Table of Contents
- How do Recent Policy Changes Impact Student Loans in Australia?
- Overview: Top Education Loan Options to Study in Australia
- Eligibility Criteria for International Students
- Application Process for Student Loans in Australia
- Avoid: Common Pitfalls of Application for Australian Education Loans
- Achieve: Tips to Get Your Education Loan for Australia
- Frequently Asked Questions
Decided to study in Australia? Congratulations!
Australia is a top study abroad destination, boasting globally ranked universities, excellent job opportunities, and a peaceful environment. Studying is a unique way of transitioning into dream career opportunities.
An education loan helps you pursue your dream of studying in Australia without financial worries. For international students, loan options are available with or without collateral at affordable interest rates and flexible repayment terms.
Sponsor your education in Australia with a loan – read on for details.
How do Recent Policy Changes Impact Student Loans in Australia?
Australia’s policy changes in education loans target the empowerment of domestic students. From cutting the debt reduction to repayment and indexation revisions, the policy reforms bring a fresh approach to education funding.
20% reduction in student loan debt
From June 01, 2025, there will be a 20% reduction in student loan debt in Australia. This applies to various categories of student loans like HELP, VET Student Loans, and Australian Apprenticeship Support Loans. This change is applicable to domestic students.
Loan repayment changes
As of July 1, 2025, the threshold income for mandatory student loan repayment will be 67,000 AUD, up from 54,435 AUD previously. Above this amount, the payment will be based on the student’s income. This policy change aims to help domestic students with low incomes.
Indexation revisions
According to the November 2024 legislation, the indexation rate of student loans will be lowered to the lower of the Consumer Price Index (CPI) or the Wage Price Index (WPI) as of June 1, 2025. The indexation aims to prevent student loan debt from growing faster than the rate of wages and ensures a fair repayment practice.
| Show money for international students: The recent policy changes focus mainly on domestic students. For international students, the show money still remains at 29,170 AUD since May 10, 2024 – a 17% rise from 24,505 AUD before that. |
Overview: Top Education Loan Options to Study in Australia
Education loans are an important source of funding for many international students in Australia. International students in Australia can explore education loans available in their home countries and those offered by international lenders, such as MPOWER Financing and Prodigy Finance. The table below summarizes the top education loan options available for Indian students in Australia:
| Lender Type | Maximum Loan Amount | Interest Rate | Margin Money | Repayment Period |
| Public banks – SBI, BoB, UBI | Up to INR 80 Lakhs – INR 1.5 Cr | 9.65% for girls, 10.15% for boys | 10% | 10 – 12 years |
| Private banks – ICICI, Axis, IDFC FIRST | Up to INR 50 Lakhs | 10% – 13.5% | 0% – 15% | 10 – 20 years |
| NBFCs – Credila, Avanse, Auxilo, InCred | Up to 2INR 20 Lakhs | 12% – 13.5% | 0% | 10 – 15 years |
| International lenders – MPOWER Financing, Prodigy Finance | Up to 100,000 USD | 8.39% – 14% | 0% | 10 – 20 years |
Eligibility Criteria for International Students
Students must meet the eligibility requirements to apply for education loan options to study in Australia. The following are the general eligibility criteria for international students to apply for an education loan:
- Your age must be 18+
- Get admission to a recognized university in Australia
- Your degree must be recognized by the bank (degree, diploma, vocational certificate, etc. )
Documents Required
The exact checklist of documents varies with the lender you choose. The general list includes your personal, academic, and financial information. See the table below for a general picture:
| Letter of admission from the University | Guarantor/ co-borrower/ student’s bank statements |
| The loan application form was filled out in full | Documents on the cost of studies |
| PAN details of the candidate | Identification proof |
| Guarantor/ co-borrower/ student’s statement of assets | Guarantor/ co-borrower/ student’s proof of income |
| Residence proof | Academic documents |
Application Process for Student Loans in Australia
The application process for education loans to study in Australia starts with selecting your course and university. The lender must list the university and course to approve an education loan for you. Here is the step-by-step breakdown of the application process:
- Choose your course and university
- Secure an unconditional admission offer letter
- Research and find your loan options (easy with Nomad Credit)
- Check your education loan eligibility
- Gather the documents
- Apply online
Best part? Get complete guidance and personalized assistance in the whole process for free! Connect with Nomad Credit today!
