Education Loan for UK 2024

The UK is a highly sought-after study destination for international students due to its prestigious universities and diverse opportunities. However, funding a masters in the UK can be costly. In the 2021/2022 academic year, over 120,000 Indian students chose the UK for higher education, highlighting its popularity. One attractive aspect is the shorter duration of most master's courses, typically lasting one year. Tuition fees vary, with an average cost of around EUR 35,000 for international students. Obtaining an education loan for postgraduate funding for international students UK is a great way to finance tuition fees and living expenses. These loans also serve as proof of funds for UK student visas, simplifying the visa application process.

Cost to Study in UK

Studying in the UK, when considering funding for UK masters, incurs two primary categories of costs: tuition fees and living expenses. To manage the costs effectively, it's crucial to understand how to get an education loan and how to apply for an education loan. These steps are integral in securing financial support for your studies. Tuition fees can vary based on the specific course and university of enrollment. For undergraduate programs, considering funding for UK masters, tuition fees typically range from EUR 20,500 to EUR 45,000. As for international students pursuing an MS in the UK, tuition fees can vary from EUR 19,000 to EUR 58,000. It's important to consider these factors when planning your budget for studying in the UK. The average monthly cost of living in the UK is shown in the table below:

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Types of Education Loans for UK

Broadly, there are two main types of loans for students UK that one can take to study in the UK. These are:

1. Secured Education Loan: Also known as an education loan with collateral, this type of loan requires the applicant to provide security or collateral alongside their loan application. The collateral can be a residential property or more. To understand the different types of collateral education loans UK, you can click here.

1. Unsecured Education Loan: A popular choice loan for international students in UK is an unsecured education loan that does not require the borrower to provide collateral as security. The interest rates charged on these types of loans are usually high as the risk involved is also high. Additionally, these loans typically require a co-applicant or co-signer, and the loan amount is determined based on the co-applicant’s income and CIBIL score. This is a common method for postgraduate funding and is often sought after as a loan for international students in the UK.

Both types of student loans for international students in the UK are designed to cater to the diverse needs of students from around the world, ensuring they have the necessary financial support to pursue their educational goals in the United Kingdom.

Secured Education Loan for UK

Secured loans, essential for funding a master's in the UK, typically involve providing collateral, allowing for a higher loan amount compared to unsecured loans. Moreover, opting for a study loan for UK may eliminate the need for a co-applicant. If you are exploring UK education loan for international students, two public sector banks worth considering are the State Bank of India (SBI) and the Union Bank of India (UBI). In the following section, we have conducted a comparative analysis of these two banks concerning education loans for studying in the UK.
 

Unsecured Education Loan for UK

If you don't possess the collateral to offer, there's no need to worry, as numerous private banks, NBFCs (Non-Banking Financial Companies), and international lenders can assist you when applying for an education loan for UK without collateral. While private banks and NBFCs may require a co-applicant or co-signer with a minimum financial income and no liabilities, international lenders offer UK education loan without collateral, which do not need a co-applicant or co-signer.

Consequently, it can be concluded that each lender offering non collateral education loan for UK has its own set of advantages and disadvantages. To aid you in selecting a suitable lender, we have prepared a comparative chart encompassing all potential lenders that offer unsecured education loan for UK. These unsecured loans are available for Bachelor's, MBA, and Master's programs and are designed to help students secure an education loan to study in UK without the burden of providing collateral.

Expenses Covered in Education Loan for UK

After your loan has been approved, you have the option to receive the funds through a disbursement. You can choose to withdraw the entire approved amount at once or take it out in installments based on your needs. It is generally advisable to opt for partial disbursement because the interest charged will only be applicable to the disbursed amount, not the total approved amount. By choosing partial disbursement for your education loan to study in UK, you can reduce the amount of interest you would pay compared to taking out the full amount at once. This is especially beneficial if you have opted for an education loan to study in UK without collateral, as managing costs efficiently is crucial without the backing of collateral.

