Education loan offers financial assistance for students who want to pursue higher education. The Indian government has initiated multiple flagship education loan schemes for students to study in top cities like Melbourne. As per the 2021 census, of the total student population, there were 5.3% Indian students. A large section of these students participated in the Indian government’s loan schemes and secured great options. Today, we bring to you a comprehensive guide on education loan for Melbourne by Indian government.
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Government of Indian Loans for Melbourne (Australia)
The Government of India has sanctioned the PM-Vidyalaxmi scheme to offer financial assistance to deserving students. This ensures that monetary challenges do not hinder any Indian youth from pursuing quality higher education to study in Melbourne and other top destinations.
- A unique loan product has been launched, facilitating collateral-free and guarantor-free education loans for talented students admitted to the top 860 premier institutions.
- The scheme features a straightforward, transparent, and student-friendly digital application process.
- Students from families with an annual income of up to Rs. 8 lakhs will benefit from a 3% interest subsidy on loans up to INR 10 lac.
Education Loan for Studying in Melbourne
Melbourne is among the top 10 study destinations in the world and yes, it is not cheap. Most of the students simply cannot afford the tuition fees and cost of living. Therefore, the government of Indian supports such students. State-owned banks like the State Bank of India, Punjab National Bank, and Bank of Baroda offer up to INR 3 Cr loan to Indian students.
Indian Nationalised Banks
Indian Nationalised banks offer up to 90 per cent of secured education loans with collateral. These banks are known for their lower interest rates, friendly processing charges, zero hidden costs. The processing of applications may take longer in some cases, leading to potential delays in follow-ups. Let’s explore the education loan options for Australia provided by the Bank of Baroda and the requirements for Indian students planning to study there.
Private Banks
Compared to nationalized banks in India, private banks offer a faster loan approval process, better follow-ups, and the assistance of a dedicated relationship manager. However, private banks tend to be more expensive due to higher processing fees and interest rates. These loans are often unsecured, meaning students don’t need to provide collateral or mortgage assets. For example, Axis Bank and ICICI Bank offer unsecured education loans to students admitted to Australian universities.
NBFCs
Non-Banking Financial Companies like HDFC Bank Credila provides education loan for Indian students planning to study in Australia. These organizations provide loans based on final approval from the Australian High Commission. The funds are deposited directly into the student’s bank account, making the process smoother. This is a viable option for students seeking education loans for studying in Australia.
How to Apply for Education Loan for Studying in Australia?
Students must apply for an education loan for studying in Melbourne as soon as they’ve received their offer letter from the university. This will serve them with enough time to choose the right financial institution, understand education loan interest rates, and the loan process. Students can apply for an education loan both online and offline. For example, SBI accepts loan applications on its website. Students can fill out the loan form online and submit all the documents.
To successfully apply for an education loan for studying in Melbourne, students must submit all the required documents.
- Offer Letter from the university.
- The loan application form
- Documents on the cost of studies
- ID proof
- Residence proof
- PAN Card (Permanent Account Number)
- Guarantor/ co-borrower/ student’s bank statements
- Guarantor/ co-borrower/ student’s statement of assets
- Guarantor/ co-borrower/ student’s proof of income
Expenses Covered Under Education Loan
The education loan offered by the Indian government and private institutions covers more than your tuition fees. However, the loan is only provided as financial assistance for academic-related expenses and not for personal expenses. Your education loan will help you manage your cost of living in Melbourne by covering the following expenses
- Tuition fees
- Student accommodation in Melbourne rent
- Caution deposit money
- Travel expenses
- Study tours and academic work during your stay
- Purchase of stationery
- Other reasonable expenses required
Loan repayment Process for Melbourne
Indian students can repay their education loan in 10 to 20 years. This duration varies due to the loan amount. If you are student who’ve applied for an education loan between INR 4 to 7.5 lacs, then you will get 10 years to repay the entire amount. And if your loan amount exceeds INR 7.5 lacs, then you can pay the loan within 20 years. However, the moratorium time varies as per the bank or loan provider institution.
Conclusion
The Indian Government offers multiple education loan schemes for academic support in Melbourne, Australia. These loans provide financial assistance with favorable terms: low-interest rates, collateral-free options, and interest subsidies for eligible students. These schemes empower Indian students to access quality education abroad and help them turn their academic dreams into reality.
