Everything You Need to Know About Study Loan UK 2023

The United Kingdom is undoubtedly one of the most popular places to study abroad. As a student, if you also have the desire to get admission to any UK university, it is a must for you to manage your funds. It is okay that only a student with a good bank balance can study abroad. You can also turn your dream of studying abroad into reality by applying for a study loan UK. However, many study abroad platforms help you to get admission to your favourite college, but on our platform, we also provide helpful insights for students. In this blog of Gradding.com, we will give you complete education about the student loan required to get admission in the reputed universities of the United Kingdom.

But, now you may have a question: why do you need an education loan to study in UK? Well, in the next section of this blog, we have answered this question descriptively.

Why You Must Require Study Loan UK? 

If you have decided to study in the United Kingdom, you should know that it is one of the most expensive study abroad destinations. The entire cost includes university tuition, living expenses such as housing, food, transportation, medical charges, and miscellaneous expenses. With so many expenses, it is natural to feel financially unrestricted.

Some of the top reasons to choose student loan UK as follows:

• Interest rates on any loan, such as a home loan, a car loan, and so on, are frequently higher than interest rates on college loans. Furthermore, all government banks provide a 0.5% discount to female borrowers.

• Tuition, transit (tickets), housing rent, university fees, food expenditures, living expenses, laptops, and any other item essential for your education are all covered by a student loan in the United Kingdom.

• Typically, parents liquidate significant assets to finance the expense of studying in the UK, causing long-term financial plans to be disrupted. On the other hand, banks store your liquid assets as security, such as FDs, insurance, and government bonds, and offer you a loan based on that security when you take out an education loan.

Therefore, a student loan for the UK is your best option for paying for all your expenses promptly and safely while meeting visa and admission standards.

Terms and Conditions for Getting a Loan

 Let's look at the criteria for education loan to study in the UK:

• The scholar must prove his nationality.
• Age between 18-35.
• They must have received word of admission to a reputable UK college.
• Co-applicant is required, who may be a spouse or parent.
• It is necessary that co-applicants must have a reliable source of income.

Let's now look at the documentation required for loans for international schooling.

Documents Required to Get Your Study Loan

Sometimes, you may think that for education loan what documents required? You will require the following paperwork to support your loan application if you want to apply for a study loan in the UK:

• Bank loan application form for education.
• Proof of enrollment.
• Aadhar card, voter ID, passport, or driver's licence, serve as identification.
• Examples of address proof like bank statements, rental agreements, utility bills, and telephone bills.
• Aadhar card, voter ID, driver's licence, and passport.
• Passport-size photographs.
• Proof of income in pay stubs is required.
• Financial records
• Recent exam results, such as higher secondary or graduation.
• Award letter copies.
• Breakdown of the costs involved in getting your course.
• Borrower's bank account statement.
• The assets and liabilities of the co-borrower are also listed.

How to Get Education Loan for UK? 

If you're wondering whether you can receive loans for Indian students in the UK, the answer is a resounding yes! You can borrow money to pay for university tuition and living expenses in the United Kingdom. Student funding eligibility is determined by the university, course, age, country, and whether or not you have previously completed a higher education course. Take a look at the processes for applying for a student loan for UK:

• You can apply for student loan in the UK online.
• You can obtain finance for your studies in the UK with an education loan for up to 9 months following the commencement of your academic course.
• Your application will take up to 6 weeks to be processed.
• You will be required to provide identification.
• These loans can be repaid once you have a steady salary.
• Your monthly earnings will also influence the number and amount of monthly instalments.

Types of Student Loan for UK

Let's look at the two main kinds of loans available to students in the UK so that you can check out the education loan for abroad eligibility by knowing these two types.

Collateral Education Loan: 

A secured education loan for the United Kingdom or a secured loan in which you must offer security or collateral while applying. The security might be tangible or intangible, such as FDs or fixed assets like real estate.

Non-Collateral Education Loan: 

If you want to get a UK education loan without collateral, then this loan is for you. An unsecured education loan for the United Kingdom in which you do not have to submit any collateral to apply for a loan.

Furthermore, in the table below, we have explored the significant distinctions between these two loans:

List of Indian Banks Providing Student Loan UK

You can check the eligibility for education loan for overseas students through any of India's public or commercial banks, including Bank of India, State Bank of India, Central Bank of India, HDFC Bank, Axis Bank, Allahabad Bank, Bank of Baroda, and ICICI Bank. Look at the table below to learn about some crucial aspects concerning Indian bank loans:

What Expenses Are Covered under UK Education Loan?

