Many students find that traveling to the UK to pursue higher education is an amazing and fulfilling experience that benefits them both personally and professionally. The rich intellectual environment and excellent exposure to other cultures provide a unique chance for personal development.
But all these leisure come with heavy expenses which include tuition fees, cost of living, and other miscellaneous expenses. Though this seems like an obstacle, what if we tell you this can be managed effectively by taking an education loan to study in the UK.
Loans for Overseas Education: A Lifesaver for Money
A financial product called an international education loan is made to assist students in paying for their study abroad expenses. Typically, this kind of loan pays for books, living expenses, tuition, and other educational costs. Students wishing to finance their education in the UK will find it to be an appealing alternative due to its flexible repayment options and reasonable interest rates.
You will gain a quick understanding of the price of studying in the UK, important factors and more in this post. Go back and scroll down, then.
Cost to Study in the UK
The universities in the country are top-notch in their academic standards. It offers both bachelor’s and master’s degrees. The tuition fees vary among universities and the course option you choose. Thus, before knowing about the key aspects of an education loan to study in UK. Let us discuss the cost of education and living.
- For an Undergraduate program, the average tuition fees per year range between £12,000 – £35,000.
- For a postgraduate program, the average tuition fees per year range between £15,000 – £40,000.
The cost of living includes accommodation, food, transportation, and miscellaneous expenses. To give you an estimation the average cost to live in London is around £12000 for 9 months and around £9200 on the outskirts of the city. However, the cost differs based on the location and the kind of accommodation you choose.
Since you have an idea about how much it can cost to study in the UK, now it is time to look at the types of education loans.
Types of Education Loan to Study in the UK
Before applying for an education loan to study in the United Kingdom, it is important to know its two types. Thus, refer to the table below for their details.
Secured Education Laon | Unsecured Education Loan |
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These are two types of loans that are offered by the financial institution. Now, let us discuss the key aspects of an education loan to study in the UK.
Criteria | Secured Education Loan from PSBs | Unsecured Education Loan from Private Banks | Unsecured Education Loan from NBFCs |
Rate of Interest | 8.85% onwards | 11.25% onwards | 12% onwards |
Maximum Loan | 1.5 Crore | 40 Lakhs | 50 Lakhs |
Chances of Approval | Higher | Low (Depends on country & college) | Average |
Expenses covered | 70% to 100% | 90% | 100% |
Interest Repayment during moratorium period | No | Yes, Simple Interest | Yes, Simple or partial interest |
Moratorium Period | 6 Months after course completion | 1 Year after completion of course | 1 Year after completion of course |
Co-applicant income | Not Considered | Extremely Important | Extremely Important |
Repayment Period | up to 15 years | up to 15 years | up to 10 years |
Processing Time | Up to 20-50 days | Up to 15-20 days | Within 10-12 days |
Key Aspects to Consider
For a secured loan, the applicant can opt for an education loan for up to 1.5 Cr and even more depending on the project cost. And, for an unsecured loan, it is up to 75 Lakhs depending on the premier university list of financial lenders.
- Processing Time – For secured loans, the processing time is more as compared to unsecured loans. Because the financial lenders need to scrutinize the documents related to collateral.
- Repayment Tenure – The repayment tenure for an education loan is up to 15 years.
- Moratorium Period – The total duration of the course + 6 months
- Expenses Covered – Tuition Fees for the Course, Living Expenses for on-campus and off-campus, one-way air ticket, laptop expenses, books, and stationery.
These are some of the important aspects of an education loan to study in the UK. Now, let us have a quick view of the eligibility criteria and essential documents to apply for the loan.
Eligibility Criteria for an Education Loan to Study in the UK
Below are the basic eligibility criteria to apply for an education loan to study in the UK.
Eligibility |
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Essential Documents
Below are some of the basic documents that will help you to be prepared in advance making your application process hassle-free.
Documents |
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Selecting the Right Lender
It’s important to browse around and compare options when choosing the best lender for your UK education loan. When selecting a lender, keep the following things in mind:
- Interest rates
- Loan tenure
- Repayment options
- Processing fees
- Customer service
To make an informed choice, take your time and investigate several lenders, read reviews, and speak with other students who have taken out loans.
Application Process
After your choice of lender, the application procedure normally involves the following steps:
- Fill out the loan application form
- Submit the required documents (such as proof of admission, academic records, and financial documents)
- Await the lender’s approval
- Sign the loan agreement
- Receive the loan amount
Summing Up
There are numerous schemes of different banks like UBI, BOB, or SBI education loan for abroad studies, you can also search for other financial institutions like NBFCs and International Lenders. Furthermore, you can search for various updates on the official websites of the banks or reach out to the top education loan advisors for better guidance. Good luck!
View more abroad education loan related blogs here –
Overseas Education Loan for MBA in USA
Education Loan for Diploma Courses Abroad