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Education Loans For UK
NBFCs
5 days loan processing time
Quick Approvals
Secured Loan
Upto ₹2CrProcessing Fees
0.5% - 1.0%Margin
NALoan Tenure
Upto 15 YearsEarly Repayment
YesLiving Cost
Yes5 days loan processing time
Quick Approvals
Secured Loan
Upto ₹2CrProcessing Fees
NAMargin
NALoan Tenure
Upto 15 YearsEarly Repayment
YesLiving Cost
Yes3 days loan processing time
Quick Approvals
Secured Loan
NAProcessing Fees
0.85% - 1.0%Margin
NALoan Tenure
Upto 15 YearsEarly Repayment
YesLiving Cost
Yes3 days loan processing time
Quick Approvals
Secured Loan
Upto ₹2CrProcessing Fees
NAMargin
NALoan Tenure
Upto 15 YearsEarly Repayment
YesLiving Cost
Yes7 days loan processing time
Secured Loan
Upto ₹1CrProcessing Fees
1.0% - 1.5%Margin
NALoan Tenure
Upto 12 YearsEarly Repayment
NoLiving Cost
No5 days loan processing time
Quick Approvals
Secured Loan
Upto ₹2CrProcessing Fees
0.5% - 1.0%Margin
NALoan Tenure
Upto 15 YearsEarly Repayment
YesLiving Cost
Yes3 days loan processing time
Quick Approvals
Secured Loan
Upto ₹3CrProcessing Fees
NAMargin
NALoan Tenure
Upto 15 YearsEarly Repayment
YesLiving Cost
Yes3 days loan processing time
Quick Approvals
Secured Loan
NAProcessing Fees
NAMargin
NALoan Tenure
Upto 15 YearsEarly Repayment
NoLiving Cost
NoInternational Funds
7 days loan processing time
Secured Loan
No Upper LimitProcessing Fees
NAMargin
NALoan Tenure
Upto 15 YearsEarly Repayment
YesLiving Cost
YesPrivate Bank
7 days loan processing time
Secured Loan
Upto ₹3CrProcessing Fees
0.5% - 1.0%Margin
NALoan Tenure
Upto 15 YearsEarly Repayment
YesLiving Cost
Yes7 days loan processing time
Secured Loan
Upto ₹2CrProcessing Fees
0.5% - 1.0%Margin
NALoan Tenure
Upto 14 YearsEarly Repayment
YesLiving Cost
Yes4 days loan processing time
Quick Approvals
Secured Loan
Upto ₹2CrProcessing Fees
0.5% - 1.0%Margin
NALoan Tenure
Upto 15 YearsEarly Repayment
YesLiving Cost
Yes7 days loan processing time
Secured Loan
Upto ₹2CrProcessing Fees
0.5% - 1.0%Margin
NALoan Tenure
Upto 15 YearsEarly Repayment
NoLiving Cost
Yes7 days loan processing time
Secured Loan
Upto ₹2CrProcessing Fees
0.5% - 1.0%Margin
NALoan Tenure
Upto 15 YearsEarly Repayment
YesLiving Cost
YesPSU
18 days loan processing time
Secured Loan
Upto ₹2CrProcessing Fees
NAMargin
15%Loan Tenure
Upto 15 YearsEarly Repayment
YesLiving Cost
Yes5 days loan processing time
Quick Approvals
Secured Loan
Upto ₹75LacProcessing Fees
NAMargin
15%Loan Tenure
Upto 15 YearsEarly Repayment
NoLiving Cost
Yes2 weeks loan processing time
Quick Approvals
Secured Loan
Upto ₹2CrProcessing Fees
NAMargin
15%Loan Tenure
Upto 15 YearsEarly Repayment
YesLiving Cost
YesWhat our Students say about us
Education Loan to Study in the UK
April 2025 saw over 14,800 Indian students apply for a UK student visa, marking a 54% jump from the previous year. The UK remains one of the most preferred destinations for higher education, offering world-class universities and strong career pathways.
But the financial pressure can be intense. Tuition fees, accommodation, travel, and day-to-day expenses often cross ₹30 lakhs. Many students choose an education loan for UK study to manage these costs. These loans cover a wide range of expenses, easing the financial burden on families.
Both secured and unsecured education loans for the UK are available from Indian banks, NBFCs, and international lenders.
An approved education loan also serves as financial proof during your UK visa application.
It gives you the financial confidence to pursue your academic goals without compromise.
Types of Education Loans Available for the UK
There are two key types of education loans for UK study. Each comes with specific eligibility, documentation, and approval terms.
