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Education Loan for Masters in UK: Top Providers, Interest Rates, Application & More

Studying in the United Kingdom is a preferred choice for many students across the globe. This leading study destination is a cornucopia of some of the World’s Oldest Universities that offer top-notch course options and research opportunities. Additionally, 1-year Master's Degree in the UK is a cherry on the cake, offering world-renowned qualifications at a much shorter duration.

While the educational experiences and growth prospects in this culturally rich environment are unmatched, the financial aspects associated with studying in the UK can be significant for many international students.

To ease the financial burden of studying abroad in the UK, taking overseas education loans can be a lifeline for many. Over the years, the preference for taking an education loan has skyrocketed. The reason is education loans not only cover tuition fees but also encompass living expenses, travel costs, and other associated expenditures.

If you are someone planning to study in the UK shortly, then this article is for you. Let’s discuss the specifics of UK Student loans for Masters and talk in detail about the top providers, interest rates, eligibility criteria, and more.


Cost of Pursuing a Master’s Degree in the UK

The cost of pursuing a Master's Degree in the UK can vary greatly depending on the university, course specialization, and location. Here’s a detailed classification of the primary expenses international students need to consider:

  • Tuition Fees: The tuition fees for a Masters in the UK range from £10,000 to £60,000 per year. Courses in Humanities and Social Sciences tend to be on the lower end, while degrees in Engineering, Technology, and Business can be on the higher side.

  • Living Expenses: Students should budget approximately £12,000 to £15,000 per year for Accommodation, Food, Utilities, and Other Daily Expenses.

  • Travel Costs: An estimated £500 to £1000 should be set aside for Airfare.

  • Visa Fees: The UK Student Visa costs £490.

  • Health Insurance: International students need to pay the Immigration Health Surcharge of £1164 for their 1-year Master's Degree.

These are the major expenses, additional costs might come up including textbooks, supplies, internet charges, and personal or miscellaneous expenses. All these expenses contribute to the overall cost of studying in the UK.


Top Overseas Education Loan Providers for Masters in the UK

Choosing the right loan provider is essential for ensuring favourable terms and sufficient coverage. Here’s a detailed comparison of top education loan providers, highlighting their maximum loan amounts, interest rates, and funding details:

Banks & Financial Institutions
Maximum Loan Amount
Interest Rate
Loan Funding & Margin
State Bank of India
Up to Rs. 1.5 Crores for Secured Loans
Starts at 11.15% for Secured Loans
Up to 90% & 10% Margin
Union Bank of India
Up to Rs. 1.5 Crores for Secured Loans & Rs. 40 Lakhs for Unsecured Loans (For Top 160 Listed Universities)
Starts at 9.25% for Secured Loans & 9.75% for Unsecured Loans
100% Funding for Secured Loans and Up to 85% & 15% Margin for Unsecured Loans
Punjab National Bank
Up to Rs. 1.5 Crores for Secured Loans
Starts at 9.25% for Secured Loans
Up to 85% & 15% Margin
IDFC First Bank
Up to Rs. 75 Lakhs for Secured and Unsecured Loans
Starts at 11.00% for Secured and Unsecured Loans
100% Funding for Secured and Unsecured Loans
ICICI Bank
Up to Rs. 2 Crores for Secured Loans & Rs. 1 Crore for Unsecured Loans (For Prime Listed Universities)
Starts at 10.50% Secured and Unsecured Loans
100% Funding for Secured and Unsecured Loans
Axis Bank
Up to Rs. 1.5 Crores for Secured Loans & Rs. 75 Lakhs for Unsecured Loans (For Prime Listed Universities)
Starts at 10.50% Secured and Unsecured Loans
Up to 85% & 15% Margin for Secured Loans and 100% Funding for Unsecured Loans
Yes Bank
Up to Rs. 1.5 Crores for Secured Loans & Rs. 50 Lakhs for Unsecured Loans (For Prime Listed Universities)
Starts at 11.50% Secured and Unsecured Loans
100% Funding for Secured and Unsecured Loans
Tata Capital
Up to Rs. 1.5 Crores for Secured Loans & Rs. 40 Lakhs for Unsecured Loans (For Listed Universities)
Starts at 11.50% for Secured Loans & 12.00% for Unsecured Loans
100% Funding for Secured and Unsecured Loans
HDFC Credila
Up to Rs. 1.5 Crores for Secured Loans & Rs. 35 Lakhs for Unsecured Loans
Starts at 10.25% for Secured Loans & 11.50% for Unsecured Loans
100% Funding for Secured and Unsecured Loans
Avanse
Up to Rs. 1.5 Crores for Secured Loans & Rs. 40 Lakhs for Unsecured Loans
Starts at 11.00% for Secured Loans & 11.50% for Unsecured Loans
100% Funding for Secured and Unsecured Loans
Prodigy Finance
Up to USD 100,000 Unsecured Loans for Masters
Starts at 10.55% for Unsecured Loans
100% Funding for Unsecured Loans
The above-mentioned education loan for UK without collateral or with collateral covers a comprehensive range of expenses to ensure students have a smooth and stress-free study experience. These usually cover tuition fees, accommodation costs, living expenses, books, health insurance, travel expenses, visa application fees and other miscellaneous expenses.

Considering that you know a lot about overseas education loans, let’s discuss the loan application process regarding the student visa application.


Understanding UK Student Visa Funding Guidelines

To obtain a Tier 4 (General) Student Visa, students must meet specific financial requirements set by the UK Government. Here’s an overview of these guidelines:

  • Course Tuition Fees: Applicants must show that they have enough funds to cover the first year of tuition fees to apply for the student visa.

  • Living Costs: Students must demonstrate that they have sufficient funds for 9 months to cover living expenses. For courses in London, the required amount is £1,334 per month, and for courses outside London, it is £1,023 per month.


Demonstration of Funds for UK Student Visa

For student visa applications, proof of funds can be demonstrated in the following ways.

  • Recently accepted loan-sanctioned letter in UKVI-specific format.

  • For self-funding, the required amount must be shown in the student's or their guardian’s savings account or fixed deposits. These funds should be maintained for at least 28 consecutive days before the visa application.

  • If the loan is taken from an NBFC, then the entire loan amount must be disbursed and kept in the student's account for 28 days.

Once you are accepted into the UK University, you will have to give a confirmation of enrolment by paying the initial deposit as specified by the University. After this deposit is completed, you will receive a Confirmation of Acceptance for Studies (CAS). This CAS is an important document for student visa applications. You can pay the initial deposit by yourself or take a pre-visa loan disbursement by following the below-given steps.


Overseas Education Loan Application Process for Masters in the UK

The process of securing an education loan to study in the UK requires a number of steps. Here’s a brief overview:

  • Researching, Shortlisting and Choosing a Loan Provider

  • Checking Eligibility Criteria

  • Preparing Required Documents

  • Applying for the Loan

  • Loan Sanction, Signing of Loan Agreement and Disbursement

The application process might seem overwhelming, but with the right guidance, preparation and assistance, it can be completed smoothly.

At Élan Overseas Education Loans, we understand the complexities involved in the loan application process and are here to assist you every step of the way. Our Expert team provides personalized guidance to ensure you get the best loan terms suited to your needs. We offer comprehensive support, from document preparation to disbursement, making your journey to studying abroad smooth and hassle-free. With Élan by your side, you can focus on your studies and personal growth, knowing that your financial needs are in capable hands.

Take the first step and contact Élan Overseas Education Loans today to turn your dream into reality!

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