Educational Loan For UK
Education Loan

UK Education Loan without Collateral Complete 2023 Guide on Unsecured Loan

UK Education Loan without Collateral Complete 2023 Guide on Unsecured Loan

On this Page:

Get complete information on how you can avail unsecured education loan without collateral for UK with our latest guide! Click now know best lenders, eligibility & documents!

GyanDhan

Rohit Gidwani

Updated on: 21 Oct 2023

The UK is a highly sought-after study destination for international students due to its prestigious universities and diverse opportunities. However, studying 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 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.

 



 

Check Your Education Loan Eligibility

Sprinkles

Cost to study in UK

Studying in the UK incurs two primary categories of costs: tuition fees and living expenses. Tuition fees can vary based on the specific course and university of enrollment. For undergraduate programs, 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 has been shown in the table below:

Expense Cost 

Accommodation

EUR 660

Utilities

EUR 80

Groceries

EUR 110

Transport

EUR 100

Mobile phones

EUR 18

Miscellaneous

EUR 80

Sprinkles

Types of education loans for UK

Broadly there are 2 types of education loans for UK that one can take. They are - 

  • list items A secured education loan for UK, also known as an education loan with collateral, necessitates the applicant to provide security or collateral alongside their loan application. The collateral can be a residential property or more. Read more about: Types of collateral security accepted for student loan
  • list items An unsecured education loan for UK is a type of loan that does not require the borrower to provide collateral as security. The interest rates charged on these types of loan is 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.
Sprinkles

Secured education loan for UK

Secured loans typically involve providing collateral, which can allow you to secure a higher loan amount compared to unsecured loans. Moreover, opting for a secured loan may eliminate the need for a co-applicant. If you are seeking education loan options for studying in the UK, 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.
 

Lender Name Maximum Loan Amount (in INR) Rate of Interest Margin Money

SBI

Up to 1.5 Cr

10.65% (for girls)

11.50% (for boys)

10%

UBI

Up to 1.5 Cr

10.5% - 10.85%

10%

(listed university)

15%

(non-listed university)

Need An Education Loan For Abroad Studies?

Fill this form and get in touch with an expert


 

Looking for an abroad education loan?
By entering my phone number, I give consent to override NCPR and recieve WhatsApp messages.
Sprinkles

Unsecured education loan for UK

If you don't possess 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 to study in the UK. While private banks and NBFCs may require a co-applicant or co-signer with a minimum financial income and no liabilities, international lenders offer loans without the need for a co-applicant or co-signer

Consequently, it can be concluded that each lender offering education loans to study in the 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 loans. These unsecured loans are available for Bachelor's, MBA, and Master's programs.

Lender Name Maximum Loan Amount  Rate of Interest Margin Money

Axis Bank

Up to 50 Lakhs INR

11% - 13.50%

5%

ICICI Bank

Up to 50 Lakhs INR

10.85% - 12.50%

0 - 15%

IDFC FIRST Bank

Up to 35 Lakhs INR 

11.75% - 13.25% 

Nil

HDFC Credila

Up to 40 Lakhs INR

12% - 13%

Nil

Auxilo

Up to 40 Lakhs INR

12.50% - 13.50%

Nil

Incred

Up to 40 Lakhs INR

12.50% - 13.50%

Nil

Avanse

Up to 40 Lakhs INR

12.50% - 13.50%

Nil

Prodigy Finance

Up to 100,000 USD

12% - 14%

Nil

Sprinkles

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, you can reduce the amount of interest you would pay compared to taking out the full amount at once.

The expenses which may be covered under loan as per the lender will include - 

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

Check Your Education Loan Eligibility for Free

Sprinkles

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:

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

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:

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

 

Sprinkles

How to get education loan for UK?

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.

Read more about

Sprinkles

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.

Lender Name Repayment Tenure Repayment Option during moratorium

SBI

Up to 15 years

No payment or only SI

UBI

Up to 15 years

No payment or SI

Axis Bank

Up to 15 Years

SI or EMI

ICICI Bank

Up to 10 Years

SI or EMI

IDFC FIRST Bank

Up to 12 years

PSI or SI or EMI

HDFC Credila

Up to 15 Years

PSI

Auxilo

Up to 15 Years

SI

Incred

Up to 15 Years

PSI or SI

Avanse

Up to 15 Years

PSI or SI

Prodigy Finance

Up to 15 Years

SI

Sprinkles

How to choose the best lender?

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:

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

Calculate your Education Loan EMI

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!

Sprinkles

Frequently Asked Questions

Can I get 50 Lakhs INR as Loan without collateral for UK?

For unsecured education loan in UK, you can get a maximum of 50 Lakhs INR from private banks. The only condition is that, your university should be a part of their developed university list. 

What is the maximum amount that I can get from loan with collateral for UK?

The maximum amount that you can get for an education loan with collateral for UK is 1.5 Cr from public sector banks that is SBI and UBI. The loan amount may vary depending on your property/collateral value. 

Is it easy to get abroad education loan for UK?

It is very easy to get an abroad education loan, all you need to do is follow the steps provided by GyanDhan’s education counselor and provide all the necessary documents timely.