Education Loan for UK Without Collateral: Guide 2025-26

Studying in the UK continues to be one of the most sought-after choices for Indian students. World-class universities, globally recognized degrees, strong post-study work opportunities, and a diverse student environment make the UK a powerful launchpad for careers. For many students, the biggest concern is financing, especially if they don’t have property or assets to pledge.

A collateral-free education loan is the solution, and this guide explains everything you need to know: costs, banks/NBFCs, visa rules, eligibility, documents, repayment, and how Student Cover supports students through the entire journey.

Cost to Study in the UK (2025–26)

The cost varies by course and university, but here is the general range:

Top Private Banks Offering Education Loan Without Collateral for UK 

Private banks typically offer unsecured loans between ₹7.5 lakh and 1.5cr, depending on academic profile and co-applicant income.

1. ICICI Bank

• Unsecured loans Up to 1.5CR
• Competitive interest rates- 10.75% - 12%
• Quick online approval
• Covers tuition + living expenses

2. Axis Bank

• Loans Up to 1 Cr
• Competitive interest rates- 11% - 13%
• Flexible repayment plans
• Study period repayment options - PSI, EMI, SI

3. IDFC FIRST Bank 

• Non-collateral loans Up to 1 Cr 
• Fast processing
• Competitive interest rates- 10.60% - 12%
• Available for most UK universities

4. Yes Bank

• Non-collateral loans Up to 75 Lacs
• Fast processing
• Competitive interest rates-11.25% - 12.25%
• Available for most UK universities

Top NBFCs of Education Loan For UK Without Collateral

NBFCs often provide higher unsecured limits and more flexible criteria, making them popular for UK-bound students.

1. Credila Financial Services Limited

• Unsecured loans Up to 1 Cr (profile-based)
•  interest rates- 10.75% - 12.25%
• Customisable repayment options
• Covers the entire cost of attendance

2. Avanse Financial Services

• Up to 1.20CR
•  interest rates- 10.75 - 11.75%
• No upper cap on the approved university list

3. Incred Financial Services Ltd 

• Funding Up to 1 Cr
•  interest rates- 11.25% - 12.50 
• Flexible co-applicant options
• Higher approval chances for UK universities

3. Auxilo Finserve Ltd

• Funding Up to 1 Cr
•  interest rates- 10.50% - 12.25%
• Flexible co-applicant options
• Higher approval chances for UK universities

4. Prodigy Finance 

• Funding Upto $2,20,000
•  interest rates- 9.99% to 13%
• Flexible co-applicant options
• Higher approval chances for UK universities
• In some universities Sanction Letter OF Prodigy can help you to bring CAS without a Deposit

UK Visa Norms for Students Applying with Education Loans

To secure a UK Student Visa (Tier 4) using an education loan:

• For a UK visa, students must submit a specific education loan sanction letter.
• UK embassies accept loan sanction letters from nationalised and private banks.
• Students taking loans from any other NBFC must get the loan amount disbursed to their own or their parents’ account.
• After the funds remain in the account for 28 days, they must obtain a bank balance certificate or bank statement to submit to the embassy.

UKVI accepts:

• Bank loans
• NBFC loans
• Scholarship + loan combinations

  Also Read - To Get an Education Loan for USA

Exams to Apply for UK Universities (2025-26)

Here’s a neat bullet-point version:

• English Language Tests

– IELTS Academic: widely accepted; overall 6.0–6.5, top universities 7.0+.

– TOEFL: usually 80–100+.

– PTE Academic: minimum 55–60.

– Duolingo English Test: increasingly accepted; minimum 110–120.

• Gap Years

– Gaps of 1–2 years are generally acceptable with proper justification.

– Longer gaps may require proof of work experience.

• Backlogs

– Multiple backlogs can make bank loan approval harder.

– NBFCs and Prodigy Finance are comparatively flexible if the student has a strong admission offer.

• Course-Specific Exams

– GRE: required or recommended for STEM and some postgraduate programs.

– GMAT: mandatory for MBA and certain management degrees; top schools look for 600+.

– UCAT / BMAT: needed for medicine and dental courses.

– LNAT: needed for law programs at selected universities.

• Tip – Strong exam scores boost both admission chances and education loan approval, since they signal better employability potential.

