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Australia Student Loan to Secure Proof of Funds for Visa

As an Indian, you know how it is! When you are thinking about studying abroad - you want to make sure every rupee counts, right? And for that, Australia is a value-for-money study destination! Talking about matching the figures, 90% of Australian Universities are ranked among the top in the world which makes 90% of international aspirants in Australia super satisfied with their higher education experience there.

However, all the careful planning and research can hit a snag when the visa filings hit the screens of the aspirants. One major hurdle under this is the requirement to show proof of funds. Actually, this is a common requirement for most study destinations. But as no one’s got a money tree in the backyard, the option of an Australia student loan comes into the scene. Let us explore the concept of show money, the types of student visas that require it, and how overseas education loans can help you overcome this challenge. Stick around with the article and we promise you will realize that it is easier than you think!


About Australia Student Visas

An Australian student visa is essential for Indian students and allows you to live, study, and work part-time in the country while completing your course. Depending on your needs, there are two important types of student visas for Australia:

Subclass 500 – Student Visa

  • Allows you to stay in Australia for the duration of your study program, up to 5 years.

  • Permits you to work up to 48 hours every two weeks while your course is in session.

  • Requires you to have an offer of enrollment from a recognized Australian institution.

  • Must maintain Overseas Student Health Cover (OSHC) for the duration of your stay.

Subclass 485 – Temporary Graduate Visa

  • Enables graduates of Australian institutions to live, study, and work in Australia temporarily.

  • Can bring your family along with you.

  • Offers two streams: Graduate Work Stream (valid for up to 18 months) and Post-Study Work Stream (valid for 2 to 4 years depending on your qualification).

  • Requires applicants to have completed their studies in Australia within the last six months.

  • Must meet the English language proficiency requirements.

  • Allows you to gain work experience in your field of study

Understanding these visa options and their requirements can help you plan your study in Australia more effectively. And among these requirements comes the proof of show funds. Let us learn about it in detail.


Proof of Funds

When applying for a student visa, one of the essential requirements is to demonstrate that you have sufficient funds to cover your tuition fees and cost of living in Australia. Students pursuing a four-year Bachelor's degree or a two-year Master's degree must show one year of financial capability to the visa officer.

Here is what you need to show as proof of funds for your higher studies in Australia:

Expenses
Proof of Funds For Visa
Amount Required
Tuition Fees
1 Year
Varies
Living Expenses
1 Year
AU$ 29,710
Air Tickets
One way
Varies
Overseas Student Health Cover (OSHC)
2 Years
Starts from AU$ 1,214 for 2 years


Australian Visa Financial Requirements for Living Expenses for Dependents

For Australia Visa, you need to show that you have enough money to support yourself and any family members accompanying you.

Applicant Type
Amount Required
Spouse of Main Applicant
AU$ 10,394 per year
Child
AU$ 4,449 per year
School Costs Per Child
AU$ 13,502 per year

There is no need to show any proof of funds if the annual income of sponsors (parents) for the current assessment year as mentioned on their Income Tax Returns is as per the below:

Applicant Type
Amount Required
Annual Income Requirement (no family)
AU$ 87,856 per year
Annual Income Requirement (with family)
AU$ 102,500 per year

We can define the sponsors as follows:

  • First Line of Sponsors: Parents, Siblings, and Grandparents

  • Second Line of Sponsors: Maternal and Paternal Uncle or Aunt

If your Maternal or Paternal Uncle/Aunt is sponsoring you, it is recommended that the quantum of sponsorship should not exceed 30% of their funds from the total required funds. The remaining 70% of the sponsorship should come from the first line of sponsors.


Role of Overseas Education Loans for Proof of Funds

Imagine how many dreams would be crushed if overseas education loans weren’t available for proof of funds. Many Indians rely on these loans to pursue their education abroad. Let us take a closer look at which banks and financial institutions visa officers accept for proof of funds:

Accepted Financial Institutions by Visa Officers

  • Nationalized Banks: Loans from all nationalized banks are accepted by visa officers. Examples include State Bank of India, Bank of Baroda, Canara Bank, Punjab National Bank, etc.

  • Private Banks: Loans from private banks are also accepted by visa officers. Some examples are ICICI Bank, Axis Bank, IDFC First Bank, etc.

  • Non-Banking Financial Companies (NBFCs): Generally, only HDFC Credila is accepted by a few universities, and students must take the full loan disbursement into their accounts.

  • International Lenders: Loans from international lenders like Prodigy Finance are accepted for the second year of tuition fees and living expenses.

Financial Institutions Not Accepted by Visa Officers

  • Co-operative Banks: Proof of funds loans from co-operative banks are not accepted for visa purposes.

Collateral Requirements

  • Visa officers accept only collateral loans by keeping the property, LIC policies, and Fixed deposits as mortgages.

  • Non-collateral loans are typically not accepted, but few universities accept collateral-free loans. Regarding this, it is advisable to get an in-depth understanding from your overseas education consultant.

Self-Funding Requirements

  • Funds must be in the bank account for usually six months or three months as per the university's demand.

  • This means the money should have been intact in the bank account for that period.

In conclusion, once the loan is sanctioned and the university approves the loan sanction letter, the student needs a pre-visa disbursement of the loan. This is essential to pay the first semester's tuition fees and the OSHC to get the visa letter called the Electronic Confirmation of Enrollment (eCOE).

We know all this technical information about the visa’s proof of funds might give you a vertigo sensation, just like a bouncer from an Australian fast bowler. But fear not if your coach is Élan Overseas Education Loans. The experts at Élan not only listen to your plans and financial concerns but also create customized plans for your higher studies. Very few financial institutions provide pre-visa disbursements and Élan can not just connect you to them but ensure faster disbursements as well.

So, whether you have questions about the education loan interest rate, the moratorium period, or anything else, team Élan explains everything in a way that resolves all your queries. Connect to our experts and be rest assured to fulfil your Australian Study Dream.

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