How International Student Can Get Car Loan in Australia
- Car Finance,
- Sep 23, 2020
Grabbing the attention of students from all over the world, the well-recognized educational institutes in Australia offer a quality of education at all levels. Getting around in the country without a car can be hectic and difficult whereas, having it can make student life a lot more convenient and easier.
However, life being an international student in the island country is quite expensive and requires a personal conveyance for self-convenience and ease of transportation purposes. Whether you need to reach class on time, or want to meet loved ones by any time, or plan to go for a holiday trip, owning a car makes traversing this land’s cities and towns simple and reachable.
If you’re studying in Australia as an overseas student and lacking the required finance for buying a car, you can avail the opportunity of Car-Loan but getting it as an international citizen is not always straight-forward. It will require efforts and struggle to make it happen. You have to go through certain steps in order to make yourself eligible for the car loan being an international student. In this article, you’ll get everything you need to know about getting a car loan in Australia.
How does Car Loan work?
Car finance refers to the various financial products which allow someone to acquire a car, including car loans and leases. An agreed amount of finance that you borrow to buy a vehicle and then pay back the loan over a set period is termed as a car loan. The prescribed interest rate is charged in regular repayments or installments shaped by the lender based on the income and credit status of the borrower.
You must have to pay the loan on a monthly basis as prescribed by the finance company. If you delay the amount of the loan or failed to pay the loan, then the finance company has the legal right to take your car back from you. In addition to this, if you have successfully passed the Australian citizenship test, then being a citizen of Australia you can easily get excess to the car loan facility.
Eligibility of overseas student for getting a Car Loan:
The government of Australia offers financial aid to students to fund their expenses as determined in the Higher Education Loan Program (HELP). Unfortunately, the facility is limited to Australian citizens or permanent residents or New Zealand citizenship holders.
Though car loan through primary sources is generally not available for international students, there lie some other sources for the purpose. Private lenders in Australia such as universities, banks, or loan-lending firms are providing car loans but with their strict restrictions or conditions.
Getting a University Loan:
Students in the mainland of the Australian continent are provided with the facility of university loans which offer competent students to get finance for buying a new car. This is primarily done by the institute in which you’re enrolled for a degree program. Knowing every minute details, the institution grants loans based on the fulfillment of the below-mentioned conditions.
✓ You must have valid identity documents.
✓ You must have an Australian Study Visa.
✓ You should not be in the first or final semester.
✓ You should be a regular and full-time student at the university.
✓ You’ll be ineligible for a loan in case of a distance education course.
✓ You should have a strong academic record and need to get at least 18 credit points in one semester or 36 credit points in one academic year.
✓ You need to get good grades, and you must be capable of completing your course on time.
✓ You should have a part-time job within the prescribed working hours.
✓ You need to prove your financial background and clear all your previous dues before applying for the loan.
Getting a Private Bank Loan:
Banks in Australia generally do not offer loans to a non-resident or overseas students owing to several factors. Having issues about visa expiry, or deportation due to overtime working for more than the limited hours or other related circumstances, banks are reluctant to lend temporary residents.
Nonetheless, some banks offer car loans based on their strict conditionality to avoid fraud or to ensure repayment within the documented period. You must have to follow their rules in order to be eligible for the car loan.
Eligibility criteria require:
✓ An Australian Visa
✓ Valid identity documents
✓ Be reside in Australia
✓ An account in a private bank of Australia
✓ You must have a regular source of income through a part-time job or other means
✓ Admission in one of the universities approved by your bank
✓ A security bond to ensure the repayment procedure within the limited time
While looking for a car loan, bear in mind that you need to pay back the borrowed money installments along with your expenses regarding tuition fees, boarding, housing, and other living expenditures.