Embarking on a journey of international education is a dream for many, but the financial constraints can often cast a daunting shadow. The allure of studying in the UK, with its esteemed institutions, is undeniable, but the stark reality of expenses can be overwhelming. For Indian students, the currency exchange between GBP and INR adds an additional layer of complexity.
In such a scenario, the prospect of securing a student loan for a UK education emerges as a beacon of hope. Navigating the intricate landscape of study loans can make this dream more attainable for aspiring students. Are you worried about managing your expenses while studying in the UK? Navigate the complexities of funding your UK education with ease through Yocket Premium. Our expert guidance includes specialized services for student loan counseling, ensuring you have a comprehensive understanding of the financial aspects, interest rates, and repayment strategies.
This guide delves into essential details, including the cost of studying in the UK, eligibility requirements, student loan criteria, expenses covered, repayment structures, and specific loan options for Indian students studying in the UK.
Why Do You Need a Student Loan for UK?
Looking to study in the UK? It's no secret that the UK stands among the costlier study destinations. From tuition fees to living expenses, including accommodations, food, transportation, health, and other miscellaneous costs, the financial strain might seem overwhelming.
Here's why opting for a student loan for international students in the UK makes a lot of sense:
- Lower Interest Rates: Educational loans generally come with more favorable interest rates compared to other forms of borrowing. Government banks often offer a 0.5% discount for female borrowers.
- Expansive Coverage: A UK student loan covers a broad range of expenses – from tuition fees, transportation, and housing rent to food, daily living costs, and even essentials like laptops necessary for your education.
- Preserving Assets: Many parents liquidate significant assets to fund their child's education, affecting long-term financial plans. However, with an education loan, banks use assets like Fixed Deposits (FDs), insurance, and government bonds as collateral, enabling you to secure a loan against these assets.
An education loan for studying in the UK stands as a reliable and efficient solution, ensuring you meet admission and visa requirements while covering your expenses in a secure and timely manner.
Wondering how to get an international student loan in the UK? Connect with Yocket’s counselors and access personalized loan assistance.
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But how to get international student loan in UK? Let’s check the eligibility and requirements to apply for a student loan for UK.
Eligibility Criteria and Requirements to Secure a Student Loan for UK
Looking to pursue your studies in the UK and need financial aid? Here's a comprehensive breakdown of the eligibility criteria, necessary documents, application process, and different types of student loans available for Indian students planning to study in the UK.
Eligibility Criteria for Student Loans in the UK:
- Residency: Applicants must be Indian residents.
- Age: Age between 18 to 35 years is typically required during loan application.
- Admission: Confirmed admission to a recognized institution in the UK is necessary.
- Co-applicant: A co-applicant, typically a parent or spouse, is required.
- Income Stability: Co-applicants must have a stable income source.
Next, let’s check the document requirements for international education loans.
What are the Documents Required to Secure a Student Loan?
To apply for a study loan in the UK, you will need the following documents to support your loan application:
- Education loan application form from the bank.
- Proof of admission.
- Identity proof such as Aadhar Card/ Voter ID/ Passport/ Driving Licence.
- Address proof includes a bank statement, rental agreement, ration card, electricity, or telephone bill.
- Proof of age such as Aadhar Card/ Voter ID/ Driving License/ Passport.
- Passport-size photographs.
- Proof of income such as salary slips must be provided at the time of applying for a loan.
- Financial documents.
- Mark sheets from the latest examination such as higher secondary examination or graduation results.
- Copy of any scholarship letter.
- A detailed list of expenses for studying your chosen course.
- Borrower’s bank account statement.
- Statement of assets and liabilities of co-borrower.
Suggested: HDFC Credila Education Loan to Study Abroad!
How to Get an Education Loan as an Indian Student to Study in UK?
If you are wondering whether you can get loans for Indian students in the UK or not, then the answer is a big yes! You can borrow money to pay for fees and living costs at universities in the UK. The eligibility for student finance depends on the university, course, age, nationality, and whether you have studied a higher education course. Take a look at the steps to follow while applying for a student loan UK:
- You can apply online for a student loan UK.
