaving their country. Thus, to their rescue is a list of only a limited number of banks which are on Australia's acceptable list for offering educational loans to international students. Visa and admission offer letters are also dependent upon an applicant's funding of studies in Australia.

education loan for aus

A major favourite study destination for international students, Australia holds the third most popular study destination spot for international students after the United States of America and the United Kingdom. High quality of education, friendly natives, and cultural diversity are some of the factors that make Australia a personal favourite among International students wanting to study abroad. This is the reason why more and more students apply to Australian Universities, and the yearly average of receiving admission applications has crossed 800k per year. This in turn also suggests that students are applying for educational loans rapidly for both admission cycles in order to study in Australia.

Studying Costs in Australia for International Students

Australian Degree Level 

Approx. Costs 

English Language Study 

AUD 390 / week 

VET (Vocational Education) 

AUD 5,200 – AUD 28,500 

UG Degree 

AUD 19,400 – AUD 42,700 

PG Degree 

AUD 26,000 – AUD 48,000 

Doctoral Degree 

AUD 18,000 – AUD 48,000 

Check out: Cost of Studying in Australia

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Educational Loan for Australia in India

Since pursuing education in Australia is expensive for students, especially from India, they have the sole option of applying for educational loans for higher study. Australia Universities on average charges INR 20-35 Lakhs from an Indian student for one year of study. Thus, those who cannot pay this lump sum together have to apply for loans. The following options are available for obtaining an educational loan:

1. Indian Nationalised Banks

They usually offer up to 90% secured educational loans in terms of collateral to students. Another advantage of choosing a nationalised bank includes its lower interest rates, economical processing charges and no extra cost to be incurred on interest rates. The processing of applications may take a longer duration and maybe a follow-up can be delayed in such cases. Let's discuss the education loan for Australia available at the Bank of Baroda and its requirements to offer loans to Indian students to study in Australia.

Bank of Baroda:

It has the added advantage of providing 100% loans to those students who have been admitted to Go8 or Group of 8 Australian Universities, namely:

Bank of Baroda Loan Eligibility Requirements:

The following requirements have to be fulfilled before applying for a loan at the Bank of Baroda:

  • Students' profiles with minimum set KTs or no KTs are eligible to apply.
  • Whoever will be the co-signatory, he/she must have a 650 or above CIBIL score.
  • The co-signatory must also have sufficient disposable income to pay the interest on the loan.
  • Also, the property must be mortgageable, uninhibited and should have proper paperwork done.

2. Private Banks

The process of acquiring a loan is faster in comparison to the nationalised banks in India. It comes with better follow-ups and a dedicated relationship manager. However, the private baks are comparatively more expensive in terms of processing fees, and interest rates and are usually unsecured loans for education. Unsecured loans do not require the applicant or student in this case to mortgage or submit assets or collateral in exchange for the loan. For instance, Axis Bank and ICICI Bank are both private banks which offer unsecured loans to students who are admitted across Australian Universities for higher education.

Axis Bank:

Offers unsecured education loans to those students who have applied to Curtin University, La Trobe University, James Cook University, RMIT University, etc.


Offers unsecured education loans for the University of Melbourne, University of Adelaide, University of Queensland, etc.

Read more at: Public v/s Private Education Loan Providers

3. NBFC or Non-Bank Financial Companies

The third option for students applying for educational loans to study in Australia is NBFC. This includes HDFC Bank Credila education loan, Auxilo, etc. which offer loan to students based on the final confirmation from the Australian High Commission. This just makes the process easier for disbursement of tuition fee, direct sanctions from the financial institution responsible for handling, and it reflects in the bank account as well. Thus, this option can be considered by students if they wish to apply for an educational loan to study in Australia.

Find more details at: Top Education Loan Providers in India for Studying Abroad.

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Process to Apply for an Educational Loan for Australia

Once students have secured admission to the university of their choice, their next big hurdle would be to arrange the funds required for their educational expenses. The cost of studying in Australia is at par with other top destinations such as the US and UK, making it an expensive investment as compared to studying within India. Students and families looking to avail an Education Loan would be happy to know that in India numerous Banking and Non-Banking institutions offer Education Loan at a low rate of interest to commendable students to pursue their higher education in Australia.

Applying for an Education Loan has come a long way and today students and their parents looking to apply for an Education Loan can do so from the comfort of their home. Today applying for an Education loan is simple and every student should take advantage of the same and study abroad. However, before applying for an Education Loan, there are certain particulars that must be kept in mind. Read: Studying Abroad attracts tax collected at source (TCS) of 0.5 and 5%

Apply for Education Loan through Shiksha

Shiksha has partnered with India’s topmost and trusted loan providers who will assist you in getting an education loan. Find out more!