Avoid: Common Pitfalls of Application for Australian Education Loans
Take care of your student application for Australia. The process is lengthy, and even a minor mistake can spoil your efforts. Students often make these mistakes and lose opportunities, potentially costing them a year or more.
Don’t let it happen to you! Here are the pitfalls of student loan applications for Australia you must avoid.
| Incomplete or incorrect documentation | Applying without a confirmed admission letter |
| Not understanding collateral requirements | Choosing a co-applicant with a poor financial or credit background |
| Underestimating the total cost of studying abroad | Applying too late (close to visa deadlines) |
| Not comparing lenders and interest rates | Ignoring or misunderstanding loan terms and hidden charges |
| Lack of financial planning for loan repayment after graduation | Failing to use the loan sanction letter for a student visa application |
Achieve: Tips to Get Your Education Loan for Australia
Better planning, better experience. A smart approach is important to experience a smooth education loan application process when studying in Australia. Many students commit the mistake of not having a proper approach.
Follow these carefully picked tips to increase your chances of education loan application acceptance for Australia:
- Start your loan process early – don’t wait till visa deadlines.
- Choose the right lender – compare banks, NBFCs, and international lender options.
- Maintain a good academic record and achieve high test scores in IELTS/TOEFL. GRE/ GMAT
- Apply to a CRICOS-registered Australian university that your lenders list
- Select a financially stable co-applicant with a strong credit history.
- Keep all documents ready and organized.
- Calculate the total cost of attendance (including tuition, living, travel, insurance, etc.) before loan application.
- Be clear. Ask about hidden charges (processing fees, foreclosure charges, etc.)
- Have a clear repayment plan post-studies.
- Use the loan sanction letter as proof of funds for your student visa.
We’ve covered all the important aspects of education loans to finance your studies in Australia. While the recent policy changes have a significant impact on domestic students, the scholarship amount for international students remains at 29,170 AUD from May 10, 2024—a 17% increase from the previous amount of 24,505 AUD. Read the loan terms carefully, choose your options, and apply with Nomad Credit.
Nomad Credit streamlines the education loan process to meet your needs. Our counselors offer personalized guidance and support at every step at zero cost. Connect with Nomad Credit today – your Australian study dream is awaiting you!
Frequently Asked Questions
Which bank is the best for an education loan in Australia?
Banks offering education loans for Australia in India include SBI, UBI, BoB, IDFC FIRST, ICICI, and Axis, among others. It depends on your profile, cosigner, and academic scores as well as the university and course, to decide which bank is the best option for you.
How much loan can you secure to study in Australia?
It depends on your profile and the lender’s decision to determine the maximum loan amount available for studying in Australia. You can secure up to INR 1.5 Cr from Indian banks with collateral and up to INR 70 Lakhs without collateral. From international lenders, the maximum available loan amount is 100,000 USD.
Are you eligible for an education loan to study in Australia?
If you secure admission to a recognized university in Australia, you are academically eligible to apply for an education loan to study in Australia. For financial eligibility, you must have collateral or a cosigner with a strong profile.
How much bank balance is required for an Australia student visa?
Since May 10 2024, 29,170 AUD is the minimum bank balance required for a student visa in Australia.
Do you get interest-free loans to study in Australia?
Obtaining an interest-free education loan to study in Australia is nearly impossible. You can explore your chances of receiving a loan scholarship from trusts like the KC Mahindra or Tata Trust, which offer interest-free loans with specific conditions.
