Indian students scamming loans for UK visas

The contentious issue of visas for Indian students has once again come under the spotlight after claims of loan fraud are rampant amongst would-be students.

Amid much criticism the rules regarding how much money and Indian student applicant must have in their bank account were changed earlier this year. Whereas in the past the needed only show a bank statement with sufficient funds to cover their travels, the new regulations stipulate that a minimum amount must be in the account for at least one month prior to the application being lodged.

This rule has exposed massive loopholes in the process after undercover reporters posing as students discovered scams aplenty among agents claiming to assist applicants. It has emerged that agents are offering £10,500 to potential visa seekers for a period of one month so that the stipulations of the UK Border Agency can be satisfied. Once the amount has been in the nominated account for the requisite period and can be shown on a statement then it is returned – with a processing fee of around £200 and an interest rate of 7 percent. This means that the agent will make around £950 on every transaction.

The scandal is hardly surprising given that the number of visas granted to Indian students in the past 12 months has all but doubled – up to 52,000 from just 29,000 this time a year ago. Under the points-based system the proof of financial capability is worth 10 out of the minimum 40 points for qualification, with the remainder being on acceptance into an approved college or university.