Due to its outstanding colleges and numerous options, the United Kingdom is a popular study destination for overseas students. However, studying in the United Kingdom might be expensive. Over 120,000 Indian students picked the UK for higher education in the 2023/2024 academic year, demonstrating the country’s appeal. One appealing feature is the shorter duration of most master’s courses, which normally last one year. Tuition rates vary, with international students paying an average of roughly GBP 35,000. Getting a UK student loan is a terrific way to pay for tuition and living expenses. These loans can also be used as proof of money for UK student visas, making the visa application process easier.
Also Read: Understanding the Education Loan Application Process
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Why Do You Need a Student Loan to Study in the UK?
If you have decided to study abroad in the UK, you should be aware that it is one of the most expensive countries. The entire price includes university tuition fees, cost of living factors like lodging, food, transportation, health care charges, and other expenses. One could feel financially constricted with so many expenses.
The following are some of the main justifications for choosing student loans for international students in the UK:
- Interest rates on any loan, including home loans, auto loans, personal loans, and others, are frequently higher than those on student loans. Additionally, female borrowers receive a 0.5% discount from all Government banks.
- A student loan in the UK will pay for your tuition, transit (tickets), housing rent, university fees, food expenses, living expenses, laptop, and any other item necessary for your studies.
- Usually, parents sell off sizable amounts of assets to pay for their children’s education in the UK, which throws off their long-term financial goals. However, banks hold your liquid assets, such as FDs, insurance, and government bonds, as collateral when you take out an education loan.
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What Expenses Education Loans Can Cover?
After your loan is authorised, you can choose to receive the funds via disbursement. You can withdraw the entire permitted amount all at once or in instalments based on your needs. It is often preferable to choose partial disbursement because the interest charged will only apply to the amount distributed, not the total permitted amount. When you choose partial disbursement, you can save money on interest by not taking out the entire amount at once. According to the lender, the following are the expenses covered by the education loan:
- Tuition costs
- Visa charges
- The expense of lodging
- Food and grocery shopping
- Health coverage
- Bills for utilities
- Expenses for studies (lab fees, instruments, and so on)
Eligibility Criteria
Certain conditions must be completed in order to be eligible for an education loan for studies in the United Kingdom. They are as follows:
- Excellent academic record
- Choosing a course of study with good job prospects
- Secured loans demand collateral
- Acceptance letter from a recognised American university for a full-time programme
- The minimum age limit is 18 years old.
Required Documents
Prior to applying for an education loan to study in the UK, students must ensure they have all of the essential papers. Documents commonly required to secure a study abroad loan in the UK include:
- Form for requesting a loan
- KYC documentation for the applicant
- IELTS, TOEFL, or Duolingo English proficiency test score
- Photographs in passport size
- The university’s fee structure
- Property documents (in the case of a secured college loan)
- Academic transcripts (high school and bachelor’s degrees)
- An admission /offer letter from the university/institution is proof of admission.
- GMAT or GRE standardised test scores
- Proof of residency for the applicant and co-applicant
- Proof of income for the co-applicant (for an unsecured student loan)
Must Read: Documents Required for Education Loan
How to Get a Student Loan for Studying in the UK?
This is one of the most important things you need to keep in mind while applying for a student loan in the UK. To submit a loan application,
- Think carefully about the subject and college you wish to attend.
- Calculate how much you’ll need for living and other expenditures in the UK.
- Examine many loan alternatives and choose the one that is ideal for you. Due to India’s positive relations with the UK, the processing period for loans is comparatively shorter.
- Fill out the bank’s loan application form after choosing a lender.
- Don’t forget to include the essential documents along with your loan application.
Also Read: Top PhD Student Loans to Study Abroad in 2023
What Should You Know about Repayment?
Before you choose a student loan in the UK, make sure you pay close attention to the terms of repayment. Below, we’ve covered the payback schedule for UK-issued student loans from Indian banks:
- Loans from a Public Bank: Repayment will start once your course has lasted a full year. Within 15 years following the start of repayment, the loan may be repaid.
- Loans from a Private Bank: Repayment will start and go on for a total of 1 year or 6 months after you get a job in the UK. Within 15 years, the debt can be repaid in full.
FAQs
Ans. The maximum loan that you can receive to study in the UK will depend on numerous factors including the bank you choose and the university you’re planning to attend.
Ans. Indian residents with great academic backgrounds are eligible for obtaining a student loan.
Ans. Receiving a higher amount of student loan without collateral might prove a difficult task.
This is everything you need to know about student loan requirements to study in the UK. If you’re looking for financial assistance to complete your higher education abroad, Fly Finance can help you.
