Loan for Education

UK Education Loan: A Complete Application Guide

By Tata Capital
27 January 2026
8 mins read
1660

In today’s competitive professional world, a higher education degree from abroad can set you apart, opening doors to exciting job opportunities. Home to several oldest and top-rated universities, the UK is a favourite destination for those seeking education overseas in several fields. However, a multi-year degree in the UK is expensive, a deterrent for many students. An education loan in UK for international students can solve this problem.

Education loans provide financial assistance to students who wish to pursue their studies abroad. A study loan for the UK covers tuition fees, living expenses, travel costs, and other related expenses incurred during your stay in the UK.

They are typically offered by banks and financial institutions at competitive interest rates and flexible repayment terms.

Eligibility Criteria for International Student Loans to UK

Criteria	Description
Indian citizenship	It is a common requirement that you must be an Indian citizen.
Admission into a recognised course	You should have secured admission into a recognised university or educational institution in the UK. Lenders generally require proof of admission to process your loan application.
Age limit	Most banks have an age limit of 18-35 years for loan applicants. It helps lenders manage risk by focusing on younger applicants who are more likely to secure stable employment and have a longer career to repay the loan.
Co-applicant or guarantor	A co-applicant or guarantor is usually required for loans above a certain amount.
Academic record	Lenders may consider your academic performance while assessing your loan application. A strong academic record can improve your chances of securing a loan, as it reflects your ability to handle studies and potentially repay the loan.

While these are common requirements, individual lenders, banks, or financial institutions may have additional or slightly different criteria for education loan UK.

Documents Required for International Student Loans UK

You must submit certain documents while applying for a student loan to study in UK. These documents help lenders verify your eligibility and assess your repayment capacity.

Here is a list of commonly required documents:

Duly Filled Application Form: This form provides personal, educational, and financial details.
Identity Proof: A copy of your passport, Aadhaar card, or PAN card.
Address Proof: Proof of residence, such as a rent agreement, utility bill, or bank statement.
Income Proof: Proof of income for the co-applicant (typically a parent or guardian) or guarantor, such as salary slips, income tax returns, or bank statements.
Passport Size Photographs: Recent photographs for identification and documentation purposes.
Academic Records: Copies of your school and university mark sheets to prove your academic qualifications.
Admission Letter: A copy of the admission letter from the university in the UK.
List of Other Expenses: Estimate additional expenses like travel, accommodation, and living costs.

Interest Rates & Repayment Terms for UK Education Loans

A study loan for the UK from Indian financial institutions and banks may range approximately from 8% to 14% per annum.

Banks generally offer competitive rates to attract students seeking financial assistance for their overseas education. Thus, the interest rates on a study loan for UK vary from one lender to another.

However, the exact rate depends on several factors, including whether the loan is secured or unsecured, the amount borrowed and the tenure, current market conditions, etc.

Repayment Process for UK Student & Medical Loans

Education loans usually come with a moratorium period, which is a grace period during which you are not required to repay the principal amount. This period generally covers the duration of your studies plus an additional time (typically six months to a year) to allow you to secure employment.
During the moratorium period, you are only required to pay the interest component on the loan amount. This helps to manage the financial burden while you are still studying or looking for a job.
Once the moratorium period ends, you will need to start repaying both principal and interest in EMIs.
The repayment period varies between banks or financial institutions but is usually between 5 to 7 years after the moratorium.

It is crucial to plan your finances accordingly to ensure a smooth repayment journey.

Types of Education & Medical Loans for UK from India

When looking for an education loan for UK in India, you have several options:

Banks: Both public and private sector banks typically offer education loans with competitive interest rates and longer repayment terms. They often have specific loan schemes tailored for students studying abroad.
Non-Banking Financial Companies (NBFCs): NBFCs in India are generally quicker at processing loan applications and often offer unsecured education loans, meaning no collateral is required. This can provide faster and more easily manageable financing options for students.
Government Schemes: Various government-backed schemes provide financial assistance for studying abroad. These schemes offer subsidised interest rates or partial interest coverage based if you’re eligible.
International Financial Institutions: Some international financial institutions operating in India offer education loans for overseas studies, including in the UK. These loans may come with competitive rates and flexible repayment terms.
Scholarships and Grants: While not loans, scholarships and grants are additional options that can help reduce the overall cost of education. Many universities and organisations offer financial aid to international students depending upon certain pre-notified criteria.

Medical Student Loans for UK: Special Features and Requirements

The United Kingdom is home to some of the oldest universities and colleges in the world, making it an excellent option for students wanting to study abroad. There are also many universities offering medical education and courses.

In the UK, medical education is relatively longer and more expensive than most other courses, and this is reflected by student loans.

Some features of international student loans for UK include:

Higher loan limits
Longer repayment tenures
Extended moratorium periods

These features account for the length and extent of training required for the medical field. The requirements for a medical student loan will be similar to other education loans, requiring the following:

A confirmed offer letter from an accredited medical education institution in the UK
A strong academic history
A co-applicant

It is important to note that features and requirements for medical student loans will vary by lender.

