Education Loan for UK
Education Loan Options for UK 2025
Cost to Study in UK
Pursuing higher education in the UK involves two major expenses: tuition fees and living costs. Understanding the financing process and application steps is essential for arranging funds effectively. Tuition fees vary based on the program and university, with undergraduate courses typically ranging from GBP 20,500 to GBP 45,000, while MS programs can cost between GBP 19,000 and GBP 58,000. Along with tuition, students should also consider monthly living expenses to plan their finances efficiently.
| Expense | Cost |
|---|---|
| Accommodation | Up to 15 years |
| Utilities | GBP 50 - 100 |
| Groceries | GBP 150 - 250 |
| Transport | GBP 30 - 80 |
| Mobile Phones | GBP 10 - 30 |
| HDFC Credila | Up to 15 Years |
| Miscellaneous | GBP 100 - 200 |
Types of Education Loans for UK
Broadly, there are two main types of loan for students UK that they can take to study in the UK.
These are:
Secured Education Loan: This requires collateral, such as a residential property or other assets, to be pledged along with the application. Secured loans often provide higher loan amounts and better interest rates.
Unsecured Education Loan: These loans do not require collateral but usually come with higher interest rates due to the increased risk for lenders. A co-applicant or co-signer with a stable financial background is typically required, and the loan amount is determined based on their income and credit score.
Secured Education Loan for UK
Secured loans for studying in the UK require collateral, allowing students to access higher loan amounts with lower interest rates compared to unsecured loans. In some cases, a co-applicant may not be required. For students exploring funding options, public sector banks like the State Bank of India (SBI) and the Union Bank of India (UBI) offer competitive secured loan options. A comparative analysis of these loan offerings can help in making an informed decision.
| Lender Name | Maximum Loan Amount (in INR) | Rate of Interest | Margin Money |
|---|---|---|---|
| SBI | Up to 1.5 Cr |
09.65% (for Girls), 10.15% (for Boys) |
10% |
| UBI | Up to 1.5 Cr |
09.25%, 09.75% |
10% (Listed University) 15% (Non Listed University) |
Unsecured Education Loan in UK
For students without collateral, various private banks, NBFCs, and international lenders offer education loans without requiring security. While private banks and NBFCs may need a co-applicant with a stable financial profile, some international lenders provide loans without a co-applicant or co-signer. Each lender has its own advantages and conditions, and a comparison of available options can help in choosing the most suitable loan. These unsecured loans support students pursuing a range of programs, including STEM and management courses, making studying in the UK more accessible.
| Lender Name | Maximum Loan Amount | Rate of Interest | Margin Money |
|---|---|---|---|
| Axis Bank | Up to 50 Lakhs INR | 11% - 13.50% | 5% |
| ICICI Bank | Up to 50 Lakhs INR | 10.85% - 12.50% | 0 - 15% |
| IDFC FIRST Bank | Up to 35 Lakhs INR | 11.75% - 13.25% | Nil |
| HDFC Credila | Up to 40 Lakhs INR | 12% - 13% | Nil |
| Auxilo | Up to 40 Lakhs INR | 11.25% - 13% | Nil |
| Incred | Up to 40 Lakhs INR | 12.50% - 13.50% | Nil |
| Avanse | Up to 40 Lakhs INR | 12.50% - 13.50% | Nil |
| MPower Financing | Up to 40 Lakhs INR | 12.50% - 13.50% | Nil |
| Prodigy Finance | Up to 100,000 USD | 12% - 14% | Nil |
Expenses Covered in Education Loan UK
Once the loan is approved, funds can be disbursed either in full or in installments, depending on individual requirements. Opting for partial disbursement is often recommended, as interest is charged only on the disbursed amount rather than the total approved loan, helping to manage costs effectively. This approach is particularly beneficial for students availing loans without collateral. The loan typically covers essential expenses, including tuition fees, living costs, travel, study materials, and other academic-related costs, as specified by the lender.
The expenses, crucial for postgraduate funding UK, which may be covered under loan as per the lender will include -
Tuition fees
Accommodation cost
Food and groceries
Utility bills
Health insurance
Visa fees
Expenses related to studies (lab fees, instruments, and more)
Documents Required for Education Loan UK
Before applying for an education loan to study in the UK, students must ensure they have all the necessary documents in place. The document checklist can be extensive, and having a well-organized submission process can help streamline loan approval. To assist with this, a tailored document checklist is provided, making it easier for students to gather the required paperwork. Commonly required documents include proof of admission, academic records, financial statements, income proof of the co-applicant, identification documents, and collateral-related paperwork (if applicable).