Feature | Secured Education Loan (With Collateral) | Unsecured Education Loan (Without Collateral) |
Collateral Required | Yes – Property, fixed deposits, insurance, land | No |
Lenders | Mostly public and private sector banks | Private banks and NBFCs |
Interest Rate | Lower, as lenders face less risk | Higher, reflecting greater risk |
Loan Amount Approval | Based on the value of the collateral | Depends on co-applicant’s income and credit score |
Co-applicant Needed | Usually required | Mandatory |
Ideal For | Students with family-owned assets to pledge | Students without collateral to offer |
Repayment Tenure | Typically longer | Often shorter, varies by lender |
Processing Time | May take longer due to collateral verification | Generally faster, fewer formalities |
Secured Education Loan for UK Studies
A secured education loan requires you to pledge an asset as collateral. This asset could be property, fixed deposits, or other valuable securities. Offering collateral typically means you benefit from lower interest rates and longer repayment options. You may also qualify for a larger loan amount with more flexible terms. And in many cases, you won’t need a co-applicant if the collateral is strong enough.
Public sector banks remain the preferred lenders for secured overseas education loans in India. They often provide competitive interest rates and allow you to include living expenses within the loan amount. The repayment tenure for such loans can extend up to 15 years, easing the monthly burden.
Here is a summary of secured education loans from some leading Indian public banks for UK studies:
Bank | Loan Amount | Processing Fees | Margin | Loan Tenure |
Bank of Baroda | Up to ₹2 crore | Not Applicable | 15% | Up to 15 years |
Union Bank of India | Up to ₹75 lakh | Not Applicable | 15% | Up to 15 years |
Punjab National Bank | Up to ₹2 crore | Not Applicable | 15% | Up to 15 years |
Unsecured Education Loan for UK (No Collateral Required)
If you do not have assets to offer as security, an unsecured education loan can help you fund your UK studies. This option is popular among Indian students applying for loans without collateral.
Private banks and NBFCs offer most unsecured loans. These lenders assess your application based on your creditworthiness and financial background. A co-applicant with a stable income and strong credit score is usually required.
Some international lenders provide unsecured loans directly in Pounds. This can reduce currency conversion charges and ease tuition fee payments. However, interest rates on unsecured loans tend to be higher to balance the increased risk.
Lenders have varied terms, processing fees, and repayment conditions. To help you compare, here is an overview of the top unsecured education loan providers for UK studies:
Lender | Maximum Loan Amount | Processing Fee | Loan Tenure |
Avanse | Up to ₹2 crore | 0.5% – 1.0% | Up to 15 years |
InCred | Up to ₹2 crore | Nil | Up to 15 years |
Credila | Based on profile | 0.85% – 1.0% | Up to 15 years |
Leap Finance | Based on university | 1.5% – 2.0% | Up to 10 years |
No upper limit | Nil | Up to 15 years | |
Based on course | Nil | Up to 10 years | |
Axis Bank | Up to ₹3 crore | 0.5% – 1.0% | Up to 15 years |
ICICI Bank | Up to ₹2 crore | 0.5% – 1.0% | Up to 14 years |
IDFC First Bank | Up to ₹2 crore | 0.5% – 1.0% | Up to 15 years |
Looking forFaster and
streamlined Process?
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Our education loan counsellors will stay by your side every step of the way and recommend the best partner and guide you through the loan applying and sanctioning process.
Education Loans Offered by Indian Banks for the UK
Indian banks provide a range of education loans designed to support your study plans in the UK. These loans often include competitive interest rates, flexible repayment tenures, and coverage for living expenses.
For higher loan amounts, most banks ask for collateral. In return, they offer longer repayment periods and lower processing fees. Whether you are applying for undergraduate or postgraduate courses, comparing these options can help you select the best fit.
Bank | Loan Type | Maximum Loan Amount | Processing Fees | Loan Tenure |
Secured | Up to ₹3 crore | 0.5% – 1.0% | Up to 15 years | |
Secured | Up to ₹2 crore | 0.5% – 1.0% | Up to 14 years | |
Secured | Up to ₹2 crore | 0.5% – 1.0% | Up to 15 years | |
Secured | Up to ₹2 crore | 0.5% – 1.0% | Up to 15 years | |
Secured | Up to ₹2 crore | 0.5% – 1.0% | Up to 15 years | |
Secured | Up to ₹2 crore | Nil | Up to 15 years | |
Secured | Up to ₹75 lakh | Nil | Up to 15 years | |
Secured | Up to ₹2 crore | Nil | Up to 15 years |
Education Loans by NBFCs for Studying in the UK
Non-Banking Financial Companies (NBFCs) have become a preferred choice for many Indian students seeking education loans for the UK. NBFCs tend to offer flexible terms, faster approval processes, and personalised service.
