Education Loan in UK for International Students
UK offers world class education and great employment opportunities post education for international students. Which is why admissions into any international UK universities are very competitive. If you have the potential to receive admission in any of the UK universities, but a financial burden is worrying you, then we are here to guide you through this terrain. This is where education loans help you to fulfil your study abroad dreams.
What is an Education Loan?
Education loan is a sum of money provided to students who wish to pursue higher education abroad. The education loan to study in UK, covers tuition fees, living expenses, travel costs, and other related expenses incurred during your stay in the UK.
Eligibility Criteria for Education Loan in UK for Indian students
To check if you are eligible to receive a UK study loan, you need to understand the basic criteria on which the loans are sanctioned.
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Citizen of India: It is a basic requirement that the applicant must be a citizen of India.
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Admission into recognized university in the UK: All banks need a valid admission letter / offer letter with proof of acceptance from the university (which is also called unconditional offer letter) to process your loan.
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Age limit: The age limit set by most banks is between 18- 35. This helps them to mitigate risk of non repayment as younger applicants have brighter chances to secure a stable job after education to repay the loan.
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Academic record: Most colleges in the UK have a cutoff requirement of marks. It is 65% in the Humanities stream and 70-80% in the Science/Commerce stream in the 12th class.
- Co applicant: A co-applicant or guarantor is usually required for loans above a certain amount for student loan for UK
What is Collateral Free Education Loan for UK
A collateral-free education loan for the UK is a type of student loan that does not require any tangible security, such as property, fixed deposits, or any physical asset, to be pledged against the loan amount. These loans are typically based on the student's academic merit, admission offer, co-applicant's financial profile, and the reputation of the university or course.
Key Features of Non collateral education loan for UK
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Feature |
Details |
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Loan Amount |
Up to ₹7.5 lakhs (public banks), up to ₹75 lakhs (NBFCs) |
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Security Required |
None |
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Co-applicant |
Usually mandatory (parent, sibling, spouse) |
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Interest Rate |
Starts around 10% – 14% (can vary by lender) |
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Moratorium Period |
Course duration + 6–12 months |
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Repayment Tenure |
Up to 15 years |
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Expenses Covered |
Tuition, living, travel, books, insurance, etc. |
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Processing Time |
7–20 working days, depending on lender |
Study loan for UK in India
Several Indian banks provide education loan for masters in UK. education loan for Indian students in UK is easier than ever, with multiple public and private sector banks offering tailored products. For best student loan UK that fits your needs, keep reading the following:
State Bank of India (SBI)
SBI provides education loans of up to ₹1.5 crore under its Global Ed-Vantage scheme for students studying abroad, including the UK. The student loan UK interest rate is usually
10.50%, and collateral is needed for loan amounts over ₹7.5 lakh. The repayment period can be up to 15 years, and a co-applicant is compulsory. SBI has lower interest rates than private banks and NBFCs but processing is slowers slower
Bank of Baroda (BoB)
Bank of Baroda provides loans up to ₹1.5 crore under the Baroda Scholar Loan scheme. The interest rates range between 10.40% and 11.15%. Collateral is required for amounts exceeding ₹7.5 lakh, and the repayment period can be up to 15 years. The bank offers a moratorium covering the course duration plus 12 months, and loans can cover tuition, living expenses, travel, and insurance.
Bank of India (BoI)
Bank of India offers loans up to ₹1.5 crore for UK education, with an interest rate around 10.90%. As with other public sector banks, collateral is mandatory for amounts above ₹7.5 lakh. The loan covers tuition fees, examination fees, hostel fees, and miscellaneous study-related costs. The BOI finances undergraduate and postgraduate courses in the overseas institutes recognized by the government. Apply for student loan UK through BOI website.
Central Bank of India (CBI)
CBI sanctions education loans of rupees 20 L to pursue studies in the UK at a rate of interest of 10.60%. It is non collateral up to ₹7.5 lakh, but is necessary for loans above that amount. The bank provides a normal moratorium and repayment tenure of up to 15 years depending on the course duration and the loan size.
ICICI Bank
ICICI Bank offers loans up to ₹1 crore to students studying at premier institutions in the UK. Interest rates are between 10.5% and 11.25% depending on the course, institute, and co-applicant credit record. Collateral may be required for bigger amounts, but some loans are available without collateral depending on eligibility. The bank also offers instant processing and doorstep service.
Axis Bank
Axis Bank grants education loans up to ₹75 lakh with interest rates ranging from 11% to 12.75%. The requirement of collateral depends on the loan amount and profile. Axis is known for its quick loan disbursal, flexible repayment plans, and full coverage of educational expenses. The bank often considers the reputation of the UK university while sanctioning loans.
