All About Education Loans to Study in the UK
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Just getting an admission letter from your dream university in the UK is not enough to set your career in motion. While scholarships can cover only 25-50% of your study expenses, the remaining expenses need to be dealt with on a cash-in-hand basis. This is where the student loan for UK play an important role in deciding your future.
Education loans are a great way to ease the financial burden off your shoulder while going to study abroad. Several education loans from various banks are available for Indian students willing to pursue their higher education abroad. Student loans for UK are offered by government (public sector) and private banks, along with Non-Banking Financial Companies (NBFCs). These student loans for UK cover tuition, living costs, etc., with repayment tied to income after graduation, typically involving a percentage of earnings above a set threshold. The public banks (e.g., SBI, Bank of Baroda) typically offer lower interest rates, while private lenders (e.g., Axis, ICICI, HDFC Credilla) provide faster processing and higher flexibility. This article covers complete details on the education loans for studying in the UK, top international banks providing the loans, the interest rate at which they are providing the loan and the documents required to apply for an education loan.
- Education Loan for Studying in UK
- Common Conditions for Getting Student Loan for UK
- Top 10 Universities in the United Kingdom 2026
- Banks Providing Education Loans to Study in the UK in 2026
- Documents Required for Education Loan Approval
Education Loan for Studying in UK
These days, many Indians are opting for the United Kingdom as their favourite study destination owing to its education system and the housing of the best faculty in their universities. However, the fee structure along with other expenses such as accommodation, travelling, food, etc make the United Kingdom one of the costliest countries to study abroad. Be it an undergraduate degree or a master’s degree, the applicant needs to showcase a well-structured financing plan while applying to UK universities. A certain amount of liquid assets need to be shown in the financial statement along with loan documents or scholarship letters. It should be enough to cover at least the tuition fees and living expenses for the first year of study in the country. Post that, one can work part-time to cover his/her daily expenses and tuition fees.
Shiksha has partnered with India’s topmost and trusted loan providers who will assist you in getting an education loan. Read more about student loan opportunities with Shiksha.
To support the dreams of millions of students who want to study in abroad in countries like the UK, many Indian banks provide student loans for education abroad to help Indian students with their finances. From offering a large amount of financial help to the lowest interest rate and flexible repayment period, many banks and financial institutions compete with each other to provide aspirants with the smoothest experience in achieving their dreams. Apply for an education loan through Shiksha Study Abroad partners.
Also read
Common Conditions for Getting Student Loan for UK
To secure an education loan for studying in the UK in 2026, Indian students must satisfy several standardised criteria established by banks and NBFCs. These conditions primarily focus on the applicant's academic standing, the university's prestige and the financial stability of a co-applicant. Some of the most common criteria/conditions for availing a student loan for UK are -
- The applicant and co-applicant must be Indian citizens.
- Most UK student loan lenders require applicants to be between 18 and 35 years old.
- You must have a confirmed admission or an unconditional offer letter from a recognised UK university before the final loan disbursal.
- Mostly, student loans for UK are granted for professional or technical programmes such as MBA, MS or MBBS.
- Mandatory Co-Applicant: A co-borrower (typically a parent, sibling, or spouse) who earns in India is mandatory for most bank loans.
- A CIBIL score of 700+ is required by the co-applicant for availing competitive interest rates
- If your academic standing is good, you may also avail a collateral-free student loan for UK of up to ₹40–75 L. However, a consistent good academic record with minimum 60% marks in Class 10th, 12th and graduation is generally expected.
