How much education loan can I get and what is collateral in education loans in UK for a Master's?
As an international student, you generally cannot access UK government loans and instead rely on home-country banks or lenders like Prodigy Finance, offering 10,000 to 100,000 pounds or full cost of attendance. Loans above roughly Rs. 7.5 lakh in India usually need collateral.
As an international student heading to the UK for a Master's, you cannot access the UK government's postgraduate loan. Your loan amount and collateral requirements instead depend on whether you borrow from a home-country bank or an international lender like Prodigy Finance.
Loan Amounts by Lender Type
| Lender Type | Typical Loan Amount | Collateral Required? |
|---|---|---|
| Home-country banks (e.g., India) | Up to 100% of cost of attendance, sometimes Rs. 40-75+ lakh | Usually required above about Rs. 7.5 lakh |
| International lenders (Prodigy Finance, Lendwise) | £10,000 to £100,000, based on university and credit assessment | Often not required (unsecured) |
| UK government loan (home/settled students only) | Up to £13,206 (England) to £19,635 (Wales) | Not required, income-contingent |
What Counts as Collateral
- Unsecured loans: many NBFCs and international platforms instead evaluate your co-applicant's income, academic background, and university tier.
- Secured loans: traditional banks require collateral for higher amounts, typically above about Rs. 7.5 lakh in India.
- Acceptable collateral usually includes immovable property, fixed deposits, or government bonds and life insurance policies.
- UK/home students instead get an income-contingent government loan with repayment starting only once earnings cross a set threshold.
My Advice
Get quotes from both a secured home-country bank loan and an unsecured international lender like Prodigy Finance before deciding, since the collateral-free option can be faster even if the interest rate runs slightly higher. Confirm your co-applicant's income documents early, since most unsecured approvals depend heavily on that, and ask a Leap counsellor to help you compare total interest cost across both routes for your specific university offer.
What will studying in the UK actually cost you?
Tuition, living costs and loan options in one clear plan you can show your parents.
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