Home Education Loan UK Student Loans – How to avail loans to apply for study programs in the UK?

UK Student Loans – How to avail loans to apply for study programs in the UK?

by Ankur Gupta
Reading Time: 5 minutes

UK Student Loans – Studying at Oxford is almost every scholar’s ultimate academic dream. However, for most Indian students applying for Masters in UK or Graduate Courses in UK, finances are a major concern. Despite there being at least 1000+ scholarship programs, Indian students still fall short of financial resources for studies in UK. While the cost to study abroad in UK is comparable to other nations, the living expenses are only covered by an education loan for UK. Like many other countries, Indian Students applying for studies in UK need to show proof of funds to get an admission. An education loan for UK helps in getting the students past this hurdle.

52 UK universities rank in the Top 500 International QS Rankings of 2019. With institutions like University of Cambridge, Imperial College of London, King’s College London and 15 other institutions in the top 100 QS Rankings, UK features among the top destinations for Indian students pursuing studies abroad. The process of applying for international admission in UK, Ireland, Germany, France are the same. Indian Students must get a Confirmation of Acceptance for Studies (CAS) Letter to apply for any UK Student Loans. Here we have enlisted complete details about the Study Loan UK programmes, including the eligibility and application norms.

UK Student Loans – Cost of Living in UK

The cost of studies in UK are based on the type of course one applies for. The cost of academic fees in UK may range from GB£10,000 to GB£40,000. The lecture-only courses in UK cost way less than laboratory-based courses in UK. This is the reason why students who wish to study masters in UK must spend more academic fees. International Scholarships for Indian students to study abroad in UK  have been found to cover complete academic expenses, but such opportunities are very rare. The average scholarship amount of any UK scholarship for Indian students is GB£5,430 (approx.).

UK STUDENT LOANS – Tier 4 Student Visa Financial Conditions

To apply for a Tier-4 Student Visa to study abroad in UK , one needs to show proof of funds. Every international student studying in the UK needs to show an amount of at least GB£1,015 per month for nine months at least, if the student is studying outside London. The amount increases to GB£1,265 if the student is staying in London.

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UK STUDENT LOANS – Education Loan coverage

However, covering the living costs to study abroad in UK  is a different ball game. An average Indian student ends up spending close to GB£900 to GBP£1,500 in UK while attending college. Generally, work permits in UK for Indian students studying there are hard to come by. This leaves the students with only the options of UK Student Loans to cover all expenses. Education Loan for UK in India cover at most 85% of academic expenses and over 95% of the living expenses based on the course and institution applied for. Some of the Indian banks providing education loan for study abroad in UK  do not cover professional courses like CIMA. Here we have enlisted the step by step guidelines to find the best International UK Student Loans.

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UK Student Loans – Eligibility Criteria and Loan Limits

Indian banks providing education loans to study abroad in UK  can provide funds up to ₹2.00 crores depending on the course and institution applied. The rise in loan amount is owing to the high exchange rate between the two nations. To study abroad in UK students can obtain loans from the top banks at 8% to18% rate. Here is the eligibility criteria for Indian students to get all study loan UK programmes provided by Indian banking institutions.

UK Student Loans – Eligibility key details

  • Students must be above 16 years of age
  • Must be an Indian Citizen
  • Should have a ‘Confirmation of Acceptance for Studies’ (CAS) issued by the educational institution in UK
  • Students may only apply for professional courses or technical courses. Course like CIMA might not be accepted by all banks for study loan UK programmes
  • Student must have approval/ application of Tier-4 Visa or higher Tier-2 Visa for loan application 

The education loan limits supported by various banks and NBFCs providing loans to study abroad in UK  are mentioned below. Students can also avail scholarships adjustable international education loans from some of these banks.

UK Student Loans – Financial Limits and Interest Rates

Banking Institution Name Quantum of Finance Interest Rates- April 2019
State Bank of India (SBI) GBP£22,000- GBP£165,000 (₹20.00 lakhs to ₹1.50 Crores) 10.80% to 12.50%
HDFC Credila GBP£1,100- GBP£40,000 (₹1.00 Lakh to ₹25.00 Lakhs) 13.00% to 16.00%
Bank of Baroda (BoB) GBP£11,000- GBP£88,000 (₹10.00 Lakhs to ₹80.00 Lakhs) 8.65% to 11.65%
Punjab National Bank (PNB) GBP£22,000- GBP£110,000 (₹20.00 lakhs to ₹1.00 Crore) 10.35% to 12.25%
Canara Bank GBP£11,000- GBP£22,000 (₹10.00 lakhs to ₹20.00 lakhs) 10.20% to 11.70%

How to get a UK student loan?

Education Loans for studies in the United Kingdom generally have a low processing time. As India is a commonwealth nation with good academia and political relations with the UK, the processing time is reduced. To get UK Student Loans, Indian applicants must go through the following process:

  1. Calculate the estimated loan amount based on academic and non-academic expenses
  2. Find multiple banking institutions, check the student loan eligibility UK criteria and start the application process
  3. Submit identification documents, academic records, admission letter and collateral documents to the banking institution
  4. Apply for a Confirmation of Acceptance of Admission letter with the educational institution
  5. Apply for the respective Tier-2 or Tier-4 Student Visa with the London Embassy in India
  6. Submit the CAS to the Banking institution and the immigration office of London Embassy
  7. Get the Tier-2 or Tier-4 visa confirmation and submit it to the bank to get your loan sanction letter
  8. Submit the ‘Student Loan Sanction Letter’ to the immigration office and get a visa confirmation
  9. Submit the visa confirmation to the academic institution and banking institution to finalise the loan disbursement procedure

Scholarship adjustment of UK Student Loans

Students in India may avail various government subsidies for education loans and scholarships to cover their expenses in UK. The international scholarship also provides students with a chance to adjust margin payments for loans with the award sum. Generally, students availing international UK Student Loans are required to pay some portion of each loan disbursement towards their academic fees. This ensures their repayment viability to the banking institution. For studies in UK, margin money may vary from 5% to 15% depending on the banking institution and the quantum of academic fees. Scholarships for UK studies may be used to adjust these margin payments at some Indian banks.

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Study Abroad Admissions for Indian Students are often subjective to the student finances. Most of the foreign education loans are subjective to stiff repayment terms. Repayment of UK Student Loans is much easier as compared to Education Loan for Canada or Study Loan USA. The student work permit norms of UK are simpler than other countries which makes it easier for students to repay their student loans with relative ease. It’s not the repayment process that’s a concern in the UK, it’s getting the funds itself. With Education Loan experts like Buddy4Study one can find well negotiated student loans for UK with easier repayment norms. Good Luck. Happy Learning!

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