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Top 10 Universities in the United Kingdom 2026
While an excellent academic record is a must for applying for an education loan, an offer letter from any of the reputed colleges/ universities also aids in quickening the pace of the whole approval process. Here is a list of the top ten universities in the UK which you can aim for, irrespective of course or programmes
| Top 10 Universities in the UK 2026-27 | ||
|---|---|---|
| Universities | QS World University Rankings 2026 | THE World University Rankings 2026 |
| #2 | #8 | |
| University of Oxford | #4 | #1 |
| University of Cambridge | #6 | =3 |
| UCL | #9 | #22 |
| King's College London | #31 | #38 |
| University of Edinburgh | #34 | #29 |
| University of Manchester | #35 | #56 |
| University of Bristol | #51 | =80 |
| #56 | #52 | |
| University of Warwick | #74 | =122 |
Check out more: Top MBA Programs in London
Banks Providing Education Loans to Study in the UK in 2026
The main aim of an education loan is to aid deserving students in fulfilling their dream of studying at their chosen university by providing financial assistance. The applicant should start applying for an education loan as soon as he/she receives the unconditional offer letter from their desired university. It is so advised as the bank or the private financial institution’s loan sanctioning is time-consuming owing to various requirements and documentation processes. Also, the loan amount will not be sanctioned by the institutions until and unless you have proof of acceptance from the university (unconditional offer letter) and accordingly meet all the banks' terms and conditions. As each financial entity will have its own terms and conditions, it is in your favour to do thorough research about their requirements, maximum loan amount allowed, interest rate, repayment period and so on.
In case you're finding it difficult to apply for an education loan, you may also apply for loan through Shiksha website.
To help you get started, here are some initiatives by a few banks that are specifically tailored for aspirants looking for financial aid in studying in the UK:
1. Bank of Baroda (BoB)
The Bank of Baroda offers an education loan initiative called ‘Baroda Scholar Loan’ that assists Indian students with their dream of studying abroad. This initiative is open to students opting for an undergraduate or postgraduate programme, doctoral degree, or any technical job-oriented course in reputed foreign universities. No processing fee will be charged up to Rs 7.50 lakhs. This loan would cover the expenses of tuition fees, hostel fees, travel expenses, and other related expenses. One can repay the loan between 10-15 years. The maximum loan limit is Rs 150 lakhs for full-time courses. Here are the benefits of availing a student loan for UK from the Bank of Baroda:
- No processing charge applies to loans of up to INR 7.5 lakhs
- For student loans of above INR 7.5 L, a 1% processing amount or a maximum of INR 10,000 will be refunded to you upon successful availment of the loan for premier institutions abroad- on first disbursement .
- You get a free debit card, no documentation charges are applied and no security on loans of up to INR 7.5 L.
2. Bank of India (BoI)
‘Star Education Loan’- tailor-made for Indian students, it is one of the famous education loan initiatives by a government bank. Available for students who have obtained admission into a graduate or postgraduate programme in a recognised institute, this scheme specifically aids courses offered by institutes like CIMA-London, UK. Expenses such as hostel fees, tuition fees, exam fees, library fees, laptop/computer, travel, and other education-related expenses are covered under this. If the course demands, this loan can also cover other expenses such as that of a laptop and the like. There is no collateral security upto Rs 7.50 lakhs. Here are the benefits of availing a student loan for UK from the Bank of India:
- Low interest rates - probably the best in the market
- There are no hidden charges - so you can aim for a trouble-free and stress-free closure of loan
- Very less paperwork required in comparison to other loans and the whole process can finish in just 15 minutes
3. Central Bank of India (CBI)
The Central Bank’s loan scheme of ‘Cent Vidyarthi’ is for all those students who have obtained admission to a higher education programme in a recognised university/college in India or overseas. Their selection should have been merit-based or should have been done through an entrance test. Students whose selection has not been made through these two methods should possess atleast 50% marks in the qualifying examination. Expenses covered include tuition fees, exam fees, library fees, lab fees, travel expenses, and purchase of books, computers, etc. The scheme offers a maximum loan amount of Rs.200 Lakhs. Also, they may dish out concession programmes on the interest rate for certain cases during the repayment period, providing upto 1% of concession. The additional benefit of this scheme is that it also provides life insurance protection to the borrowers.
4. HDFC Bank
Famously known as HDFC Credila, in partnership with Credila, HDFC offers upto Rs.45 lakhs in unsecured education loans for students wanting to study abroad. With flexible loan terms and low-interest rates, it also provides tax benefits to borrowers under Section 80 (E) of the Income Tax Act.
5. State Bank of India (SBI)
SBI has two loan schemes for students willing to study in the UK, namely, SBI Student Loan and SBI Global ED-VANTAGE. Under the student loan scheme, the bank offers collateral free loan up to Rs.50 Lakhs maximum loan amount while under ED-VANTAGE, you can get financed up to Rs.3 Crore.