Typical documents required to secure a study abroad loan for the UK include:
Loan application form
Passport-size photographs
Applicant’s KYC documents
Fees structure from the university
Standardized test scores - GMAT or GRE
Academic transcripts (School and Bachelor’s)
Resident proof of the applicant and co-applicant
Property papers (in case of secured education loan)
English proficiency test score - IELTS or TOEFL or Duolingo
Proof of admission: admission letter from university/institution
Income proof of the co-applicant (for unsecured education loan)
Application Process For Education Loan UK
Securing an education loan for studying in the UK is a straightforward process when approached correctly. To ensure a hassle-free experience, it is advisable to begin the application process 4 to 6 months before the intended enrollment date. Handling multiple lenders individually can be overwhelming, but a streamlined approach simplifies the process. The following steps outline how expert guidance can help students secure an education loan efficiently, from assessing eligibility to loan approval and disbursement.
The following steps outline how students can secure financial assistance efficiently:
Step 1: Begin by assessing your eligibility for an education loan through a reliable platform.
Step 2: Connect with an experienced loan advisor who will guide you through the process and suggest the most suitable lenders based on your financial profile.
Step 3: Receive a personalized document checklist to ensure a smooth and hassle-free application process.
Step 4: Submit the required documents in either hard copy or soft copy as per the lender’s guidelines.
Step 5: The verification process usually takes 7 to 15 days. Once approved, review and sign the loan agreement. Track the status of your application through a dedicated dashboard.
Step 6: Once all formalities are completed, initiate the disbursement process as per the lender’s terms. The funds may be deposited directly into your account or transferred to the university, depending on the lender’s policy.
Repayment of Education Loan to Study in UK
When securing financial assistance for studying in the USA, repayment plays a crucial role in selecting the right lender. Key factors to consider include repayment tenure and moratorium options. Lenders offer different repayment structures, such as Partial Simple Interest (PSI), Simple Interest (SI), and Equated Monthly Installments (EMI). Understanding these options can help borrowers make informed decisions. To simplify the process, a comparative guide has been designed to highlight repayment terms, making it easier to choose the most suitable financing option.
| Lender Name | Repayment Tenure | Repayment Option during Moratorium |
|---|---|---|
| SBI | Up to 15 years | No payment or Only SI |
| UBI | Up to 15 years | No payment or SI |
| Axis Bank | Up to 15 Years | SI or EMI |
| ICICI Bank | Up to 10 Years | SI or EMI |
| IDFC FIRST Bank | Up to 12 Years | PSI or SI or EMI |
| HDFC Credila | Up to 15 Years | PSI |
| Auxilo | Up to 15 Years | SI |
| Incred | Up to 15 Years | PSI or SI |
| Avanse | Up to 15 Years | PSI or SI |
| Prodigy Finance | Up to 15 Years | SI |
Before starting your education financing application, it is essential to compare different lenders based on key factors. To simplify this process, expert guidance is available to help you explore the best financing options. A dedicated loan counselor will assess your academic and financial profile to suggest the most suitable options. With partnerships across government banks, private banks, and NBFCs, accessing the right financial support has never been easier. Get started today by checking your loan eligibility!
How to Choose the Best Lender for UK Education Loan?
Selecting the right financial provider for studying in the UK requires careful comparison to minimize long-term financial burden. Key factors to evaluate include interest rates, loan tenure, moratorium period, repayment flexibility, processing fees, and additional charges. A detailed assessment of these aspects across different lenders and loan schemes will help in making an informed decision.
Interest Rate
Processing fee and time
Margin Money
Moratorium Period
Tax Benefit
Loan Duration
Covered Expenses
Prepayment terms and conditions
Scholarships for studying in the UK
Various financial aid opportunities are available to support students in funding their education. Scholarships play a significant role in covering tuition fees or a portion of educational expenses. Exploring different scholarship options can help reduce the financial burden and make studying in the UK more affordable.
| Scholarships | Features |
|---|---|
| GREAT Scholarships |
|
| Commonwealth Scholarships |
|
| Chevening Scholarships |
|
| University of St. Andrews International Excellence Scholarships |
|
By carefully assessing these factors, you can choose an education financing option that best suits your requirements while ensuring favorable terms.
Before beginning the application process, it is crucial to research and compare different lenders based on key aspects. To simplify this process, expert guidance is available to help evaluate academic and financial profiles and identify the most suitable funding options. With access to multiple lenders, including government banks, private banks, and NBFCs, students can explore tailored solutions for their education financing needs.