- You can avail of funding through an education loan to study in the UK for up to 9 months after the start of your academic course.
- The processing time for your application will be up to 6 weeks.
- You will have to submit your proof of identity.
- These loans can be repaid once you start earning a stable income.
- The number and amount of monthly installments will also depend on your monthly earnings.
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Next, let’s check the…
Types of Education Loan to Study in UK
There are mainly 2 types of loans for Indian students in the UK, let’s check them:
- Collateral Education Loan: A secured education loan for the UK or a secured loan wherein you will have to provide a security or collateral to avail when applying for the loan. The security can be tangible or intangible such as FDs or fixed assets, such as property.
- Non-Collateral Education Loan: Unsecured education loan for UK or unsecured loan which means you do not have to provide any collateral to apply for a loan.
Further, we have discussed the key differences between these two loans in the table below:
|
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 INR 750,000 for the UK |
|
The rate of interest is usually lower |
The rate of interest is usually higher |
Next, let’s check the banks available for applying for a student loan in the UK.
Which Indian Banks provide Student Loans for UK?
Looking to secure a student loan for your education in the UK? Several prominent banks in India offer financial support to facilitate your studies abroad. Here’s a glimpse at some banks and key details associated with their educational loan offerings:
|
Bank Name |
Maximum Amount of Loan (in INR) |
Interest Rate |
|
1,50,00,000 |
10.50% |
|
|
40,00,000 |
8.95-9.75% |
|
|
1,50,00,000 |
8.50-9.15% |
|
|
20,00,000 |
8.65-10.60% |
|
|
Allahabad Bank |
50,00,000 |
7.15-10.05% |
|
Determined based on the need |
8.90% |
|
|
30,00,000 |
14% |
|
|
1,00,00,000 |
10.50-13% |
|
|
75,00,000 |
13.70-15.20% |
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To know more about various loans, banks, and their interest rates, connect with Yocket Finance.
What Expenses Are Covered Under Student Loans in UK?
Take a look at the expenses covered under student loan UK:
- Fees payable to the institution
- Fees related to examination, library membership, and laboratory
- Expenses on books and supplies necessary for course completion
- Any refundable deposit for accommodation, caution money, refundable deposit, etc.
- Travel expenses for studying abroad
- Two-wheelers cost up to INR 50,000
- Expenses on a study tour or project work related to the course
With this information, next, let’s get to know the repayment method of education loans for UK study.
Repayment Tenure of Student Loan for UK
Understanding the repayment terms of your UK education loan is crucial before taking the financial step for your studies. Here's a breakdown of the repayment plans for education loans provided by Indian banks for studying in the UK:
- Loan from a Public Bank: Repayment will commence after completion of one year of your course. The loan can be repaid within 15 years from the commencement of repayment.
- Loan from a Private Bank: Repayment will commence and continue up to the course period of +1 year or 6 months after getting a job. The loan can be repaid within 15 years.
Suggested: Education Loans for Abroad Study by the Indian Government
Studying in the UK, known for its high-quality education, might incur substantial costs. To manage these expenses, opting for an education loan can be a wise financial strategy. The guide provided sheds light on the eligibility, requirements, and the process for securing a student loan for the UK.
Besides loans, there are various ways to fund your education in the UK. Thoughtful financial planning can alleviate the burden of taking a loan. For comprehensive guidance through the entire process, consider Yocket Premium—a trustworthy partner for your educational journey.
From the Desk of Yocket
Making the right decisions about funding your education in the UK is crucial for international students. At Yocket, we acknowledge the significance of choosing the most suitable financial aid options and simplifying the process of securing an education loan for the UK. Our detailed resource aims to provide clarity on the various financial support available, ensuring students understand the landscape of education funding for their academic journey in the UK.
Secure your academic future in the UK! Explore our comprehensive guide on acquiring a student loan for UK education in 2024. With Yocket's expert insights, it's never too late to make your dream a reality. Apply now and grab your seat for 2024! Let Yocket guide you to financial solutions ensuring your smooth transition toward studying in the UK
