Studying abroad is an exciting opportunity in life and the experience has to be one of a lifetime. A student’s ambition to study abroad must be backed by a well-planned academic and extracurricular schedule, as well as a dependable financial plan. Many people have aspired to study in the United Kingdom for many years, and several of them have succeeded thanks to careful planning. Securing finance is just as important as anything else in the grand scheme of things. You can realize your dream of studying in this magnificent country by receiving an education loan for UK, which will provide you with the required financial assistance.
Indian students can obtain competitive education loans to study in the United Kingdom. The United Kingdom is a popular study-abroad option for Indian students. Education loan for UK without collateral, as well as with collateral, make it possible for anybody to study in the United Kingdom.
Do you want to study in the UK but are worried about the costs and accessible education loans? Continue reading for a thorough grasp of student loan for UK, the eligibility, and required documentation.
Why Get An Education Loan For UK
Before diving into the collateral or non collateral education loan for UK, or learning about the numerous education loan options, it’s a good idea to first understand why an education loan for UK study is required.
Because the United Kingdom is one of the most expensive nations to study and live in, it goes without saying that when you study and live abroad, you have an endless list of bills. The cost of studying in the United Kingdom is relatively high, and students and parents must invest their money to cover the costs.
At this point, taking out a study loan for UK will assist students to lessen their financial load and allow them to pursue their dream of studying there. Part-time employment is permitted in the United Kingdom. So, if you have a monthly loan installment, you can easily pay it off. As a result, it is both practical and convenient to take a UK education loan for international students.
How To Get An Education Loan For UK
Many Indian banks and financial institutions assist Indian students with their student finance in England in order to support the dreams of millions of students who aspire to study there. Many banks and financial institutions compete with one another to provide aspirants with the smoothest experience in attaining their objectives, from providing a significant amount of student loan for UK to offering the lowest interest rate and flexible repayment time. Once you have managed to secure a loan, You can use Remigos’ Money Transfer tool to transfer money for tuition and other expenses. We offer paperless money transactions at competitive rates.
You can even repay the loan once you have completed your education in the UK. Each bank has different options and payment terms for student loans in the United Kingdom. You can contact bank officials for further information about a study loan for UK.
Eligibility For Education Loan For UK
The eligibility requirements vary depending on the lender and the type of loan chosen by the applicant. Typically, you are eligible for international student loans UK for higher education, if you meet the following criteria:
- You are an Indian national.
- You are between the ages of 18 and 35 at the time of the loan application.
- You have confirmed your admission to a prestigious UK university.
- You have a co-applicant, which could be your spouse or a parent.
- Your co-applicant has a regular source of income.
Types Of Education Loan For UK
Students seeking student finance in England can choose between two types of loans that are offered in India: secured loans or loans with security and education loan for UK without collateral or unsecured loans.
- Collateral Education Loan For UK: A secured education loan for UK study is one that requires the applicant to provide collateral when applying for the loan. Any tangible or intangible asset, such as a plot of land, immovable property, or FDs, can be used as security or collateral.
- Non Collateral Education Loan For UK: also often known as an unsecured loan is an education loan without collateral for UK, which means that you are not needed to put up any security when applying for a loan. An education loan for UK without collateral is more common among students looking for a student loan in the United Kingdom.
Lenders In India For Education Loan For UK
In India, there are three primary education loan lenders for student finance London or in the UK: public banks, private banks, and non-banking financial companies (NBFCs). Based on the student’s eligibility and criteria, they provide secured and unsecured loans.
Public banks, out of the three, have the lowest interest rates for education loans with collateral, which are less than or equal to 10%. At the same time, a public bank cannot be expected to fund more than 7.5 lakhs in college loans without security. Approaching private banks and NBFCs will be beneficial for getting an education loan without collateral for UK in such instances. They provide school loans without collateral up to 40-60 lakhs or more, depending on your financial needs. NBFCs frequently make education loans with no limit or margin(the percentage of total expenses that a borrower must cover). Banks decide on margin money and omit it when disbursing loan funds. After securing the funding, you can use Remigos ‘bank account service, designed for international students that offers zero monthly fees, free international wire transfers, mobile banking, and tons of benefits.
Options For Education Loan For UK
Both, secured and unsecured international student loans UK are available from public/private banks, NBFCs, and overseas lenders. The loan terms and conditions differ depending on the loan lender and the type of education loan. Only unsecured loans are available from international lenders.
Let us look at the tables below to understand and compare several lenders in terms of student loan for UK with and without collateral.
