The United Kingdom (UK) is a sought-after study abroad destination for international students due to its well-ranked universities with the best academic standards and diverse work opportunities. However, studying in this country is an expensive affair as it is one of the costliest academic hubs across the globe. Therefore, many students opt for a study loan to finance education independently. Let’s learn how study loan for international students can support their academic aspirations, the types of education loans, and other interesting details. 

Key Highlights

• Cost to study in the UK
• Benefits of taking a study loan to study in the UK
• Types of student loans for international students in the UK
  • Education loan for the UK with collateral
  • Education loan for the UK without collateral
• Eligibility criteria to take student loan, UK
• Documents required for student loans
• Does Avanse Financial Services offer an education loan for UK?

Cost to study in the UK

When you plan to pursue higher education in the UK, you need to consider the overall cost of education, including tuition costs, cost of learning devices, accommodation expenses, living costs, travelling expenses, and other related costs. These costs may vary based on the course and the university selected. So, if financial constraints are stopping you from embarking on your academic journey to study in the UK, you can opt for education loans for studying abroad.

Benefits of taking a study loan to study in the UK

• Study loan covers major education-related expenses, enabling you to access quality education.
• It allows you to earn a self-made badge as you can finance your higher education independently.
• You need not liquidate your family’s savings to cover your education expenses.
• Responsibly repaying the loan helps in building a robust credit score.

Types of student loans for international students in the UK

Generally, two types of education loans are offered to study in the UK:

• Education loan for the UK with collateral: This loan is also known as a secured loan. In a secured loan, a borrower pledges an asset as collateral that acts as a security against the student loan. A collateral can be non-agricultural land, fixed deposit, house, etc.
• Education loan for the UK without collateral: This loan is also known as an unsecured loan, where the borrower does not pledge any security.

It is advised to opt for a secured or unsecured education loan to study in the UK based on your financial requirements.  

Eligibility criteria to take student loan, United Kingdom 
An applicant or a borrower needs to meet the following requirements to qualify for a study loan to study in the UK:

• Must be an Indian citizen, and 18 years or above
• Must have confirmed admission to the UK university before the final loan disbursal
• Must have an earning co-applicant in India

A co-applicant is a person who signs the education loan agreement and application with the borrower. A co-applicant is also known as a co-borrower or co-signer. Like an applicant, even a co-applicant needs to meet certain requirements to qualify for student loans. The basic eligibility criteria for a co-applicant are as follows:

• Must be a parent, sibling, legal guardian, or any blood relative
• Mus be an Indian citizen
• Must be the primary debtor
• Must have an Indian bank account with a cheque-signing facility

It is advised to verify the requirements of collateral loan and non-collateral education loan for the UK from a lender before applying. 

Kindly note that this is not an exhaustive list of documents. Therefore, speak to your lender to understand the specific documents required and the overall education loan journey.

Does Avanse Financial Services offer an education loan for the UK?
At Avanse Financial Services, we offer customised education loans to study in the UK and other overseas destinations. You can get benefits like 100% finance, a hassle-free application process, quick sanctions, and flexible repayment options. Connect with us today to know about our education loan rate of interest and the loan application process!