Studying in the UK is a dream for many Indian students. World-class education, global exposure, and incredible career prospects attract thousands every year. But with rising tuition fees and living costs, finances are often a major concern.
This blog helps international students understand their best education loan options. We also guide you through smart decisions around budgeting and student accommodation. With the right plan, you can focus on academics, not bank balances.
Why Indian Students Prefer the UK
The UK is home to top universities like Oxford, Cambridge, and Imperial College. British degrees are globally recognised and respected. Additionally, the country offers strong post-study work opportunities.
According to the UK Home Office, over 140,000 Indian students received study visas in 2024. The number is expected to grow in 2025.
However, the cost of studying can be high:
Average tuition fee: £9,535 per year (for most undergraduate courses)
Average living cost: £18,632 to £21,774 per year
With those numbers, an education loan becomes essential.
Types of Education Loans Available
Indian students can apply for loans from Indian banks, NBFCs, and international lenders. Let’s break down each type.
1. Loans from Indian Banks
These loans are either secured (with collateral) or unsecured (without collateral).
a. State Bank of India (SBI)
Loan up to ₹1.5 crore
Interest rate: 9.95% to 12%
Requires collateral for loans above ₹7.5 lakh
b. ICICI Bank
Loan up to ₹1 crore
Interest rate: 10.5% to 11.25%
May require collateral or a co-applicant
c. HDFC Bank
Offers education loans through HDFC Credila
Flexible repayment terms
Covers tuition, living, and student accommodation expenses
2. Non-Banking Financial Companies (NBFCs)
NBFCs offer more flexibility but slightly higher interest rates.
a. InCred
Loans up to ₹60 lakhs
Interest rate: 11% to 13%
Minimal documentation
b. Avanse Financial Services
Loans up to ₹60 lakhs
Interest rate: 12.5% to 15%
Quick approvals and flexible tenures
c. HDFC Credila (NBFC arm)
Customised plans for UK universities
Covers complete study costs, including student rooms and travel
3. International Lenders
These are ideal for students without co-applicants or collateral.
a. Prodigy Finance
Loan amount: $10,000 to $75,000
No co-signer or collateral required
Interest rates: 10.5% to 14%
b. MPOWER Financing
Targets students from emerging markets like India
Offers career support and flexible repayments
Compare Loan Options Easily
Who is Eligible?
To get an education loan, you must:
Be an Indian citizen
Have an admission offer from a recognised UK university
Be aged between 18 and 35
Show academic potential and a clean financial history
Documents You Need
Be ready with:
Passport and ID proofs
Admission letter
Academic records
Entrance test scores (IELTS, GRE, GMAT, etc.)
Co-applicant documents (if required)
Income proof or collateral documents
Having these ready helps you get approved faster.
Tips to Get Approved Easily
Apply Early: Lenders take 7–14 days to process applications.
Check Pre-Approved Universities: Some lenders prioritise certain UK institutions.
Improve Credit Score: A co-applicant with a good CIBIL score boosts your chances.
Include Accommodation Costs: Always budget for student housing and submit realistic estimates.
Negotiate Terms: You can often request longer repayment tenures or grace periods.
Scholarships to Reduce Loan Burden
Scholarships can reduce the loan amount needed. Here are a few popular ones:
Chevening Scholarships
Commonwealth Scholarships
GREAT Scholarships
University-specific merit awards
Apply for these while applying for loans to increase affordability.
Can You Work While Studying in the UK?
Yes. International students can work up to 20 hours per week during term time. You can also work full-time during holidays.
Jobs in retail, hospitality, or even as student assistants are common. These jobs help you pay for food, travel, or even your student apartments.
Budgeting for UK Life
A good budget should include:
Tuition fees
Rent for student accommodation
Food and groceries
Transport and travel
Health insurance
Emergency funds
It helps to set monthly limits. Use budgeting apps or spreadsheets to track every expense.
Finding Accommodation in the UK
Choosing the right place to live is important. Student Tenant offers multiple student rooms and student apartments to match different budgets and preferences.
Our listings cover:
Private flats
Shared student housing
Ensuite and studio student rooms
You can filter by location, amenities, and pricing. Booking early helps you lock in better prices and prime locations.
Why Students Trust Us for Accommodation
We focus only on verified properties. Safety, comfort, and proximity to campus are top priorities. Our platform supports:
Online bookings
Instant rent quotes
Secure payments
24/7 support
We understand student life. That’s why we make finding student housing as stress-free as possible.
Real Stories: How Loans Made a Difference
Ritika, 22, Leeds University: "I got my loan from InCred. I could pay my fees and rent my studio flat without stress."
Arjun, 24, University of Manchester: "SBI supported me with a secured loan. I budgeted using spreadsheets and found a shared flat with two others."
These stories are common. The right loan and proper student accommodation planning can make life abroad enjoyable.
Final Thoughts: Be Smart, Start Early
Planning to study abroad isn’t just about applying to universities. It’s about budgeting, applying for loans, and finding the right student apartments. Start early. Gather your documents. Apply for both loans and scholarships. Don’t forget to lock in your student accommodation well in advance.
At StudentTenant.com, we simplify the accommodation process so students can focus on what matters—studying. From curated listings to flexible contracts, we support your journey every step of the way.
Let’s make your UK study dream a reality – without financial stress.