The UK is home to some of the world's oldest and most renowned Universities, one of many reasons why students pick the country as a study destination each year. With ample opportunities for research and practical skill development, the British education system produces graduates ready for the global job market. However, it is no secret that a foreign education comes with a price. The tuition fees, living expenses, health insurance, and travel must all be accounted for when considering an education in the UK.

One way to finance all these different expenses is to opt for an overseas education loan. There are many lenders and schemes popping up in the market each year. While students can opt for both secured and unsecured education loans, many end up opting for a non-collateral education loan to study in the UK. Unsecured education loans do not require collateral as security, based instead on income and credit scores.

Various lenders have schemes offering unsecured education loans, making this more accessible for those who do not have any collateral to part with. In this article, we will explore all the features that students need to know before applying for an unsecured education loan for the UK.

UK Visa Norms for Non-Collateral Education Loans

When taking up an unsecured education loan to study in UK, there are certain norms that students should be aware of before deciding on the lender. Those norms are mentioned below.

  • The British Embassy requires a loan sanction letter as part of the documentation for a UK student visa.
  • The loan amount must be disbursed into the student's account or their parents' account for a period of 28 days before the loan sanction letter is released.
  • Lenders approved include Nationalized Banks, Private Banks, and non-banking financial companies (NBFCs).

This means that students need to check if their non-collateral education loan provider has options for pre-visa loan disbursement.  In the next section, let us investigate the top lenders for an unsecured education loan for UK.

Top Lenders Offering Non-Collateral Education Loans for UK

Many lenders offer non-collateral education loan schemes for students with diverse financial backgrounds and requirements. From the best banks for education loans to the best NBFCs, the following list includes the most popular lenders and their most attractive schemes for unsecured education loans to fund higher education in the UK.

  1. State Bank of India
  • Maximum Loan Amount: Up to INR 50 lakhs for premier-listed Universities
  • Interest Rate: Starts at 9.65% per annum
  • Repayment Tenure: Up to 15 years
  1. Union Bank of India
  • Maximum Loan Amount: Up to INR 40 lakhs for premier educational institutions
  • Interest Rate: Starts at 9.25% per annum
  • Repayment Tenure: Up to 15 years
  1. Axis Bank
  • Maximum Loan Amount: Up to INR 75 lakhs for Prime Universities
  • Interest Rate: Starts at 11% per annum
  • Repayment Tenure: Up to 15 years
  1. ICICI Bank
  • Maximum Loan Amount: Up to INR 1 crore for Premium Universities
  • Interest Rate: Starts at 10.5% per annum
  • Repayment Tenure: Up to 15 years
  1. Credila
  • Maximum Loan Amount: Up to INR 35 lakhs
  • Interest Rate: Starts at 11.5% per annum
  • Repayment Tenure: Up to 12 years
  1. Auxilo
  • Maximum Loan Amount: Up to INR 25 lakhs
  • Interest Rate: Starts at 11.5% per annum
  • Repayment Tenure: Up to 12 years

Now that we have seen the top lenders for non-collateral education loans for the UK, let us investigate the general eligibility criteria to apply for such a loan.

Eligibility Criteria for Non-Collateral Education Loans for UK

While various lenders and schemes offering unsecured education loans have different eligibility requirements, the most common ones are as follows:

  • The student must be an Indian citizen over the age of 18 years.
  • The student's must have a confirmed admission letter from a recognized British University
  • The student must have a co-applicant with a stable income and a credit score above 700

After ensuring that they meet all the eligibility criteria, students can submit the overseas education loan application and start the process. Usually, lenders ask for documents such as KYC-verified identity cards, past marksheets and qualifications, an admission letter from the chosen University, and bank statements for both the student and the co-applicant. Usually, this is followed by a waiting period while the lender evaluates and processes the application.

To ensure that no document or detail is missed during the loan application, students can reach out to the best overseas education loan consultants nearby. With the guidance of their expert teams, students can also discuss overseas education loans for UK without collateral and co-applicants and figure out the most appropriate options as per their requirements and profile.