Student Education Loan for UK - Documents Required Types & Eligibility

Education Loan To Study in UK - To support the student's education to study abroad financially, there are many banks that provide a student loan for UK. By opting for an education loan for study in UK, the heavy financial budget can become easier for the students. There are both government and private sector banks which provide the UK education loans. The candidates need to fullfill a few set of conditions and criteria which to secure an UK education loan. Through this, the candidates desire to study in UK can be fullfilled. Read the article of education loan to study in UK to know more about the types of education loans, interest rates, collateral and non colleteral options, etc.
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This Story also Contains

1. What is the need for education loans for UK?
2. Why should you opt for an education loan to study in UK?
3. Who provides education loan to study in UK for international students?
4. Are you eligible for a student loan for the UK?
5. What are the documents required for an education loan to study in UK?
6. How many types of UK education loans for international students?
7. Education loan to study in UK without collateral and co-applicant
8. What are the repayment terms of education loan to study in UK?

What is the need for education loans for UK?

The UK is one of the most expensive places to study and live, therefore it goes without saying that when you study and live abroad, you have a never-ending list of bills, and this makes the need for international student loans for UK even more. You are heavily burdened financially by having to pay for your housing, food, transportation, health care, entertainment, and other incidental costs in addition to your tuition. The education loan for UK comes into play in this situation. Also, keep in mind the cost of student visa for UK while applying to this country. You can also go through the education Loan FAQ for more information on this topic.

Why should you opt for an education loan to study in UK?

1. Going for it makes perfect sense given the decreased interest rates on education loan for study in UK. It is a wise decision because female borrowers receive an additional 0.5% discount.

2. Education loan to study in UK can be used to pay for the majority of your expenses, including tuition fees, travel, lodging, food, and other incidentals.

3. Your parents won't have to spend all of their hard-earned resources on paying for your further education in the UK if you take out an education loan for study in UK.

Who provides education loan to study in UK for international students?

The obvious answer is the banks! Indian banks provide student education loans to the UK aspirants at relatively lower rates of interest and with flexible payment plans. You can even pay back the loan after completing your studies in the UK. Every bank has different plans and payment terms for student loans for the UK. You can get in touch with bank officials for more information on the same.

Are you eligible for a student loan for the UK?

You are eligible for a student loan for UK higher education if you fulfill the following criteria.

1. You are an Indian citizen.

2. At the time of the loan application, you are between the ages of 18 and 35.

3. You have verified your acceptance to a reputable UK university.

4. You have a co-applicant who may be your spouse or your parent.

5. Your co-applicant has a consistent source of income.

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What are the documents required for an education loan to study in UK?

You will require the following paperwork to support your loan application if you want to apply for a study loan for international students in the UK:

1. Aadhar cards, voter IDs, passports, and driving licenses are examples of identity evidence.

2. Bank statements, rental agreements, ration cards, utility bills, and telephone bills are examples of address proof.

3. Age verification documents include an Aadhar card, voter ID, driver's license, and passport.

4. Properly completed loan application form from the specific bank.

5. Two photos the size of a passport.

6. Proof of income for those who are salaried (salary slips or Form 16 etc).

7. Current pay stub and the most recent income tax assessment order.

8. The supporting financial records.

9. Bank account statement for the past six months of the borrower.

10. Brief Asset and Liability Statement of Co-Borrower.

11. Duplicates of the foreign exchange license.

12. Results of the most recent qualifying test in India (school or graduate studies).

13. Letter of unconditional acceptance or university entrance documentation.

14. A list of the projected costs for the chosen course.

15. Copies of any scholarship letters you may have received.

How many types of UK education loans for international students?

There are mainly two types of study loan for UK for international students available in India - collateral education loan and non-collateral education loan.

1. Collateral Education loan for study in UK: Secured school loan for the UK, often known as a secured loan where you must offer security or collateral in order to be approved. The security may be material or immaterial, such as real estate or fixed assets like FDs.

2. Non-Collateral Education Loan: Unsecured school loan in the UK, also known as an unsecured loan, means that you are not required to put up any security when applying for a loan. This type of education loan for UK without collateral is more popular among students looking for a student loan for the UK.

Education loan to study in UK without collateral and co-applicant

It is possible to get student education loan for UK without co-applicants or collateral, from Prodigy Finance. It is a global lender with headquarters in the UK that provides loans at reasonable interest rates. Euros are used to repay UK loans. For a couple of the colleges on their list, they provide loans.

Lenders have different features, such as repayment terms, processing times, covered expenses, etc. Let's look at a few of these:

1. Repayment period: While state banks offer ten to fifteen years to repay the loan, private banks have a maximum 20-year repayment time for the education loan to study in UK.

2. Processing time: The NBFCs have the fastest processing times. An unsecured loan up to INR 25L is processed in 4-5 days, and a secured loan up to INR 50L is processed in 9–10 days. It should be kept in mind that a secured loan requires extra processing time because the lender needs more time to examine the paperwork pertaining to the collateral. As a result, state banks like Axis Bank, which do not provide unsecured loans of more than INR 7.5L, process loans far more slowly than NBFCs (at least 12 days).

3. Expenses covered: Private banks cover 85% of study-related costs, whereas PSBs cover 90% and NBFCs cover 100% of those costs.

4. Co-applicant’s income: Even if the co-income applicant's is less than $20,000 for loans without security, NBFCs take it into account. However, the co-monthly applicant's income should be roughly INR 60K for US loans totaling INR 20L. No lender requires this revenue if students are taking out a loan with collateral. Also keep in mind that the minimum income criterion may change depending on the circumstances, for education loan UK.

5. Common Reason for decline: Lenders are responsible for approving loans, and applications may also be turned down. Low CIBIL score of the applicant and insufficient income of the co-applicant are two common causes for the denial of an education loan without collateral. Because of missing collateral-related documentation or a low CIBIL score, a secured loan application may be turned down.

Which Indian banks provide education loan to study in UK for international students?

Through public or private institutions in India, including Bank of India, State Bank of India, Central Bank of India, Bank of Baroda, ICICI Bank, HDFC Bank, Axis Bank, and HSBC Bank, Allahabad Bank you can apply for a UK education loan for international students. Check out the chart below to gain some crucial information about loans from Indian banks.

Details of Indian Banks for UK Education Loans

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What costs are eligible for reimbursement under student loan for UK?

1. Payable fees to the institution.

2. Fees for membership in the library, a test, and a lab.

3. Costs for the books and resources required to finish the course.

4. Any refundable reservation deposit, cautionary deposit, refundable deposit, etc.

5. Expenses related to moving overseas to study.

6. The price of two-wheelers up to INR 50,000.

7. Costs associated with a study abroad trip or project for the class.

What are the repayment terms of education loan to study in UK?

Before applying for a UK student loan, you must familiarize yourself with the repayment terms. Below, we've covered the payback schedule for student loan UK for international students from Indian banks:

1. Public bank UK loans for international students: After you've completed your course for a year, the repayment process will start. Within 15 years following the start of repayment, the loan may be repaid.

2. Private bank UK loans for international students: Repayment will start and go on for the duration of the course, which is +1 year or 6 months after finding employment. Within 15 years, the debt can be repaid in full.