How important is it to avail an overseas education loan for UK?
It is a well-known fact that the cost of studying in the U.K. is quite steep which eventually forces the students and parents have to dip into their savings in order to fund the higher education. At such a stage, when students are chasing their dream, it is always advisable to take an education loan for studying in the UK which will help reduce the fiNot Applicablencial burden. When planning to study in the U.K. through this blog, we will take a look at the different education loan options that Indian students may avail.
The options available for EducatioNot Applicablel Loans
Students have the option of availing two types of loans who are applying for an educatioNot Applicablel loan for studying an undergraduate program in the U.K. The 2 types of loans are Secured Loan or Loan with Security and Unsecured Loan or education loan for abroad studies without collateral.
The applicant has to attach collateral while applying for the loan in a secured education loan. The collateral that needs to be pledged must be any tangible or intangible assets such as immovable property, FDs etc.
An education loan in which the applicant does not have to attach any collateral is an unsecured loan.
Take a look at the various types of Education Loan for the UK.
EducatioNot Applicablel Loan Options – Without Collateral
| Features | Public Banks | Private Banks | NBFCs |
| Example Lenders | State Bank of India Bank of Baroda | Axis Bank ICICI Bank | Avanse Incred HDFC Credila |
| Loan Amount (INR) | Do not offer unsecured loans more than INR 7.5L for the UK | Do not offer unsecured loans more than INR 7.5L for the UK | Upto INR 25 lacs |
| Interest Rate Range | NOT APPLICABLE | NOT APPLICABLE | 13.5%-16% |
| Processing Fees (INR) | NOT APPLICABLE | NOT APPLICABLE | 1.5-2% of Loan Amount |
| Payment During Study Period | NOT APPLICABLE | NOT APPLICABLE | Full EMI Repayment |
Unsecured Overseas Education Loan Features
From every lender to lender, the features like repayment period, processing time, expenses covered, etc. vary. Have a look at them below:
Repayment Period:
Public Banks give ten to fifteen years to repay the loan while the Private Banks have a repayment period of up to 20 years.
Processing Time:
The shortest processing time is of the NBFCs. For the processing of an unsecured loan up to INR 25L, they take 4-5 days while to process a secured loan up to INR 50L they take upto 9-10 days. It takes more time for processing a secured loan as the lender needs more time to verify the documents related to the collateral.
Expenses Covered:
- NBFCs cover 100% of the study expenses
- PSBs cover 90%
- Private banks cover 85% of the study-related expenses
Co-applicant’s Income Required:
NBFCs consider the co-applicant’s income even if it is less than 20K for loan without collateral. However, the income is not mandatory by any lender if students are taking a loan with collateral. Based on individual loan cases, the income requirement may differ.
Availing an unsecured loan is easy if you have the right guidance of whom to approach. You can check out for the online loan application for abroad studies and make your dream of studying in UK come true, without being a burden on anyone.
Good Luck!
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