Options Of Education Loan For UK Without Collateral
|Type||Lenders||Loan Amount||Interest Rate Range||Processing Fee||Payment During Study Period|
|Public Banks||SBI, BOB||Don’t provide unsecured loans for more than INR 7.5L for UK||10.5%||NA||No EMIs|
|Private Banks||Axis Bank, ICICI, IDFC First Bank||Up to 50 lakhs||10.5%-15%||1-2% of the loan amount||Simple interest|
|NBFCs||Avanse, Incred, HDFC Credila, Auxilo||Up to INR 40-60 lakhs||12-15% – 13.5%%||1.5-2% of the loan amount||Full EMI Repayment|
|International Lenders||Prodigy Finance||Up to INR 75-80 lakhs||10-13% in USD||2-5% of the loan amount||EMI repayment|
Options Of Education Loan For UK With Collateral
|Types||Lenders||Loan Amount||Interest Rate Range||Processing Fee||Payment During Study Period|
|Public Banks||SBI, BOB||Upto 1.5 Crores, contingent on the collateral value||Starts at 9.9%||10,000/- + GST + Property Evaluation charges||No Repayment|
|Private Banks||Axis Bank, ICICI, IDFC First Bank||No upper limits. Depends upon the collateral value and co-applicant’s income||11% -12%||For up to 20 lakhs: Rs. 15000/- (refundable)For more than 20 lakhs: 0.75% of loan amount+GSTRs. + Property Evaluation charges||Simple Interest Repayment|
|NBFCs||Avanse, Incred, HDFC Credila, Auxilo||No upper limit||12.5%-15%||1-2% of the loan amount + Property Evaluation charges||Simple Interest Repayment|
Understanding The Features Of Education Loan For UK
Lenders differ in terms of repayment terms, processing timeframes, covered expenses, and so on for student finance London or other cities in the UK. Let’s have a look at them:
Repayment period: Private banks have a repayment period of up to 10-12 years, whilst state banks have a repayment period of 10-15 years.
Processing Time: NBFCs have the quickest processing time. They process a non collateral education loan for UK up to INR 40-60 lakhs in 4-5 days and a secured loan up to 1 crore in 9-10 days. A secured loan takes longer to process because the lender needs more time to verify the collateral paperwork. As a result, public banks that do not offer unsecured loans of more than INR 7.5L take substantially longer to complete loans than NBFCs (at least 12 days).
Expenses covered: NBFCs cover 100% of study-related student finance in England, while public banks cover 90% and private banks cover 85%.
Income of co-applicant is required: For an education loan for UK without collateral, NBFCs evaluate the income of the co-applicant. However, for US loans totaling INR 20L, the co-monthly applicant’s income should be roughly INR 60K. This income is not required by any lender if students take out a loan with collateral. It should also be noted that the income criteria varies from case to case.
Common causes of decline: Low CIBIL score of the applicant and insufficient income of the co-applicant are major causes for education loan denial. An application for a secured loan is rejected due to missing collateral documentation or a low CIBIL score.
Documents Required For Education Loan For UK
If you want to apply for a study loan for UK, you will need the following documentation to support your loan application:
- Identity evidence includes Aadhar cards, voter IDs, passports, and driving licenses.
- Address verification can be found in bank statements, rental agreements, ration cards, utility bills, and telephone bills.
- Aadhar card, voter ID, driver’s license, and passport are examples of age verification documents.
- Completed loan application form from the appropriate bank.
- Two passport-sized photographs.
- Proof of income for paid employees (salary slips or Form 16 etc).
- The most current income tax assessment order and the most recent pay stub.
- The financial records that back it up.
- Borrower’s bank statement for the last six months.
- Co- Borrower’s asset and liability statement.
- Copies of the foreign exchange license.
- The most recent qualifying test in India’s results (school or graduate studies).
- Letter of unconditional acceptance or documentation for university admission.
- A breakdown of the estimated costs for the selected course.
- Copies of any scholarship letters you have received.
Frequently Asked Questions For Education Loan For UK
Which is the best option for an education loan without collateral for UK?
If the applicant meets the eligibility requirements, a private bank is the best alternative for an unsecured education loan. If you are not eligible for private bank education loans or require more money than a private bank can provide, NBFCs may be your best alternative. A private bank is the greatest alternative for a no-collateral education loan in terms of interest rates. A private bank’s maximum unsecured international student loans UK amount is 50 lakhs.
Private banks, on the other hand, only provide UK education loan for international students for specific courses and universities, and there are other conditions relating to the applicant’s academic track.
NBFCs provide loans of up to 60 lakhs and are flexible in terms of nations, courses, and academic track. The financial background of the co-applicant is the most important factor in obtaining an unsecured school loan from an NBFC.
Can I reapply if my application for a student loan for UK is denied?
It is normally impossible to reapply to the same lender who rejected the initial loan application.
Typically, the application is rejected due to the applicant’s or co-low applicant’s CIBIL score, insufficient documentation, or other comparable reasons.
What are the repayment terms for UK education loan for international students?
Various lenders have different repayment policies. During the moratorium period, the student is not required to repay any education loans obtained from public banks. During the moratorium period, private banks expect simple interest payback. Once the student loan for UK is approved, NBFCs and international lenders expect the student to repay the EMI on a monthly basis.
To fulfill this dream of studying at their preferred University, Indian students can get attractive amounts of study loan for UK. Several banks and NBFCs offer customized products and convenient door-step services, making funding higher education a simple, convenient & smart way to finance higher education. Owing to several financial companies and banks offering customized and flexible finance solutions, students and parents have now realized how financing an education loan may be better than using your hard-earned savings or any other source of finance.
It is best to begin the loan application procedure as soon as you receive the conditional offer letter from the institution since the bank or private financial institute needs time to fulfill their requirements and compile all necessary papers. However, the loan will only be approved only if you have received an unconditional offer letter from the university and have met all of the bank’s terms and conditions.