Frequently Asked Questions
Yes, private banks offer unsecured education loans up to 50 Lakhs INR for studying in the UK, provided your university is on the lender’s approved list.
With collateral, you can secure an education loan up to 1.5 Crore INR from public sector banks like SBI and UBI, depending on the value of your collateral.
Yes, obtaining an education loan for the UK is straightforward if you follow the necessary steps and submit required documents on time.
The loan amount for studies in the UK without collateral typically ranges from INR 7.5 Lakhs to INR 40 Lakhs, depending on the lender and your creditworthiness.
Education Loan Options for UK 2025
-
Cost to Study in UK
Pursuing higher education in the UK involves two major expenses: tuition fees and living costs. Understanding the financing process and application steps is essential for arranging funds effectively. Tuition fees vary based on the program and university, with undergraduate courses typically ranging from GBP 20,500 to GBP 45,000, while MS programs can cost between GBP 19,000 and GBP 58,000. Along with tuition, students should also consider monthly living expenses to plan their finances efficiently.
| Expense | Cost |
|---|---|
| Accommodation | Up to 15 years |
| Utilities | GBP 50 - 100 |
| Groceries | GBP 150 - 250 |
| Transport | GBP 30 - 80 |
| Mobile Phones | GBP 10 - 30 |
| HDFC Credila | Up to 15 Years |
| Miscellaneous | GBP 100 - 200 |
Types of Education Loans for UK
Broadly, there are two main types of loan for students UK that they can take to study in the UK.
These are:
- Secured Education Loan: This requires collateral, such as a residential property or other assets, to be pledged along with the application. Secured loans often provide higher loan amounts and better interest rates.
- Unsecured Education Loan: These loans do not require collateral but usually come with higher interest rates due to the increased risk for lenders. A co-applicant or co-signer with a stable financial background is typically required, and the loan amount is determined based on their income and credit score.
Secured Education Loan for UK
Secured loans for studying in the UK require collateral, allowing students to access higher loan amounts with lower interest rates compared to unsecured loans. In some cases, a co-applicant may not be required. For students exploring funding options, public sector banks like the State Bank of India (SBI) and the Union Bank of India (UBI) offer competitive secured loan options. A comparative analysis of these loan offerings can help in making an informed decision.
| Lender Name | Maximum Loan Amount (in INR) | Rate of Interest | Margin Money |
|---|---|---|---|
| SBI | Up to 1.5 Cr |
09.65% (for Girls), 10.15% (for Boys) |
10% |
| UBI | Up to 1.5 Cr |
09.25%, 09.75% |
10% (Listed University) 15% (Non Listed University) |
Unsecured Education Loan in UK
For students without collateral, various private banks, NBFCs, and international lenders offer education loans without requiring security. While private banks and NBFCs may need a co-applicant with a stable financial profile, some international lenders provide loans without a co-applicant or co-signer. Each lender has its own advantages and conditions, and a comparison of available options can help in choosing the most suitable loan. These unsecured loans support students pursuing a range of programs, including STEM and management courses, making studying in the UK more accessible.
| Lender Name | Maximum Loan Amount | Rate of Interest | Margin Money |
|---|---|---|---|
| Axis Bank | Up to 50 Lakhs INR | 11% - 13.50% | 5% |
| ICICI Bank | Up to 50 Lakhs INR | 10.85% - 12.50% | 0 - 15% |
| IDFC FIRST Bank | Up to 35 Lakhs INR | 11.75% - 13.25% | Nil |
| HDFC Credila | Up to 40 Lakhs INR | 12% - 13% | Nil |
| Auxilo | Up to 40 Lakhs INR | 11.25% - 13% | Nil |
| Incred | Up to 40 Lakhs INR | 12.50% - 13.50% | Nil |
| Avanse | Up to 40 Lakhs INR | 12.50% - 13.50% | Nil |
| MPower Financing | Up to 40 Lakhs INR | 12.50% - 13.50% | Nil |
| Prodigy Finance | Up to 100,000 USD | 12% - 14% | Nil |
Expenses Covered in Education Loan UK
Once the loan is approved, funds can be disbursed either in full or in installments, depending on individual requirements. Opting for partial disbursement is often recommended, as interest is charged only on the disbursed amount rather than the total approved loan, helping to manage costs effectively. This approach is particularly beneficial for students availing loans without collateral. The loan typically covers essential expenses, including tuition fees, living costs, travel, study materials, and other academic-related costs, as specified by the lender.