The expenses, crucial for postgraduate funding UK, which may be covered under loan as per the lender will include -

• Tuition fees
• Accommodation cost
• Food and groceries
• Utility bills 
• Health insurance
• Visa fees
• Expenses related to studies (lab fees, instruments, and more)

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Eligibility for Education Loan for UK

To be eligible for an education loan for studies in the UK, certain criteria must be met. These are:

• Good academic history
• Minimum age requirement of 18 years
• Collateral requirement for secured loans 
• Choosing a course of study with promising career prospects
• Confirmation of acceptance from a recognized American institution for a full-time program

Education Loan Documents Required for UK

It is crucial for students to ensure they possess all the necessary documentation prior to applying for an education loan for studying in the UK. The document checklist can be comprehensive, and GyanDhan provides a tailored document checklist to assist in streamlining the submission process. Typical documents required to secure a study abroad loan for the UK include:

• Loan application form
• Passport-size photographs
• Applicant’s KYC documents
• Fees structure from the university
• Standardized test scores - GMAT or GRE
• Academic transcripts (School and Bachelor’s)
• Resident proof of the applicant and co-applicant
• Property papers (in case of secured education loan)
• English proficiency test score - IELTS or TOEFL or Duolingo
• Proof of admission: admission letter from university/institution
• Income proof of the co-applicant (for unsecured education loan)

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How to Apply for Education Loan

The process of getting an education loan is easy if done right and correct place. To ensure a smooth loan application process for studying in the UK, it is recommended to start around 4 to 6 months before your desired enrollment date. Managing the process independently with multiple lenders can be difficult, but GyanDhan provides a simplified solution for obtaining an education loan. The following steps illustrate how GyanDhan can assist you in easily securing an international education loan for studying in the UK.

Step 1: Assess your eligibility for a UK education loan on GyanDhan's platform.

Step 2: Connect with a dedicated loan expert who will guide you through the application process and recommend suitable lenders.

Step 3: Receive a customized document checklist to simplify the document arrangement process.

Step 4: Submit the required documents either in hard copy or soft copy as per the lender's instructions.

Step 5: Await verification, typically taking 7 to 15 days. Once approved, sign the agreement letter and track progress on GyanDhan's user dashboard.

Step 6: Initiate disbursement following the lender's procedures, with funds directly deposited into your account or disbursed to the university by international lenders.

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Repayment of Education Loan to Study in UK

When securing an education loan for UK, it is crucial to consider the repayment terms. Two important factors to evaluate when selecting a lender are the repayment tenure and the availability of moratorium repayment options. Various repayment tenures are offered, including partial simple interest (PSI), simple interest (SI), and equated monthly installments (EMI). To aid in choosing the most suitable lender for your needs, a comprehensive comparison guide has been developed, highlighting repayment as a key aspect when obtaining a loan for studying in the UK.

How to Choose the Best Lender for UK Education Loan ?

When exploring education loan options for UK, GyanDhan offers valuable advice to assist you in selecting the most suitable loan with a minimal financial burden in the long run. To ensure an informed decision, it is essential to compare the following aspects among lenders and loan schemes:

• Interest Rate
• Processing fee and time
• Margin Money
• Moratorium Period
• Tax Benefit
• Loan Duration
• Covered Expenses
• Prepayment terms and conditions

By carefully evaluating these factors, you can select the best educational loan option that aligns with your needs and offers favourable terms and conditions.

Before embarking on the education loan application process for the UK, it is essential to thoroughly research and compare the offerings of different lenders based on various factors. However, with GyanDhan, you can overcome these challenges by reaching out to us directly. Through our streamlined education loan process, you can take advantage of our free assistance in securing education loans for studying in the UK. Our experienced education loan counselor will evaluate your academic and financial profile and discuss the suitable loan options available to you. We have partnered with multiple lenders in the market, including government banks, private banks, and NBFCs. Don't wait any longer, check your loan eligibility now!

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