6. Syndicate Bank
The SYNDVIDYA Scheme allows student loan from Rs.20 Lakhs to 2 Crores for both degree and diploma courses. The repayment tenure is 15 years and collateral for education loan is required for a loan exceeding Rs.7.50 Lakhs.
To give you an idea, here is a list of Government Banks’ details regarding education loans:
| Bank Name |
Maximum Loan Amount |
Interest Rate |
|---|---|---|
| Allahabad Bank |
Rs.50.00 lacs |
9.90%(0.50% less for girls) |
| Bank of Baroda |
Rs.150.00 lacs |
10.40%-11.15% |
| Bank Of India |
Rs.150.00 lacs |
10.90% |
| Central Bank of India |
Rs.20.00 lacs |
10.60%(0.50% less for girls) |
| Punjab National Bank |
Need-based finance subject to repaying capacity of the parents/students with margin |
9.45-11% |
| Punjab & Sind Bank |
Rs.20.00 lacs |
10.25% |
| State Bank of India |
Rs.1.5 crore |
10.50%(0.50% less for girls) |
| Syndicate Bank |
Rs.2 crore |
10.75-11.50%(0.50% less for girls) |
Some private institutions also provide financial aid for abroad studies, such as:
| Bank Name |
Contact number |
Maximum Loan Amount |
Interest Rate |
Period of Loan |
Loan Eligibility |
| Axis Bank |
1800 2335577, 23736555 |
Rs 75.00 lacs |
13.50% |
|
Indian Nationality & Should have a good academic record. |
| HDFC |
011-41514332 |
Rs.20.00 lacs |
14.00% |
Repayment of loan starts 1 year after course completion / 6 months after obtaining employment |
An Indian Citizen/Resident who has secured admission in abroad |
| HSBC |
99107 92424 / 2373 8989 |
Rs.1 Crore |
Tenor of up to 15 years. |
Minimum age-18 |
|
| ICICI |
011-41718000 |
Rs.20.00 lacs |
13.00% |
Indian Nationality and should have a good academic record. |
*These details may change from time to time. Please contact the bank authorities directly for the latest updates on their policies.
Learn how to choose your bank for education loan to study abroad.
Documents Required for Education Loan Approval
While each of the banks and financial institutions has its own documentation requirements and procedures, here is a generic list of documents you can keep ready beforehand:
- Duly filled loan application form of the particular bank
- Proof of identity and current address
- Proof of age
- Two passport-sized photographs
- For salaried individuals, proof of income (salary slips or Form 16 etc.)
- Also, the latest salary slip and income tax assessment order for the past two years
- All financial supporting documents
- Borrower's last six months’ bank account statement
- Co- borrower's brief statement of assets and liabilities
- Copies of the foreign exchange permit
- Marksheet from last qualifying examination in India (school or graduate studies)
- Unconditional offer letter/ proof of admission from the university
- List of expected expenses for the specified course
- Copies of Scholarship letter, if granted any
For more information on the UK as a study destination, also read:
- Why is UK a popular location for higher studies?
- How to get UK Student Visa in 5 steps
- All about Post Study Work Permit in UK
Get in touch with India’s top-rated loan providers and apply for an education loan through Shiksha Study Abroad
Commonly asked questions
UEA acceptance rate of 100%, suggests, securing admissions at UEA is very much realistic for student who satisfy its eligibility criteria and submit their applications on time. On the other hand, the University of Greenwich acceptance rate of 64-68% is relatively lower in comparison, making it trickier to secure admissions at than East Anglia.
In the UK rankings, Glasgow University ranking in The Complete University rankings in 2026 is #31. In The Guardian rankings, this university ranks at #24 in 2026. These UK-specific rankings indicates that the University of Glasgow ranks among the Top 100 Universities in the UK. Some of the subject rankings of this university are given below:
| Subjects | Complete University Guide Rankings 2026 |
|---|---|
| Accounting & Finance | #9 |
| Art & Design | #3 |
| Law | #8 |
| Nursing | #2 |
Courses at the National University of Singapore, NUS-ISS, are much shorter in duration and more affordable as compared to those offered in the USA or UK. Asia's growing tech markets also offer easier networking opportunities to students, while the visa requirements are not as strict either.
All in all, the National University of Singapore, NUS-ISS, is a great choice for Indian students looking for a more cost-effective path to the IT industry.
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