Student Loan for UK: Costs, Funding, Lenders Interest Rates

UK is one of the leading study abroad destinations in the world.

Housing 90 top QS ranked universities, the UK is a popular choice among students because of its quality education and innovative teaching methodologies.

Despite being an international destination, UK is made affordable to the Indian bright minds thanks to the affordable education loans and UK’s student-friendly education system.

Most Indian students prefer studying in the UK as English-taught courses and Master’s can be completed in a year, allowing students to save on fees and accommodation.

Additionally, to manage expenses, international students are also allowed to work for 20 hours a week during their course.

 

Working part-time in the UK helps students make a living during their course.

 After the completion of your course, the UK government allows you to work for 2 years with a post-study work visa. 

The average annual salary of a UK working professional ranges from 8 lakhs to 50 lakhs. Thus, offering an attractive career to anyone aspiring to move to the UK. 

Considering the advantages and number of international students in the UK, it is safe to say that UK is one of the easiest, safest and most accessible places to study. 

In this blog, let’s give you an overview of the cost of studying in the UK along with the top education loan lenders in India.

 

Cost of Studying in the UK: How Much Will You Spend in the UK?

Despite the affordability, the unmatched global exposure, living and cultural experiences cost you a hefty Indian rupee in the UK.
To give you an overview, begin with the university fees of the top UK universities.

 

1. UK University Fees: Study Cost of UK

Tuition fees for various UK undergraduate and postgraduate courses range from £8000 to £65,000.
Some of the top UK universities and their fees are:

UK University

Fees

Fees in INR

University of Oxford

£22,930 – £65,520/year

Rs 21,99,198 – Rs 62,83,967 lakhs

University of Cambridge

£23,340 – £60,942/year

Rs 22,38,519 – Rs 58,45,152 lakhs

Imperial College London.

£31,750 – £57,200/year

Rs 30,45,851 – Rs 54,87,328 lakhs

The University of Edinburgh

£23,200 – above/year

Rs 22,25,426 lakhs

The University of Manchester

£21,000 – £32,000/year

20,14,730- 30,70, 065 lakhs

The University of Nottingham

£15,600 – £16, 200/year

Rs 14,96,999 – Rs 15,54576 lakhs

The University of Southampton

£19,300 – £23,720/year

Rs 18,51,298 – Rs 22,7,274 lakhs

King’s College London

£21,870 – £42,840/year

Rs 20,97,829 – Rs 41,09,273 lakhs

University Of Bristol

£21,100 – £25,900/year

Rs 20,14,730 – Rs 24,84,364 lakhs

University of Glasgow

£9,175 – £52,000/year

Rs 8,80,079 – Rs 49,88,028 lakhs

University College London

£31,200 – above per year

Rs 29,93,170 lakhs

London School of Economics and Political Sciences

£23,330 – above per year

Rs 22,37,541 & above

Suggested Read: How To Choose Among Top UK Universities To Study Abroad?

Fun Facts About Studying in the UK

● Durham University, UK offers an entire course module on Harry Potter. However, there are no flying lessons involved (pun intended).

● Other unique courses offered in the UK include Parapsychology (for paranormal activities), Equestrian Psychology, Sports Science and more. 

Check out help guides to apply to UK universities abroad.

2. Visa and Travel Expenses
To study in the UK, you will have to take a student visa depending on the type and duration of your course.
Also, acquiring a tier 4 visa requires you to show £1015/month (₹90,000) as proof of sufficient funds to study in the UK.

Type of Visa

Application Fees

Short-term student visa (6 – 11 months)

INR 19,369

Tier 4 student visa

INR 36,238

Flight fares vary depending on seasonality. However, you will have to pay about Rs 50,000 – Rs 90,000.

3. Accommodation Costs

Students looking to rent private rooms or one-bedroom apartments would have to spend around £400 – £600/month.

Cheaper options such as residence halls costing around £300 – £500/month are provided by the universities too.

4. Commute Costs

Public transport system in the UK is easily accessible and well connected.

For the benefit of students, the UK offers student passes that can be obtained at just £32/month.

