When you consider studying abroad, it may feel like gearing up for a thrilling journey. However, like any traveller, you face demanding situations. Just as a hiker desires strong footwear and a terrific map, you need to understand the visa essential to study in Australia. This country ranks high among the top study destinations due to its top-notch universities.
There are numerous aspirants who dream of gaining world-class knowledge and experience. But these dreams can become overwhelming when facing the costs of student visa fees and proof of funds. Therefore, in this article, we will explore how overseas education loans can help you secure your Australian student visa. So, let us first have an overview of Australian student visa.
About Australia Student Visa
An Australian student visa is a crucial step for you to study in this country. It allows you to live, study, and work part-time while completing your course. There are two types of student visas, Subclass 500 and Subclass 485. However, we are going to emphasis more on Subclass 500 as it is for full-time bachelor’s and master’s programs.
Subclass 500 – Student Visa
- Duration: This visa lets you stay in Australia for your study program, for up to five years.
- Work Rights: You can work up to 48 hours every two weeks while enrolled in classes.
- Enrollment Requirement: You need an offer of enrollment from a recognized Australian institution.
- Health Coverage: You must have Overseas Student Health Cover (OSHC) for your entire stay.
- Application Fee: The Australia student visa fees for Subclass 500 is AUD 1,600 per application.
Having a brief insight into the visa requirements helps you plan effectively for studying in Australia. However, one significant hurdle many students face is proving they have enough funds. Let us look at this requirement ahead.
Proof of Funds for Australian Student Visa
When you apply for a student visa, showing you have enough money is necessary. The visa officers want to know if you can cover your tuition and living expenses while studying in Australia. If you are planning for a bachelor’s degree or a two-year master’s degree, you need to show financial capability for one year. Thus, to give you a better understanding we have mentioned the requirements below.
Tuition Fees:
- Proof: 1 Year
- Amount: Varies
Living Expenses:
- Proof: 1 Year
- Amount: AU$ 29,710
Air Tickets:
- Proof: One way
- Amount: Varies
Overseas Student Health Cover (OSHC):
- Proof: 2 Years
- Amount: Starts from AU$ 1,214 for 2 years
Gathering these funds can seem a little overwhelming, but this is where Australia student loan can step in to help.
Role of Overseas Education Loans
Numerous students rely on these loans to pursue their education abroad. Therefore, it is important to understand which financial institutions are accepted by visa officers.
- Nationalized Banks: State Bank of India, Bank of Baroda, and Punjab National Bank.
- Private Banks: ICICI Bank and Axis Bank
- Non-Banking Financial Companies (NBFCs): Some universities accept loans from HDFC Credila, provided the entire loan is deposited into your account.
- International Lenders: Institutions like Prodigy Finance are accepted for second-year tuition fees and living expenses.
Knowing which lenders are accepted can smoothen your journey to obtaining a visa. However, understanding the collateral requirements is also necessary, as these can greatly affect your loan eligibility.
Collateral Requirements
When it comes to securing an overseas education loan, there are certain essentials that you need to know about collateral requirements.
- Accepted Collateral Loans: Visa officers accept loans secured against property, LIC policies, or fixed deposits.
- Non-Collateral Loans: Although non-collateral loans are usually not accepted, some universities might have specific provisions for them.
Also, it is important to ensure financial stability by having funds in your bank account for six months or three months, depending on the university’s requirements. This means your money must remain stable in your bank account during that time.
Once your loan is approved and the university accepts the loan sanction letter, you will need to receive a pre-visa disbursement of the loan. This is essential for covering your first semester’s tuition fees and the OSHC, which helps you obtain the Electronic Confirmation of Enrollment (eCOE) letter.
In a Nutshell Whether you opt for an NBFC education loan without collateral or a Nationalized education laon with collateral, it is important that you take expert guidance. There are top overseas education laon advisors that offer expert guidance right from choosing the best lender for you. And not just this, their experts will resolve all your queries and ensure that your loan is seamlessly sanctioned.
