Non-Collateral Education Loan for UK: Loan Without Collateral

Non Collateral Education Loan for UK
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Undoubtedly, the UK is one of the best study-abroad destinations due to its academic excellence,  employment opportunities, cultural diversity and home to the world’s most renowned universities. However, studying in the UK is expensive and international students can expect expenses of around GBP 1300-2000 per month (INR 1.37 lakhs to 2.10 lakhs) in the country to cover their living expenses, bills, and groceries, which are exclusive of tuition fees. To cover these study abroad expenses, many financial institutions and NBFCs provide non-collateral education loans for the UK up to INR 45 lakhs for 15 years. Let’s check all the details about unsecured student loans to study in the UK to fulfil your global dreams. 

Also Read: Know all about LLB education loans to study abroad and the best public banks, private banks, and NBFCs providing education loans for LLB students. 

Unsecured Study Loan to Study in the UK

Students can avail of two types of education loans to study abroad- secured and unsecured. To avail unsecured education loans to study abroad, students are not required to mortgage any asset (housing property, stocks, bonds) with the lender, unlike a secured education loan in which students must pledge an asset with the lender equal to the value of the loan. 

To study in the UK, best-unsecured education loans can be availed through various ways- 

  • NBFCs (Non-Banking Financial Companies)
  • Private Banks 
  • Public Banks

NBFCs- Non-collateral Education Loan for the UK

NBFCs are the most preferred sources of education loans for the UK because there is no upper limit set on secured study loans. The maximum quantum of finance for unsecured education loans is also set to a higher limit as compared to private and public banks. 

NBFCs providing non-collateral education loans for the UKQuantum of Finance (without collateral) and interest rates
HDFC CredilaMaximum Loan Amount up to INR 7.5 lakhs
Up to INR 20 lakhs can be offered to exceptional students without collateralInterest Rates- Starting 13.80% p.a
Avanse Financial ServicesMaximum Loan Amount Up to INR 75 lakhs
Interest Rates- Starting 14.25% p.a
AuxiloMaximum Loan Amount Up to INR 40 lakhs Interest Rates- Starting 12.70% p.a
Prodigy FinanceMaximum Loan Amount Up to 100% cost of studying abroad
Interest Rates- Starting 11.50% p.a
MPower FinancingMaximum Loan Amount Up to USD 100,000 (INR 83 lakhs)Interest Rates- Starting 12.90% p.a

Private Banks- Non-collateral Education Loan for the UK

Private banks provide unsecured student loans to study in the UK and help students cover their tuition fees, accommodation expenses, and other related expenses. These banks offer up to 45 lakhs of non-collateral education loans at competitive interest rates. Some banks provide loans of more than  Let’s have a look at the prominent private banks offering unsecured education loans to study in the UK-

Banks providing non-collateral education loans for the UKLoan Amount (Without Collateral) and Interest Rates
Axis BankMaximum Loan Amount Up to INR 75 lakhs Interest Rates- Starting 10.70% p.a
HDFC BankMaximum Loan Amount Up to INR 45 lakhs Interest Rates- Starting 9.55% p.a
ICICI BankMaximum Loan Amount Up to INR 1 crore Interest Rates- Starting 10.95% p.a
YES BankMaximum Loan Amount Up to INR 45 lakhs Interest Rates- Starting 12% p.a
IDFC First BankMaximum Loan Amount Up to INR 75 lakhs Interest Rates- Starting 10.50% p.a

Public Banks- Non-collateral Education Loan for the UK 

Public Banks in India offer education loans to study abroad only up to 7.5 lakhs. Popular banks that students can consider to avail of non-collateral education loans for the UK are-

  • SBI Bank (Interest rates between 10.40%- 14%)
  • Bank of Baroda (Interest rates between 11.40%- 14%)
  • Punjab National Bank (Interest rates between 9.25%- 14%)
  • Canara Bank (Interest rates between 10%- 14%)
  • Union Bank of India (Interest rates between 10.50%- 14%)

Note: The interest rates may vary on factors like loan through education loan scheme, loan amount, and credit score. 

Also Read: Check out our blog on one of the most flexible alternatives to finance your study abroad dreams- gold loan for education: benefits, criteria, documents & process.

How to get an unsecured student loan in the UK?

To avail of a study loan in the UK without collateral, applicants must be ready with a list of documents and ensure that they fulfil the eligibility criteria. It is also necessary to identify the amount of loan required based on your needs and requirements. If you require a loan of up to 7.5 lakhs, you can choose public banks as the interest rates are quite low. Once you identify the lender, follow these steps- 

Step #1: Visit the nearest bank branch or go to their official website. 

Step #2: Fill in the common application form for an education loan with your basic information and other details as asked. 

Step #3: Wait for the bank to perform an analysis of your profile and discuss the terms and conditions like repayment schedule, and moratorium period. 

Step #4: Submit or upload all the documents from the list of documents provided to you by the lender. 

Step #5: Wait for the results. The lender will get back to you within 7 business days with the necessary details. 

Step #6: Sign the loan agreement and receive the sanction letter from your lender.

Note: You can check the eligibility criteria to avail education loans and get a list of required documents for an unsecured education loan for the UK here. 

FAQs on non-collateral education loans for the UK

Can I get a non-collateral education loan to study in the UK?

Yes. To cover the study abroad expenses of aspiring students, many financial institutions and NBFCs provide non-collateral education loans for the UK up to INR 45 lakhs for 15 years. 

What are the best ways to get unsecured loans to study in the UK?

To study in the UK, best-unsecured education loans can be availed through various ways like education loans from NBFCs (Prodigy Finance, Avanse Financial Services, Auxilo, Mpower Financing, HDFC Credila), Private Banks (ICICI Bank, Axis Bank, HDFC Bank, IDFC First Bank), and Public Banks (SBI, Bank of Baroda, Punjab National Bank, Canara Bank, Union Bank of India).

What is the maximum non-collateral education loan amount for the UK through NBFCs?

NBFCs like Avanse provide education loans of up to 75 lakhs without collateral to study in the UK.

What is the maximum non-collateral education loan amount for the UK through Private Banks?

Private banks offer up to 45 lakhs of non-collateral education loans at competitive interest rates. 

What is the maximum non-collateral education loan amount for the UK through Public Banks?

Public banks provide non-collateral education loans of up to 7.5 lakhs to study in the UK.

This was all about non-collateral education loans for the UK. To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.

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About Shubhika Garg

Hey there! I'm Shubhika- a proud graduate in English Literature and Language from Delhi University. My journey as a content writer transitioned from online teacher into the world of words. Stepping into the domain of blogs and articles, I discovered my passion for writing growing deeper and stronger. Having said that, I have experience of writing for diverse industries in automobile, technology, ed-tech, finance and mental-health; crafting details to help you find the solution to what you are looking for. Join me as I invite you all explore and learn together.

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