Student Loan In The UK
The UK has always been an attractive destination for international students. Thanks to its renowned education system, India is the second-largest source of students enrolling in UK universities. However, the fee structure, as well as other expenditures such as housing, transport, and food, make the UK among the most expensive countries. When applying to UK institutions, a candidate must present a well-structured budget plan. Students seeking admission often look for student finance in the UK to fund their studies. To do so, an education loan in the UK is one of the most common options among students worldwide
Several banks & NBFCs assist you in funding your tuition costs as well as the numerous additional expenditures that come with studying abroad. When opposed to the tedious paperwork that students had to do, applying for an education loan to study in the UK is now a simple process. Apply for the best student loans in the UK with Wecare Capital and fulfil your study abroad goals!
Eligibility Criteria For Education Loans In The UK
Before understanding the entire process in detail of student finance UK & everything around it, check out the standard eligibility criteria to acquire international student loans in the UK. Note that the below-given criteria are the standard requirement and with different institutes, the requirements will vary depending on their processes.
- You must be a citizen of India
- You must be above the age of 18 years or your parents will have to take the loan for you.
- Must have a confirmed admission in a recognized UK institution
- A co-applicant who is either a parent or a spouse is required
- Co-applicants must have a stable and secure income source
Documents Required For A UK Study Loan
While each bank and financial institution has its own paperwork requirements and procedures, here is a typical list of documents you should have on hand when applying for an education loan in the UK -
- Completed application form
- Proof of Identity
- Address verification
- Proof of income
- Photographs in passport size
- Marksheets for school and university
- Admission letter
- Admission letter
- Other Expenses List
- Copy of a foreign exchange permit
- The co-borrower must submit a concise summary of assets and liabilities
- Other financial documents
Cost To Study Abroad In The UK
The cost of studying in the UK varies depending on the institution, the course choice, scholarships & grants, and several other factors. Tuition costs in the UK have progressively climbed over the years, with EU and UK students paying around £9,250 per year. At the same time, tuition prices for international students start at around £10,000 and rise to around £38,000 for specialised degrees in medicine and other fields. Humanities and social sciences degrees are less expensive, but clinical degrees and laboratory studies are more expensive. In order to overcome the exorbitant expenses that may seem overwhelming, it is advisable to secure an education loan in the UK that’ll cover a chunk of your major expenses.
Things That A UK Education Loan Covers
The best part of taking a UK education loan for international students with Wecare Capital is that you can get up to 100% financing implying that all your expenses will be covered by the loan. The following are the things you can expect a student loan in the UK to cover -
- Tuition Costs
- Travel & Transport including the tickets
- Accommodation & Rental expenses
- University fees & additional course costs
- Food expenditures
- Living expenses
- Other research, thesis, and project-work-related expenses
- Any other expense required for your education
Types Of Loans Available For Studying Abroad In The UK
In the UK, there are primarily 2 types of loans available to students. What type of loan you apply for, however, will depend on the financial institution and your eligibility -
Secured Education Loans: In the UK, a secured student loan is one for which the applicant must offer security or collateral. Apartments and retail stores are instances of tangible assets, whereas fixed deposits and government bonds are examples of intangible securities.
Unsecured Education Loans: An education loan in the UK without collateral is an unsecured loan. As the name implies, applying for an unsecured student loan in the UK. However, it is important for students to note that the interest rates may be higher for an unsecured education loan in the UK due to no collateral.
Tips For Choosing The Best UK Student Loan
Applying for an education loan in the UK involves a lot of research and requires a set of steps to be followed. The procedure may seem cumbersome at first, and the student may get overwhelmed when applying. However, Wecare Capital makes it easier for students with expert counsellors assisting students at every step of the process at no extra cost. There are some tips that students should be aware of when applying for a UK student loan and they include -
Selecting A Financial Institution
Selecting a bank or NBFC that offers the best loan terms is more important than ones that give more finances. It is also important to verify if the lender gives the option to make the EMI payments in advance or allows for partly payments of the loan. Knowing the service charges and prepayment penalties is a must.
Total EMI Cost
The EMI paid for an education loan in the UK depends on how a student chooses to repay the loan. Some students choose to borrow money for a longer period of time since the EMI would be lower. The cost of the loan and the interest paid, however, will be significantly greater in this case. Therefore, if the chances of finding a well-paying job following the course are strong, choosing a shorter loan term is better.
1. Moratorium Periods
Moratorium periods are sabbaticals that typically last the length of the course plus an additional year or six months after finishing the course, whichever comes first. Students are not required to make loan payments during this time, although interest will continue to accrue. Students are permitted to pay down the interest during the moratorium period, which will lighten the burden of the loan and reduce the cost of the loan once they must begin making EMI payments.
2. Pay In Installments
Banks tack on interest on the amount of money sent. Typically, a student must pay for the course once per year or once per semester. Therefore, it would be wiser to apply for an education loan in the UK when needed. In this manner, substantially less interest will accrue. Make sure that the money is distributed as and when it is needed, rather than having it sanctioned in one lump sum.
3. Tax Benefits
Under Section 80E of the Income Tax Act, students can get tax benefits on the interest they pay on student loans. The loan must be obtained from an Indian scheduled bank or a gazetted financial institution in order to qualify for this deduction. Eight years is the maximum time for a tax deduction. Therefore, choosing a longer loan implies that students will only receive the tax deduction for the first eight years.
Why Choose Wecare Capital?
Wecare Capital, unlike any other platform, makes securing student loans easy. Here are some of the reasons why receiving a student loan in the UK with Wecare Capital is the best choice:
- Full financing (up to 100 %) for tuition and living expenses
- No margin money
- Immediate sanctions in the event of an emergency
- Options for customised financing
- Comparing education loans
- Tracking of loan applications
- Loans with no collateral
- Doorstep delivery of services
- Paperless approval of loans
Education Loan For UK Without Collateral
Every private bank and NBFC has a list of UK universities that are eligible for education loans without collateral. Although the procedure for obtaining a UK education loan without collateral in India for studies abroad is similar, the loan amount offered by various lenders varies based on where students intend to pursue their studies. The list of institutions that have been given the green light for a non-collateral education loan in the UK without collateral is shown below.
- The University of Cambridge
- The University of Oxford
- UCL (University College London)
- Imperial College London
- The University of Edinburgh
- The University of Warwick
- London Business School
- London School of Economics and Political Science
Aside from the fact that the maximum amount of the non-collateral education loan in the UK has been increased to INR 40 Lakhs, the interest rates for the loan now start at 10.99%.