Unlike traditional banks, NBFCs often assess your complete profile, including academic record and the co-applicant’s income. This can reduce paperwork and simplify loan approval. Many NBFCs also allow you to include living expenses as part of the loan amount, making it easier to manage all costs related to your studies. For quicker sanction and customised support, NBFC loans are worth considering.
Below is a comparison of top NBFCs offering secured education loans for the UK.
NBFC | Loan Type | Maximum Loan Amount | Processing Fees | Loan Tenure |
Secured | Up to ₹2 crore | 0.5% – 1.0% | Up to 15 years | |
Secured | Up to ₹2 crore | Nil | Up to 15 years | |
Credila | Secured | Based on profile | 0.85% – 1.0% | Up to 15 years |
Secured | Up to ₹2 crore | Nil | Up to 15 years | |
Secured | Up to ₹1 crore | 1.0% – 1.5% | Up to 12 years | |
Secured | Up to ₹2 crore | 0.5% – 1.0% | Up to 15 years |
Documents Required to Apply for a UK Education Loan
Before applying for an education loan to study in the UK, ensure you have all the necessary documents ready. Incomplete or missing paperwork can delay your loan approval or even cause rejection.
Most lenders provide a customised list of required documents based on your loan type and profile. Preparing these in advance will help your application proceed smoothly.
- Completed loan application form
- Proof of identity (Aadhaar card, passport, etc.)
- Proof of address (utility bills, bank statements)
- Proof of income (salary slips, bank statements, IT returns)
- Recent passport-sized photographs
- Academic transcripts and mark sheets from school and university
- Admission letter from a UK university
- Scholarship award letter (if applicable)
- Detailed statement of other education-related expenses
- Copy of foreign exchange permit (FEMA declaration)
- Co-applicant’s financial documents, including assets and liabilities statement
- Any additional financial documents requested by the lender
Eligibility Criteria to Apply for a Student Loan in the UK
Before applying for a student loan for your UK studies, it’s important to understand the common eligibility requirements. Being aware of these helps you prepare and increases your chances of approval.
Who Can Apply for a Student Loan to Study in the UK?
To qualify for an abroad education loan in the UK, you typically need to meet the following requirements:
- You must be an Indian citizen.
- Your age should be 18 years or older at the time of application.
- The UK university you have secured admission to must be officially accredited and recognised.
- A strong academic record is essential to meet lender criteria.
- You should have a confirmed admission letter from the university.
- Most lenders require a co-applicant, usually a parent or guardian.
- A credit score of 700 or above is generally needed for loan eligibility. For unsecured loans, a co-applicant must fulfil the minimum income and credit score requirements.
Looking forFaster and
streamlined Process?
100% Transparency
100% Free
Our education loan counsellors will stay by your side every step of the way and recommend the best partner and guide you through the loan applying and sanctioning process.
How to Choose the Right Lender for a UK Education Loan?
Choosing the right lender is crucial to secure the best education loan for your UK studies. A careful comparison ensures you avoid hidden costs and receive favourable loan terms. Focus on these important factors:
- Interest Rates
Select lenders offering the lowest interest rates possible. Even a small difference affects your total repayment significantly.
- Coverage of Expenses
Confirm which expenses the loan covers. Some loans extend beyond tuition fees to cover living costs, travel expenses, and study materials.
- Processing Fees
Check the fees charged for processing the loan. Lower fees reduce your upfront costs and overall loan burden.
- Tax Benefits
Verify if the loan qualifies for income tax deductions under Indian tax regulations. This can ease your financial load.
- Loan Margin
Understand the margin money, the part you must pay upfront before the loan is granted. A smaller margin reduces your initial expense.
- Approval and Disbursal Time
Fast loan approval and disbursal matter if your course begins soon. Opt for lenders with a reputation for quick processing.
- Prepayment Options
Check if the lender allows early repayment without penalties. Prepaying can lower the total interest you pay.
By assessing these factors carefully, you can select a lender that best suits your financial needs and academic goals.
Things to Know Before Applying for an Education Loan in the UK
Applying for an education loan to study in the UK involves more than just paperwork. Careful planning at each stage ensures timely approval, smooth fund release, and fewer surprises.
- Choose the Right Course and University
Select a course and institution that are officially recognised and have a strong track record. Lenders and visa officers pay close attention to accreditation and career prospects.
- Estimate the Total Cost of Education
Estimate your full costs—tuition, accommodation, travel, insurance, and daily living expenses. This helps you apply for the right loan amount from the outset
- Prepare All Documents Early
Gather academic records, admission letters, fee details, and ID proofs early. Incomplete paperwork can delay loan processing.
