For various reasons, international students prefer pursuing higher studies in the UK, one of the top study abroad destinations. Did you know that it is home to several well-ranked varsities? 10 UK universities are among the top 50 educational institutions in the world. Although the UK offers quality education, it can be super expensive. Hence, students opt for an education loan to achieve their academic aspirations independently. So, let’s find the answers to your questions about education loans to study in the UK.

Key Highlights

• What are the benefits of an education loan to study in the UK?
• UK education loan for international students – Types and meaning of collateral
• Eligibility criteria
• Documents required
• Perfect student loan partner
• Application process
• Which factors will influence your education loan approval?

What are the benefits of an education loan to study in the UK?

• Most student loans cover all the major education-related expenses allowing you to fulfil your academic dreams.
• A student loan is a brilliant way to fund your education independently. You don’t have to depend on your parents or liquidate your family savings. Instead, you can utilise these savings during contingency.
• Be Atmanirbhar by opting for an education loan and pride yourself on being self-made.
• You build a healthy credit score when you repay the student loan.

  UK education loan for international students – Types and meaning of collateral

• Education loan for the UK with collateral (secured education loan)

  You can opt for a secured student loan in India to study in the UK if you want to offer any asset, such as a home or apartment, as security against the student loan. This asset you pledge to opt for a student loan is collateral. Most lenders will accept residential property, fixed deposit, and non-agricultural land as collateral. However, checking with your financial institution to understand which assets will be considered as security before applying for the education loan is advised.

• Education loan for the UK without collateral (unsecured education loan)

  If you don’t have collateral to offer, don’t be disheartened. Instead, opt for a non-collateral education loan for the UK. Depending on your financial requirements and personal preference, you can select between a secured loan and an unsecured education loan for the UK.
  

Eligibility criteria
Whether you want to opt for a secured or unsecured education loan, every lender will have basic requirements that you need to meet. So, let’s understand the eligibility criteria.

• For students
  • You should be an Indian citizen and 18 years or older
  • Have a confirmed admission before the disbursal
  • Have a co-borrower who earns in India
• For co-applicant
  • Your parent, legal guardian, sibling, or other blood relative can your co-borrower
  • Must have a bank account in India that allows them to sign cheques
  • Should be the primary debtor

Important note: Since most students are first-time borrowers, which means they either have a low credit score or no credit history, it is necessary to have a co-applicant.

Documents required

• For students
  • 2 Colour passport-sized photos
  • Photo ID
  • Residence proof
  • Date of birth proof
  • Academic transcripts
  • Proof of admission
  • Fee structure details
  • Details regarding the course and fees
  • Co-borrower KYC and income details
• For co-applicant
  • 2 Colour passport-sized photos
  • Photo ID
  • Residence proof
  • Date of birth proof
  • Collateral documents (for secured education loan)
  • Income Proof
  • 8-month bank statement
  • Relationship proof

Perfect student loan partner
To find the right education loan partner, you must conduct thorough research. So, first, identify your financial requirement, such as the cost of education and whether you want to opt for a secured or unsecured loan. Once you know what you are looking for in the financing solution, shortlist the lender. You must consider customer service, customer testimonials, education loan rate of interest, features and benefits extended to you when finding the right lending partner.

Application process
Once all the documents are in place, you can apply online by visiting the financial institution’s official website. If you have any doubts, it is advised to consult the financier before initiating the process. After the consultation, you can share the documents and wait while the lender evaluates your employability potential. If you meet their criteria, your loan will be sanctioned.

Which factors will influence your education loan approval?
Here are some of the parameters that lenders will evaluate to determine your employability potential:

• Pedigree of your educational institution
• Academic and entrance exam scores
• Continuity in education

So, hope this guide helps you plan your student loan journey. At Avanse Financial Services, we offer an education loan for study abroad destinations, including the UK. If you want more information, please feel free to contact us.