For students looking to study abroad, the UK is the ideal location. India ranks as the second-highest nation of origin for students at UK higher education institutions.
If you are an aspiring student planning to study in the UK but are concerned about the expense of attending a UK university, this blog will help you understand how an education loan may help you.
An education loan for a course in the UK is one of the most popular options among the different forms of financial help offered to overseas students.
How does one apply for a student loan in the UK?
You can now get a study loan for the UK with low-interest rates, flexible payment schedules, a simple application process, few documentation needs, and quick approval.
To learn about interest rates, repayment options, and loan amounts and to create a budget for the expense of studying in the UK, all you need to do is contact the loan providers.
Explore this page to learn more about the cost of studying in the UK, the prerequisites for student loans in the UK, the costs that are covered by the loans, repayment, loans for Indian students studying in the UK, etc.
Why would you need a UK student loan?
If you have decided to study abroad in the UK, you should be aware that it is one of the most expensive countries. The entire price includes university tuition fees, cost of living factors like lodging, food, transportation, health care charges, and other expenses. One could feel financially constricted with so many expenses.
The following are some of the main justifications for choosing student loans in the UK:
- Interest rates on any loan, including home loans, auto loans, personal loans, and others, are frequently higher than those on student loans. Additionally, female borrowers receive a 0.5% discount from all Government banks.
- A student loan in the UK will pay for your tuition, transportation (tickets), housing rent, university fees, food expenses, living expenses, laptop, and any other item necessary for your studies.
- Usually, parents sell off sizable amounts of assets to pay for their children’s education in the UK, which throws off their long-term financial goals. When you take out an education loan, however, banks hold your liquid assets, such FDs, insurance, and government bonds, as collateral and issue you a loan based on that security.
A student loan for the UK is one of the effective options to pay for all of your expenses promptly and safely while still meeting visa and admission standards.
But how can I apply for an international student loan in the UK? Let’s look at the eligibility and prerequisites for UK student loan applications.
Criteria and conditions for obtaining a Student Loan in the UK
Let’s look at the qualifications for loans for Indian students studying in the UK before delving into the procedure of obtaining one:
- The candidate must be an Indian citizen.
- The applicant’s age at the time of loan application should fall between 18 and 35.
- They must have received official word of admission to a reputable UK institution.
- There must be a co-applicant, who may be a parent or spouse.
- Co-applicants must have a reliable source of income.
What paperwork is necessary to obtain a student loan?
If you wish to apply for a study loan in the UK, the following documentation is required to support your loan application:
- Bank loan application form for education.
- Proof of enrollment.
- An Aadhar card, voter ID, passport, or driver’s license, serves as identification.
- Examples of address documentation include bank statements, rental agreements, ration cards, utility bills, and phone bills.
- Age verification documents include an Aadhar card, voter ID, driver’s license, and passport.
- Passport-size photos.
- When requesting a loan, proof of income in the form of pay stubs is required.
- Financial records
- Recent exam results, such as higher secondary exams or graduation results, are on mark sheets.
- A copy of any award letter.
- A thorough breakdown of the costs involved in taking your selected course.
- Statement of the borrower’s bank account.
- The assets and liabilities of the co-borrower are listed.
How can Indian students get a Loan in the UK?
The answer is a resounding yes if you’re asking whether or not loans for Indian students are available in the UK. You can borrow money to pay for tuition and living expenses at UK institutions.
The university, course, age, nationality, and whether you’ve taken higher education courses all affect your eligibility for student financial aid. Here are the procedures to follow when requesting a student loan in the UK:
- For a student loan in the UK, you can apply online.
- You can apply for financial aid through an education loan to study in the UK for up to nine months after the start of your academic degree.
- Processing of your application could take up to six weeks.
- You must provide identification evidence.
- Once you start making a consistent paycheck, you can pay off these loans.
- Your monthly income will also affect how many and how many installments you will receive each month.
Types of student loans for the UK
Let’s look at the two major forms of loans available to Indian students in the UK:
- Collateral Education Loan: A secured education loan in the UK or a loan for which you must offer security or collateral in order to be approved. Real estate or fixed assets like FDs are examples of securities that can be either material or immaterial.
- Non-Collateral Education Loan: You do not need to present any collateral in order to apply for an unsecured education loan in the UK.
Additionally, the table below details the main distinctions between these two loans:
| Secured Loan | Unsecured Loan |
| The bank requires collateral security to provide such a loan. | There is no need for collateral to avail of this type of UK education loan for international students. |
| Helps you get a loan of up to 1.5 crores | Helps you get a loan of up to 750,000 INR for the UK |
| The rate of interest is usually lower | The rate of interest is usually higher |
What Indian banks offer student loans to UK citizens?
| Bank Name | Maximum Amount of Loan (in INR) | Interest Rate |
| State Bank of India | 1,50,00,000 | 10.50% |
| Bank of India | 40,00,000 | 8.95-9.75% |
| Bank of Baroda | 1,50,00,000 | 8.50-9.15% |
| Central Bank of India | 20,00,000 | 8.65-10.60% |
| Allahabad Bank | 50,00,000 | 7.15-10.05% |
| Punjab National Bank | Determined on the basis of need | 8.90% |
| HDFC Bank | 30,00,000 | 14% |
| ICICI | 1,00,00,000 | 10.50-13% |
| Axis Bank | 75,00,000 INR | 13.70-15.20% |
What costs in the UK Are Covered by Student Loans?
Look at the costs paid by student loans in the UK:
- Payments due to the institution
- Fees for exams, library memberships, and lab services
- Expenses for the books and supplies required to finish the course
- Refundable reservation deposits, cautionary deposits, etc.
- The cost of travel to study abroad
- Up to 50,000 INR was spent on a two-wheeler.
- Costs associated with a research trip or a project for the class
It is expensive to pursue a degree in one of the top study-abroad countries, such as the UK. Instead of delaying your decision to study in the UK, it is wise to take out an education loan for the UK.
Hope you learned about the prerequisites, eligibility, and application process for student loans in the UK from the aforementioned guide.
