UK Education Loan: If you want to study in the UK and are worried about where to get the funds to cover the expenses, you no longer have to think about it. Most of the universities of UK provide scholarship to the students, if still no student is able to get scholarship, then educational loans are provided by the bank for such students. Let us know in detail about the education loan process for UK.
What is education loan?
An education loan is an amount borrowed to meet the expenses related to post secondary or higher education. Education loans are intended to cover the cost of tuition, books and supplies, and living expenses while the borrower is in the process of earning a degree. Study in UK with Educational Loan
The UK is the most preferred country of study for international students. Although living, eating, traveling in the UK can be a bit expensive. To fulfill the dream of millions of Indian students interested in studying in the UK, many Indian banks and financial institutions help Indian students by providing loans.
Top UK Universities
Below are the names of UK's top universities for you, which are as follows:
| Name of Universities | QS Ranking 2023 |
| Oxford University | 4 |
| University of Cambridge | 2 |
| Imperial College London | =6 |
| University College London | 8 |
| University of Edinburgh | 15 |
| University of Manchester | 28 |
| King's College London | 37 |
| London School of Economics and Political Science | 56 |
| University of Warwick | 64 |
| Bristol University | =61 |
| University of Glasgow | 81 |
| University of Southampton | 78 |
| Durham University | 92 |
| University of Birmingham | 91 |
Educational Loans in UK
Educational loans help students financially to fulfill their dream of pursuing their studies in the university of their choice. Students should apply for an educational loan as soon as they receive the admission letter from the university as loan processing by banks takes time. You can apply for the loan in the bank of your choice as per the interest rate of the bank.
Bank of Baroda (BoB)
Bank of Baroda offers an educational loan called 'Baroda Scholar Loan' which helps Indian students to study abroad. This loan is for those students who want to take admission in foreign university for graduation, master and PhD or any job oriented course. The bank gives loans on the basis of the rank of the university, such as for A Grade and B Grade universities, the bank provides a maximum amount of up to Rs 60 lakh.
Bank of India (BoI)
'Star Education Loan' - Designed for Indian students. This is a scheme launched by a government bank. This loan is for those students who want to take admission in foreign university for graduation, master and PhD or any job oriented course. It offers loan amounts up to Rs.20 lakh with a maximum loan margin of up to 15%.
Central Bank of India (CBI)
The Central Bank's 'St. Student Loan' scheme provides a maximum loan amount of up to Rs.20 lakh. The interest in this scheme is MCLR+2% for boys and MCLR+1.5% for girls. The additional advantage of this scheme is that it also provides life insurance security to the student loan borrowers.
HDFC Bank (HDFC)
HDFC Bank offers education loan up to Rs 20 lakh for students studying abroad. Along with flexible loan terms and low interest rates, it also offers tax benefits to the student loan borrower under section 80 (E) of the Income Tax Act.
State Bank of India (SBI)
SBI Bank has two loan schemes for students studying in the UK – 'SBI Student Loan' and 'SBI Global Ed-Vantage', in SBI Student Loan the bank offers a maximum loan amount of up to Rs 20 lakh while in SBI Global Aid Under Vantage, you can get a loan of up to Rs 1 crore.
Syndicate Bank
SYNDVIDYA scheme allows student loans up to Rs 20 lakh for both degree and diploma courses. The repayment tenure is 15 years and loans above Rs 7.50 lakh require collateral.
Loan amount and interest rate
The loan related information in front of you in the education loan process for UK is given below-
| Bank Name | Loan Amount (INR) | Interest rate | Loan Term |
| Allahabad Bank | 50 Lakh | 9.90% (0.50% less for girls) | Course Duration + 1 Year and 6 Months Job Loan to be repaid within a maximum period of 15 years from the date of commencement of repayment, once disbursed. |
| Bank of Baroda | 60 Lakh | 9.70-11.20% | Course time duration + 1 year and 6 months after getting job. Repayable in a maximum of 180 installments for loan amount above Rs.7.50 lakh. |
| Bank of India | 20 Lakh | 10.90% | Course Duration + 1 year and 6 months after getting job and start loan repayment To be repaid in 15 years after it is due. |
| Central Bank of India | 20 Lakh | 10.40% (0.50% less for girls) | Repayment 12 months after completion of studies or 6 months after securing a job, whichever is earlier. |
| Punjab National Bank | Need-based finance with parent/student margin within repaying capacity. | 9.45-11% | up to a maximum of 15 years |
| Punjab & Sind Bank | 20 Lakh | 10.25% | Loan repayment in Equal Monthly Installments for all categories with a maximum tenure of 15 years will be for. |
| State Bank of India | 1.5 cr | 10.50% (0.50% less for girls) | Loan repayment, one year after course completion Will start after 1 year or after 6 months of securing a job. Maximum repayment tenure is 15 years. |
| Syndicate Bank | 2 cr | 10.75-11.50% (0.50% less for girls) | Course duration + 1 year or 6 months after getting a job. The loan interest rate should be paid either by the candidate himself or by his/her parents. |
Private Bank Loan Amount and Interest Rate
Some of the loan related information related to private banks in the education loan process for UK are as follows:| Bank Name | Loan Amount (INR) | Interest rate | Loan term |
| Axis Bank | 75 Lakh | 13.50% | – |
| HDFC Bank | 20 Lakh | 14% | Loan repayment after 1 year of course completion / 6 months after getting employed begins after. |
| HSBC | 1 crore | – | Tenure up to 15 years. |
| ICICI | 20 lakh | 13% | – |
Education Loan Process for UK
The step-by-step loan process for studying in UK is given below-- Step-1: First of all you have to get admission confirmation letter from the university.
- Step-2: In the second step you have to apply for an educational loan in the bank.
- Step-3: In the third step you will have to submit all the loan related documents to the bank.
- Duly filled loan application form of the particular bank.
- Proof of identity and present address.
- Two passport size photographs for salaried individuals.
- Proof of income (salary slip or Form 16 etc.).
- Latest 2 years salary slips and income tax assessment.
- All financial supporting documents.
- Bank account statement of the borrower for the last six months.
- A brief description of the assets and liabilities of the co-borrower.
- Copies of Foreign Exchange Permit.
- Marksheet of the last qualifying examination in India (school or graduate studies).
- Unconditional offer letter/proof of admission from the University.
- List of expected expenses for the specified course.
- Copy of scholarship letter if any granted.
- Age proof.
- Step-4: Your loan application will be further processed after bank verification.
- Step-5: Once the loan application is approved by the bank, the amount will be transferred to your account.
Documents Required for UK Education Loan Process
Here is a list of documents that you need at the time of education loan process for UK, which you can keep ready in advance-- Duly filled loan application form of the particular bank.
- Proof of identity and present address.
- Age proof.
- Two passport size photographs.
- Proof of income (salary slip or Form 16 etc.) for salaried individuals.
- Also, latest salary slips and income tax assessment for the last two years.
- All financial supporting documents.
- Bank account statement of the borrower for the last six months.
- A brief description of the assets and liabilities of the co-borrower.
- Copies of Foreign Exchange Permit.
- Marksheet of the last qualifying examination in India (school or graduate studies).
- Unconditional offer letter/proof of admission from the university.
- List of expenses expected for the specified course.
- Copy of scholarship letter if any granted.
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