- Arrange a Financial Co-applicant or Guarantor
For unsecured education loans, a co-applicant with a stable income and good credit score is essential. Make sure they meet the lender’s requirements to avoid application issues.
- Apply Well Ahead of Time
Submit your loan application at least two to three months before your visa interview. This allows lenders and immigration authorities adequate time for verification.
- Understand How the Loan Will Be Disbursed
Know whether funds are paid directly to your university or credited to your account. Understanding the disbursement method helps you plan your finances better.
Costs Covered by Education Loan for UK Study
Once your education loan for the UK is sanctioned, you can choose how the funds are disbursed. You may opt to withdraw the full amount at once or receive it in multiple instalments as per your requirements.
Choosing partial disbursement is often wiser since interest is calculated only on the amount disbursed, not the entire sanctioned sum. This approach helps reduce your overall interest burden, especially if you have taken a loan without collateral, where managing expenses carefully is essential.
Here are the common expenses that a UK study loan typically covers, subject to lender terms:
- Tuition fees for your course
- Accommodation or hostel charges
- Daily living expenses like food and groceries
- Utility bills including electricity, water, and internet
- Health or medical insurance costs
- Visa application and related fees
- Academic expenses such as laboratory charges, instruments, and materials
Education Loan Repayment After Studying in the UK
When you take an education loan to study in the UK, repayment is a key factor to plan for, long before you graduate. Managing repayments effectively can ease your financial burden once you start your career
Two aspects are especially important:
- The repayment options your lender provides
- The moratorium period, which is a grace period where principal repayments are deferred
Understanding these can help you budget better and avoid unnecessary stress after your studies.
Most lenders offer flexible repayment schemes tailored to your course and financial capability.
Here are the three primary repayment types:
Repayment Type | Repayment Start | Payment During Course |
EMI (Equated Monthly Instalment) | Begins immediately after loan disbursal | Full EMI payable during study period |
Simple Interest (SI) | Starts after the moratorium period | Only simple interest paid during the course |
Partial Simple Interest (PSI) | Starts after moratorium ends | Partial interest paid monthly during the course |
The moratorium period is a loan feature that lets you pause principal repayments during your studies. For most student loans for Indian students in the UK, this period usually covers:
- The full duration of your course
- An additional 6 to 12 months post-course completion (depending on the lender)
During the moratorium, you may still need to pay interest on the loan, depending on the repayment plan you select.
How to Apply for an Education Loan to Study in the UK?
Applying for a study loan for the UK can feel overwhelming. Different banks, NBFCs, and international lenders all have their own documents, eligibility rules, and timelines. Managing these individually can be time-consuming and stressful. UniCreds simplifies this process for Indian students by offering a streamlined, guided approach to secure your education loan in the UK quickly and efficiently.
It’s best to start your loan application at least 4 to 6 months before your course begins.
Here’s how UniCreds helps you through the steps:
Step | What Happens |
1 | Begin by checking your eligibility for a UK education loan on the UniCreds platform. |
2 | A UniCreds expert will contact you to explain the process and recommend lenders suited to your profile. |
3 | Receive a personalised document checklist tailored to the lender’s requirements. |
4 | Submit your documents either online or via physical collection, based on lender guidelines. |
5 | Verification of your documents and application typically takes 7 to 15 days, varying by lender. |
6 | Upon approval, you will get a loan sanction letter. Track progress anytime through the UniCreds dashboard. |
7 | Sign the agreement and start the disbursal process. Funds are usually transferred directly to your university or your account. |
Why Choose UniCreds for a UK Education Loan?
Picking the right partner for your education loan to study in the UK can ease the entire funding journey. UniCreds goes beyond connecting you with lenders - we guide you smoothly to the loan that suits your needs, without delays or hidden charges.
- Complete Financing
We help you secure loans that cover both tuition and living expenses. No upfront payment needed.
- No Margin Money Required
Finance your entire education without any initial deposit or advance fees.
- Swift Loan Approvals
Benefit from faster sanctioning with lenders who understand student deadlines.
- Personalised Loan Options
Receive loan recommendations tailored to your course, university, co-applicant’s profile, and eligibility.
- Compare Multiple Lenders
Easily assess and select from different education loan options to find your best fit.
- Real-Time Application Tracking
Stay updated on your loan’s progress from application to approval via the UniCreds dashboard.
- Loans Without Collateral
Access unsecured loans through leading lenders, based on eligibility.
- Fully Online Process
Complete your application and document submission online, saving time and effort.
- Paperless Approvals
Submit all documents electronically, eliminating the need for physical paperwork.
- No Service Fees
Our support comes at no cost to you. There are no fees or hidden charges throughout the process.
Frequently Asked Questions