The 7-step education loan process for the UK. All you need to know
The United Kingdom has been one of the preferred global destinations for Indian parents who want to send their children abroad for higher education.
The thought is exciting enough as it opens new doors of opportunity for a flourishing career but it requires a considerable sum of money that every parent cannot afford.
Education, especially higher education in foreign countries like the UK, is revered in India, no doubt. But it is a fact that every Indian parent cannot afford to send his child abroad without an appropriate loan.
Knowing about the education loan process for the UK must be a priority for a parent as it will help in fulfilling their children’s dreams to a great extent.
How to start the education loan process for the UK?
Some important facts about the education loan procedure for the UK are as follows:
Step 1: Research the education loan procedure
- Research is the key. So, start looking at viable options at least 8 – 10 months before the new semester begins in the UK.
- The loan procedure of every country is different. Hence, going through reputed sites like EduFund to gain the correct information is absolutely crucial.
Step 2: Check the Education loan eligibility in the UK
- Students who have a good academic record have a better chance of an education loan.
- The loan eligibility in the UK depends a great deal on the confirmation of acceptance for studies or CAS certificate which is issued by the university.
- The student must have a Tier-4 or Tier-2 visa to become eligible for the loan.
Step 3: Know the difference between secured and unsecured education loans
- Secured loans refer to collateral-based finance options like government banks for funding higher education in foreign countries.
- The low-interest rates and fewer processing fees make them look inexpensive when compared to other types of education loans
- Unsecured loans refer to the education loans secured with the help of NBFCs or non-bank financial companies.
- The interest rates are high, no doubt, but it is a feasible option if a student wants to pursue an education course in one of the top 10 or 20 universities in the UK.
- This service is also available on the EduFund App at zero hidden charges and fast disbursal.
Step 4 – Decide the university in which you want to enroll
- Identify the university in which you want to enroll.
- Make sure it is offering the education course you want to pursue.
- Look at the eligibility criteria for admission.
- Look at the average fee structure.
- Calculate the amount of education loan you will need for studying at the specific university.
- Include both academic and non-academic expenses like tuition fees, other compulsory fees, accommodation expenses, transportation costs, books and supplies costs, and, health insurance premiums.
- Look at the amount you can shelve out from your pocket and the amount needed to pursue the studies.
- Calculate the difference and identify the actual loan amount you will be needing.
Step 5 – Make inquiries about the banks and loan options
- Identify the banks that offer loan opportunities.
- Check the criteria for loan eligibility.
- Look at the interest rates.
- Calculate the actual amount you will have to pay.
- Know about the payment schedule and the terms of payment.
- Enquire about the penalty or the additional amount you will have to pay in case you are unable to pay on schedule or as directed.
For a hassle-free process, you can check your eligibility for easy educational loans at EduFund. Why? No hidden charges, low-interest rates, and collateral-free loans up to Rs 75 Lakhs.
Step 6 – Compare the education loan options in the UK
- You have already shortlisted the banks with viable education loan options.
- Compare all the relevant details like interest rate, processing fee, processing time of the loan, loan margin, payment terms, and also available income tax exemptions.
- Do not hesitate to make comparisons as it will help to save a good amount of your money.
Step 7 – Submit the required documents
The student must submit all the necessary documents to the required authorities. It includes –
- The loan application form
- A copy of his/her passport along with a latest passport-size photograph
- Confirmation of student visa for the UK
- Identification proof
- Address proof
- Proof of age
- Admission letter from the university
- Scoresheet of relevant exams
- The scholarship letter if the student is on a scholarship program
- Anticipated expenses
- Necessary documents from the collateral or the guarantor of the loan
Step 8 – Repayment of loan
- The loan agreement is detailed and precise.
- The repayment period usually starts from 6 – 12 months after the studies are completed.
- The agreed amount is paid in installments and is generally repaid within 10 – 15 years.
The presence of widespread Indian communities and numerous academic courses like Medical, Engineering, Hotel Management, Finance, and Business coupled with an easy education loan processing for the UK acts as a magnet to lure in students from all over the country.
To the interested Indian parents, EduFund is here to help you. Explore all of your options and compare them all in one platform.