28-Day Rule Timing Failure

The 28-day continuous bank balance requirement is one of the most common UK visa rejection reasons for Indian students. Even a single day's dip below the required amount resets the 28-day clock. Students who assume a sanction letter alone satisfies proof of funds are frequently caught off guard.

Sanction Letter ≠ Proof of Funds

A common misconception is that the bank's sanction letter satisfies UKVI's proof of funds requirement. UKVI requires the actual funds to be present and maintained in your account — a sanction letter alone is only acceptable in specific circumstances and is not the primary evidence type.

Moratorium Interest Accrual (Shortened Timeline Risk)

For a 1-year UK Master's, the moratorium includes course duration (12 months) + typically 6–12 months post-graduation. While shorter than a 2-year US program, simple interest still accrues. On ₹50L at 11%, interest accrual over 24 months of moratorium adds ~₹11L before you start EMIs.

IHS Not Covered in Loan — Surprise Expense

The UK Immigration Health Surcharge (IHS) — GBP 776/year for students — must be paid online as part of the visa application. This amount (₹83,000+ for 1 year) is NOT disbursed as part of Indian education loans. Many students are unaware until days before the visa application.

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Education Loan for UK Decoded.

Everything Indian students need to know about financing a UK degree — from CAS and 28-day bank balance rule to Tier 4 visa compliance and lender selection.

Last reviewed: 23 Aug 20264 lenders comparedSBI / Credila (formerly HDFC Credila) / Axis Bank

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Key Facts

Interest Rate

8.75% – 13.00% p.a.

Processing Fee

0% – 1.5% of loan amount

Max Loan

Up to ₹1 Cr

Approval Time

10 – 20 days