Pursuing higher education in the UK can be an incredibly rewarding experience, but the financial burden that often entails can be enough to deter even the most ambitious of students. Tuition fees, accommodation costs, and the other expenses of student life can quickly add up, leaving many young aspirants feeling overwhelmed and uncertain about how they'll fund their academic aspirations.
Fortunately, there is a solution that's helping to level the playing field, education loans that too without pledging any security. These loans are offered by leading private banks and non-banking financial companies (NBFCs), empowering students to access the funds they need to unlock the door to higher learning in the UK.
In the pages that follow, we'll delve into the details of education loan for abroad studies without collateral. You'll discover the top providers, explore the unique features and eligibility criteria, and learn how to steer the application process.
Before jumping directly to the top financial lenders, let us first glance at the cost of education in the United Kingdom. This will give you better clarity in managing your finances effectively.
|
Expenses |
Amount in Pounds |
Amount in INR |
|
Tuition Fees (Annually) |
Postgraduate: 15,000 - 40,000 |
Postgraduate: Rs.15,82,500 - Rs.42,20,000 |
|
(Per Month) |
500 - 1,500 |
Rs.52,751 - Rs.1,58,253 |
|
(Per Month) |
200 - 300 |
Rs.21,100 - Rs.31,650 |
|
(Per Month) |
100 - 200 |
Rs.10,550 - Rs.21,100 |
|
(Per Month) |
200 - 300 |
Rs.21,100 - Rs.31,650 |
Do these figures look a little overwhelming? Well, don’t worry because now it is time to step ahead and explore some of the top private banks and NBFCs offering collateral-free education loans.
Top Private Banks
The list of private banks is umpteen, however, to help you choose wisely and avoid any unnecessary confusion we have mentioned some of the popular ones below.
Provides education loans up to Rs.75 lakhs for Prime A Universities, up to Rs.50 lakhs for Prime B Universities, and up to Rs.15 lakhs for Prime C Universities.
Interest rates range from 11% to 12.75%.
Repayment Tenure is 15 years.
Offers collateral-free loans of up to Rs.1 crore to study at Premium Universities and for Non-Premium Universities, the loan limit is up to Rs.20 lakhs.
Interest rates range from 10.5% to 11.25%.
Repayment Tenure is 15 years.
Provides unsecured education loans up to Rs.41 lakhs for studies in the UK.
Interest rates range from 10.85% to 12.75%.
Repayment Tenure is 12 years.
Offers unsecured education loans up to Rs.50 lakhs for the A category Universities, Rs.40 lakhs for the B category Universities, Rs.30 lakhs for the C category Universities, and Rs.25 lakhs for the D category Universities.
Interest rates range from 11% to 13%.
Repayment Tenure for the A, B & C Category is 15 years including the moratorium period and for the D Category it is 10 years including the moratorium period.
Avanse offers collateral-free education loans up to Rs.35 lakhs to students.
Interest Rate range from 11.5% - 14%.
Repayment Tenure is between 10 – 14 years including course duration.
It offers loans up to Rs.35 lakhs.
Interest Rate range from 11.5% - 12.75%.
Repayment Tenure is 12 years including course duration.
These NBFCs offer unsecured education loans up to Rs.25 lakhs.
Interest Rate range from 11.5% - 12.75%.
Repayment Tenure is 12 years including course duration.
These private banks and NBFCs offer competitive education loan options, with varying loan limits and interest rates based on the university category. It's essential for you to carefully compare the terms and conditions before opting for an education loan to study in UK.
Here are some of the essential visa norms that you need to know if you have opted for an education loan as your funding choice.
When applying for a UK visa, if you are taking an education loan from any bank the embassy requires a specific loan sanction letter.
According to UK visa norms, embassies accept loan sanction letters from nationalised banks and private banks. However, they only accept one NBFC, which is HDFC Credila.
Students taking loans from other NBFCs need to ensure that the loan amount is disbursed to their account or their parent's account. After a period of 28 days, they need to obtain a bank balance certificate or bank statement from the NBFC to provide to the embassy.
Before you apply for a collateral-free education loan it is important to check the eligibility criteria. Thus, to help you be pre-prepared we have mentioned the common requisites below.
Applicant must be an Indian citizen.
The applicant’s age should be above 18 years.
The university in the UK where the applicant has secured admission must be accredited and recognized.
Applicant must have a strong academic record.
Applicant must have a confirmed admission offer from the UK university.
Lenders may require a co-applicant, a parent or guardian.
Applicant should have a credit score above 700 to be eligible for the loan.
Now that you have a brief understanding of the eligibility criteria it is time to grab a file and collect all the essential documents that we have enlisted below.
Loan Application Form: Duly filled and signed loan application form provided by the lender.
Proof of Identity: Copies of Aadhaar card, PAN card, passport, or voter ID.
Proof of Address: Copies of Aadhaar card, passport, electricity/telephone bill, or any other valid address proof.
Copies of mark sheets and certificates for the qualifying examination (10th, 12th, or graduation).
Copy of the admission offer letter from the UK university.
Copies of the last 6 months' bank statements of the applicant and co-applicant.
Passport-sized photographs.
It is important to note that the required documents may vary slightly across different lenders. You should check with the specific financial institution you are applying to for the complete list of required documents. Now comes the final step, the loan application process.
Here are a few steps to start with the loan application process.
Research and Prepare: Research different lenders offering collateral-free education loans for studying abroad.
Check Eligibility: Understand the eligibility criteria of each financial lender to ensure you meet the requisites.
Application Submission: Complete the loan application form provided by the chosen lender. Attach all required documents and submit the application online or at a branch office, following the lender's instructions.
Loan Approval and Disbursement: Await the lender's decision on your loan application. Once approved, the lender will disburse the loan amount directly to the educational institution to cover tuition fees, accommodation, and other related expenses.
Though these steps are mentioned in simple bullets, they can be tiring if you are doing it all by yourself. What if we tell you we can save a lot of your time and research? Yes, we at Élan Overseas Education Loans are here for you.
You can simply avoid wasting your time searching for lenders and applying to them. We provide end-to-end assistance, from suggesting the best financial lender with competitive interest rates to getting your foreign education loan sanctioned. Guess what, all of this is for free! You can book an online counselling session through our website or straight away walk into our office; our experts will guide you and resolve all your queries. Good luck!
Which are the other lenders offering collateral-free education loans for the UK?
There are government banks that offer collateral-free education loans such as State Bank of India, Union Bank of India, Punjab National Bank, Bank of Baroda, Bank of India, and Bank of Maharashtra.
What is the moratorium period offered by Axis Bank?
The moratorium period offered by Axis Bank is the course duration plus one year.
What is the moratorium period offered by Avanse?
The moratorium period offered by Avanse is the course duration plus 12 months
What is the turnaround time for overseas education loan processing at IDFC First Bank?
The turnaround time of IDFC First Bank is 7 to 20 days.
What is the processing fees of ICICI Bank?
The processing fee of ICICI Bank is 1% of the loan amount + GST.
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