The expenses, crucial for postgraduate funding UK, which may be covered under loan as per the lender will include -
- Tuition fees
- Accommodation cost
- Food and groceries
- Utility bills
- Health insurance
- Visa fees
- Expenses related to studies (lab fees, instruments, and more)
Documents Required for Education Loan UK
Before applying for an education loan to study in the UK, students must ensure they have all the necessary documents in place. The document checklist can be extensive, and having a well-organized submission process can help streamline loan approval. To assist with this, a tailored document checklist is provided, making it easier for students to gather the required paperwork. Commonly required documents include proof of admission, academic records, financial statements, income proof of the co-applicant, identification documents, and collateral-related paperwork (if applicable).
Typical documents required to secure a study abroad loan for the UK include:
- Loan application form
- Passport-size photographs
- Applicant’s KYC documents
- Fees structure from the university
- Standardized test scores - GMAT or GRE
- Academic transcripts (School and Bachelor’s)
- Resident proof of the applicant and co-applicant
- Property papers (in case of secured education loan)
- English proficiency test score - IELTS or TOEFL or Duolingo
- Proof of admission: admission letter from university/institution
- Income proof of the co-applicant (for unsecured education loan)
Application Process For Education Loan UK
Securing an education loan for studying in the UK is a straightforward process when approached correctly. To ensure a hassle-free experience, it is advisable to begin the application process 4 to 6 months before the intended enrollment date. Handling multiple lenders individually can be overwhelming, but a streamlined approach simplifies the process. The following steps outline how expert guidance can help students secure an education loan efficiently, from assessing eligibility to loan approval and disbursement.
The following steps outline how students can secure financial assistance efficiently:
- Step 1: Begin by assessing your eligibility for an education loan through a reliable platform.
- Step 2: Connect with an experienced loan advisor who will guide you through the process and suggest the most suitable lenders based on your financial profile.
- Step 3: Receive a personalized document checklist to ensure a smooth and hassle-free application process.
- Step 4: Submit the required documents in either hard copy or soft copy as per the lender’s guidelines.
- Step 5: The verification process usually takes 7 to 15 days. Once approved, review and sign the loan agreement. Track the status of your application through a dedicated dashboard.
- Step 6: Once all formalities are completed, initiate the disbursement process as per the lender’s terms. The funds may be deposited directly into your account or transferred to the university, depending on the lender’s policy.
Repayment of Education Loan to Study in UK
When securing financial assistance for studying in the USA, repayment plays a crucial role in selecting the right lender. Key factors to consider include repayment tenure and moratorium options. Lenders offer different repayment structures, such as Partial Simple Interest (PSI), Simple Interest (SI), and Equated Monthly Installments (EMI). Understanding these options can help borrowers make informed decisions. To simplify the process, a comparative guide has been designed to highlight repayment terms, making it easier to choose the most suitable financing option.
| Lender Name | Repayment Tenure | Repayment Option during Moratorium |
|---|---|---|
| SBI | Up to 15 years | No payment or Only SI |
| UBI | Up to 15 years | No payment or SI |
| Axis Bank | Up to 15 Years | SI or EMI |
| ICICI Bank | Up to 10 Years | SI or EMI |
| IDFC FIRST Bank | Up to 12 Years | PSI or SI or EMI |
| HDFC Credila | Up to 15 Years | PSI |
| Auxilo | Up to 15 Years | SI |
| Incred | Up to 15 Years | PSI or SI |
| Avanse | Up to 15 Years | PSI or SI |
| Prodigy Finance | Up to 15 Years | SI |
Before starting your education financing application, it is essential to compare different lenders based on key factors. To simplify this process, expert guidance is available to help you explore the best financing options. A dedicated loan counselor will assess your academic and financial profile to suggest the most suitable options. With partnerships across government banks, private banks, and NBFCs, accessing the right financial support has never been easier. Get started today by checking your loan eligibility!
How to Choose the Best Lender for UK Education Loan?
Selecting the right financial provider for studying in the UK requires careful comparison to minimize long-term financial burden. Key factors to evaluate include interest rates, loan tenure, moratorium period, repayment flexibility, processing fees, and additional charges. A detailed assessment of these aspects across different lenders and loan schemes will help in making an informed decision.
