Australia encourages innovation, creativity, and independent thinking through its excellent universities. A wide spectrum of international students looks forward to Australia for their higher education. For those international students who complete their degree in one of the Australian Universities are sure to find themselves as a competitor in today’s international job market.
One of the biggest hurdles international students face for studying in Australia is an arrangement for funds. Not each student who dreams to study in Australia fulfils their dreams, as it is not much affordable. So in this article, we are going to present you each minute detail of Education Loan to Study in Australia.
How to get the Education Loan to Study in Australia?
International Students planning to study abroad in Australia with the help of an education loan must start their process minimum 6-7 months before their classes begin. You may also choose to start your loan application process with your university admission application. Here are the steps you need to follow for applying for a student loan:
In the next part of this article, we will discuss the above-mentioned steps in detail. Go through each step thoroughly and take note of the important points, as it is a big decision which will affect your financial life.
You should start your process by researching different banks and loan options. But before you research, there are few things you have to take into consideration.
Factors to consider for applying for education loan
Before applying for a student loan to study in Australia, you should have a clear idea about how much money you will require and how much you are going to manage by your fund. Other important factors to consider before applying for the education loan are:
After taking into account the above-mentioned factors, check your eligibility for an education loan to Study in Australia. Here are the criteria:
Eligibility Criteria to apply for international education loan
Before applying, check your eligibility to apply for the education loan to study in colleges in Australia. Different banks have different eligibility criteria. The common eligibility criteria followed by most of the banks are:
Here you have to estimate the amount you will require to study abroad in Australia. Generally, an education loan to study in Australia covers the total cost of a student’s education in Australia. However, this can vary depending on the chosen institution and study program. While calculating the expenses, you should include the following expenses:
Estimating the Cost of studying in Australia is one of the crucial steps. Once you get your final amount, you have to check how much you will be able to pay on your own and how much you will require to take a loan from the bank. The loan sanctioned by a bank would entirely be for educational purposes and not to cover any of the personal expenses.
You have to get admission in the University of Australia. You have to show the proof while applying that you are admitted to the Australian University. There are plenty of universities in Australia open for international students. Here are the top universities in Australia:
Not only the above-mentioned universities, but you also have a spectrum of options in Australia where you can pursue your higher education. You will get full information here: Universities in Australia
Now your task is to compare the different loan options provided by the different banks for studying in Australia and choose the one which benefits you the most. Here are the factors on basis of which you can compare the loans options
Each factor plays an important role, so decide properly after comparison. If you decide on careful planning and comparing you can save a few dollars.
In this step, you will legally start the process of applying. After deciding the bank and amount of loan you will require, you have to fill the loan application form. It can be done online or offline according to the bank. Make sure to fill correct details in it.
In the application form you will have to fill your name, parents name, address, date of birth, age, ID proof, course name, duration of the courses, university name, Income, Liabilities, employment details, type of security, tuition fees, other expenses etc. Fill everything you are asked in the form correctly and recheck it before applying.
Every loan applicant needs to submit some common and important documents along with the Loan Application Form while applying for an education loan for studying in Australia. The list of these documents required are listed below:
Other Optional Documents
As soon as your loan application gets approval from the bank, it will issue a loan document that includes various terms and conditions of the loan along with the basic details. It includes the borrower name, agreed loan amount, the period of repayment, interest rate, the signature of both the parties, collateral security etc. Read the terms and condition properly and then sign it.
After signing your loan document, the bank will pay the amount to you in instalments or lump sum as per your and university requirement. It will also be mentioned in your loan agreement. Once you receive your amount, spend on the necessary expenses such as tuition fee, books and supplies, accommodation etc. Don’t waste your money on the non-essential expenses.
Generally, banks do not ask for collateral security for loans which include less amount. However, for a high amount of loans, most banks require collateral in the form of a satisfactory third party guarantee.
What is Collateral?
Any property either movable or an immovable, which can be kept as a security in the bank for an education loan is collateral. Most of the banks demand collateral as security to reduce the risk involved in paying off the credit.
Instruments used as collateral:
There are some of the important things bank inspect before granting loan:
The loans taken to study in Australia are to be paid in instalments, as decided in the loan agreement. Pay the instalments on time with the agreed amount. Make sure you do not delay in paying the instalments.
The loan can be repaid within a period of 10 -20 years after taking the loan. The repayment period starts from 4- 12 months after the end of the course. Moratorium time varies with different loans providing banks.
You should also read these articles:
Best courses to study in Australia to Get a Good Job
How to Choose the Right Program to Study in Australia?
Admission Requirements for Australian Universities
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