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 Financial Assistance (Without Collateral):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
  • These scholarships are being provided to students from 18 countries.
  • Students can avail themselves of up to GBP 10,000, covering tuition fees, living expenses, etc.
    • Commonwealth Scholarships
  • These scholarships are for talented individuals with the potential to make a positive impact on the global stage.
  • This scholarship is fully funded, covering tuition fees, living allowance, and airfare to and from the UK.
    • Chevening Scholarships
  • These scholarships are awarded to individuals with leadership potential and strong academic backgrounds.
  • The scholarships offer full financial support to study for any eligible master’s degree at any UK university..
    • University of St. Andrews International Excellence Scholarships
  • These scholarships are offered to international students with academic excellence.

    • 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.

    yOUR ANSWER

    Frequently Asked Questions

    Can I get 50 Lakhs INR as a loan without collateral for the UK?

    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.

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    Education Loan Options for UK 2025

    • Cost to Study in <span style="color: #ff354d">UK</span>
      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
  • These scholarships are being provided to students from 18 countries.
  • Students can avail themselves of up to GBP 10,000, covering tuition fees, living expenses, etc.
    • Commonwealth Scholarships
  • These scholarships are for talented individuals with the potential to make a positive impact on the global stage.
  • This scholarship is fully funded, covering tuition fees, living allowance, and airfare to and from the UK.
    • Chevening Scholarships
  • These scholarships are awarded to individuals with leadership potential and strong academic backgrounds.
  • The scholarships offer full financial support to study for any eligible master’s degree at any UK university..
    • University of St. Andrews International Excellence Scholarships
  • These scholarships are offered to international students with academic excellence.

    • 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.

    YOUR ANSWER

    Frequently Asked Questions

    Can I get 50 Lakhs INR as a loan without collateral for the UK?

    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.

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    The Process Explained

    How It Goes

    Easy 05-Step Digital Journey to Secure Your Education Loan

    01

    Ensure Your Loan Eligibility

    Check your eligibility & get conditional loan offers
    instantly.

    02

    Speak with Loan Experts

    Connect with our loan counselor to better understand the process.

    03

    Share Documents & Fill the Form

    Complete required forms & submit documents for bank verification.

    04

    Settle Your Best Loan Offer

    VITTIYA secures the best rates & maximum loan amount for you.

    05

    Get Loan Approval & Disbursement

    Get fast loan approval & quick fund
    disbursement.

    01

    Eligibility Check

    Our advisors assess your profile, course, and university.

    02

    Documentation

    We support you in organizing your documentation.

    03

    Collateral Check

    The lender verifies and appraises the pledged collateral.

    04

    Loan Sanction

    Receive your official loan approval with terms and amount.

    05

    Disbursement

    Funds disbursed according to the university's fee plan.