Most Indian families who borrow for Australia face one question that a general loan guide does not settle: how does the loan fit with the money Australia asks you to show for the visa? This guide stays on that link. It covers what to borrow for, how a loan works as visa evidence, what named lenders publish about rates and collateral, and the timing that catches students out. For the basics of applying, see our general guides linked below.
- As per each lender's own site at the time of writing, SBI lists 9.15 to 9.65 percent on its overseas scheme, Bank of Baroda 8.70 percent at premier institutions and 9.20 percent at others above 7.5 lakh rupees, Credila from 9.95 percent, and Avanse from 10.25 percent
- The Australian student visa fee is 2,500 Australian dollars.
How Much Should an Education Loan for Australia Cover?
An education loan for Australia should cover your full course, not only the first year the visa looks at. Visa evidence is built around 12 months of costs, but tuition continues every year. Add up all course fees, living costs, health cover and travel, then subtract savings and any scholarship you hold.
| Cost | Amount in Australian dollars | Where the figure comes from |
|---|---|---|
| Tuition for a master's, per year | 30,000 to 55,000 | Guides say; check your offer letter |
| Living costs, one student, 12 months | 29,710 | Study Australia notice on the visa requirement |
| Student visa application | 2,500 | Home Affairs fee, confirmed by our team |
| Overseas Student Health Cover | Varies by provider and course length | See our health cover guide |
| Travel | No fixed figure found | Use your actual fare quote |
Using only the first three rows, the first year comes to between 62,210 and 87,210 Australian dollars by our own arithmetic, before health cover and flights. A two-year master's will need a second year of fees and living costs on top. Many students size the loan to the visa figure and then run short in the second year, so ask the lender whether you can draw the rest in stages.
Australia Student Visa Proof of Funds and Living CostsRead →Can a Loan Count as Proof of Funds for an Australian Student Visa?
Yes, it can. Home Affairs guidance lists a loan from a financial institution among accepted evidence of financial capacity. For an education loan, it expects the loan terms and full amount, plus evidence of any money paid out before a decision. Its own pages block automated reading, so confirm this on the page when you apply.
The same guidance describes disbursement as the best evidence that a student has genuine access to loan money. So a sanction letter alone may not be as strong as a loan that has been partly paid out, for example towards your tuition deposit. Ask your lender what it can issue, and keep the sanction letter, loan terms and payment records together.
Scrutiny matters here. Law firms and news reports say India now sits at Evidence Level 3, the level that calls for fuller documents, though we could not open the Home Affairs notice itself. Expect the officer to read your loan file closely, along with the family income and savings behind it.
Australia Genuine Student Requirement: How to AnswerRead →Which Lenders Offer Education Loans for Australia?
Public banks, private banks, NBFCs and international lenders all publish Australia or overseas study loans. Rates depend on your university, collateral and co-applicant, so the numbers below are starting points, not offers. We read each lender's own site at the time of writing, and we do not recommend any one of them.
| Lender | Rate on its own site | Other published terms |
|---|---|---|
| SBI Global Ed-Vantage | 9.65 percent with collateral; select institutions 9.15 percent with and 9.65 percent without | Loan from 7.5 lakh to 3 crore rupees; floating rate |
| Bank of Baroda, Baroda Scholar | 8.70 percent premier institutions; 9.20 percent others above 7.5 lakh | Up to 150 lakh premier, 60 lakh others |
| Credila | From 9.95 percent, floating | Origination fee 1.25 percent plus GST; secured and unsecured |
| Avanse | From 10.25 percent, decided case by case | Page title says up to 2 crore rupees |
| ICICI Bank | Rate not stated on the page we read | Own blog says up to 3 crore rupees; up to 15 years |
| Prodigy Finance | From 10.90 percent; its example shows 13.48 percent APR | Master's only; 4.2 percent administration fee and 500 US dollar processing fee in its example |
Compare the total cost, not the headline rate. Prodigy's own example shows why: fees and a variable rate take the APR well above the rate in its headline. Also note that floating rates can move during your course.
How to Get a Loan for Abroad StudiesRead →Do You Need Collateral for an Australia Education Loan?
Usually yes for a large loan at a public bank, unless your university is on the lender's select list. At Bank of Baroda, loans from 7.5 lakh to 80 lakh rupees need tangible collateral worth the full loan. NBFCs and international lenders offer unsecured options, generally at higher published rates.
Which university you choose can change the answer. SBI offers collateral-free loans up to 50 lakh rupees, with parents as co-obligors, only at its select institutions. The copy of that list we read names nine Australian universities: Melbourne, Sydney, UNSW, ANU, Monash, Queensland, Western Australia, Adelaide and UTS. That copy is from December 2024, so ask SBI for the current one.
If your university is not on such a list, most public bank routes lead back to property, deposits or other security. Students at regional campuses should ask each lender early whether their university is supported, particularly for unsecured loans, as Prodigy lends only for its supported universities and programmes.
Government Education Loan for Study AbroadRead →Make Your Study Abroad Dreams Come True With Education LoansRead →When Should You Apply So the Loan Fits Your Visa Timeline?
Start before your offer letter is final, because secured loans need property valuation and legal checks. The Australian visa file needs your enrolment confirmation, and that usually follows a tuition deposit. So you may need money before the visa decision, and SBI's scheme says this can be considered when required.
SBI's scheme document, dated November 2024, says a sanction letter may be issued before the visa, and that fees or living expenses may be paid out before the visa if the university or visa authority requires it. The visa must then be submitted before the second disbursement. SBI also gives itself up to 15 days to decide once your documents are complete. Treat that as the bank's stated limit and allow extra time for property checks.
Before you sign, ask the lender four things in writing: whether it can pay your tuition deposit before the visa, what document it issues for Home Affairs, whether living costs are paid to you or into a named account, and what happens to paid-out money if the visa is refused.
How Will You Repay an Australia Education Loan?
Repayment usually starts after a moratorium, which is the course plus 6 months at SBI and the course plus one year at Bank of Baroda. SBI allows up to 15 years after that. Paying interest during your course is optional at SBI, but unpaid interest gets added to the principal.
To picture the effect, a 40 lakh rupee loan at an assumed 10 percent builds about 4 lakh rupees of interest a year if you pay nothing. That is our own illustration, not a lender's quote. Even a part payment during the course reduces what you carry into your EMIs.
Australian income helps but should not be your plan for paying fees. Students can work 48 hours a fortnight in term, and the national minimum wage is currently 26.44 Australian dollars an hour. That is about 1,269 dollars a fortnight before tax if you get every hour, which many students will not. Your EMI will be in rupees, so a falling rupee makes Australian earnings go further and a rising one does the opposite.
Post-Study Work Rules in Australia for Indian StudentsRead →Student Loans for Studying AbroadRead →What Mistakes Do Students Make With Australia Loans?
The common mistakes are borrowing only the visa amount, choosing a university before checking lender support, assuming a sanction letter settles the funds question, and leaving co-applicant documents late. Each one can delay the visa or leave you short of money in the second year, so check them early.
- Telling the visa officer one story about funding while the loan file says another
- Moving large sums into an account without a clear paper trail
- Ignoring origination, processing and insurance costs when comparing rates
- Assuming a lender's list of supported universities has not changed since you last looked
If you are still choosing between universities, compare the fees, the loan terms each one unlocks and the job market around it before you commit. AdmitKard counsellors can help you plan your course and budget together.