Student loans have been one of the biggest contributing factors in getting Indian students to enroll in the United Kingdom. As soon as a student decides to study in the UK, they will need to consider the options on how to fund for their studies and the living expenses—and that is no easy feat.
The United Kingdom is one of the richest countries in the world and the cost of living can go up to £12,200 (~US$16,950) per year, depending on the location. Larger cities like London will have higher living costs, mainly because rent is more expensive.
That, coupled with tuition fees that can range anywhere from £10,000 (~US$14,130) up to £38,000 (~US$53,700) or more, can be a great financial burden to students.
Student Loan Eligibility
With that said, student loans are available to eligible students to help finance their dreams of getting higher education in the UK.
In India, banks are the main source of funding for students. They offer a variety of loans with adjustable repayment rates, enabling students to save for their future. Repayments normally don’t start until six months after the student finishes their degree or finds work.
The loans can also be used not just to pay for tuition, but also for travel, lodging, and other expenses related to the student’s course of study.
Generally, loans are available to any person aged between 18 to 35 years old. These loans can be repaid in monthly installments through Electronic Clearing Service (ECS) or through post-dated cheques to the bank they loaned from.
For student loans of up to Rs. 4 lakhs, no security is required. For loans between Rs. 4 lakhs and Rs. 7.5 lakhs, however, a third-party guarantee is required, while loans above Rs. 7.5 lakhs require tangible collateral security.
For the benefit of the less fortunate, the Central Government has also launched an interest rate subsidy system for repayments made during the moratorium period.
Education Loan Providers in India
- Avanse Financial Services
A Non-Banking Financial Company (NBFC) that provides seamless and affordable education financing for every deserving Indian student. It creates solutions for individuals (education loans) and Indian institutions (education institution financing).
- Axis Bank
Offers students education loans for studies both in India and abroad starting from Rs. 50,000 with reasonable interest rates.
- Bank of Baroda
Offers students different types of education loans in India. MBA, MCA, MS, and other notified courses that aid in work development are eligible for this college loan program.
- Canara Bank
This loan is for payment of course fees, hostel/boarding, and examination expenses. It’s also used for library and laboratory fees, and purchasing books, supplies, instruments, uniforms, and computers if they are needed for course completion, caution deposit, building fund/refundable deposit backed up with bills/receipts from the institution.
- HDFC Bank
Students can get up to ₹ 20 lakhs as an education loan and avail of loans of up to ₹ 7.5 lakhs without collateral. Loan repayment tenure can go up to 15 years.
- IDBI Bank
IDBI Bank’s education loans are designed to assist worthy or meritorious students in pursuing higher education in India and abroad. IDBI Bank ensures that you have full financial support with a variety of offerings to choose from and simple repayment plans.
- State Bank of India
A term loan provided to Indian citizens for the purpose of pursuing higher education in India or abroad if acceptance has been obtained.
There are a lot of student loan options for students to choose from in India. It just goes to show how much the Indian government takes higher education seriously. Now it’s up for the student and their family to decide which lender, terms, and loan programs would take them to the UK.
MSM Unify aims to provide you with the knowledge you need to help you make informed decisions toward your education and future career. Browse through our articles for the latest news and updates on international education and financing options.