The UK is a popular hub for international students due to its high-quality education and top-ranking universities. However, it is also one of the most expensive countries to study in. The average tuition fees cost around £10,000 – £40,000 (INR 11 – 45 lakhs) in the UK.
With such high fees, the cost of living, and other expenses, international students often require financial assistance to fulfill their dreams of studying abroad. Fortunately, there are loan options available that can help students with financial difficulties. Let’s learn everything you need about UK education loans for international students.
Table of Contents:
- UK Education Loan Options for Non-UK Students
- Interest Rates & Repayment Terms
- Do You Need a Cosigner? Key Requirements
- Top Alternative Funding: Grants & Scholarships
- Step-by-Step Loan Application Guide for UK Education Loan
- Frequently Asked Questions
UK Education Loan Options for Non-UK Students
The UK is home to over 7 lakh international students, and the number seems to increase every year. With the UK continuing to attract international students, understanding the loan options is essential. Students can get secured (with collateral) or unsecured (without collateral) loans to study abroad in the UK.
| Loan Provider | Loan Amount | Rate of Interest | Features |
| HDFC Bank (India) | Entire cost of education with collateral; INR 45 lakhs for an unsecured loan | Starting from 8.64% | 14 years of repayment, including the Moratorium period |
| ICICI Bank (India) | Up to INR 3 Crore | 9.50% – 14.25% | Loan tenure of 10-12 years for UG courses and 12-14 years for PG courses |
| Axis Bank (India) | Unsecured loans up to INR 1 Crore | 13.70% – 15.20% | Loan repayment tenure up to 15 years |
| Prodigy Finance | Up to 2,20,000 USD or 100% of your expenses | Starting from 8.35% APR | Repayment for up to 20 years |
Interest Rates & Repayment Terms
Understanding interest rates & repayment for your study abroad loan for the UK is crucial. Here’s how it works:
| Interest Rates | Repayment Terms |
| 2 types of interest rates – fixed and floating / variable | Repayment is usually done over 5-15 years through EMI |
| Fixed interest rates are usually the same throughout the loan period | Grace period is typically course duration + 6-12 months |
| While the floating/variable interest rates change with market conditions | However, late or missed payments can negatively impact your credit score |
Do You Need a Cosigner? Key Requirements
Several lenders require a UK co-signer for education loans. However, some lenders provide you with a loan without a co-signer. If you have a UK co-signer, your loan chances automatically improve as it poses less risk to the lenders and makes them more likely to accept your loan application.
If you do not have a co-signer, research lenders that offer study abroad loans without co-signers. If you have one, here are the requirements for a UK co-signer:
- The co-signer must be a UK resident or permanent citizen whom you trust
- Must have a strong credit history
- Must be financially stable
- The co-signer must be willing to take the legal responsibility for loan repayments.
Top Alternative Funding: Grants & Scholarships
If you are not a fan of education loans and want to fulfill your financial needs without it, you can look for grants and scholarships. Different types of scholarships are available: merit, need-based, university scholarships, and more. Some of the top scholarships for UK are:
| Scholarships | Details |
GREAT Scholarship |
|
Chevening Scholarships |
|
Commonwealth Scholarships |
|
Step-by-Step Loan Application Guide for UK Education Loan
Here’s how you can apply for a UK education loan as an international student:
- Research & Compare Lenders: Research thoroughly and compare lenders for best interest rates, processing fees, loan tenure & disbursement, grace period, and more.
- Eligibility Criteria: Every bank has different criteria for UK study abroad loans. Check them carefully and ensure they meet the requirements for a successful loan application.
- Documentation: Prepare the required documents for the loan application. Some of the essential documents are the admission letter, cost of attendance, bank statements, income proof, passport, and visa.
- Submit Application: You can apply online or offline by visiting the bank’s nearest branch. Attach documents while applying and pay the processing fee (if any).
- Loan Approval & Disbursement: Wait for loan approval from the bank and check the disbursement status. Funds are directly deposited into your bank account or the university’s, as specified in the loan terms and conditions.
Frequently Asked Questions
Can international students get education loans for the UK without a co-signer?
Yes, several lenders and financial institutions offer education loans for the UK without a co-signer. These loans are typically based on strong academic performance, proof of admission, and sometimes collateral or a high credit score.
What are the eligibility criteria for an education loan to the UK without collateral?
You must have been admitted to a recognised university and a strong academic record. You must also have proof of income and a creditworthy co-signer for an education loan to the UK without collateral.
What if I can’t get a UK education loan?
Try scholarships, part-time jobs, or family funding if you cannot get a UK education loan. You can also contact Nomad Credit to get an education loan for the UK at the best interest rate.
How much can I borrow as an international student for the UK?
The loan amount varies depending on the bank. Some banks cover full tuition fees + living costs, while some offer partial funding for UK education loans.
What documents do I need to apply for a UK education loan?
Typically, you will need a university admission letter, a copy of your passport, academic transcripts, proof of finances, a co-signer, or collateral (if required).