- Interest Rate
- Processing fee and time
- Margin Money
- Moratorium Period
- Tax Benefit
- Loan Duration
- Covered Expenses
- Prepayment terms and conditions
Scholarships for studying in the UK
Various financial aid opportunities are available to support students in funding their education. Scholarships play a significant role in covering tuition fees or a portion of educational expenses. Exploring different scholarship options can help reduce the financial burden and make studying in the UK more affordable.
| Scholarships | Features |
|---|---|
| GREAT Scholarships |
|
| Commonwealth Scholarships |
|
| Chevening Scholarships |
|
| University of St. Andrews International Excellence Scholarships |
|
By carefully assessing these factors, you can choose an education financing option that best suits your requirements while ensuring favorable terms.
Before beginning the application process, it is crucial to research and compare different lenders based on key aspects. To simplify this process, expert guidance is available to help evaluate academic and financial profiles and identify the most suitable funding options. With access to multiple lenders, including government banks, private banks, and NBFCs, students can explore tailored solutions for their education financing needs.
Frequently Asked Questions
Yes, private banks offer unsecured education loans up to 50 Lakhs INR for studying in the UK, provided your university is on the lender’s approved list.
With collateral, you can secure an education loan up to 1.5 Crore INR from public sector banks like SBI and UBI, depending on the value of your collateral.
Yes, obtaining an education loan for the UK is straightforward if you follow the necessary steps and submit required documents on time.
The loan amount for studies in the UK without collateral typically ranges from INR 7.5 Lakhs to INR 40 Lakhs, depending on the lender and your creditworthiness.
Education Loan for USA
In order to apply for i20 you need to furnish bank balance proof of the last 24 hours / 1 day. However, if you have an Education Loan sanction letter, you do not show this balance for 24 hours.
Hence you can straight away apply for i20 & speed up the VISA process. Both – Secured & Unsecured – loans are accepted for higher studies in the USA.
Pursue Your Dream Degree in USA
The USA is a top study destination for international students, offering prestigious universities and a wealth of opportunities. In the 2021/2022 academic year, over 199,000 Indian students chose the USA for higher education, reflecting its immense popularity.
One key reason for this preference is the global career prospects available after earning a degree. Tuition fees vary across programs, with international graduate students paying an average of USD 39,000 annually. Education loans are an ideal solution to cover tuition, living costs, and other expenses. Moreover, these loans also serve as valid proof of funds for US student visas, simplifying the application process.
Education Loan Eligibility for USA
To obtain an abroad education loan in USA as an international student, there are specific conditions/eligibility criteria that need to be fulfilled.
These consist of:
Good academic record.
Collateral for secured loans.
Co-applicant with sufficient income for unsecured loans.
Acceptance into a recognized American institution for a full-time program.
Documents Required for Education Loan USA
Apart from meeting the eligibility criteria, students must ensure they have all the necessary documents ready before applying for an education loan to study in the USA. The document checklist can be extensive, but a personalized checklist can help streamline the process and speed up submission.
Commonly required documents for securing a study abroad loan for the USA include:
Loan application form
Passport-size photographs
KYC documents of the applicant
Standardized test scores (GMAT or GRE)
Academic transcripts (School and Bachelor’s)
Frequently Asked Questions
Candidates can get a UBI education loan without an account, even if parents are deceased, with simple EMI calculations and no prepayment fees.
To secure an education loan for the USA, you need an acceptance letter from a U.S. institution and a valid student visa. Most lenders require a cosigner who is a U.S. permanent resident with good credit and at least two years of residency.
Interest rates are based on benchmarks like the Prime Rate or SOFR, plus a margin determined by the borrower’s or cosigner’s creditworthiness.
Repayment options include full deferral, interest-only payments during studies, or immediate repayment. Terms typically range from 10 to 15 years.
Yes, unsecured loans are available and rely on creditworthiness. These may require a cosigner or a third-party guarantor.
Loans in the USA have interest rates between 8% and 19%, while home country loans often have rates around 10.25%, potentially making them a more cost-effective option.
Frequently Asked Questions
Candidates can get a Canada education loan without an account, even if parents are deceased, with simple EMI calculations and no prepayment fees.
To secure an education loan for the USA, you need an acceptance letter from a U.S. institution and a valid student visa. Most lenders require a cosigner who is a U.S. permanent resident with good credit and at least two years of residency.
Interest rates are based on benchmarks like the Prime Rate or SOFR, plus a margin determined by the borrower’s or cosigner’s creditworthiness.
Repayment options include full deferral, interest-only payments during studies, or immediate repayment. Terms typically range from 10 to 15 years.
Yes, unsecured loans are available and rely on creditworthiness. These may require a cosigner or a third-party guarantor.
Loans in the USA have interest rates between 8% and 19%, while home country loans often have rates around 10.25%, potentially making them a more cost-effective option.