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Explore top educational loan options for MS in Australia. Compare lenders, interest rates, and repayment terms to find the best financing solution for study abroad.
Australia has around 6 lakh, international students, right now with enrolments in master’s degrees constituting a large portion of admissions in graduate programs. Of this, India accounts for over 1 lakh enrolments which marks a 24.5% rise as compared to last year’s enrolment figures. The numbers clearly suggest that the Land Down Under is slowly rising as a preferred destination for higher education for Indian students.
If you’re thinking of adding to this number and studying a STEM course in Australia, then you’ll want to know all the options for education loan for MS in Australia to finance the cost of education in the country. That’s what we explore in this write-up.
The first step in the process of choosing a education loan for Australia is knowing the cost of doing MS in Australia in Indian rupees, which comprises of tuition and living expenses. Listed below are the top five Australian colleges for Masters with their indicative fees. The tuitions given are yearly and for full-time graduate coursework programs.
Living expenses in Australia vary widely, depending upon the city you are living in, but typically, you will need to shell out about AUD 20,290 per year.
With tuition fees and living costs at par with those of the US, funding your studies in Australia with financial aid is a must. While scholarships are one way to go, education loans are another. Student loans pay off tuition and connected expenses. These loans are a sound funding alternative because the interest for these is paid only on the money the student uses. (Swing over to this brief article to understand student loans better).
Education loans for Australian to international students are of two types:
A loan without collateral is one where the student doesn’t guarantee a financial asset like a property or FD. These loans are also known as unsecured loans. Nationalized banks offer only ₹ 7.5 lakhs for student loans without collateral. The amount is too low to cover the expenses of studying in Australia. This leaves either a private bank or an NBFC for an unsecured loan, both of which authorize higher amounts.
The Australian embassy recognizes only a select few private banks and barely any non-banking financial companies. Therefore, if you are looking for an education loan without collateral for the country, ask for guidance from a GyanDhan counselor. They’ll give you a clearer picture of the acceptable banks or NBFCs with a low interest rate.
Educational Loans for MS in Australia: Without Collateral
Features |
Private Banks |
NBFCS |
Public Banks |
Example Lenders |
|||
Loan Amount (INR) |
Upto INR 40 lacs |
Upto INR 25 lacs |
PSUs don't give loans more than INR 7.5 Lakhs for studying abroad. |
Interest Rate Range |
11.5%-13.5% |
12%-16% |
|
Processing Fees (INR) |
INR 0 is the loan is less than INR 20 lacs; INR 750 on every lac above a loan of INR 20 lacs |
1%-2% loan amount |
|
Number of Colleges Supported |
More than 10 |
More than 15 |
Features like repayment period, processing time, documents required, and so on vary as per the types of lenders. Below is a detailed breakdown of the features for all the lenders:
The precise paper formalities vary from bank to bank, making the procedure painstaking. GyanDhan can provide a customized document checklist for every bank and NBFC to hasten the process of loan sanction.
Education loans with collateral have two advantages over unsecured loans – they are sanctioned for a higher amount and are granted at lower interest rates. This happens because the applicant submits to the bank or NBFC security against non-repayment.
Education Loan for MS in Australia: With Collateral
Example Lenders | SBI, BOB | Axis Bank | Avanse, Incred |
---|---|---|---|
Loan Amount (INR) |
Upto INR 1.5Cr |
Upto INR 60 lacs |
Upto INR 60 lacs |
Interest Rate Range |
9.2%-10.5% |
11.5%-13.5% |
12%-14.5% |
Processing Fees (INR) |
INR 11800 |
INR 0 for loans below INR 20 lacs, INR 750 on every lac above INR 20 lacs |
1%-2% loan amount |
Payment During Study Period |
None |
Simple Interest |
Simple Interest |
Features like repayment period, processing time, documents required and so on vary as per the types of lenders. We give a detailed breakdown of all these features for all the lenders:
For a top study destination like Australia, there are multiple education loan options available in the market which can make the process of surfing through the loans and selecting the most appropriate one a tedious and confusing task. Here are a few suggestions from our side which you can take into account while choosing an educational loan for MS in Australia.
PSUs are the best educational loan option for an MS in Australia because it is offered at a considerably lower rate of interest. If you are not able to pledge security against the secured loans, then the next best option would be unsecured educational loans from private banks over NBFCs. The interest charged by private banks is considerably lower than that charged by NBFCs. Additionally, loans from private banks offer additional tax benefits which most of the NBFCs do not offer. Private banks also charge lower processing fees as compared to NBFCs.
Moreover, it is only the sanction letters of select few lenders that are accepted by the Australian High Commission. This is also an important factor that needs to be considered while applying for a loan for Australia. GyanDhan’s education loan counsellor can give you more information on the same. We do a quick and comprehensive analysis of your financial requirements and profile and help you select the options in the market that suit you the most.
Usually, a bank requires a valid student visa before they disburse the loan amount. The process of getting an Australian student visa is slightly different. Their embassy/university demands “Pre-Disbursement.” What does that mean for the loan applicant? You need to get the tuition for the first semester disbursed before the student visa is approved. Maximum lenders are not aware of this procedure which makes getting an education loan for Australia tricky. A majority of applicants suffer from this issue when applying for a student loan for Australia.
At GyanDhan, we ensure that the bank is aware of the policy and sanctions the disbursement needed for the Australian visa.
The process of finding an education loan at the lowest interest rate possible is not easy; rather, it demands effort and research. For each bank and loan, you have to scrutinize elements such as:
Selecting a loan at random is not a smart choice. So, take the appropriate measures to find the most appropriate education loan for MS in Australia. Utilize our Loan Eligibility tool to get a list of all loan choices that fulfill your criteria. Then go through our customizable EMI calculator. It will help you to compare the study loan for Australia interest rates and monthly payments. You could also get our education loan counsellors involved while making the decision. They will perform a quick analysis of your financial requirements and help you select the best alternative.
Over the years, GyanDhan has ensured that students searching for MS program loans for Australia (with or without collateral) have found the right fit for them. Let us take over the burden for you too, give us a call.
Yes, many Indian banks and financial institutions offer educational loans for master's programs in Australia. The loan usually covers tuition, living expenses, travel, and other related expenses.
Students can obtain education loans from Indian banks or Non-Banking Financial Companies (NBFCs) to study in Australia, as long as they meet eligibility requirements such as admission to an accredited Australian institution.
Indian students who have been admitted to a recognized institution in Australia, have a good academic record, and (in many cases) a co-signer are typically eligible. Financial stability, collateral, and a consistent repayment plan may be required.
Loans from most RBI-regulated Indian banks and NBFCs are eligible for an Australian student visa. However, well-known banks include SBI, HDFC Credila, Axis Bank, and Bank of Baroda, among others. The bank must provide a loan sanction letter that follows the Australian High Commission's guidelines.
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