Studying in Australia is a dream for thousands of Indian students, especially for those pursuing a Master of Science (MS). Australia is home to world-class universities such as the University of Melbourne, Monash University, and the University of Sydney. However, the cost of education and living in Australia is high, which makes an education loan for MS in Australia an essential financial tool.
In this blog, we will discuss tuition fees, living expenses, loan options (secured and unsecured), examples with calculations, and tips to choose the right loan.
Why Choose Australia for MS?
- Ranked among the top 5 international student destinations globally.
- 8 Australian universities are in the top 100 QS World Rankings.
- Post-study work opportunities and pathways to permanent residency.
- Strong focus on research and practical learning.
But before applying, students must prepare financially.
Cost of Studying MS in Australia
The cost of studying depends on the university, city, and lifestyle. Let’s break it down:
Tuition Fees (per year)
| University | Average Tuition Fee (AUD/year) | In INR (₹, approx.) |
| University of Melbourne | AUD 44,736 | ₹24.6 lakh |
| UNSW Sydney | AUD 49,360 | ₹27.1 lakh |
| University of Sydney | AUD 46,000 | ₹25.3 lakh |
| ANU (Canberra) | AUD 47,880 | ₹26.3 lakh |
| Monash University | AUD 42,800 | ₹23.6 lakh |
(1 AUD ≈ ₹55 at current exchange rates)
Living Expenses
- As per the Australian Government, international students need about AUD 20,290/year (≈ ₹11.1 lakh) for living.
- This includes accommodation, food, transport, and health insurance.
👉 Total Cost per Year = Tuition Fee + Living Expenses
Example Calculation:
If you study at Monash University –
- Tuition Fee = AUD 42,800 (~₹23.6 lakh)
- Living = AUD 20,290 (~₹11.1 lakh)
- Total = AUD 63,090 (~₹34.7 lakh/year)
For a 2-year MS program, the approximate total cost = ₹69–72 lakh.
Clearly, an education loan becomes the most practical choice.
Education Loan for MS in Australia
1. Secured Education Loans (With Collateral)
- Provided by Public Sector Banks (PSUs) and some private banks.
- Collateral can be property, fixed deposits, or insurance.
- Loan amounts up to ₹1.5 crore possible.
- Lower interest rates (9–11%).
- Longer repayment tenure (up to 15 years).
- Tax benefits under Section 80E of the Income Tax Act.
Example:
If you borrow ₹40 lakh at 10% interest for 10 years –
Monthly EMI (approx.) = ₹53,000
Total Repayment = ₹63.6 lakh
(Principal ₹40 lakh + Interest ₹23.6 lakh)
2. Unsecured Education Loans (Without Collateral)
- Offered by Private Banks & NBFCs.
- No collateral needed.
- Loan amount up to ₹40–50 lakh.
- Interest rate is higher (11.5–13.5%).
- Faster processing (within 7–10 days).
Example:
Loan of ₹40 lakh at 12.5% interest for 10 years –
Monthly EMI (approx.) = ₹58,000
Total Repayment = ₹69.6 lakh
(Principal ₹40 lakh + Interest ₹29.6 lakh)
👉 As seen, unsecured loans are easier but more expensive compared to secured loans.
Comparing Loan Options
| Feature | Secured Loan (PSU/Private) | Unsecured Loan (Private/NBFC) |
| Collateral | Required (property, FD, insurance) | Not required |
| Interest Rate | 9–11% | 11.5–13.5% |
| Loan Amount | Up to ₹1.5 crore | Up to ₹40–50 lakh |
| Processing Time | 12–15 days | 7–10 days |
| Repayment Tenure | Up to 15 years | 10–12 years |
| Tax Benefits (Sec. 80E) | Available | Available (for banks, not NBFCs) |
| Visa Acceptance | Sanction letters from banks accepted | Some NBFCs may not be accepted |
Loan Application Process for MS in Australia
- Check Eligibility – Admission in a CRICOS-registered Australian university.
- Select Loan Type – Decide between secured vs. unsecured.
- Prepare Documents:
- Admission letter
- Cost of study (university fee structure)
- KYC documents (passport, Aadhaar)
- Income proof (ITR, salary slips of co-applicant)
- Collateral papers (if secured loan)
- Admission letter
- Apply with Bank/NBFC – Submit application and documents.
- Loan Sanction – Bank issues sanction letter (needed for visa).
- Disbursement – Tuition fees often need to be prepaid before visa approval (pre-disbursement).
Key Factors to Compare Before Choosing a Loan
- Interest Rate – Even a 1% difference can save lakhs.
- Loan Coverage – Check if living expenses, health insurance, and travel are included.
- Margin Money – Some banks finance 90% only; you need to pay 10% upfront.
- Processing Fee – Usually 1–2% of loan amount.
- Moratorium Period – Some banks allow repayment to start after course completion.
- Prepayment Charges – Important if you plan early repayment.
Practical Example: Choosing Between Two Options
Let’s assume your total 2-year MS cost = ₹70 lakh.
- Option A (Secured Loan, 10% interest): Borrow ₹40 lakh, EMI ~₹53,000.
- Option B (Unsecured Loan, 12.5% interest): Borrow ₹40 lakh, EMI ~₹58,000.
Difference = ₹5,000/month × 120 months = ₹6 lakh saved by going with secured loans.
Tips to Get the Best Education Loan for MS in Australia
- Apply early to avoid visa delays.
- Compare multiple lenders before finalizing.
- Use online loan marketplaces like GyanDhan to check eligibility.
- Consider secured loans if possible—they save money in the long run.
- Always keep 6–12 months’ expenses ready in case of delays in disbursement.
Conclusion
Pursuing an MS in Australia is a valuable investment for your future career. But with tuition fees of ₹24–27 lakh/year and living expenses of about ₹11 lakh/year, education loans become essential.
- Secured loans are the most cost-effective if you have collateral.
- Unsecured loans are faster and easier but come with higher interest.
- Always compare interest rates, processing fees, coverage, and repayment terms before making a decision.
With the right education loan for MS in Australia, you can focus on studies without worrying about finances.