Education Loan to Study in the UK: Everything You Need to Know
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Just getting an admission letter from your dream international university is not enough to set your career in motion. While scholarships can cover 25-50% of the study expense, the remaining expenses need to be dealt with on a cash-in-hand basis. This is where education loans play a significant role in deciding your future. The article informs about education loans for studying in the UK, banks providing loans, interest amounts, documents required, etc.
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. 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
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. Find out more!
To support the dreams of millions of students who want to study in abroad in countries like the UK, many Indian banks and financial institutions 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
- SBI Education Loan for Study Abroad: Ultimate Guide
- How does the proposal of levying tax collected at source (TCS) will affect study abroad aspirants?
- Part time Work Options in UK for International Students
- Best Education Loan in India
Top 10 Universities in the United Kingdom 2025
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:
- Imperial College London
- University of Oxford
- University of Cambridge
- University College London
- University of Edinburgh
- University of Manchester
- King’s College London
- London School of Economics and Political Science
- University of Bristol
- University of Warwick
Learn more about the UK:
Predict your IELTS, TOEFL, and PTE in just 4 steps!
Banks Providing Education Loans to Study in the UK
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.
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.
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 aspiring 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 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.
To know how to choose the right bank to finance an education loan, read this
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:
Q: Is university of West of Scotland good for international students?
Q: How long does Hertfordshire University take to reply?
After applying to Hertfordshire University UK, the applicants are going to receive an initial decision about their application within 2-3 working days. After the submission of the application and documents, the applicants are required to pay their tuition deposit. Then, complete the Sponsorship interview and the financial declaration. International students are required to pay a deposit of £5,000 before registration. The balance can be paid in line with the liability dates related to the year and entry of the semester.
Q: Is it difficult to get admission in the University of Manchester?
The University of Manchester acceptance rate is 27% for international students, which means admissions are highly competitive. Out of 100 applicants, only 27 are admitted to the university. This also shows that the university has particular standards for admission, and potential students should be prepared for admission. Early applicants can primarily benefit as it gives students a better chance of acceptance. Therefore, international applicants who wish to study at the University of Manchester must have a good acdemic profile.
Q: How can I get admission in the University of Manchester?
The application process at the University of Manchester may vary depending on the course and level of study. However, here is the application process for UG and PG courses:
The Undergraduate Application Process:
Step 1: You can apply through the UCAS common application portal.
Step 2: Go to the website and select the course you are interested in.
Step 3: Ensure you meet the Entry requirements (Academic qualifications, English proficiency, etc.
Step 4: Once you decide on the course, submit documents such as SOP, Transcripts and personal statements.
Check out: tips to improve your SOP.
Step 5: You can track the application's progress through your given credentials by UCAS.
Step 6: Once the applicant submits the application to UCAS, it forwards to the University, and the admission teams carefully analyse the application document.
Step 7: The university will send you an offer letter once selected. Hence keep checking your UCAS portal for your application status.
The Postgraduate application process:
Step 1: Select the postgraduate course you are interested in from the University of Manchester.\
Step 2: Ensure you meet the entry requirements for the chosen program, as they vary depending on the course.
Step 3: Complete the online application by providing your personal information.
Step 4: Upload the required documents, such as Academic transcripts and proof of English language proficiency ( TOEFL/ IELTS). experience in your fields and references (depending on the course). You also may require Two LORs depending on the course.
To make your admission better, check out the following: How Admission Officers Evaluate your application.
Step 5: If your application is successful, you will receive an offer from the University of Manchester.
Q: Is Hertfordshire University hard to get into?
With a 70% acceptance rate, the University of Hertfordshire is not hard to get into and follows easy selection criteria during admissions. This does not mean the university accepts all the students applying for different programs. The selection is based on academic performance, English language requirements, references, and many more. Some of the programs at Hertfordshire even demand an experience of 4-5 years. Students must fulfill the eligibility criteria to enroll in any programme at Hertfordshire University. In addition, students with average performance can showcase their relevant experience or extracurricular activities participation to increase their selection probability.
Q: Why indian students choose to study at Hult International Business School - UK?
Indian students choose to study at Hult International Business School in the UK for several reasons, including its highly ranked programs, global outlook, and career support. Hult offers a range of full-time master’s degrees, immersive bachelor's programs, and MBA options that prepare students to excel in the global job market. The school is the largest and top-ranked global business school, providing students with an incomparable universal outlook. Additionally, Hult's focus on experiential learning, extensive career support, and the opportunity to study at multiple campuses around the world are attractive to Indian students seeking a global business education. Furthermore, the school's emphasis on innovation and meeting the needs of students and employers may also contribute to its appeal to Indian students
Q: How much is Johnson & Wales University application fee for international students?
Johnson and Wales University application fees for international students is zero. Johnson and Wales University does not charge any fees for applying to either undergraduate or to graduate programs. International students can apply throught the official application portal of Johnson and Wales University.
Q: How much IELTS score is required for Hertfordshire University?
International students coming from diverse backgrounds must prove their English language proficiency by submitting the scores of IELTS, PTE, and Duolingo at Hertfordshire University. The university demands an IELTS score of 6 from the students. Along with the IELTS scores, students can refer to the table below for all the required English proficiency score:
English language test | Minimum Score required UG | Minimum Score required PG |
|---|---|---|
6 or above | 6 or above | |
59 or above | 58 or above | |
105 or above | 120 or above |
- 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
Get in touch with India’s top-rated loan providers and apply for an education loan through Shiksha Study Abroad
For more information on the UK as a study destination, also read:
- Everything You Need to Know About Education Loan
- Things to know before applying for foreign education loan
- Why is UK a popular location for higher studies?
- How to get UK Student Visa in 5 steps
- UK Student Visa: Now you need to show higher finances to cover living costs
- All about Post Study Work Permit in UK
Priya Garg is a seasoned content writer and editor. With her rich experience in content writing, teaching and research & analysis, Priya believes in providing only the correct information which is also up-to-date. H... Read Full Bio
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Hello Neha. Different banks have different set criteria for loans and applications. In order to learn more about applying for a study loan, refer to our article: https://studyabroad.shiksha.com/eligibility-criteria-for-education-loan-applycontent61405
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The University of the West of Scotland has five modern and diverse campuses in United Kingdom. The University has welcomed more than 3,000 international students which are representing 1/3 of the globe. They also have 130 European partners who are actively in global study and exchange options through the Commonwealth universities programmes. The University also offers study abroad opportunities for UWS who are eligible for the same and also have more than 20 transnational education partners worldwide which helps them deliver UWS Bachelors and Masters Degrees around the world.