A large number of Indian students choose to study in the United Kingdom for their MBA degree as the country is home to some of the leading universities of the world and has many perks to offer.
UK’s education system offers specialization courses in almost all the study areas and provides a hands-on learning experience. The MBA degrees offered by the UK universities are internationally recognized which makes it easier for the students to find a job in any part of the world.
To study MBA in the UK, just getting an admit letter from a UK university is not enough. Even before the tedious application procedure of submitting documents, tests scores, and the anxious wait to get an acceptance, here comes the real deal of arranging for funds. Studying abroad can cut a big hole in one’s pocket. But if planned well in advance, the cost is manageable.
Students having a brilliant academic record can be eligible for scholarships or grants. But students with decent or average track records may find it difficult to secure a scholarship. This is where the education loan for abroad studies comes into the picture.
For international students, the cost of studying in the UK has been bifurcated into three stages i.e., Pre-arrival cost, Tuition fees, and the Cost of living. Let us understand these terms in brief.
Pre-arrival Cost: Pre-arrival cost includes fees for UK student visa, National health insurance, standardized tests, English language proficiency tests, laptop expenses, travel insurance, and other miscellaneous charges. The overall pre-arrival cost can go up to GBP 1900 (INR 2 lakhs).
Tuition Fees: Tuition fees are charged by the UK universities to study in their educational institutions. It covers the enrolment fees, exam fees, and registration fees. The average tuition fees to study MBA at the UK university ranges between GBP 23,800 to GBP 28,570 (INR 25 lakhs to 30 lakhs) depending on the university ranking, location, and the chosen specialization.
Cost of Living: The cost of living includes accommodation, transportation, meals, utilities, and other household expenses. The average cost of living outside London is around GBP 1,023 (For up to 9 months) for one month whereas inside London it goes up to GBP 1,334 (For up to 9 months).
There are various financial institutions that offer an education loan to study in UK at the master’s level. The banks regulated under the Reserve Bank of India are only accepted for overseas education loans. Let us take a look at some of the popular ones offering education loans:
• Government Banks: State Bank of India, Bank of Baroda
• Private Banks: Axis Bank, ICICI Bank
• International Lenders: Prodigy Finance
• NBFCs: HDFC Credila (Avanse, Auxilo, and InCred are not registered under RBI, hence they are not accepted by the UKVI authorities).
Refer to the table to get exact details on the education loan for aforesaid financial institutions:
|Financial Institution||Maximum Loan Amount||Interest Rate||Loan Margin||Repayment Tenure|
|State Bank of India||INR 1.5 Crore|
8.65% (0.50% less for girls)
(0.50% for Rin Raksha Insurance)
|90% + 10%||15 years|
|Bank of Baroda||INR 1.5 Crore|
Prime Listing: 8.25%
(0.50% less for girls)
For Prime: 100%
For Non-Prime: 90%
|Axis Bank||INR 75 Lakhs||11% to 14%||85% + 15%||10 years|
|ICICI Bank||INR 1 Crore||11% to 14%||No fixed margin||10 years|
|Prodigy Finance||USD 90,000||8 to 10%||100%||10 years|
|HDFC Credila||INR 40-45 Lakhs||11%-14%||100%||10 years|
• 3-5 years of work experience for selected courses
• If an applicant is availing of an unsecured education loan, then minimum income criteria for co-borrower should be more than 6 lakhs with no other liabilities.
• As per visa immigration norms for both secured and the unsecured education loans, only parents and siblings are considered as sponsorer for an education loan.
So, these are the steps involved in a loan for higher education abroad to pursue MBA in the UK. As soon as you receive the offer letter from the UK university, submit the application for an education loan. If you require any kind of assistance, do get in touch with us.
We will assist you in the overall education loan process, right from applying at a suitable bank and getting the loan approved, our loan experts will take care of everything.
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