The UK has always been an attractive destination for international students. Thanks to its renowned education system, India is the second-largest source of students enrolling in UK universities. However, the fee structure, as well as other expenditures such as housing, transport, and food, make the UK among the most expensive countries. When applying to UK institutions, a candidate must present a well-structured budget plan. Students seeking admission often look for student finance in the UK to fund their studies. To do so, an education loan in the UK is one of the most common options among students worldwide. Several banks & NBFCs assist you in funding your tuition costs as well as the numerous additional expenditures that come with studying abroad. When opposed to the tedious paperwork that students had to do, applying for an education loan to study in the UK is now a simple process. Apply for the best student loans in the UK with UniCreds and fulfil your study abroad goals!
Before understanding the entire process in detail of student finance UK & everything around it, check out the standard eligibility criteria to acquire international student loans in the UK. Note that the below-given criteria are the standard requirement and with different institutes, the requirements will vary depending on their processes.1. You must be a citizen of India2. You must be above the age of 18 years or your parents will have to take the loan for you.3. Must have a confirmed admission in a recognized UK institution4. A co-applicant who is either a parent or a spouse is required5. Co-applicants must have a stable and secure income source
While each bank and financial institution has its own paperwork requirements and procedures, here is a typical list of documents you should have on hand when applying for an education loan in the UK -1. Completed application form2. Proof of Identity3. Address verification4. Proof of income5. Photographs in passport size6. Marksheets for school and university7. Admission letter8. Admission letter9. Other Expenses List10. Copy of a foreign exchange permit11. The co-borrower must submit a concise summary of assets and liabilities12. Other financial documents
The cost of studying in the UK varies depending on the institution, the course choice, scholarships & grants, and several other factors. Tuition costs in the UK have progressively climbed over the years, with EU and UK students paying around £9,250 per year. At the same time, tuition prices for international students start at around £10,000 and rise to around £38,000 for specialised degrees in medicine and other fields. Humanities and social sciences degrees are less expensive, but clinical degrees and laboratory studies are more expensive. In order to overcome the exorbitant expenses that may seem overwhelming, it is advisable to secure an education loan in the UK that’ll cover a chunk of your major expenses.
The best part of taking a UK education loan for international students with UniCreds is that you can get up to 100% financing implying that all your expenses will be covered by the loan. The following are the things you can expect a student loan in the UK to cover -1. Tuition Costs2. Travel & Transport including the tickets3. Accommodation & Rental expenses4. University fees & additional course costs5. Food expenditures6. Living expenses7. Laptop8. Other research, thesis, and project-work-related expenses9. Any other expense required for your education
In the UK, there are primarily 2 types of loans available to students. What type of loan you apply for, however, will depend on the financial institution and your eligibility -
Secured Education Loans: In the UK, a secured student loan is one for which the applicant must offer security or collateral. Apartments and retail stores are instances of tangible assets, whereas fixed deposits and government bonds are examples of intangible securities.
Unsecured Education Loans: An education loan in the UK without collateral is an unsecured loan. As the name implies, applying for an unsecured student loan in the UK. However, it is important for students to note that the interest rates may be higher for an unsecured education loan in the UK due to no collateral.
Applying for an education loan in the UK involves a lot of research and requires a set of steps to be followed. The procedure may seem cumbersome at first, and the student may get overwhelmed when applying. However, UniCreds makes it easier for students with expert counsellors assisting students at every step of the process at no extra cost. There are some tips that students should be aware of when applying for a UK student loan and they include - Selecting A Financial Institution Selecting a bank or NBFC that offers the best loan terms is more important than ones that give more finances. It is also important to verify if the lender gives the option to make the EMI payments in advance or allows for partly payments of the loan. Knowing the service charges and prepayment penalties is a must.
Total EMI Cost The EMI paid for an education loan in the UK depends on how a student chooses to repay the loan. Some students choose to borrow money for a longer period of time since the EMI would be lower. The cost of the loan and the interest paid, however, will be significantly greater in this case. Therefore, if the chances of finding a well-paying job following the course are strong, choosing a shorter loan term is better.
1. Moratorium Periods: Moratorium periods are sabbaticals that typically last the length of the course plus an additional year or six months after finishing the course, whichever comes first. Students are not required to make loan payments during this time, although interest will continue to accrue. Students are permitted to pay down the interest during the moratorium period, which will lighten the burden of the loan and reduce the cost of the loan once they must begin making EMI payments.
