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Indian Education Loans to Study in the UK
6 min read
The cost of studying overseas depends on a few major factors, including the type of course, the duration, and the location. When a student decides to study abroad, he has to arrange enough funds to pay his tuition fee and living expenses. Most students take out education loans from a bank or private financial institution to pay the high tuition costs.
Education loans mainly aim to support deserving students aspiring to study abroad financially. It helps the students to fulfil their dreams and achieve their goals in life. It ensures that worthy students accomplish their future endeavours.
StudyIn understands that it is essential for many students to apply for and successfully be granted education loans to study in the UK. Proof of financial status is also the first step in a visa application to study in the UK. It is advisable to start applying for the study loan upon receiving the conditional offer letter from the university, as the bank or the private financial institute takes some time to fulfil their requirements and prepare the complete documentation.
However, the study loan would be sanctioned only if you have received the unconditional offer letter from the university and have met all the terms and conditions of the bank. StudyIn student loan advisors will assist you with all the information you need to apply for and successfully receive an education loan if you meet the requirements.
StudyIn offers a full range of services to help our students apply for education loans, including:
- A full list of Nationalised banks offering loans
- A full list of private banks offering student loans
- A full list of private financial institutions offering student loans
- StudyIn will give you all the required documentation to apply
- Complete assistance in choosing the most appropriate bank or lender
- Full assistance with all required documentation
- Advice on eligibility
- Communication with the bank or financial institution
- All services, from initial information to applying to receive the loan
For detailed information on how and when to apply for an education loan, get in touch with our specialist advisors today.
Education Loans Provided by Indian Government Banks*
| Bank Name | Maximum Amount of Loan | Interest Rate | Loan Eligibility | Period of Loan |
|---|---|---|---|---|
| Bank Of Baroda | Rs.20.00 lacs | 9.70-11.20% |
|
Course period + 1 year or 6 months after getting a job, whichever is earlier. Repayable in 180 maximum instalments for loan amounts above Rs 7.50 lacs |
| Punjab National Bank | Need-based Finance subject to the repayment capacity of the parents/students with a margin | 9.45-11% |
|
Maximum up to 15 years |
| Punjab & Sind Bank | Rs.20.00 lacs | 10.25% |
|
Repayment of the loan will be in equated monthly instalments for a maximum period of 15 years for all categories. |
| State Bank of India | Rs.1.5 crore | 10.50% (0.50% less for girls) |
|
Repayment of the loan will commence one year after completion of the course or 6 months after securing a job. The maximum repayment period is 15 years. |
| Syndicate Bank | 2.00 crore | 10.75-11.50% (0.50% less for girls) | The Candidate or the candidate’s guardian should hold an account in the bank. The candidate should be from the same place as the bank to avail the loan; otherwise, they have to open an account in the bank of his choice and avail a loan for 6 months. | Course period + 1 year or 6 months after getting a job. The loan interest amount should be paid back either by the candidate himself or by his guardian. |
| Bank Of India | Rs.20.00 lacs | 10.90% | Citizen of India + good academic record. For studies abroad + you should have secured admission to abroad through the Entrance Test. The applicant should have secured a minimum of 50% marks in the major subject. | Course period + 1 year or 6 months after getting a job, and the loan is to be repaid in 15 years after commencement of repayment. |
| Central Bank of India | Rs.20.00 lacs | 10.40% (0.50% less for girls) | Should have a consistently good academic record in previous examinations with marks over 60%. | Repayment is to commence 12 months after completion of studies or 6 months after securing a job whichever is earlier. |
| Allahabad Bank | Rs.50.00 lacs | 9.90% (0.50% less for girls) | Should be an Indian National and secured admission abroad through an Entrance Test. | Course Period + 1 year or 6 months after getting a job, loan to be repaid within a maximum period of 15 years after commencement of repayment. |
Education Loans Provided by Indian Private Banks*
| Bank Name | Amount of Loan | Interest Rate | Loan Eligibility | Period of Loan |
|---|---|---|---|---|
| HDFC | Rs.20.00 lacs | 14.00% | Indian National/Resident who has secured admission to study abroad. | Repayment of loan starts 1 year after course completion | 6 months after obtaining employment. |
| HSBC | Rs.1 Crore | Minimum age-18 | Indian National. | Tenor of up to 15 years. |
| ICICI | Rs.20.00 lacs | 13.00% | Indian National and secured admission to study abroad through an entrance test. | The period of the course or 6 months after the borrower gets a job, and the loan shall be repaid in 5 – 7 years after commencement of repayment. |
| Axis Bank | Rs.75.00 lacs | 13.50% | Indian Nationality and a good academic record. | Based on the course duration. |
Required Documents
- Completed Education Loan Application Form.
- Mark sheets of the last qualifying examination for school and graduate studies in India.
- Proof of admission to the course.
- Copies of the letter confirming the scholarship, if any
- Schedule of expenses for the specified course.
- 2 passport-size photographs.
- Copies of the foreign exchange permit, if applicable
- Borrower’s Bank account statement for the last six months.
- A brief statement of the Co-borrower’s assets and liabilities.
- Proof of Income (i.e. Salary slips/ Form 16, etc).
- Proof of the individual’s identity & residency.
- Proof of age.
- Financial documents (all of the following)
- Salaried individuals: Latest salary slip & income tax assessment order for the last 2 years.
*This information changes from time to time. Please consult bank authorities for the latest updates.