Have you recently received an acceptance letter from your dream university in Australia? Even if you’ve nailed the scholarship, studying abroad is anything but a piece of cake, especially in countries like Australia and the US, where the cost of living is much higher compared to India. However, you can take advantage of educational and personal loan schemes for higher education in Australia. Before you apply for a personal loan to fund your education, here are some things to keep in mind.
Don’t forget to compare
Although this is something that needs no telling, one must run a thorough check on leading lenders that offer education loan. Upon detailed research, you will find that different banks offer different rates of interest. The maximum amount that one can borrow also varies across banks. For instance, Tata Capital offers educational loans up to Rs. 30 lakhs starting from 10.99% annually, depending on your application.
Additional Read: Education Loan from NBFCs: Pros and Cons
When you apply for a personal loan, the lender will not fund the entire tuition fee amount. You are expected to foot a part of the bill and the rest is covered by the loan. For example, if your fee is Rs. 20 lakhs, the bank may offer to give a loan for 80%, while you have to pay the rest 20% on your own. This amount is called the margin amount.
How to apply
The first thing you should consider while shortlisting banks is the eligibility criteria. Most banks offer educational loans only for long-term courses. Also, check if your chosen institution and program is on the bank’s list of approved universities and courses. Banks often don’t grant educational loans for short-term and vocational courses.
If the loan amount exceeds Rs. 5 lakhs, applicants would generally need to have a co-signer. A co-signer (mostly a parent) is a person who signs the loan with the candidate, agreeing to pay the debt, in case the latter fails to do so. If you are taking a loan, your co-signer is on the hook with you; naturally, this is a huge commitment.
Upon applying, there is a list of documents you will need to furnish. Keep some basic documents and ID proofs ready:
- Pan Card
- Aadhar Card
- A signed verification letter from a recognized public authority or public servant for your identity and residence
- Bank account statement
- Voter’s ID card
When it comes to applying for an education loan, no lender offers a process as quick and simple as Tata Capital. We offer education loans designed for students to fund their tuition and living expenses across the globe. Enjoy quick approval and attractive personal loan interest rates to fulfil your higher education dreams in Australia. The best part? Only minimal paperwork stands between you and your Master’s in Australia.
Additional Read: Things to Look Out for While Signing Education Loan Documents
With interest rates starting at 11.25 %, you can avail an amount as high as Rs. 30 lakhs. Moreover, personal loan repayment is easy with Tata Capital; choose how you want to repay with flexible repayment options.