 Consider the following expenses that are covered by a student loan in the United Kingdom:

• Fees owed to the institution
• Examination, library membership, and laboratory fees
• Expenses for books and supplies required to complete the course
• Any refundable deposit for lodging, caution money, refundable deposit, etc.
• Studying abroad necessitates travel fees.
• A two-wheeler can cost as much as 50,000 INR.
• Expenses for a study vacation or course-related project work

With this knowledge, let's look at UK students' education loan repayment procedure.

Repayment of Student Loan for UK

Before applying education loan for UK study overseas students, you should read about the repayment process. We covered the repayment strategy for UK university loans in Indian banks below:

Public Bank Loan: Repayment of a public bank loan will begin after completing one year of your degree. The loan can be repaid in fifteen years from the start of repayment.

Private bank loan: Repayment will begin and continue for the course length of +1 year or six months after finding a job. You can repay the loan in 15 years.

Studying at one of the top study abroad destinations, such as the United Kingdom, is expensive. A study loan UK is a wise decision to control your expenses rather than delaying your studies in the UK. It would help if you learned about the eligibility, requirements, and process for obtaining a student loan in the UK from the guide above.

There are various options for funding your education in the UK. Ensure you arrange your spending carefully so the loan does not burden you. Choose our platform Gradding.com, if you need more guidance.

Final Thought 

Lastly, everything is possible if you hustle with total effort. You must understand that studying abroad is not a dream anymore because by getting a study loan UK, you can quickly get admission to your dream college. Being the most reliable study abroad platform, Gradding.com believes that you must get the chance to get an education from your dream university. In this blog, we tried to provide you with all the mandatory details required to get an education loan for UK. We hope that you have got adequate information by reading our blog. We aim to tell you every aspect of study loans in the United Kingdom so you can apply to your desired college quickly. Ultimately, we wish you all the best in your academic career and hope you can study in the UK. You can visit our website regularly to read more informational blogs like this. You can also take services from Gradding.com, like help in applying for student loan for UK, visa assistance, scholarship aid, career counselling and much more. So, what are you waiting for? Apply quickly for an education loan to get fruitful results in the future.

Frequently Asked Questions

1. Can I Get a Study Loan for the UK?

You can apply for a study loan UK online. You can get funds for your studies in the UK with an education loan for up to nine months following your academic course. Your application will take six weeks to be completed. You are required to provide identification.

2. How Much Money Can I Loan to Study in the UK?

An UK education loan can provide up to 1.5 crores at an interest rate of 10.25% per annum for your study in the United Kingdom. The education loan covers tuition, living expenses, the CAS down payment, and additional academic expenses.

3. Can I Acquire a 25 Lakh Education Loan without Putting up Any Collateral?

Education loans are available from both governmental and commercial banks. The difference represents the loan amount. Public banks can only give you money of around 7.5 lakhs INR. But, private banks can lend up to 40 lakhs INR. You can also get a loan from NBFCs, which operate similarly to private banks.

4. Is Student Loan Interest Calculated Monthly or Annually?

Most student loan rates are promoted with annual percentage rates (APR). However, the interest compounds every day. On the promissory note for your scholar loans, you can find out how frequently your interest accrues and your compounding rate.

5. Is Student Finance Available in the United Kingdom?

A package for student finance includes a loan for tuition and a grant for living expenses. Universities can levy tuition fees of up to £9,250 per year, but if you are qualified for Student Finance in the UK (which most students are), you will pay nothing upfront.

6. What Happens If You Fail While Having a Student Loan?

If you are taking an education loan for UK study, you must repay at least a portion of your Tuition Fee loan for the year you suspend or abandon your course. You'll have to repay: If you suspend or leave during term one, you will be charged 25% of the loan for the year. If you suspend or leave during term two, you will be charged 50% of the loan for the year.

7. What Happens If I Don’t Pay My Student Loan in the United Kingdom?

The law requires you to repay your loan by the contract and rules. SLC has the authority to take legal action to recover your debt if you do not make repayments. This implies that SLC can obtain a court order compelling you to return the debt, including interest and penalties, in a single payment.

8. Is a Student Loan Only for Educational Purposes?

An education loan, often known as a student loan, is a type of financial aid that students can use to cover the costs of their studies. The student loan covers school fees, post-secondary education, and other costs linked with higher education.

9. How Can I Get an Education Loan If I Don’t Have Proof of Income?

Non-Banking Financial Companies (NBFCs) are an additional option for students looking for school loans without an ITR. If a student's GRE score is higher than 300, NBFCs may not require ITR. They take a flexible approach and can offer loan up to 50 lakhs INR.

10. Should I Pay Off My School Loans as Soon as Possible?

Any debt should be paid off as quickly as possible. Student loans are no exception. The most significant advantage of paying off your student loans early is the interest savings.