Cost of Studying in the UK

In general, International student loan UK can be classified into two categories.

When planning to study in the UK, two major expenses you’ll need to consider are tuition fees and living costs. A clear understanding of the education loan process—including how to apply and secure one—is essential for arranging the necessary funds for your academic journey.

Tuition fees in the UK vary depending on the program and institution. For undergraduate courses, the fees typically range between GBP 20,500 and GBP 45,000. For international students pursuing a Master’s degree, particularly an MS, tuition costs can range from GBP 19,000 to GBP 58,000. These figures highlight the importance of thorough financial planning before starting your studies.

In addition to tuition, here’s a breakdown of the average monthly living expenses in the UK:

Secured education loan in UK

As mentioned earlier, secured study loan for UK requires you to provide collateral, which can enable you to obtain a higher loan amount compared to unsecured loans. Additionally, you may not require a co-applicant for your loan if you opt for a secured loan. If you are looking for education loan options to study in the UK, two public sector banks that you could consider are the State Bank of India (SBI) and the Union Bank of India (UBI).

Below, we have presented a comparative study of these two banks with regard to education loan in USA. This Table shows the maximum loan amount, margin money, and student loan interest rates UK.

Factoring in both educational and living costs will help you create a realistic budget and explore appropriate funding options.

Types of Education Loans for Studying in the UK

Students planning to pursue higher education in the UK generally have two main types of education loans to choose from:

•  Secured Education Loan: This type of loan, also referred to as a collateral-based loan, requires the applicant to pledge an asset—such as residential property—as security along with the loan application. These loans are typically preferred by lenders due to the reduced risk and often come with lower interest rates. For more insights into the types of collateral accepted, further resources are available.

• Unsecured Education Loan: A widely used option among international students, this loan does not require any collateral. However, because of the higher risk involved, interest rates are generally higher. These loans typically require a co-applicant or guarantor, and the amount sanctioned is based on the co-applicant’s income and credit score. This is a commonly chosen route to fund education in the UK.

Both secured and unsecured education loans cater to the varied financial needs of international students, offering crucial support to help them achieve their academic ambitions in the UK.

Banks Providing Education Loans for Studying in the UK

Several banks offer education loans for students planning to study in the UK. However, the type of loan (secured or unsecured) and the lender play a crucial role in determining the loan amount and the applicable interest rates.

Secured Education Loans for the UK:

These loans require the borrower to pledge collateral and typically come with lower interest rates. Public sector banks are often ideal for secured loans due to their favourable terms and reliability. Below is a comparative overview of interest rates and loan conditions offered by top public sector banks:

Unsecured Education Loans for Studying in the UK

If you don’t have collateral to offer, you can still secure an education loan through unsecured loan options provided by private banks, NBFCs (Non-Banking Financial Companies), and international lenders. Private banks and NBFCs usually require a co-applicant or guarantor with a stable financial background. In contrast, international lenders often offer loans without the need for collateral or a co-applicant, making them a convenient choice for many students.

Here’s a comparative overview of lenders offering unsecured education loans for the UK:

Expenses Covered Under an Education Loan for Studying in the UK

Expenses Covered Under an Education Loan for Studying in the UK

Once your education loan is sanctioned, you can proceed with the disbursement process. You have the flexibility to either withdraw the entire approved amount at once or opt for partial disbursements based on your financial needs. Choosing to disburse the loan in phases is often more cost-effective, as interest is only charged on the amount actually withdrawn—not on the full loan amount. This strategy can significantly reduce your overall interest payments, which is particularly helpful if you’ve taken a non-collateral education loan, where efficient financial planning becomes even more important.

Lenders typically cover a wide range of essential expenses under education loans for postgraduate studies in the UK, including:

• University tuition fees
• Accommodation expenses
• Food and grocery costs
• Utility bills (electricity, internet, etc.)
• Health and medical insurance
• Visa application charges
• Academic-related costs (lab fees, equipment, and other supplies) 

Eligibility Criteria for Education Loans to Study in the UK

To apply for an education loan for studying in the UK, applicants must fulfil specific requirements set by the lenders. These include:

• A strong academic background
• Minimum age of 18 years at the time of application
• Collateral must be provided in case of secured loan applications
• The selected course should offer good career growth potential
•  A valid admission letter from a recognized UK institution for a full-time program

Documents Required for an Education Loan to Study in the UK

Before applying for an education loan to pursue studies in the UK, it’s essential to gather all the necessary documents to ensure a smooth and timely application process. Since the list of required paperwork can be extensive, a personalized document checklist is often provided to help simplify the procedure.

Here are the commonly required documents for obtaining an education loan for the UK:

•         Completed loan application form
•         Recent passport-sized photographs
•         KYC documents of the applicant
•         Official fee structure issued by the university
•         Standardized test scores such as GMAT or GRE
•         Academic records from school and undergraduate studies
•         Address proof for both the applicant and the co-applicant
•         Property documents (for secured loans)
•         Proof of English language proficiency – IELTS, TOEFL, or Duolingo
•         Admission letter from a recognized UK institution

 Income documents of the co-applicant (for unsecured loans)