Education Loan for Studying in Australia: Top Lenders, Expenses Covered, Eligibility & more

Australia has become a top choice for international students, especially because of its strong visa approval rates. In the Higher Education sector alone, the approval rate for the Student Visa (Subclass 500) was approximately 80% in 2023-24 and is estimated to have crossed 90% in the 2024-25 financial year.

One possible reason for this sharp increase is the recent update to Australia’s student visa policy, where Ministerial Direction 111 replaced the earlier Direction 107. Under the new rule, priority is now given to visa applications for students enrolling in Higher Education and Vocational Education institutions.

Besides visa advantages, Australia attracts students for many other reasons. The country offers high-quality degrees that are valued globally, with strong career outcomes. Students also benefit from part-time work options during studies, the chance to connect with leading companies, and excellent post-study work rights.

But studying in Australia does come with a cost. This includes not just tuition fees but also day-to-day living expenses. For many students, managing these costs can be challenging. That’s why taking an Education Loan for Australia becomes a smart and practical choice.

Before anything else, let’s understand what it really takes financially to study in Australia.

Cost of Studying in Australia

When applying for an education loan to study in Australia, it’s important to know what your education is going to cost.

Why? Because unless you have a clear idea of your expected expenses, you can’t plan how much financial support you’ll need. Whether you're aiming for a Postgraduate or Undergraduate Degree, understanding the tentative cost helps you prepare smarter and avoid surprises later.

Here’s what you can expect in terms of expenses.

In addition to tuition and living expenses, there are other costs to keep in mind such as airfare, visa application fees, and miscellaneous personal expenses.

Funds Required for Australian Visa

To apply for an Australian Student Visa (Subclass 500) for Higher Education, students are needed to show proof of funds to cover at least AUD?29,710 for their living expenses over one year. 

This is the minimum financial requirement set by the Australian Government to ensure that international students can comfortably manage essential costs such as accommodation, food, transport, and daily living while studying in Australia. 

Demonstrating this financial readiness is an important part of the visa application process and supports a smooth and well-prepared student experience.

Now that we have a clear understanding of the required expenses, we will explore the types of Australia student loans you can consider based on your budget, preferred level of study, and chosen program.

Types of Education Loan for Australia

When it comes to student loans for Australia, there are two main types you can choose from: secured and unsecured loans. 

Given below is a quick overview for your understanding.

Secured Loans

A secured education loan for studying in Australia involves pledging collateral, such as property, fixed deposits, or LIC policies, against the loan amount. In India, major banks like SBI, Bank of Baroda, and Punjab National Bank offer secured loans with higher sanction limits, lower interest rates, and longer repayment tenures. 

These loans are often preferred for high-value courses, especially at the Postgraduate level, and are widely accepted by Australian universities for visa purposes.

Unsecured Loans

An unsecured education loan for studying in Australia does not require any collateral or security to be pledged. These loans are generally based on the student’s academic profile, entrance test scores (if applicable), chosen university or course, and the co-applicant’s financial background. 

In India, lenders like ICICI Bank and Axis Bank, and select NBFCs offer unsecured loans with quicker processing and flexible repayment options. While the loan amount is usually lower and interest rates slightly higher compared to secured loans, students with strong profiles can still get sufficient funding for their Postgraduate or Undergraduate Degree in Australia.

At this point, you might be wondering how much funding public and private banks offer, especially when categorized into secured and unsecured loans. That’s exactly what we’ll cover next.

Leading Banks & Financial Institutions Offering Education Loans for Australia

If you are planning to study in Australia and considering an education loan, it is important to understand how your funding source may impact your visa application. The Australian High Commission typically accepts loans taken from Indian public or private banks as valid proof of funds. 

While NBFCs and international lenders may appear to offer flexible unsecured loan options, their acceptance is limited in the Australian student visa process. In most cases, loans from international lenders are not accepted at all. Some NBFCs may be considered, but only if the full loan amount is disbursed before admission.

The positive news is that students have access to a wide range of trusted public and private banks in India that offer both secured and unsecured education loans. These options are not only more widely accepted by Australian universities but also align with visa requirements set by the authorities.

Please refer to the table below for a comparison of available loan options.

As you can see, you can secure a high loan amount to support your studies in Australia. The key is to choose the right lender—whether a nationalized or private institution—based on your academic and financial profile.

Moving on.

Expenses Covered Under Education Loans for Australia

If you’ve chosen the lender that best suits your financial and academic plans, you’re probably curious about the kind of expenses your education loan will support during your studies in Australia. Here’s a simple overview to help you understand what’s usually covered.

• Tuition Fees: Coverage for academic fees charged by the Australian university or institution.

• Living Expenses: Includes accommodation, food, and other daily living costs.

• Airfares: One-way flight tickets from India to Australia.

• Overseas Student Health Cover (OSHC): Mandatory health insurance required by the Australian Government.

• Examination and Library Fees: Charges for exams, lab usage, library access, and other university services.

• Books and Study Materials: Cost of textbooks, stationery, and academic supplies.

• Laptop or Computer: One-time allowance for purchasing a laptop or essential electronic equipment.

• Caution Deposit / Security Deposit: Refundable deposits for university housing or private accommodation.

