Education Loan in Australia for Studying
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Studying abroad in top Australian universities is on most students' bucket list. However, the budget is the deciding factor. If you need financial assistance, you can take an education loan to study in Australia to finance your studies abroad. In this article, we will discuss in detail things to remember while applying for a loan to study in Australia, repayment, and more.
If you have secured admission to your dream college in Australia, you can now fulfil it. After securing admission to a university or college abroad, your next concern will probably be determining the source of funds 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 use 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 offer loans to deserving students who wish to pursue higher studies in Australia. The loans are offered to those Indian students (residents) who have secured admission to any of the bank's approved courses or universities. Banks have simplified the application process so that every student can take advantage of and apply for Foreign Education. The main endeavour of these banks is to grant privilege to a meritorious student who wishes to pursue higher education outside the country.
Read: Things to know before applying for foreign education loan
Education Loan for
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. Currently, 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, starting one year after the course or six months after the graduate has gotten a job, whichever is earlier. The term can be from 3-8 years. Most banks do not require any margin up to Rs 7 lakh, and beyond that, 15 per cent margins are charged.
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Security
Generally, banks do not require collateral security for loans up to Rs. 7.5 lakhs. However, for 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 instalments 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,
- The bank deposit is in the name of the student, parent/guardian, or any other third party with a suitable margin.
Some of the Indian Banks that offer abroad study loans are:
| Bank | Amount (Max.) |
|---|---|
| Union Bank of India | INR 1,50,00,000 |
| State Bank of India | INR 7,50,000 to INR 1,50,00,000 |
| Indian Bank | INR 40,00,000 |
| Punjab National Bank | INR 7,50,000 |
Note: Most banks provide facilities for online applications.
Some of the important things that banks scrutinize before granting loan:
- The repayment capacity of the student's parents/family/Sponsor.
- The value of Collateral Security. Bank usually gets the valuation of the collateral done from an approved Valuator and then processes the loan application.
- Margin money: Usually, in the case of Overseas education loans, the student's family contributes some margin money, usually 25%. For example, if a student is applying for a Rs. 20 Lakh loan and the margin money is 25%, then Rs.5 lakhs has to be contributed by the Student's Family.
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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 87%. 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.
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
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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.