Top Banks that offer Unsecured Study Abroad Education Loans for the UK
Educational loans come in all shapes and sizes to accommodate the diverse academic ambitions of students. It is especially true for international students with no other option to cater to their higher-level fee structures.
While ample loan provisions are available for students who prefer to complete their course programs from domestic universities, there are equally sustainable loan options for international students as well.
With the Indian educational climate reflecting growing rates of student migration to international platforms like the United Kingdom and the United States, student loan inquiries are also peaking.
In this article, let’s discuss the major loan securement concerns and options for Indian students opting for overseas studies in the United Kingdom in 2023 -2024.
Secured and Unsecured loans
Student loans consist of two main distinctions – Secured and Unsecured loans.
Secured loans are loans availed by submitting collateral in the form of land records or money deposits. On the other hand, unsecured loans are secured without the need to submit collateral.
At present, more students looking for overseas studies are opting for unsecured loans for the following reasons.
- Quick approval: Unlike Secure loans, unsecured loans don’t require the applicant to prove the value of their collateral. Accordingly, it cuts time from the loan securement processes, making the whole affair easy for the student to complete.
- No need for extra approvals: Regarding bank collateral submission, approvals from municipalities or village panchayats and respected bank officers are required. Hence, it becomes a multi-step process. However, unsecured loans reduce all this hustle.
- Customized loan options: Unsecured loans are provided at a higher interest rate than secured loans. Accordingly, they can be customized to various loan amounts to match the student’s academic interests.
Documents required for Unsecured Education Loan
Though unsecured loans don’t require collateral to be approved, there are standard documents that need to be submitted beforehand to the loan-providing institution.
- Proof of admission: Admission letter from the respective educational institution
- Mark sheets: If the student is pursuing an undergraduate degree, they should submit mark sheets and transfer certificates from their school. If they are going for a postgraduation degree, they should also present proof of the completion of their undergraduate degree from a domestic university.
- Identity proof: Voter ID, Aadhaar Card, Bank passbook, etc can be used for this purpose.
- Bank statement of the applicant for the last six months
|
Name of the Bank |
Loan Amount |
Specifications |
|
HDFC |
Upto 45 lakhs |
It covers around 2100 foreign universities |
|
Upto 1 Crore |
Bundled product offering for UK Universities |
|
|
Upto 1.5 Crore |
No collateral for up to 7.5 lakhs |
|
|
Upto four lakhs |
Above four lakh loans are provided with the secured option |
|
|
Upto 75 lakhs |
A wide range of course programs are covered |
Out of these options, each loan package can be customized to different programs. Certain loan providers like HDFC and SBI focus on professional courses, including ICWA, MBBS, and Law degrees, while other loan providers cover a wider range of courses from several countries across the world.
Things to consider while choosing your loan option
Unsecured loans are surely the most popular financing option for international students. However, any decision regarding the same should be approached with caution as they are high-interest loan options in comparison to secured loans.
Moreover, the upper limit for loan amounts for unsecured loans provided by different loan providers is best suited for professional degrees with higher expense ranges. When it comes to expenses covered under unsecured loans, there are differences from secured loan structures.
How do you choose the best student loan option?
Considering the factors related to unsecured loans in India, it is clear that clarity over the right market options is critical. Accordingly, Indian students interested in pursuing overseas studies in the academic year 2023-2024 should seek help from professional overseas educational counselors before choosing their student loans.
Find the best options that suit your profile with the expert team at Eduloan. Set your Overseas education aspirations to reality and make the most out of every opportunity with our help.
Contact us today to learn more about sustainable loan options, credible loan providers, and detailed repayment structures.