• Local Transport: Daily travel expenses within Australia related to study.

• Miscellaneous Academic Expenses: Other course-specific costs such as fieldwork, lab kits, or software.

It’s clear that a student loan for Australia takes care of both essential and additional expenses tied to your education journey. 

Now, let’s see what makes you eligible to apply for one and how you can get started.

Eligibility Criteria to Apply for an Education Loan for Australia

While many banks have eased certain conditions in recent years, it remains essential for applicants to carefully check and meet all eligibility requirements before applying for an education loan to study in Australia. This helps avoid delays or rejections during the processing.

Take note of these important details.

• Nationality: The applicant must be an Indian citizen.

• Age: The applicant should generally be 18 to 35 years old at the time of loan application.

• Admission Confirmation: A conditional (select banks) or unconditional admission offer letter from a recognized university or institution in Australia is mandatory.

• Academic Record: A good academic background is usually expected. Banks may have minimum marks criteria in qualifying exams.

• Recognized Course: The course should be a full-time Postgraduate or Undergraduate Degree (in fields like STEM, Business, IT, Health, etc.) approved by the bank.

• Co-applicant Requirement: A co-applicant is mandatory, usually a parent, guardian, or spouse with a stable income source. The co-applicant’s financials are key to loan approval.

• Collateral (for Secured Loans): Tangible collateral like property, FD, or LIC policy may be required.

• Repayment Capacity: The repayment capacity of the co-applicant and/or applicant will be assessed, including income proofs, bank statements, and existing liabilities.

Once you are confident that you meet the eligibility criteria, it is equally important to prepare the required documents to ensure a smooth and timely loan application process.

Documents Required for Education Loan for Australia

Before applying for an education loan for Australia, make sure you carefully go through this important checklist:

1. Completed loan application form

2. Passport-size photographs

3. Identity proof

4. Address proof

5. Admission letter or Confirmation of Enrolment (CoE) from the Australian university

6. Academic records including mark sheets and certificates

7. Entrance exam scores (if applicable)

8. Income proof of the co-applicant

9. Business proof and Income Tax Returns (ITRs) if the co-applicant is self-employed

10. Recent bank statements (usually for the last 6 months)

11. Detailed estimate of educational expenses

12. Collateral documents (for secured loans)

13. Loan sanction letter and agreement papers (at the approval stage)

14. Form A2 for foreign remittance at the time of disbursement

15. Any additional documents such as:

• Gap certificate (if applicable)

• Affidavit of support

• Co-applicant’s photographs

Have all the documents in place? Great — you're now ready to move forward with the loan application process, which we will cover in the next section.

Application Process for Education Loan for Australia

There are basically two ways to apply for an overseas education loan for Australia. Each option comes with its own advantages, so it’s important to understand the details carefully to choose the one that fits your needs best.

Apply Via Bank

To apply for an education loan for Australia, you usually begin by filling out the application form through the bank’s official portal. You will need to submit key documents such as your admission letter or Confirmation of Enrolment, academic records, income proof, and collateral details if applicable. Once the documents are verified, the bank will assess your profile and process the loan accordingly.

That said, the process can feel a bit complex, especially if it is your first time applying for an education loan. Understanding the specific requirements for studying in Australia may also be challenging without the right guidance.

Apply Via Élan Overseas Education Loan

You can apply through Élan Overseas Education Loans – a dedicated platform offering the best funding options for students planning to study abroad. Our experts will assess your profile, help you choose the right bank and loan type, and create a personalized plan just for you. 

Based on your academic and financial background, they will also help ensure you receive the highest possible loan amount to support your studies in Australia.

Building on this information, let us move forward.

How to get Faster Disbursements of Education Loan for Australia?

Élan Overseas Education Loans simplifies the loan disbursement journey through its deep-rooted experience and efficient process handling. With strong ties to top financial institutions, your application gets noticed faster. The team ensures all paperwork and formalities are handled quickly and accurately, minimizing delays. 

Close coordination with legal and administrative contacts also helps move things along smoothly. This means you can focus on your Australian study plans while Élan handles the critical steps to ensure timely disbursement.

Still unsure about your next step? Reach out to the Élan team today.

By now, you’ve seen why applying through us makes more sense than applying on your own. From expert guidance to faster approvals, we’re here to make your education loan journey easier.

Let’s take the next step together – we’re ready when you are.

FAQs

1. Who is accepted as a sponsor for an Australian education loan?

Banks usually accept close family members such as parents, legal guardians, or spouses as sponsors. The sponsor must have a stable source of income and provide valid income proof and identification.

2. Why is a property-based (secured) loan often preferred for Australia?

A loan secured by property or fixed assets reflects stronger financial backing. This increases your loan approval chances and shows visa authorities that you have credible and stable funding to support your education.

3. Why do Australian visa officers prefer secured loans?

Secured loans are backed by collateral and are usually approved by regulated nationalized or private banks. This makes them more authentic and reliable as proof of funds during the visa application process.

4. For how many years of education do I need to show proof of funds for the Australian student visa?

Regardless of whether your course is 2 years (Postgraduate Degree) or 4 years (Undergraduate Degree), the Australian Government requires proof of funds to cover at least 1 year of studies.