Student Loan for UK

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Student Loan for UK

If you wish to pursue higher studies abroad and the UK is on your list, then a question that might run across your mind is how to cover expenses for studying in the UK. Well, it is true that most of the Universities in the UK offer financial assistance to students based on their academic performance and financial status. But still, there might be students who don’t meet the eligibility criteria for the scholarships. Here, the option of student loans that are offered by nearly every bank in India. Our government has made it mandatory for banks to provide student loans to students upon complete verification. However, banks have their own terms and regulations for providing students loans. In this blog, we shall discuss student loans for the UK and how to go about it. 

Why Study in UK?

For students planning to study abroad, the UK is considered to be one of the finest locations. Right from world-class education facilities to the kind of exposure the country provides, all of it remains unbeatable. Students get to be a part of a multicultural society and learn new skills that are beneficial for them. It not only provides a great educational experience but also enhances personal and professional skills considered to be mandatory in the job market.

Student Loan for UK

Now for students who are sure about their studying plans in UK and have received an offer letter from the preferred college/university, must start researching for student loans provided by banks and their terms and conditions. This will help them shortlist banks that meet their demands and hence the process will be easier.

Documents Required for Student Loan for UK

Before applying to any bank for student loans, a list of documents must be kept ready by the students.  Below we have mentioned the important documents needed for student loans for UK :

  • Loan application form of the bank to be filled
  • Two passport size photos
  • Proof of age
  • Offer Letter from the University
  • Proof of residence
  • For individuals who are salaried, income slips needed
  • Tax assessment order of last two years for salaried individuals
  • Borrower’s account statement of last 6 months
  • Marksheet of the last exam appeared for
  • Co-borrower’s statement of assets and liabilities
  • Scholarship letter, if present
  • Foreign exchange permit
  • Documents supporting the financial status

Every bank has its own terms and conditions that include – Rate of Interest, Repayment Period, Eligibility etc. Now, let’s have a look at the loan facility provided by Indian banks.

Also Read: Education Loan Without Collateral

Government Banks offering Student Loans for UK

Several Government banks in India offer great options for Student Loans to study in the UK. Let’s check out their details:

Bank of Baroda

Eligibility 

  • Students applying must be an Indian citizen.
  • Students must have secured an admission to the preferred university/college.

Maximum Loan Amount and Interest Rate

Bank of Baroda offers a maximum loan amount of up to INR 6O Lacs and the rate of interest varies from 9.70%-11.20%.

Repayment Terms

  • The loan can be repaid in 180 installments if the amount of loan is above Rs.7.50 Lacs. 
  • Moratorium period of one year is offered after the completion of the course

Central Bank of India 

Eligibility

  • Students applying must be an Indian citizen.
  • Students must have secured an admission to the preferred university/college.
  • Students must have a good academic record.

Maximum Loan Amount and Interest Rate

Central Bank of India offers a maximum loan amount of up to INR 20 Lacs and the rate of interest is 10.40% (0.50%less for girl).

Repayment Terms

  • The loan repayment starts one year after the completion of the course or 6 months after getting a job.

Bank of India 

Eligibility

  • Students applying must be an Indian citizen.
  • Students must have secured an admission to the preferred university/college.
  • Students must have a good academic record.
  • Students must have scored 50% in the major subject.

Maximum Loan Amount and Interest Rate

Bank of India offers a maximum loan amount of up to INR 20 Lacs and the rate of interest is 10.90%.

Repayment Terms

  • The loan repayment starts one year after the completion of the course or 6 months after getting a job.
  • The loan has to be repaid in 15 years after commencement of repayment.

Allahabad Bank

Eligibility

  • Students applying must be an Indian citizen.
  • Students must have secured an admission to the preferred university/college.

Maximum Loan Amount and Interest Rate

Allahabad Bank offers a maximum loan amount of up to INR 50 Lacs and the rate of interest is 9.90%.(0.50% less for girls)

Repayment Terms

  • The loan repayment starts one year after the completion of the course or 6 months after getting a job.
  • The loan has to be repaid in 15 years after commencement of repayment.

State Bank of India 

Eligibility

  • Students applying must be an Indian citizen.
  • Students must have secured an admission to the preferred university/college.
  • Students must have a good academic record.
  • The course applied for must have an employment prospect

Maximum Loan Amount and Interest Rate

State Bank of India offers a maximum loan amount of up to INR 1.5 crores and the rate of interest is 10.50%(0.50% less for girls)

Repayment Terms

  • The loan repayment starts one year after the completion of the course or 6 months after getting a job.
  • The loan has to be repaid in 15 years after commencement of repayment.

Syndicate Bank 

Eligibility

  • Students applying must be an Indian citizen.
  • Students must have secured an admission to the preferred university/college.
  • Student’s guardian should have an account in the bank.
  • The candidates must be from the same place as the bank. If not, students can make an account and avail for the loan 6 months from then.

Maximum Loan Amount and Interest Rate

Syndicate Bank offers a maximum loan amount of up to INR 2 crores and the rate of interest is 10.75-11.50%(0.50% less for girls).

Repayment Terms

  • The loan repayment starts one year after the completion of the course or 6 months after getting a job.
  • The loan has to be repaid by the student or the guardian within the time stipulated by the bank.

Also Read: Loans to Study Abroad for Indian Students

Punjab National Bank

Eligibility

  • Students applying must be an Indian citizen.
  • Students must have secured an admission to the preferred university/college.
  • Parents must have a regular source of income and a proof of the same.

Maximum Loan Amount and Interest Rate

PNB offers a loan amount based upon the needs of the student and the repayment capacity of the students/guardians and the rate of interest is 9.45%-11%.

Repayment Terms

  • The loan has to be repaid in 15 years.

Punjab & Sind Bank  

Eligibility

  • Students applying must be an Indian citizen.
  • Students must have secured an admission to the preferred university/college.

Maximum Loan Amount and Interest Rate

Punjab and Sind Bank offers a maximum loan amount of up to INR 20 Lacs and the rate of interest is 10.25%.

Repayment Terms

  • The loan repayment will be divided in equal installments and must be paid likewise.
  • The loan has to be repaid in 15 years.

Private Banks offering Student Loan for UK

Bank Interest Rate Eligibility Max Amount Repayment
HDFC 14% Indian citizen
Must have secured admission.
INR 2O Lacs The loan repayment starts
one year after the completion
of the course or 6 months after
getting a job.
Axis Bank 13.5% Indian citizen
Good academic record
INR 75 Lacs NA
HSBC NA Age must not be less than 18. INR 1 crore Loan must be repaid within 15 years.
ICICI 13% Indian citizen
Must have secured admission.
INR 2O Lacs NA

How to Apply for Student Loan for UK?

So, these were all the banks providing student loans for the UK to Indian students. Let’s have a look at the application process now. The steps for applying are very generic and students must be aware of it:

  • Students must keep all the listed documents ready.
  • After carefully choosing a bank that suits their needs, they must fill up the application form of the bank.
  • Submit the form with all the documents for verification to the bank.
  • Wait for the verification process.

Also Read: How to Get an Education Loan for Studying Abroad

This was all about student loans for UK. Wish to apply? If you need any help with the application process of UK universities, get in touch with our Leverage Edu experts right away!

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