HDFC Credila (NBFC)
HDFC Credila, a leading NBFC, provides student finance in UK up to ₹40 lakh (and sometimes more) for UK studies. The interest rate typically falls between 12% to 14%, and collateral may not be required for top universities or high-profile applicants. It offers fully customized loan solutions, quick approval, and coverage of all education-related expenses, including accommodation and travel.
Avanse Financial Services (NBFC)
Avanse provides flexible education loans of up to ₹60 lakh for students traveling to the UK, with interest rates ranging from 12.5% to 15%. Collateral is rarely demanded, particularly for well-known institutions. Avanse provides end-to-end financing such as pre-visa disbursal, living costs, and exam fees. They are renowned for quick processing and tailored repayment schedules.
Some international lenders for education loan UK include Prodigy Finance, MPOWER Financing, Leap Finance, Future Finance, and Stilt.
Among the most sought-after options is an education loan for UK without collateral, ideal for students who lack property or assets. Even better, several lenders provide an education loan for UK without collateral and co applicant, especially when applying through international loan providers like Prodigy Finance or MPOWER.
Note - An education loan for MS in UK is specifically designed to support STEM and management programs at top UK universities.
Student loan UK Requirements:
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Completed application form: This form includes personal, educational, and financial information.
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Identification proof: Photocopy of your passport, Aadhaar card, or PAN card.
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Address Proof : Proof of residence, which can be a rent agreement, utility bill, or bank statement.
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Proof of income/ ITR Documents: Proof of income of co-applicant (usually a parent or guardian) or guarantor, such as salary slips, income tax returns, or bank statements.
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Passport size photos: Recent ID photos and documentation.
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Academic record: Copies of your school and university mark sheets to establish proof of academic achievement.
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Admission letter: Admission letter copy of the university from the UK.
- List of other expenses: Breakdown of extra expenses such as travel, accommodations, and subsistence.
Student Loan UK Repayment:
Understanding student loan UK repayment terms is critical, as policies differ based on the lender and whether you're taking a domestic or international loan
Student loans are accompanied by a moratorium period, that is a grace period within which you don't need to repay the initial amount. This usually extends over your period of study plus some extra period (usually six months to one year) in order to enable you to find employment. During the moratorium period, you only need to pay the interest portion on the loan sum. This assists in controlling the expense load while you are studying or searching for employment. After the moratorium period, you will need to resume paying the principal and interest in the form of EMIs. The tenure of repayment differs between banks or institutions but is generally between 5 to 7 years from the moratorium
When researching a UK study loan for international students, always compare features such as interest rates, loan coverage, and moratorium periods to find the best student loan UK that fits your needs.
Conclusion
Before applying, check the student loan UK eligibility criteria, which usually depends on your course, university, and financial background. It’s also helpful to learn about the types of student loan UK lenders offer—from government-backed options to NBFCs and international financial firms. If you’re seeking a student loan for foreign students UK, make sure the lender supports your chosen university and visa type.
Frequently Asked Questions:
Q. Can a parent pay off a student loan UK?
A. Yes, parents can pay off a student loan on behalf of the student, either partially or in full. However, the loan legally remains in the student’s name unless a co-applicant is involved.
Q. Can I get a student loan UK?
A. Yes, you can get a student loan in the UK if you meet eligibility criteria related to your nationality, course, and university. International students can apply through private or international lenders.
Q. How to apply for student loan UK?
A. You can apply online via the government student finance portal or through private/international lenders. You’ll need to provide admission proof, academic records, and financial documents.
Q. When do you start paying back student loan UK?
A. Repayment usually starts 6 months after course completion or once your income exceeds the minimum repayment threshold. Terms may vary with international lenders.
Q. When to apply for student loan UK?
A. Apply as soon as you receive your admission offer—preferably 6 to 8 weeks before your course begins—to ensure timely approval and disbursal.
Q. Is it worth taking education loan for MS in UK?
A. Yes, it’s worth it if you’re attending a reputed university and pursuing a course with strong career prospects. Loans offer financial access to quality education that can yield high returns.
Q. How much student loan do you get in the UK?
A. UK students can receive up to £9,250 for tuition and £13,022 for maintenance yearly. International students can access loans based on the cost of study and lender policies, often covering the full expenses.
Q. Can Indian students get student loans in the UK?
A. Yes, Indian students can get loans from Indian banks, NBFCs, or global lenders like Prodigy Finance and MPOWER Financing, which cover tuition, living, and travel costs.
Q. What is the age limit for student loans in the UK?
A. Government loans usually have an upper age limit of 50 for postgraduates and 60 for undergraduates. Private lenders may be flexible depending on your academic and credit profile.
Q. How long do UK student loans last?
A. Student loans typically last for the full course duration, with repayment stretching up to 30 years. Some loans are written off after a set period if unpaid.
Q. What happens if you don't pay student loans in the UK?
A. Failure to repay can lead to automatic deductions from UK salaries. Continued non-payment may result in penalties, legal action, or damage to your credit score.
