Published date: 04 Oct 2019 Updated on: 06 Apr 2020 Australia has around 6 lakh, international students, right now with enrolments in master’s degrees constituting a large portion of admissions in graduate programs. Of this, India accounts for over 1 lakh enrolments which mark a 24.5% rise as compared to last year’s enrolment figures. The numbers clearly suggest that the Land Down Under is slowly rising as a preferred destination for higher education for Indian students. If you’re thinking of adding to this number and studying a STEM course in Australia, then you’ll want to know all the options for education loan for MS Course in Australia to finance the cost of education in the country. That’s what we explore in this write-up. Get Secured / Unsecured Loan For Germany From GyanDhan Arrange a call back from an expert by filling up this form Living expenses in Australia vary widely, depending upon the city you are living in, but typically, you will need to shell out about A$20,290 per year. What are the Options for Education Loan for MS in Australia? With tuition fees and living costs at par with those of the US, funding your studies in Australia with financial aid is a must. While scholarships are one way to go, education loans are another. Student loans pay off tuition and connected expenses. These loans are a sound funding alternative because the interest for these is paid only on the money the student uses. (Swing over to this brief article to understand student loans better). Education loan for Australia to international students are of two types:: Study Loan for Australia Without Security: What are the Choices? A loan without collateral is one where the student doesn’t guarantee a financial asset like a property or FD. These loans are also known as unsecured loans. Nationalized banks offer only ₹ 7.5 lakhs for student loans without collateral. The amount is too low to cover the expenses of studying in Australia. This leaves either a private bank or an NBFC for an unsecured loan, both of which authorize higher amounts. The Australian embassy recognizes only a select few private banks and barely any non-banking financial company. Therefore, if you are looking for an education loan without collateral for the country, ask for guidance from a GyanDhan counsellor. They’ll give you a clearer picture of the acceptable banks or NBFCs with a low-interest rate. Educational Loans for MS in Australia: Without Collateral Features Public Banks Private Banks NBFCs Example Lenders SBI, BOB Axis Bank Avanse, Incred Loan Amount (INR) PSUs don't give loans more than INR 7.5 Lakhs for studying abroad. Upto INR 40 lacs Upto INR 25 lacs Interest Rate Range 11.5%-13.5% 12%-16% Processing Fees (INR) INR 0 is the loan is less than INR 20 lacs; INR 750 on every lac above a loan of INR 20 lacs 1%-2% loan amount Number of Colleges Supported More than 10 More than 15 Features like repayment period, processing time, documents required and so on vary as per the types of lenders. We give a detailed breakdown of all these features for all the lenders: Repayment Period: When it comes to education loans without collateral for MS in Australia from private banks, the repayment period is 20 years. NBFCs normally require you to repay such loans in 10 years. However, with GyanDhan, you also have the provision to get the repayment term extended. We inform the bank about your requests and also get your customized loan offers which completely fits your requirements. Processing Time: Private banks take 5-7 days to process educational loans with collateral, whereas NBFCs take 3-4 days. In the case of any delay from the bank’s side, we get in touch with the lending institution’s upper management and see to it that the loans are processed and sanctioned immediately. Expenses Covered: Private banks cover 85% of the expenses in case of educational loans with collateral, whereas NBFCs cover 100% of the expenses. Co-applicant Income Requirement: The co-applicant income requirement in the case of private banks is a minimum of 35k, whereas in the case of NBFCs is at least 30k. However, the exact income requirement will be dependent on the amount of loan. Generally, 50% of the income of the co-applicant is enough to pay the interests per month in the case of NBFCs. For banks, 65% of the income should be adequate to pay off the interests. There is also a provision to combine multiple co-applicants. Common Decline Reasons: The common reasons why private banks and NBFCs decline educational loans without collateral are low family income and ineligible courses. This is where GyanDhan comes to your rescue. We can find solutions to ensure that your education loan is not denied due to such reasons. Normally, it has been observed that those who apply for loans with our help have 50% more chances of getting their loans approved over those who approach the bank directly. Our experienced and dedicated loan counsellor meticulously evaluates your profile and gets in touch with that lender first who is most likely to provide you with the loan as per your requirements. Documents Required: Broadly an applicant will have to submit Confirmation of Enrolment (CoE) issued by the Commonwealth Register of Institutions and Courses for Overseas Students, mark sheets and degrees, KYC documents, income proof, bank statements, etc. The precise paper formalities vary from bank to bank, making the procedure painstaking. GyanDhan can provide a customized document checklist for every bank and NBFC to hasten the process of loan sanction. Education Loan With Collateral for MS in Australia: What are Your Options? Education loans with collateral have two advantages over unsecured loans – they are sanctioned for a higher amount and are granted at lower interest rates. This happens because the applicant submits to the bank or NBFC security against non-repayment. Education Loan for MS in Australia: With Collateral Features Public Banks Private Banks NBFCs Example Lenders SBI, BOB Axis Bank Avanse, Incred Loan Amount (INR) Upto INR 1.5Cr Upto INR 60 lacs Upto INR 60 lacs Interest Rate Range 9.2%-10.5% 11.5%-13.5% 12%-14.5% Processing Fees (INR) INR 11800 INR 0 for loans below INR 20 lacs, INR 750 on every lac above INR 20 lacs 1%-2% loan amount Payment During Study Period None Simple Interest Simple Interest Features like repayment period, processing