Eligibility criteria to apply for an education loan to study in Australia

  • The student is required to be a citizen of India
  • The student must have obtained admission in a recognized university belonging to Australia
  • The candidate must have enrolled for a course that has been recognized by the funding institution (job-oriented professional degree, technical degree, and diploma courses)

Also Read: Eligibility Criteria for Education Loan

List of Documents Required For an Education Loan to Australia

Nationalized banks such as the State Bank of India (SBI) provide Education loans up to Rs. 30 Lakhs to deserving students who wish to go to Australia for higher studies. However, before the bank is able to process the loan amount, there is a list of documents that need to be furnished by the borrower (student). These include:

  • Letter of admission from the University
  • Loan application form was filled out in full
  • Documents on the cost of studies
  • Identification proof
  • Residence proof
  • PAN details of the candidate
  • Guarantor/ co-borrower/ student's bank statements
  • Guarantor/ co-borrower/ student's statement of assets
  • Guarantor/ co-borrower/ student's proof of income

Expenses covered under the loan include

The loan sanctioned by an institution would solely be for educational purposes and not cover personal expenses. The loan amount sanctioned would take care of

  • Tuition fees
  • Accommodation expenditures
  • Caution deposit money
  • Travel expenses 
  • Study tours and project work during the academic year
  • Purchase of books, laptop, and stationery
  • Other reasonable expenses that would be required to successfully complete the course

Loan Repayment for Education in Australia

Students who have applied for a loan amount ranging from 4-7.5 lakhs get 10 years to repay the entire amount. And students who have been sanctioned amounts above 7.5 lakhs are given 20 years to repay the entire amount. However, students should understand the moratorium time varies for different loan-providing institutions.

Also, read:

If you still have queries, you can reach out to us in the comments below or apply for an education loan through Shiksha Study Abroad.

About the Author
Aishwarya Bhatnagar
Study Abroad Expert

Aishwarya Bhatnagar is a skilled study-abroad expert at Shiksha. Overall she has 4+ years of experience working in EdTech. She holds a graduate degree in English Literature from Hansraj College along with a postgrad... Read Full Bio





5 months ago

Hi sir,I want to study life sciences in Australia.How the further scope of life sciences in Australia.which country can I opt for life sciences?

Reply to Nikish


Aishwarya BhatnagarStudy Abroad Expert

5 months ago

Hello Nikish! There aren't enough details to comment on your query. You can get in touch with our team of counsellors for more detailed insight to your queries. Sign up for free counselling at - Good luck!


PY Rohan

5 months ago

Hi Sir, I want to study construction management in Australia. And I got an educational loan from Auxilo.. Does Australia accept whose kind of loans?

Reply to PY Rohan


Aishwarya BhatnagarStudy Abroad Expert

5 months ago

Hello Rohan! Educational loan providers vary from university to university. Some universities may accept loans from Auxilo while others may not. You can contact our counselling team for a detailed discussion about whether or not the university you are applying to accepts funding from Auxilo. Sign u


Hai Sir, I want to study in australia. I need an education loan, can bank gives loan on my certificates, or if any property required, Is is required to have the property on my parents name or can i get loan with the suirity of well wishers property? can u please tell me the bank which can give loan


Reply to Vamshi Mylavarapu


Aishwarya BhatnagarStudy Abroad Expert

a year ago

Hello Vamshi, you can refer to this article for more clarity on your query - hope this helps. Good luck!!


Rajani Lama

a year ago

Hello Sir, what are the further process to apply for educational loan as I have already done the property valuation .

Reply to Rajani Lama


Rahul Singha

a year ago

Hello Rajani. I would request you to contact the bank that you would be applying for the loan. You could also use our education loan tool here:



2 years ago

Hello sir, I want to know I am planning to study MBBS in Australia In western Sydney University. Is there a chance for me to get 100 percent from the Bank of Baroda as mentioned above or any other bank?

Reply to ranveer


Rahul Singha

a year ago

Do note that 100% of funds are not provided by banks.. even if they give loans on total tuition and living fees.. they will always ask students to put some margin money


Rahul Singha

a year ago

Hello Ranveer. You got to understand that to be eligible for the visa you have to show the authorities that part of the cost of studying abroad is being financed by you. The rest can be financed by a bank.

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