The UK is a leading country of the world in many academic disciplines such as engineering, business and management, art and design, law and finance. A good number of international students from all over the world move to the UK for further education.
The biggest challenge international students have to deal with is an arrangement for funds. Studying abroad is no doubt costlier than studying in the home country. Cost of studying in UK is also expensive and it is difficult for many students to afford it. So in this article, we are enlightening you with complete information about Education Loan to Study in UK.
International Students looking forward to studying in the UK with the help of an education loan must start their process at least 7-8 months before their semester begins. To get UK Student Loans, International applicants must go through the following process:
In the next part, we will discuss each step in detail. Understand each point and act well, as it is a big decision which will affect your further financial life.
First, you need to research about the different banks and loan options. When you try to research you will find plenty of options around you. But before you research, there are few things you have to consider. Important factors to keep in mind before applying for the education loan are:
Once you are clear and ready according to the above-mentioned points, then you should compare the different loan options available for you.
Comparison of Education loan options
You should compare the different loan options provided by the different financial institutions for studying in UK and select the one which fulfils your requirements. Compare the loans options on the following factors:
Each factor is important, so take your time and choose wisely. If you decide on careful planning and comparing you can save a few pounds.
In the next step, you have to estimate the total amount you will require to study abroad in UK. While calculating the expenses, consider the following expenses:
Before applying for a student loan to study in UK, you should have a clear idea about how much money you will require and how much you are going to pay from your pocket.
Before applying, You should check whether you are fulfilling the eligibility criteria for education loan or not. Different banks have different rules and eligibility criteria. The common eligibility criteria followed by all the banks are:
In the next step, you will legally start the process of applying. After finalising the bank and loan amount, you have to fill the application form With correct information. It can be online or offline as accepted by your chosen bank.
You have to fill your name, parents name, address, ID proof, course name, university name, duration of the courses, date of birth, age, Income, Liabilities, employment details, type of security, tuition fees, other expenses etc. Make sure to fill accurate information in it and recheck it before applying.
Every applicant needs to submit some common and necessary documents along with the Loan Application Form while applying for an education loan for UK study. The list of these documents required while applying for the loan are listed below:
Documents for Students (Primary Applicant)
Documents for Co-Applicants
Other Optional Documents
You have to get an admission letter from the University of UK. You have to show the proof while applying that you are admitted to the UK University. For international students, there are plenty of universities in UK to choose from. Here are the top universities in UK:
The list does not end here, you will have a wide range of options in the UK where you can pursue your higher education. You will get full information here: Universities in UK
It generally takes 3 weeks to get the student visa but it is always recommended for you to apply for it at least 3 months before the course commencement. Remember to check the official websites of your chosen universities and collect the necessary information regarding the student visa for UK.
There are usually two ways through which you can apply for study visa for UK:
Once you Get the Tier-2 or Tier-4 visa confirmation, submit it to the bank to get your loan sanction letter.
As soon as the bank approves your loan, it will issue a loan document that has all the terms and conditions of the loan. It will include the borrower name, agreed loan amount, interest rate, the period of repayment, the signature of both the parties, collateral security etc. Read the agreement carefully and if you agree, sign it.
Submit the ‘Education Loan Sanction Letter’ to the immigration office and get your student visa confirmation. Submit the visa confirmation to the banking institution to start the loan disbursement procedure.
The bank will pay the amount to you in instalments or as required by the university. The process will be mentioned in your loan agreement. Once you receive your amount, spend on the necessary expenses such as tuition fee, books and supplies, accommodation etc.
Generally, banks do not ask for collateral security for loans which include less amount. However, for a high amount of loans, most banks require collateral or a guarantor.
What is Collateral?
Any asset either movable or immovable, attached as a security with the loan application for an taking an education loan is collateral. Most of the banks ask collateral as security to reduce the risk involved in paying off the credit.
Instruments used as collateral:
Who is the Guarantor?
A guarantor is required for getting international education loans to study in UK. It could be your parent or any other family member. The bank will conduct an in-depth background check of your guarantor’s credit history before finalising your loan application.
There are some of the important things bank inspect before granting loan:
The loans taken to study in UK are to be paid in instalments, as decided in the loan agreement. Pay the instalments on time with the agreed amount. Make sure you do not delay in paying the instalments.
The loan taken to study abroad in UK can be paid in instalments. The loan can be repaid within 10 -15 years after taking the loan. The repayment period starts from 4- 12 months after the end of the course. However, the waiting period and instalment amount policy differ with the bank and loan amount.
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