Remember these while applying for loan to study in Australia
Studying abroad in top Australian universities is on the bucket list of most of the students. However, the budget is the deciding factor. If you need financial assistance, you can take an education loan to study in Australia, in order to finance your studies abroad. In this article, we will discuss in detail about things to remember while applying for loan to study in Australia, repayment, and more.
If you have secured admission to your dream college in Australia, you can now fulfill it. After securing admission to a university or college abroad, your next concern will probably be determining the source of fund for your educational and personal expenses. Even though the cost of studying in Australia is not as high as that of the United Kingdom or in the United States, studying in Australia is still an expensive option as compared to studying in India. However, you can take advantage of the Educational Loan Scheme for higher education in Australia. Before, applying for educational loans, there are certain points that you need to know.
In India, almost all the major banks are offering loans to deserving students who wish to pursue higher studies in Australia. The loans are offered to those Indian students (resident) who have secured admission in any of the bank's list of approved course or universities. Banks have simplified the application process so that every student can take advantage of and apply for Foreign Education. The main endeavor of these banks is to grant privilege to a meritorious student who wishes to pursue higher education outside the country.
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Read: Things to know before applying for foreign education loan
Key Pointers to Remember While Applying for Australian Education Loan
Basically, when you apply for a loan, you will be treated as the borrower and your parents or guardians as co-borrower. The loan is permitted based on the borrower's papers. The loan amount or the terms of loans differ from bank to bank. As of the present, Indian banks lend up to a maximum of Rs 20 lakhs for studying abroad. It generally covers:
- Tuition fees payable to college/school
- Examination /library /hostel charges
- Travel expenses
- Purchase of books /equipment /uniform
- Cost of two-wheelers (optional)
Repayment of loan
You can repay your loan in the form of EMIs which will start one year after the course or six months after the graduate has got a job, whichever is earlier. The term can be from 3-8 years. Most banks do not require any margin up to Rs 4 lakh and, beyond that, 15 percent margins are charged.
Security
Generally, banks do not require collateral security for loans up to Rs. 4 lakhs. However, loans ranging from Rs. 4 lakhs to Rs. 7.50 lakhs, most banks require collateral in the form of a satisfactory third party guarantee.
For loans above Rs. 7.50 lakhs, collateral security of appropriate value or co-obligation of parents/guardian/third party guarantee along with the assignment of future income of the student for the payment of installments may be obtained.
Banks accept security in the form of:
- Government Securities/ public sector bonds
- Land/building
- Units of UTI, NSC, KVP, LIC policy, gold, shares/debentures,
- Bank deposit in the name of the student, parent/guardian or any other third party with suitable margin.
Some of the Indian Banks that offers abroad study loans are:
Bank | Amount (Max.) |
---|---|
Union Bank of India | INR 15,00,000 |
State Bank of India | INR 20,00,000 |
Indian Bank | INR 20,00,000 |
Punjab National Bank | INR 20,00,000 |
Note: Most banks provide facilities for online application.
Check: Public v/s Private Education Loan Providers
Some of the important things that bank scrutinize before granting loan:
- The repayment capacity of the student's parents/family/Sponsor.
- The value of Collateral Security. Bank usually got the valuation of the collateral done from an approved Valuator only then process the loan application.
- Margin money: Usually in case of Overseas education loan the student family to contribute some margin money, usually its 25%. For example, if a student is applying for Rs. 20 Lakh loan and the margin money is 25% then Rs.5 lakhs has to be contributed by Student's Family.
Read related articles about Loans to study abroad:
Apply for Loans Through Shiksha
Steps to filling an Education Loan Form
Q: Is Torrens University good for international students?
Torrens University Australia is one of the fastest growing universities in Australia. It offers a culturally vibrant and comfortable environment for international students. Each year thousands of international students from all over the world come to study at various courses of the university. currently, there are 3932 total students at Torrens University out of which 986 are international students.
Q: Is it hard to get into Newcastle University Australia?
