How To Get A Loan In Australia For International Students In 5 Steps?

Introduction (Fact hook)

Tuition fees in Australia can reach AUD 50,000 a year!

But don’t worry!

You can still study with the right loan!

With proper planning and the right lender, you can cover tuition, living expenses, and other costs without financial stress.

In this post, PTE Magic will show you how to get a loan in Australia for international students and make your dream of studying abroad a reality!

Key Takeaways

• Student loans assist international students in covering tuition, living expenses, and other costs while studying in Australia.
• There are many types of loans, such as bank loans, university loans, and government-supported loans.
• To get a loan, you need to find a lender, check if you qualify, submit documents, apply, and receive the funds.

Why Do Students Need Loans In Australia?

Studying abroad can be expensive, and loans will make things easier. 

Below are some reasons why many students choose to take a loan when studying in Australia:

• Cover tuition and living costs: Tuition fees, housing, food, travel, and books can quickly add up. 

A student loan helps cover all these expenses so you can focus on your studies instead of worrying about money.

• Offer flexible repayment plans: Most education loans let you start paying back after graduation. 

This means you can repay later when you have a job.

• Build credit history: Paying off your loan on time helps you build a good credit score. 

It can help you later if you plan to live, work, or buy property in Australia.

• Access to top universities: A student loan also opens doors to better universities that might otherwise be too expensive. 

It gives you a chance to study where you truly want to.

• Extra perks and scholarships: Some banks offer lower interest rates or partial loan waivers for students who win scholarships.

8 Types Of Loans For International Students

Knowing the basics of each type of loan will help you choose the best one. 

Here are 8 common types of loans available in Australia:

• Secured education loans: These require collateral, such as property or savings, but come with lower interest rates, longer payment periods, and higher loan limits.
• Unsecured education loans: No collateral is needed, though interest rates are higher. 

Approval often depends on your academic record or your guarantor’s financial background.

• Loans from Australian banks: Some local banks provide loans for international students with a local guarantor.

They need to have good rates or partnerships with Australian universities.

• Loans from country banks: Applying through your home bank can be easier and more familiar. 

Many offer lower interest rates or have partnerships with Australian universities.

• Private lenders and NBFCs: These lenders process loans faster and are more flexible, but usually charge higher interest rates.
• Peer-to-peer (P2P) lending platform: These connect students with private investors for funding. 

They don’t need collateral, but require you to check the platform’s credibility first.

• University-sponsored loans: Some universities offer internal loans, payment plans, or scholarships combined with financial aid.

These are usually low-interest and student-friendly.

• Government-supported loans: Some government programs or partnerships support international students through low-interest loans or funding collaborations with universities.

How To Get A Loan In Australia For International Students?

Getting a student loan in Australia includes 5 main steps:

Step 1: Find Lenders That Support Your Country/Course

First, you need to research lenders who offer education loans for international students studying in Australia.

Some lenders only work with specific countries or courses, so you should check if your program is eligible.

Besides, it’s best to compare their interest rates, repayment terms, and loan limits before choosing the best one.

Step 2: Check Eligibility

Before applying, you need to review what each lender expects. 

Although details may vary, most lenders will require:

• Proof of admission to an Australian university or college
• A co-signer or guarantor (often a parent or guardian) with stable income
• Strong academic performance
• Legal identification and financial credibility

Step 3: Submit Application With Documents

Once you’re eligible, you need to prepare all necessary documents, such as:

• Letter of Offer: Confirms your acceptance into an Australian program.
• Valid passport & Student visa: Verifies your identity and right to study in Australia.
• Academic records: Transcripts, mark sheets, and certificates.
• Proof of residency: Utility bills, rental agreements, or government ID showing your address.
• Co-signer/ Guarantor documents: Income proof (salary slips, tax returns), ID, and bank statements.
• Collateral documents: Property deeds, fixed deposit receipts, or other pledged assets.
• Bank statements: Unusually for the last 6 months, to show financial activity and stability.
• Cost of study breakdown: Tuition fees, living expenses, insurance (OSHC), and travel costs.
• Loan application form: Filled out accurately with all required details.
• Proof of English proficiency (if required): IELTS/PTE/TOEFL.

It’s best to keep everything organized, as missing documents can delay your approval.

Step 4: Wait For Approval

After submission, the lender will review your documents and verify your eligibility.

They may contact you or your co-signer for additional information.

If everything checks out, you’ll receive a loan sanction letter that includes:

• Loan amount
• Interest rate
• Repayment terms
• Disbursement schedule

Once you agree, both you and your guarantor will sign the loan agreement.

Step 5: Accept And Disbursement Of Funds

After you accept the loan offer, the funds are usually disbursed.

For studying in Australia, the loan amount is often sent to your account first.

Then, you need to share proof of your receipt with your university to get your Confirmation of Enrollment (CoE), which is necessary for your visa.

Tips To Get A Loan In Australia

A few simple tips to help you get approved and manage your loan wisely include:

• Keep your grades strong: A good academic record shows lenders that you’re serious about your studies. 

This can increase your chances of getting your loan approved and even help you get a lower interest rate.

• Compare before you decide: Don’t rush into the first loan you find. 

You should take time to compare several loans to choose the best one. 

It can help you save a lot of money later.

• Check for other financial help: Besides loans, you should look into scholarships or university support programs.
• Plan your repayment early: Before signing any papers, make sure you understand when and how you’ll start repaying your loan. 

Planning ahead helps you stay stress-free and manage your finances better after graduation.

FAQs

How Long Does It Often Take To Approve A Loan?

Loan approval times can vary depending on the lender and how complete your documents are.

On average, it takes about 2 to 4 weeks for an education loan to be processed and approved.

How Much Do I Pay Back A Student Loan?

You’ll need to repay 9% of your income that’s above the minimum repayment threshold, depending on your loan plan type.

The exact amount you pay each month depends on your income.

The higher your income, the more you’ll repay.

Can I Apply For A Loan Without PR?

Yes, you can still get a loan without PR in Australia. 

However, most lenders will ask for extra requirements such as a local cosigner, higher interest rates, or smaller loan amounts.

Conclusion

How to get a loan in Australia for international students? 

You need to find the right lenders, prepare your documents, and apply early. 

With the right plan, you can focus on your studies without worrying about money.

Last updated on 20/10/2025