How to Choose the Right Lender for UK Education Loans

If you’re planning on availing of international student loans for the UK, it is crucial to choose the right lender. Below, we outline the steps needed in order to select the financial institution and offering best suited to your financial needs and goals:

Conduct proper research: First and foremost, conduct thorough research regarding different lenders, their loan offerings, and policies.
Remember to account for the entire loan cost: Compare interest rates, loan costs (like processing fees, repayment flexibility and tenure).
Look at offers: Some financial institutions may offer better terms for specific courses or for certain universities in the UK.
Remember to carefully read policies: When choosing your lender, remember to study their policies carefully. Look at prepayment charges, moratorium period charges, whether interest is compounded, customer support, and turnaround time.

Step-by-Step Guide to Applying for an International Student Loan for UK

Applying for an education loan to study in the UK may seem overwhelming, but we outline the process in simple steps below:

Secure an offer: First, you must secure an offer from a reputable, accredited university in the UK.
Research and select a lender: Next, shortlist lenders based on eligibility requirements, loan premiums, and interest rates.
Gather your documents: These will include your academic records, income proof for your co-applicant, your offer/admission letter, and KYC documents.
Fill out the application: This can be done online or offline for most lenders.
Submit your application: Submit your documents and loan application. Once approved, the lender will issue you a sanction letter.

The sanction letter and other documents will often be crucial for the visa application process as well.

UK Loan Cosigner/Guarantor: When and Why It’s Needed

You may require a co-signer or guarantor if you fit the following criteria:

Weak or limited credit profile: This is typical for students or young applicants, since they usually have not applied for credit before, and may not yet have an employment record.
Lower income thresholds: Sometimes, a borrower’s income may be lower than required by the lender. This is where a co-signer or guarantor with a steady income can help.
Irregular or unstable employment: This is especially applicable for students, since they typically are not working yet, or will be committing to studying full-time.
No prior repayment or rental track record: Since students and first-time borrowers lack historical proof of reliability, having a guarantor becomes necessary.

Gurantors and co-signers can be parents, other relatives, siblings, or friends.

Conclusion

A degree from the UK can set you apart in the professional world and provide a plethora of exciting, high-paying job opportunities. If you require financial assistance, several education loan for UK options are available. This UK education loan guide provides you with all the information you need regarding the loan process, such as eligibility criteria, documents required, interest rates, and lending options to help you along the way.

If you’re looking for a lender for education loan in UK for international students, look no further than Tata Capital. Our education loan is a reliable option for students planning to study in the UK with minimum documents required for an education loan. We provide attractive interest rates, fast approval and flexible repayment terms to make your loan and repayment experience smooth and hassle-free.

FAQs

Can Indian students get student loans in the UK?

Yes, Indian students can get UK education loans in the UK.

Which is the best Bank for taking an education loan?

Before choosing the best bank for taking an education loan, you must check the maximum loan amount, interest rate, payment terms, and whether collateral is required from several reputed lenders.

Is it risky to take out a loan and study abroad?

In case of unsecured loans, the student might be asked to submit property papers as security to reduce risk of loan default.

Can Indian students get a medical student loan to study in the UK?

Yes, Indian students can avail of medical education loans to study in the UK. Education loans for the UK usually offer higher principal amounts, longer tenures, and extended moratoriums. They require an admission confirmation and a co-applicant.

What are the interest rates for UK education loans for Indian international students?

The interest rates for UK education loans will vary according to the lending institution. They generally range between 9% and 14% per annum, and often depend on several factors like university, borrower profile, and more.

Is collateral required for all education loans to study in the UK from India?

Collateral may not be mandatory for all loans to study in the UK. However, loan requirements will vary by lender, so it is important to research and compare the policies of different financial institutions.

What documents are needed for a UK student loan application?

To apply for an education loan to study in the UK, the documents needed will vary by lender. Typically, they include the university offer letter, your academic records, KYC documents, co-applicant income proof, bank statements, and, if applicable, collateral documents.

Do I need a cosigner or guarantor for a UK education loan if I apply from India?

This will depend. Many lenders typically require a parent or close relative as a co-applicant or guarantor to strengthen repayment assurance and improve loan eligibility, since the applicant is a student. However, different lenders’ policies will vary.

Are there special loans or schemes for medical studies in the UK for Indian students?

Some lenders may offer specialised medical education loans with higher limits, longer repayment tenures, and flexible moratoriums. These are reflective of the extended duration and cost of medical programmes.

What is the repayment tenure for UK international student loans?

The repayment tenure will vary. Generally, these will range from 10 to 15 years. This will depend on the lender, your loan amount, the loan being secured or unsecured, the program, and more.

Can scholarships be combined with an education loan for study in the UK?

Yes, certain scholarships can be stacked on with education loans. The scholarship amount reduces the required loan value, which may improve approval chances and lower overall interest costs.

Previous Post Disclaimer Next Post

Menu