Studying in Australia is considered one of the best educational experiences worldwide, and having this global exposure can prove advantageous. However, funding this dream is not that easy without financing support. Educational loans do make sense in this case, as they help students not worry about the financial aspects and instead focus on their studies. In this blog post, we present an amended education loan guide for 2025.
Types of Education Loans
Secured Loans
- Require collateral like property, fixed deposits, or insurance policies.
- Offer lower interest rates and higher loan amounts.
- Ideal for students opting for expensive courses.
Unsecured Loans
- Do not require collateral.
- Interest rates are higher, and approval is based on the co-applicant’s financial profile.
- Suitable for students seeking loans quickly.
Best Banks and Financial Institutions Providing Education Loans
Let us examine the things closest and the ones we can rely on:
- State Bank of India (SBI) Overseas Education Loan
- Scheme: Global Ed-Vantage
- Loan Amount: Up to INR 1.5 crore.
- Interest Rate: Starts at 9.55%.
- Tenure: Up to 15 years.
- Bank of Baroda Overseas Education Loan (BOB)
- Scheme: Baroda Scholar
- Loan Amount: Up to INR 1.5 crore.
- Interest Rate: Starts at 9.70%.
- HDFC Credila Overseas Education Loan
- Loan Amount: Up to INR 45 lakhs.
- Interest Rate: 9.55% to 13.25%.
- ICICI Bank Overseas Education Loan
- Loan Amount: Up to INR 3 crore.
- Interest Rate: 9.50% to 11.31%.
- Axis Bank Overseas Education Loan
- Loan Amount: Starts at INR 50,000.
- Interest Rate: 8% to 16%.
Eligibility Criteria
- Admission: Secured admission to a recognized university in Australia.
- Academic Record: Strong academic performance.
- Co-Applicant: A parent or guardian with a stable income and good credit score.
Documentation Needed to Secure a Loan
- Valid documents such as a visa/work permit.
- If your spouse is your co-applicant, you will also provide proof of income.
- Other related documents.
Expenses Covered by Education Loans
Education loans can be very important as you may use them to pay for:
- Travel and visa requirements.
- Other related expenses like buying books from any library, a laptop, and much more.
Ask your bank for the current interest rates to know the exact amount you will need to pay back.
Steps in the Loan Process
- Submit the Application: Work on the application accurately and attach the corresponding documents that are required.
- Sanction Letter: When the loan request is granted, you receive a sanction letter that contains the loan amount and the terms.
- Disbursement: As per the agreement, funds are transferred to the designated bank account or sent directly to the university.
Key Features to Compare
When opting for an Australia Education Loan, pay attention to the following aspects:
- Interest Rates: While nationalized banks may offer low interest rates, private banks may charge high interest rates.
- Processing Time: Private banks and NBFCs are likely to sanction loans faster than public sector banks.
- Repayment Flexibility: Look out for lenders providing the option for moratorium and EMI repayments.
- Collateral Requirements: Determine whether the loan is secured by collateral or not.
Repayment Terms and Benefits
- For students who have completed their course or got a job, a standard repayment period is six to twelve months after completing the academic course.
- Loans can be repaid in 10-15 years, which allows people to manage their expenditures better.
- Some providers extend the benefits under Section 80E of the Income Tax Act, 1961, in respect of interest paid on education loans to study abroad.
Additional Tips
- Apply for a loan for a course at least four to six months before your commencement of the course.
- Government schemes like the Dr. Ambedkar Interest Subsidy for weaker sections will be beneficial.
- Tips from consultants should be sought for expert recommendations.
Why Choose Imperial Overseas?
Looking for expert guidance on education loans? Eduloans offers:
- Tailored loan solutions.
- Assistance with documentation and approval.
- Partnerships with leading banks and NBFCs.
- End-to-end support for a seamless experience.
Get started with us today to turn your study-abroad dreams into reality!
FAQs
Can I get an education loan without collateral?
Yes, unsecured loans are available but may have higher interest rates.
What is the repayment tenure for education loans?
Most banks offer a repayment period of 10-15 years.
Are living expenses covered under education loans?
Yes, most lenders cover living expenses along with tuition fees.
Can I apply for an education loan before securing admission?
Pre-approved loans are available, but final disbursement happens only after confirming admission.