So, the estimated cost of commuting within the UK will cost you about Rs 3,021.

5. Food Costs

Estimated monthly spend on food in the UK is about £160 – £200 (approximately INR 15,000 – 20,000).

Cooking on your own would reduce the cost by half to approximately INR 7000 – INR 9000.

6. Health Insurance and Other Costs

Essential services like electricity, water, gas, stationery, household goods, etc too are important expenses to keep in mind while studying in UK.

The over costs you will incur for other essentials will be around £50 – £120/month (INR 4,500 – INR 11,000).

7. Health Insurance

International students pay £470/per year for health insurance to study in the UK.

Round Off: A Wrap Up Cost Of Studying in the UK

Expense

Cost

Tuition Cost

7,10,000 – 62,83, 900 lakhs

Visa (TIER 4)

36,000 INR

Accommodation

30,000 – 50,000 INR per month

Travel

3000 – 5000 INR per month

Food

7000 – 20,500 INR per month

Other essentials

4,500 – 11,000 INR per month

Health Insurance (health surcharge)

40,000+ INR per year

Disclaimer: Currency and expenses vary according to timeliness, city, university, personal choice of expenditure, etc.

As a student, these costs might seem overwhelming. However, studying in UK is worth it.

After all, London has bagged the world’s best student city award by QS top university ranking.

Student Loans for UK: Funding Options to Study Abroad in the UK
Before opting for an education loan for UK in India, you need to be eligible to take a study loan.

To secure a student loan for UK, you should:
● Be a resident of India
● Should be between 18 to 35 years at the time of loan application
● Have confirmed admission to a recognized institution in UK
● A co-applicant who can either be a parent or spouse is required
● Co-applicants should have a stable income source
Types of Education Loan You Can Take to Study in the UK:
You can take up two types of loans to study in the UK, that are loans with collateral and non-collateral education loan.
A secured education loan for study abroad is when you will have to provide a security or collateral to avail a loan.
The pay-back interest amount on secured loans is comparatively lower than non-collateral loans.
The security can be tangible or intangible such as FDs or fixed assets such as property.
If a financial constraint worries you, banks provide student loans without collateral too as a solution.

Bank Name

Maximum Loan Amount

Interest Rate

Period of Loan

Loan Eligibility

Bank Of Baroda

Rs. 60.00 lakhs

9.70 – 11.20%

Course period + 1 year or 6 months after getting a job, whichever is earlier. Repayable in 180 maximum installments for loan amount above Rs 7.50 lakhs

1. Should be an Indian National

2. Secured admission to foreign Universities/Institutions.

PUNJAB NATIONAL BANK

Need-based finance subject to repaying capacity of the parents/students with margin

9.45 – 11%

Maximum up to 15 years

1. Should be an Indian resident

2. should have secured admission in university abroad through entrance test, after completion of HSC or +2 equivalent exam

Central Bank of India

Rs 10 lakhs – 20.00 lakhs

9% for male students

8.50% for female students

Repayment to commence 12 months after completion of studies or 6 months after securing a job whichever is earlier.

1. Indian national

2. Secured admission in foreign university

Canara Bank

Need based finance

One-year MCLR + 2.00% interest

Repayment up to 15 years after the completion of the course

Indian resident

State Bank of India

Rs.20 lakh under SBI Student Loan Scheme and Rs.1.5 crore under SBI global Ed Vantage

8.65% (0.50% less for girls)

Repayment of the loan will commence one year after completion of the course or 6 months after securing a job. The maximum repayment period is 15 years

All courses having employment prospects are eligible.

Bank of India

Rs. 20 lakhs

One-year MCLR+ b 1.70%

15 years repayment period after course completion

Should be an Indian National and secured admission in a foreign university

HDFC BANK

RS. 45 lakhs

Preferential interests rate provided if secured admission

Repayment up to 14 years

Indian resident between 16-35 years of age.

By taking any of the listed loans with the help of FundRight, you get the best student deal possible to study in the UK.
The UK remains a favorite destination for its hassle-free application process.
While the universities provide hands-on learning approaches, it is also a great chance for students to experience the various cultures and explore the English heritage.

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