The cost of education in the UK varies across different levels, and the location plays a significant role. Families with primary school children typically spend a minimum of £864.87 annually, while those with secondary school children incur at least £1,755.97 in expenses each year, according to the Child Poverty Action Group.
For postgraduate studies, tuition fees range widely, starting from £6,500 and reaching up to £51,360 annually. Additional living expenses are applicable in this category. International undergraduate tuition fees also exhibit a range, varying from £11,400 to £38,000, with an average cost of approximately £22,200 per year.
Living costs for students in the UK differ based on the location. Outside London, students may spend between £900 and £1400 per month, while in London, the range is around £1300 to £1400 per month. Despite these expenses, the UK is generally perceived as a more affordable study destination compared to the United States, attributed to shorter degree programs and lower living costs.
In addition to serving as a financial aid tool, getting an education loan to study in the UK is a wise move that will expedite the visa application process, show students that they are responsible with money, and give them the means to pursue a top-notch education without having to worry about their finances too much.
To pursue educational dreams, a non collateral education loan for UK is one of the best options. There are several options available ranging from private lenders to international lenders, there are a whole range of options that provide non collateral education loan for UK. Let’s explore some options below.
Overview of Non collateral education loan for UK
| Feature | Public banks | Private banks | NBFCs | International lenders |
| Lender | SBI, BOB, PNB Bank | ICICI Bank, Axis Bank, IDFC First Bank | HDFC Credila, InCred, Avanse | MPower, Prodigy Finance |
| Loan amount | 7.6 Lakh | 80 Lakh | 75 Lakh | USD 100K |
| Interest rates | 9.8% – 11.5% | 11.5% – 13% | 12.5%-14% | 12.5%-15% |
- PUBLIC BANKS
Most of the public banks such as State Bank of India, Bank of Baroda provide non collateral education loan for UK up to INR 7.5 Lakh. For these loans students do not need to pledge any collateral or security. However, their parents have to co-sign the loan.
- PRIVATE BANKS
Several public banks such as ICICI Bank, Axis Bank, IDFC First Bank provide non collateral education loan for UK up to INR 80 Lakh. These loans take into consideration students academic profile and co-applicants monthly income and CIBIL score. Most of the public banks in India have pre-approved course and country lists and they provide non collateral loans for the same.
- NBFCs
NBFCs, which are financial institutions that provide banking services but do not hold a banking license, also offer non collateral education loan for UK. These loans do not require collateral, but typically they are more flexible than private and public banks. Non collateral education loan for UK via NBFCs require a co-applicant with a steady income and decent CIBIL score.
- INTERNATIONAL LENDERS
Students who cannot pledge a collateral or co-applicant can seek a non collateral education loan for UK from international lenders. These lenders do not require a financial co-applicant or any collateral; instead they need to make sure that their intended course is pre-listed in the lender’s pre-approved college and course list.
Benefits of non collateral education loan for UK
Non-collateral education loans for studying in the UK offer several benefits to students and their families. Here are some key advantages:
- No Asset Pledging:
The primary benefit is that students do not have to pledge any collateral or assets, such as property or jewelry, to secure the loan. This makes the loan more accessible to a broader range of students whose families may not possess significant assets.
Accessible for a Wider Audience:
Non-collateral loans make education financing more inclusive, allowing students from diverse economic backgrounds to pursue higher education in the UK. It enables those who may not have substantial assets to still access funds for their studies.
- Reduced Financial Burden:
Since there is no requirement for collateral, students and their families do not face the risk of losing valuable assets in case of difficulty repaying the loan. This reduces the financial burden and stress associated with securing the loan.
- Parental Co-Signer:
While collateral is not required, most non-collateral education loans for the UK may still require a co-signer, typically a parent or guardian. This arrangement allows students to benefit from the creditworthiness of their parents, making it easier to secure the loan.
- Flexible Repayment Options:
Many lenders offering non-collateral education loans provide flexible repayment terms. This can include grace periods, interest-only payments during the study period, and customized repayment schedules based on the borrower’s financial situation.
- Streamlined Application Process:
Non-collateral loans often come with a simplified application process compared to secured loans. This can be beneficial for students and their families, as it reduces the paperwork and time required to secure the loan.
While non-collateral education loans offer these advantages, it’s essential for students and their families to carefully review the terms and conditions of the loan, including interest rates, repayment options, and any additional fees. Comparing multiple loan options and seeking financial advice can help make an informed decision based on individual circumstances.
Ways to select the best lender for a non-collateral education loan for UK?
It is crucial to evaluate Interest rate, processing charge, Margin Money, Moratorium Period, Tax Benefit, Covered Expenses and terms and conditions for payments. Through a meticulous assessment of these variables, you can determine which educational loan option best suits your requirements and provides advantageous terms and conditions.
Prior to starting the UK application process for an education loan, it is crucial to research and evaluate the various lenders’ offers based on a number of criteria. You can, however, overcome these obstacles by contacting GyanDhan directly. You can benefit from their free assistance in obtaining education loans for studying in the UK by using our simplified education loan application process.