Study Loan for the UK

A study loan for UK universities makes university education in the UK affordable for international students, particularly Indian students. The United Kingdom (UK) is one of the oldest and most prestigious study destinations, making it one of the most expensive places to study, particularly for students from developing countries.

The course duration for international students is shorter (3 years for UG and one year for PG studies) than that of domestic students in the UK as the limited-time period makes sure that the cost of tuition and living are kept to a minimum, thereby keeping study loans for the UK affordable. Let us now explore the different education loan options available for international students who are planning to study in the UK.

Table of Contents

• Education Loan for the UK Options
  
  • State Bank of India
  • Bank of Baroda
  • Bank of India
  • Central Bank of India
  • Syndicate Bank
  • Private Banks
  • Non-Banking Financial Companies
  • International Funds
• Study Loan for UK Requirements
• Top 10 Universities in the UK
• Admission Requirements for UK Universities

Education Loan for the UK Options

The average cost of an undergraduate degree in the UK for Indian students is between INR 10 lakhs and INR 40 lakhs per year, with the courses generally being for three years only. For postgraduate degrees, the cost of education is generally between INR 20 lakhs and INR 40 lakhs per annum, and the programs are usually for one year. MBA degrees are on the higher end of the spectrum, ranging from INR 40 lakhs to around INR 90 lakhs. Medical degrees are the most expensive programs, followed by engineering programs. 

Almost all banks in India provide education loans for students looking to pursue undergraduate and postgraduate degrees in the UK. The table below contains the list of the prominent banks providing study loan for UK along with the type of loans:

Note: These details may be updated from time to time. To find out the latest policy updates, please contact the bank directly.

State Bank of India

The SBI offers education loans for almost all UK universities. The bank has an approved list of universities where up to 90 percent of the tuition fees can be funded. Student loans from SBI are only secured by collateral. Students are given 1 year of moratorium during which they can look for a job. There are 2 loan schemes for international students who are planning to study in the UK. These schemes are SBI Student Loan and SBI Global ED-VANTAGE. The bank offers up to Rs.20 lakhs maximum loan amount under the student loan scheme, whereas you can get financed up to Rs.1 crore under the ED-VANTAGE scheme.

Bank of Baroda

Bank of Baroda provides secured loans for studying in the UK. UK universities like the University of Cambridge, University of Warwick, University of Leeds receive 100% loans for tuition and living costs. Through its 'Baroda Scholar Loan' initiative, the Bank of Baroda helps international students in their dreams of studying abroad. Under this initiative, students who opt for a bachelor's or postgraduate program, doctoral degree, or technical job-oriented course at a foreign university can apply. The bank permits a maximum loan amount of Rs.60 lakhs if the university falls under List-A of their scheme and Rs.40 lakhs if the university falls under List-B. Collateral security is required for loans of Rs.7.50 lakhs and above.

Bank of India 

Bank of India's 'Star Education Loan' is one of its most famous education loan initiatives tailored for Indian students. This scheme helps students pursuing undergraduate and master's degrees at institutions such as CIMA-London, UK. It offers a maximum loan amount of Rs.20 lakhs with a loan margin of 15%.

Central Bank of India

Cent Vidyarthi, a loan scheme of the Central Bank of India, offers up to Rs.20 lakhs as the maximum loan amount. The interest rate for this term loan is MCLR+2% for boys (marginal cost of funds based lending rate) and MCLR+1.5% for girls. Additionally, they can provide concessions on the interest rates for specific cases during the repayment period, offering up to a 1% concession. Another benefit to this scheme is that it provides the borrowers with life insurance protection as well.

Syndicate Bank

A student loan of Rs. 20 lakhs is available under the SYNDVIDYA Scheme of the Syndicate Bank for both degree and diploma programs. The repayment term is 15 years and a loan exceeding Rs.7.50 Lakhs requires collateral.

Private Banks

Banks like ICICI and Axis Bank provide unsecured education loans as much as 40 lakhs for international students willing to study in the United Kingdom. Unsecured loans are available from these banks to universities ranked among the top 100. Additionally, they provide complete funding for secured loans. Consider looking into private banks for their service, unsecured loans, etc. There is an interest range of 12% to 13%, with processing fees that are reasonable.

HDFC Bank has partnered with Credila to offer study loans for students willing to study in the UK. Popularly known as HDFC Credila, it provides loans for up to Rs. 20 lakhs. The bank provides borrowers with low-interest rates and flexible loan terms in addition to income tax benefits under section 80 (E) of the Income Tax Act.

Non-Banking Financial Companies

Non-banking financial companies offer secured and unsecured education loans for studying in the UK. The loan amount varies between INR 10,00,000 and INR 20,000. The company considers strong cosigners and offers competitive interest rates for the United Kingdom. 

International Funds

Companies like Mpower and Prodigy offer non-cosigner, non-collateral loans to students studying MBA in the UK. The UK universities that are ranked among the top 10 are funded by them. 

Study Loan for UK Requirements

There are different documentation requirements and procedures for all banks and financial institutions, but there are a few generic documents you can prepare beforehand:

• A completed loan application form from the specific bank
• Identity and address proof 
• Age proof
• Two passport-sized photos
• Proof of income for salaried individuals (salary slips, Form 16, etc.)
• The latest salary slip and income tax assessment order of the past two years
• All financial supporting documents
• Last six months bank account statement of the borrower
• A brief statement of the assets and liabilities of the co-borrower.
• Copy of foreign exchange permit
• Marksheet for last qualifying examination in India (school or graduate diploma)
• Unconditional offer letter or proof of admission to the university
• Estimated expense list for the chosen course
• Scholarship letter copies, if granted any

Top 10 Universities in the UK

An outstanding academic record is required for applying for a student loan, but a letter from a reputable college/university also helps to speed up the approval process. Regardless of the course you study, here are the top 10 UK universities that you should aim for:

• University of Oxford
• University of Cambridge
• Imperial College London
• University College London
• London School of Economics and Political Science
• University of Edinburgh
• King’s College London
• University of Manchester
• University of Bristol
• University of Warwick

Admission Requirements for UK Universities

Each UK university has its own admission requirements. However, the standard admission requirements remain unchanged. Below are some basic details regarding admission to UK universities: