Evidence Level 3 — Fresh Funds Trap

Under Evidence Level 3, Australian visa officers manually verify bank statements. Large amounts suddenly appearing in accounts in the 3 months before application trigger rejection or requests for explanation.

OSHC Not Covered by Indian Loan

Overseas Student Health Cover must be paid before the university issues the CoE. Most Indian education loans do not automatically disburse for OSHC — students get caught needing ₹33-40K they didn't budget for.

Visa Fee Shock — AUD 2,000

The Australian student visa fee increased from AUD 710 to AUD 2,000 in July 2025 — nearly tripling. Many students budget for the old fee and are caught short.

Moratorium Interest Is Not Zero

Simple interest accrues during the moratorium period even when no EMIs are due. For a ₹50L loan over a 2-year Master's program + 6-month moratorium buffer, interest accrual can add ₹8–10L before repayment starts.

Section 129 (formerly 80E) — Old Regime Only

The Section 129 (formerly 80E) interest deduction on education loan repayment is only available under the Old Tax Regime. Families who have switched to the New Tax Regime for FY 2025-26 cannot claim this benefit, significantly increasing the effective cost of the loan.

STUDY ABROAD SERIES

Education Loan for Australia Decoded.

Navigate Evidence Level 3 scrutiny, CoE requirements, and AUD 29,710 living cost proof with verified guidance for Indian students.

Last reviewed: 23 Aug 20264 lenders comparedSBI / Credila (formerly HDFC Credila) / Avanse

⚠ India upgraded to Evidence Level 3 — Jan 2026

Check True Cost Compare Lenders

Key Facts

Interest Rate

8.75% – 13.50% p.a.

Processing Fee

0% – 1.5% of loan amount

Max Loan

Up to ₹1 Cr

Approval Time

20 – 40 days