Education loans for studying in UK

October 6, 2020by Natalia0

Education loans for studying in UK

Studying abroad is an expensive venture and the cost of studying in some universities in UK is quite steep. Most students hesitate to study in UK for this very reason. Though universities offer grants and financial aid to some students, not all are fortunate to get it. This is where an education loan comes to the rescue. Banks in India offer different types of education loans depending on the course and university.

Examples of major banks providing student loans are :

1) SBI

Expenses covered includes course fee, examination fees ,Library, books, equipment fees etc.

· Loan amount up to ₹ 7.5 Lakhs is given for study abroad with higher limits under specific schemes.

· Only parent/ guardian as co-borrower is required as security for loan amount up to ₹ 7.5 Lakhs.

· Above ₹ 7.5 Lakhs, Parent/ Guardian as co-borrower and tangible collateral security is required.

Repayment will commence one year after completion of course and should be completed in 15 years.

2) Federal Bank

Items covered under loan includes college fee, hostel fee, study tours, project work, cost of books etc.

· Loan amount up to ₹ 20 Lakhs is given for studying abroad subject to repayment capacity of the applicant.

· No security is needed up to loan amount of ₹ 4 lakhs.

· Only parent/ guardian as co-borrower is required as security for loan amount up to ₹ 7.5 Lakhs.

· Above ₹ 7.50 Lakhs, collateral security with stipulated margin is required

Repayment shall be after moratorium period (which is course period plus 1 year) and should be completed in 15 years.

3) South Indian Bank

Finance available for funding tuition fees, exam, library, lab fees books, equipment, hostel, uniform, insurance premium.

· Loan amount up to ₹ 20 Lakhs is given for overseas studying.

· Moratorium period will be course period plus 1 year and loan repayment period is max at 15 years

· Third party guarantee is required for loan greater than ₹ 4 lakhs and up to ₹ 7.50 lakhs

· For loan above ₹ 7.50 Lakhs, 100% collateral cover is mandatory

Moratorium period will be course period plus 1 year and loan repayment period is max at 15 years.

The common documents that students need to submit to avail education loans for studying in UK :

Identity Proof – Citizenship, residence proof and photo ID
Admission letter of relevant university
Fees structure and other incidental cost details
Academic documents : Mark sheets and certificates
Income proof : Bank statements, property deeds, Income tax returns etc

To understand the terms and conditions of different loans and decide the one most suitable for each person, consult a professional study abroad expert.