2. Pay In Installments: Banks tack on interest on the amount of money sent. Typically, a student must pay for the course once per year or once per semester. Therefore, it would be wiser to apply for an education loan in the UK when needed. In this manner, substantially less interest will accrue. Make sure that the money is distributed as and when it is needed, rather than having it sanctioned in one lump sum.
3. Tax Benefits: Under Section 80E of the Income Tax Act, students can get tax benefits on the interest they pay on student loans. The loan must be obtained from an Indian scheduled bank or a gazetted financial institution in order to qualify for this deduction. Eight years is the maximum time for a tax deduction. Therefore, choosing a longer loan implies that students will only receive the tax deduction for the first eight years.
UniCreds, unlike any other platform, makes securing student loans easy. Here are some of the reasons why receiving a student loan in the UK with UniCreds is the best choice -1. Full financing (up to 100 %) for tuition and living expenses2. No margin money3. Immediate sanctions in the event of an emergency4. Options for customised financing5. Comparing education loans6. Tracking of loan applications7. Loans with no collateral8. Doorstep delivery of services9. Paperless approval of loans
Every private bank and NBFC has a list of UK universities that are eligible for education loans without collateral. Although the procedure for obtaining a UK education loan without collateral in India for studies abroad is similar, the loan amount offered by various lenders varies based on where students intend to pursue their studies. The list of institutions that have been given the green light for a non-collateral education loan in the UK without collateral is shown below.1. The University of Cambridge2. The University of Oxford3. UCL (University College London)4. Imperial College London5. The University of Edinburgh6. The University of Warwick7. London Business School8. London School of Economics and Political Science Aside from the fact that the maximum amount of the non-collateral education loan in the UK has been increased to INR 40 Lakhs, the interest rates for the loan now start at 10.99%.
There are various partners who provide education loans for the UK with and without collateral. The loan conditions and terms may differ depending on the lender and the type of education loan. International lenders offer unsecured loans only.
Education Loan In The UK - Without Collateral
Features Private Banks NBFCs Example Lenders Axis Bank, ICICI, IDFC First Bank Avanse, Incred, HDFC Credila, Auxilo Processing Fees (INR) Up to 20 lakhs: Rs. 15000/- (refundable)
More than 20 lakhs: 0.75% of loan amount+GSTRs. + Property Evaluation charges
1-2% of the loan amount + Property Evaluation charges
Education Loan In The UK - Without Collateral
Features Private Banks NBFCs International Lenders Example Lenders Axis Bank, ICICI, IDFC Avanse, Incred, HDFC Credila, Auxilo Prodigy Finance Processing Fees (INR) 1-2% of the loan amount 1.5-2% of the loan amount 2-5% of the loan amount
The UK is a popular study abroad destination with top-ranked universities offering a wide range of courses. Opting for the best courses in the UK can not only improve your skills but also provide access to lucrative job opportunities. If you aim to pursue a successful career, it is essential to prioritize acquiring a reputed UK degree. For example, enrolling in a data science course, which is in high demand in the UK, can increase your chances of securing a well-paying job. There are several other sought-after courses in the UK that can propel your career towards the right path
- Business Analytics
- Data Science
- Computer Science
- MBA and MIM
- Finance, International Business and Accounting
- Architecture and Construction Management
- Fashion and Interior designing
The UK is a popular study abroad destination with top-ranked universities offering a wide range of courses. Opting for the best courses in the UK can not only improve your skills but also provide access to lucrative job opportunities.
If you aim to pursue a successful career, it is essential to know the visa requirements along with other eligibility requirements. Let us see the documents required for a UK student visa.
Required Documents for UK Student Visa Additional Documents (if applicable)
Current passport or valid travel documentation
Not a citizen of the country you are applying from
Evidence of funds to cover living expenses for course duration
Under 18 years of age
Confirmation of Acceptance for Studies (CAS) reference number and related documents
Have dependents (family members) Passport-sized color photographs Tuberculosis screening certificate (mandatory for South Asian countries) Assessment documentation Academic Technology Approval Scheme (ATAS) clearance certificate (if required)
Visa Visa fee Student visa To apply for a student visa from outside the UK, a fee of £363 is required. Moreover, if you need to extend or change your student visa from inside the UK, you will have to pay a fee of £490.
Banks are not restricted in how much money they can lend to students who desire to study overseas. From bank to bank, it varies. Almost all banks provide loans up to INR 20-30 lakhs. Additionally, the interest rate rises if the loan amount exceeds INR 20 lakhs.