Eligibility Criteria for Collateral-Free Education Loans

General eligibility across banks and NBFCs:

• Applicant must be an Indian citizen.
• Minimum age requirement: 18 years or above.
• The UK university must be recognised and accredited.
• A strong academic record is expected.
• Applicant must hold a confirmed admission offer from a UK institution.
• A co-applicant (parent or guardian) may be required by lenders.
• A credit score of 700+ is typically needed for eligibility.

Essential Documents Required

  To apply for an abroad education loan in India, you must prepare a set of essential  documents. These include personal identity proofs, academic records, financial documents, and a few additional papers. You can check the complete list of documents required for education loan to ensure a smooth and hassle-free application process.

here are some vital documents you will need to apply for an education loan for UK.

• Loan Application Form: Duly filled and signed as required by the lender.

• Proof of Identity: Aadhaar card, PAN card, passport, or voter ID.

• Proof of Address: Aadhaar card, passport, electricity bill, telephone bill, or other valid address documents.

• Academic Records: Mark sheets and certificates for 10th, 12th, and graduation.

• Proof of Admission: Official admission offer letter from the UK university.

• Bank Statements: Last 6 months’ bank statements of both applicant and co-applicant.

• Passport: Sized Photographs

• Applicant’s KYC Documents: As per lender norms.

• Co-applicant’s KYC Documents

• Fee Structure provided by the university.

• Standardized Test Scores: GMAT or GRE (if applicable).

• English Proficiency Test Scores: IELTS, TOEFL, or Duolingo.

• Residence Proof of the applicant and the co-applicant.

• Income Proof of Co-applicant: Salary slips, ITR, Form 16, or business income proof.

How to apply Collateral-Free Loan through Student Cover

Contact Student Cover

• Contact a Student Cover representative through the following route:

• Website form - https://www.studentcover.in/education-loan/ 
• Loan helpline – 9871377966
• Online Chat - https://www.studentcover.in/ 

• You will be assigned a loan buddy, who handles your case throughout.
• Share your requirements regarding the type of loan; loan amount; ROI
• Provide the necessary details about your academic & financial profile

Profile Evaluation

• Profile entry for the client.
• Eligibility assessment for an education loan
• If the student is found eligible, Student Cover will contact the lender bank/financial company and revert back to the client.

Documentation

• Student Cover loan agent will collect loan documents from the client.
• If the client is located outside Delhi NCR, it will be collected by an official from the bank within 48 hours.

Approval & Negotiation

• Profile entry for the client.
• Within 7 working days, Student Cover will update the client with approval/rejection information from the lender.
• If the client wants to negotiate a RoI, it can submit a request for negotiation with student cover.
• Student Cover will provide the lender's final offer within 3-4 working days

Processing fee & Sanction letter

• On acceptance of the offer, the client will have to deposit the processing fee in the lender's bank account. This can be done either through cheque or online transfer.
• On receipt of the processing fee, the bank will send the loan sanction letter within 48 hrs.

Repayment Terms & Moratorium Period

Most lenders offer:

• Course Duration + 6–12 months moratorium (no need to pay principal)
• Simple or partial interest payment during the study period
• Loan tenure of 10–15 years
• No penalty for early repayment (varies by lender)

NBFCs often provide more flexible moratoriums and customised EMI structures.

How Student Cover Helps Students Going to the UK

Student Cover works as a specialised education loan marketplace for UK-bound students. Its support includes:

• Comparison of 10+ banks/NBFCs for best interest rate
• Higher chances of approval through expert profiling
• Help in securing up to ₹1.5 CR collateral-free loans
• Pre-visa loan assistance
• End-to-end documentation support
• Fast processing with dedicated loan advisors
• Visa guidance and after-approval assistance

For students without property or collateral, Student Cover significantly increases loan approval chances.

FAQs

1. Can I get an education loan for the UK without collateral?

Yes, private banks and NBFCs provide collateral-free loans up to 1.5CR  depending on your profile.

2. What interest rate should I expect?

Typically, 10.5% – 13.5% for non-collateral loans, varying by lender and co-applicant income.

3. Can I show the loan sanction letter for a UK Student Visa?

Yes, UKVI accepts education loans from Indian banks and NBFCs.

4. Do lenders cover living expenses?

Yes. Loan covers tuition fees, living costs, travel, insurance, and visa charges.

5. What is the required IELTS score for UK universities?

Most universities accept 6.0 to 6.5 overall, but it varies by program.

6. How long does it take to get a non-collateral loan?

NBFCs: 3–5 working days Private Banks: 5–12 working days