time, documents required and so on vary as per the types of lenders. We give a detailed breakdown of all these features for all the lenders: Repayment Period: When it comes to education loan options for MS in Australia from public banks, the repayment period is 15 years. For private banks, it is 20 years. NBFCs normally require you to repay such loans in 10 years. Processing Time: Public banks take 12-15 days to process educational loans with collateral, whereas private banks take 10-12 days. In the case of NBFCs, the processing time is 7-8 days. Expenses Covered: Public banks cover 90-100% of the expenses in case of educational loans with collateral, whereas private banks cover 85% of the expenses. NBFCs cover 100% of the expenses. Common Decline Reasons: The common reasons why public and private banks decline educational loans with collateral are Poor CIBIL, incomplete collateral documents. NBFCs cite low income and poor CIBIL as common reasons to decline loans. Documents Required: Besides others, the KYC documents of the co-applicant and student, all academic records, confirmation of enrolment from CRICOS, fee structure, income proof and complete documents of the pledged security are necessary for an education loan with collateral. The collateral documents requested differ as per banks. Absence of even a single paper can diminish the odds of a loan sanction. GyanDhan’s counsellors are deeply aware of this fact and make sure that the applicant is too. This is why students who take our help during the loan process enhance their chances of loan approval by 50%. Which Type of Lender Should be Preferred? - Secured or Unsecured For a top study destination like Australia, there are multiple education loan options available in the market which can make the process of surfing through the loans and selecting the most appropriate one a tedious and confusing task. Here are a few suggestions from our side which you can take into account while choosing an educational loan for MS in Australia. PSUs is the best educational loan option for an MS in Australia because it is offered at a considerably lower rate of interest. If you are not able to pledge security against the secured loans, then the next best option would be unsecured educational loans from private banks over NBFCs. The interest charged by private banks is considerably lower than that charged by NBFCs. Additionally, loans from private banks offer additional tax benefits which most of the NBFCs do not offer. Private banks also charge lower processing fees as compared to NBFCs. Moreover, it is only the sanction letters of select few lenders that are accepted by the Australian High Commission. This is also an important factor that needs to be considered while applying for a loan for Australia. GyanDhan’s education loan counsellor can give you more information on the same. We do a quick and comprehensive analysis of your financial requirements and profile and help you select the options in the market that suit you the most. What is the Application Procedure for Loans for Australia? Go here to find if you are eligible for a loan. Alternatively, request for a callback. One of our education loan counsellors for Australia will call you back with a list of loan options. Depending upon the bank or NBFC you choose, the counsellor will walk you through the next steps. Submit all the supporting documents. (This is one step where we emphasise taking GyanDhan’s support because acceptance or rejection of an education loan hinges on appropriate paperwork). To make it simpler, we can pick up your documents from your doorstep if you live in a metro city and choose a public bank. In case you are based in another city, we’ll coordinate and arrange an appointment with the respective bank manager. If you choose a private bank, then our banking partner will pick up the documents from your home. For an NBFC lender, you can simply upload the documents through our site. The lender reviews the loan application. If all the requirements are met, it is approved. A bank or NBFC may need further information from the applicant and co-applicant prior to loan sanction. You and your co-applicant sign the sanction letter and receive a loan from a private or public bank. To accept a loan from an NBFC, you pay the processing fee. After signing the agreement, you apply for loan disbursement. Usually, a bank requires a valid student visa before they disburse the loan amount. The process of getting an Australian student visa is slightly different. Their embassy/university demands “Pre-Disbursement.” What does that mean for the loan applicant? You need to get the tuition for the first semester disbursed before the student visa is approved. Maximum lenders are not aware of this procedure which makes getting an education loan for Australia tricky. A majority of applicants suffer from this issue when applying for a student loan for Australia. At GyanDhan, we ensure that the bank is aware of the policy and sanctions the disbursement needed for the Australian visa. How to Choose the Best Education Loan for MS in Australia? The process of finding an education loan at the lowest interest rate possible is not easy; rather, it demands effort and research. For each bank and loan, you have to scrutinize elements such as: Interest rate Loan duration Margin money Expenses covered Moratorium period Processing fee and time Prepayment terms and conditions Selecting a loan at random is not a smart choice. So, take the appropriate measures to find the most appropriate education loan for MS in Australia. Utilize our Loan Eligibility tool to get a list of all loan choices that fulfill your criteria. Then go through our customizable EMI calculator. It will help you to compare the study loan for Australia interest rates and monthly payments. You could also get our education loan counsellors involved while making the decision. They will perform a quick analysis of your financial requirements and help you select the best alternative. Over the years, GyanDhan has ensured that students searching for MS program loans for Australia (with or without collateral) have found the right fit for them. Let us take over the burden for you too, give us a call. Read Also -
This is a companion discussion topic for the original entry at https://www.gyandhan.com/blogs/educational-loan-options-for-ms-in-australia