The University of Newcastle is amog the universities that does not publish official data on the acceptance rate. However, as per some unofficial sources, the University of Newcastle Australia acceptance rate is 80%. This makes Newcastle University Australia moderately selective in admissions. Please note that the data on acceptance rate given above is taken from an unofficial source, therefore, it is subject to vary.
Q: Is it worth studying at Melbourne Institute of Technology, Australia?
Melbourne Institute of Technology Australia (MITA) is largely regarded as one of Australia's top institutions. It has a solid reputation in engineering, business, and science.
To begin with, Melbourne Institute of Technology Australia provides a world-class education with an emphasis on hands-on learning. You will be able to gain practical knowledge and abilities in a range of disciplines. Furthermore, the institution provides a wide range of courses and programmes that will provide you with the skills and knowledge required for a successful profession.
Second, the university is well-known on a global scale. It has the highest graduate employability rate in Australia. This is due to the great level of education and possibilities provided by the university to its students.
Third, the university boasts a broad and vibrant culture. While learning, you will be able to pursue your hobbies and meet like-minded people. This will aid in the development of your professional chances and the formation of strong relationships that will continue long after you graduate.
Fourth, the institution provides a wide range of facilities and services to make your studies more pleasurable and productive. You will be able to locate
Q: What are the admissions requirements for Torrens University Australia for international students?
The Torrens University Australia offers hundreds of courses at undergraduate and postgraduate levels. International students need to satisfy and meet both general and course-specific admission requirements to get into the university. The general admission requirements are:
- A completed higher education equivalent to an Australian university
- Bachelor’s degree equivalent to an Australian university degree
- English language proficiency
- Interviews (may be required)
- Portfolio (may be required)
- Letter of references (may be required)
Q: What are the application deadlines for University of Notre Dame?
The University of Notre Dame Australia opens its applications on May 1 2024 and closes their applications by Sep 30 for the 2024 academic year. These dates allow students apply comfortably as the applications can be given till september. Applicants must remember to submit their application forms within this timeframe to be considered for admission at the University of Notre Dame Australia.
Level of Study | Application deadlines |
---|---|
Undergraduate | May 1, 2024 to Sep 30, 2024 (tentative) |
Postgradute | Opened throughout the year |
Q: Why to choose Bond University for MS in Australia rather than University of Queensland?
Bond University and the University of Queensland are both prestigious institutions in Australia, each with its own unique strengths. Bond University is ranked 20th in the Times Higher Education rankings of the Best Small Universities in the World and has been Australia's top university for the educational experience for 17 consecutive years.
On the other hand, the University of Queensland, located in Brisbane, is one of the leading research and teaching institutions in Australia. The university is ranked in the world's top 100 universities according to several major ranking systems, including QS (50), ARWU (47), and Times Higher Education (53).
Q: What are the benefits of studying at the University of South Australia in Adelaide?
University of South Australia is one of the leading public universities in Adelaide, Australia. It is not just one of the top universities in Australia, but also a part of the top 500 universities in the world. Listed below are some of the best reasons to study in UniSA:
- Vast variety of courses and excellence in teaching;
- Diversity and rich culture;
- Beautiful campus;
- Affordable tuition fees;
- Small class sizes; and
- Student-centred approach.
Q: Does Notre Dame offer admissions interviews?
No, the University of Notre Dame doesn’t have any admission interviews. The university strictly only checks the application forms filled by its applicants. However, it is suggested that applicants have a strong SOP, LOR, and grades before applying to the university.
Aishwarya is a professional Writer currently working as a Study Abroad Expert in the Editorial Team at Shiksha. She has over 5 years of experience and is skilled at creating Online Content with leveraged knowledge i... Read Full Bio
Armed with B.Com from Delhi University, Anuradha Sharma has accumulated rich experience as an education counsellor. She is especially adept at handling Australia and NZ admission procedure. Before becoming a GTE Exp... Read Full Bio
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