How to Apply for Student Loan for Studies in UK for Indian Students
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In the quest to help International Students achieve their academic objectives, we decide to write this piece on How to Apply for Student Loan for Indian students to aid them advance in their respective careers.
Once you’ve got determined to study in universities within the UK, your focus naturally turns to how you’ll be supporting yourself while here. For many students, securing assistance may be a vital side of whether or not they will afford to check at a UK university.
In a bid to gain funding, we’ve got collated an inventory of economic aid, scholarship and bursary providers, public and private, who can help Indian students study in the UK and find the correct monetary package to realize their dream of gaining a UK degree.
What is the distinction between personal and public funding?
Public funding is obtainable by universities or government programmes, whereas personal funding is usually provided by freelance investor programmes and enormous companies, such as banks. Examples of such companies can be found below.
Scholarships for Indian Students
Each year, governments, universities and personal organisations build a restricted variety of scholarships obtainable to students who would like to check within the UK. Because of the restricted variety obtainable, competition is fierce.
Some scholarships for college students who don’t apply within the UK, and a few for tutorial grants, but all will enable you to worry less about how to cover the expense of studying in the UK.
Here’s a list of Popular Scholarship Programmes for Indian Students[su_list icon=”icon: chevron-circle-right” icon_color=”#d70c16″]
- British Council
- Chevening UK Government Scholarships
- Tata Scholarship
- Fulbright-Nehru Master’s Fellowships
- Fullbright Fellowships
- Erasmus Scholarships
- Royal Society Grants
- Hubert-Humphrey Scholarships
- The Mahatma Gandhi Scholarship Programme
- Commonwealth Academic Fellowships
- Commonwealth Split-site Doctoral Scholarship
- Education Loans for Indian Students
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Indian banks supply a range of loans that go together with versatile reimbursement choices, permitting you to propose for the longer-term consequences. Repayments don’t typically begin till six months once your course is completed, or when you find employment, and loans can cover the expense of tuition, travel, accommodation or other costs related to your course of study.
Education Loans: The Facts[su_list icon=”icon: chevron-circle-right” icon_color=”#d70c16″]
- Available to somebody aged between eighteen and thirty-five years.
- Borrowers have to be compelled to usher in a margin of fifty to fifteen for loans taken for foreign study.
- Education loans are repaid in monthly instalments through ECS or via post-dated cheques to the bank.
- A co-signer has got to be selected for education loans taken for full-time courses. Co-signers can include siblings, spouse, parents or other family members.
- Short-term courses, such as English language programmes, are not usually covered.
- No security has got to be submitted for education loans concerned to Rs. 4 lakhs. Third party guarantee has got to be stocked for loans between Rs. 4 lakhs and Rs. 7.5 lakhs and tangible collateral security are needed for loans on top of Rs. 7.5 lakhs.
- The Central Government has also introduced an interest rate subsidy scheme for repayments done during the moratorium period for the benefit of the weaker section of the society.
Listed below are some banks Indian Students in the UK can get loans:
Bank of Baroda
It offers an education loan called Baroda Scholar loan to assist Indian students in pursuing higher studies abroad. Students can use this loan to apply for a graduate, postgraduate, job oriented, doctorate or technical course in reputed foreign universities.
Borrowers can avail up to Rs.60 lakhs if they apply to any institute mentioned in List A of the scheme and they can avail up to Rs.40 lakhs if they apply to any institute mentioned in List B of the scheme.
The tenure of a loan of up to Rs.7.5 lakhs is a maximum of 120 months and the tenure of a loan of over Rs.7.5 lakhs is a maximum of 180 months. Collateral is required only if the loan amount is more than Rs.7.5 lakhs.
Punjab National Bank
The education loan offered by this bank for overseas education is called PNB Udaan. The loan can be applied for by Indians for pursuing a graduate or post-graduate course or for studying a course offered by CPA in USA, CIMA – London, etc. The loan amount can also be used to study any degree or diploma course as well and the loan amount offered by the scheme depends on the need of the borrower.
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The margin is 15% for loans of more than Rs.4 lakhs. Tangible collateral is required only if the loan amount exceeds Rs.7.5 lakhs. The tenure for this loan is a maximum of 15 years. The repayment period starts after the end of the course plus 1 year.
The education loan provided by this bank for foreign education is called SYNDVIDYA Scheme. This scheme also offers loan for education in India. The loan can be taken for pursuing graduation/post-graduation courses abroad. Borrowers can use this scheme to study degree or diploma courses and courses conducted by CPA in USA, CIMA – London, etc.
For foreign education, a maximum of Rs.20 lakhs can be availed by applicants as loan, which has to be repaid in a maximum of 15 years after completion of the course plus one year. Collateral is required for loans of over Rs.7.5 lakhs.
Bank of India
It offers an attractive education loan scheme called Star Education Loan to Indians to help them in pursuing courses in India and abroad. The loan can be taken for pursuing graduation/post-graduation courses abroad. Borrowers can use this scheme to study courses offered by CPA in the USA, CIMA – London, etc.
The scheme offers up to Rs.20 lakhs as loan for foreign education. The margin on loans taken for foreign education is 15%, provided the loan amount exceed Rs.4 lakhs. Tangible collateral is required only if the loan amount is more than Rs.7.5 lakhs.
Central Bank of India
This bank offers an education loan called Cent Vidyarthi to help Indians in pursuing higher education in India and abroad. It is a term loan that offers a maximum of Rs.20 lakhs for foreign education. The rate of interest for male students is MCLR + 2% and the rate of interest for female students is MCLR + 1.5%. The bank may choose to provide 1% concession on the interest rate during the course period in certain cases.
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The tenure for a loan of up to Rs.7.5 lakhs is a maximum of 10 years and the tenure for a loan of more than Rs.7.5 lakhs is a maximum of 15 years. The scheme offers life insurance protection to the borrowers.
Allahabad bank offers education loan schemes to meritorious Indian students who want to pursue their higher studies in India and other countries. Borrowers who want to study abroad can apply for this loan, provided they are applying for professional or technical job oriented courses. The loan offers up to Rs.50 lakhs, which has to be repaid after the course is over.
This bank in partnership with Credila offers educational loans exclusively for people who want to study abroad. It offers up to Rs.20 lakhs as loan, which covers various expenses such as exam fee, library fee, cost of books and equipment, travel expenses, insurance, etc.
The scheme has flexible loan terms and competitive interest rates. Borrowers can enjoy tax benefits under Section 80(E) of the IT (Income Tax) Act.
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State Bank of India
It offers two education loans called SBI Student Loan Scheme and SBI Global ED-VANTAGE Scheme to help Indian students in pursuing higher education in the UK. SBI Student Loan Scheme can be applied for after admission is secured for a course.
The bank offers up to Rs.20 lakhs as a loan under SBI Student Loan Scheme and it offers Rs.20 lakhs to Rs.1.5 crore as a loan under SBI Global ED-VANTAGE Scheme. The repayment period of the loan is 15 years.
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