• Education Loans

Student Education Loan to Study in Canada - Eligibility, Documents Required, How to Apply

2092 Reads
3 min Read

By:CANAM Group
Updated On:May 18,2024 03:27 PM IST

Applying to study in Canada is undoubtedly a great leap for the career of any international student.
However, the cost involved in the process sometimes makes it difficult for some to apply.
To help students realize their dream of studying abroad and to reduce their financial burden, many banks offer education loans.
Read the blog to learn about different loan options available to students, including the documents required to apply.

Many students dream of studying in Canada, but the cost of living there is quite high. Students have to bear many expenses while living there, such as tuition fees, accommodation, travel, and entertainment. Therefore, students often seek ways to reduce their financial burden, and one of the best ways to achieve this is to opt for student education loans to study in Canada.

This blog covers essential information regarding study loans for Canada, such as the cost to study in Canada, types of loans, requirements, documents required, expenses covered, courses covered, factors to consider, and how to apply for study loans for Canada etc.

What's the Cost of Studying in Canada?

While planning to study in Canada, students must understand the two types of expenses: tuition fees and cost of living. Below is the table which shows the average tuition fees per year in Canada for different programs:

Program Name	Cost Per Year (approximate)
Undergraduate Diploma	10,000 CAD - 17,000 CAD
Bachelor’s Degree	25,000 CAD - 35,000 CAD
Postgraduate Diploma	15,000 CAD - 25,000 CAD
Master’s Degree	30,000 CAD - 40,000 CAD

Note: The figures are approximate, and students must contact a study abroad consultant to know the actual program fees.

Types of Education Loans

There are two types of education loans to study in Canada, which are as follows:

Secured Education Loans	In secured education loans, an applicant has to provide collateral or security, including property, fixed assets, or insurance policies to the bank. The advantage of this loan is that it offers lower interest rates, higher loan amounts, and extended repayment periods. Some of the banks which provide secured education loans are ICICI Bank, Avanse and HDFC Credila.
Unsecured Education Loans	Another type of education loan for Canada is an unsecured education loan in which applicants don’t have to provide any collateral. Several private banks, international lenders, and NBFCs offer loans without collateral. Some of the banks which provide unsecured education loans are Avanse and Yes Bank.

After thoroughly reviewing the pros and cons of both types of loans, parents or guardians can decide how to finance their child’s study in Canada.

Requirements for Education Loan to Study in Canada

There are specific requirements for getting a study loan for Canada through Indian banks. Students must know these eligibility criteria before applying for a study loan:

Applicant must be an Indian citizen.
The admission letter from the university is mandatory.
The applicant must be more than 18 years old.
However, if the applicant is a minor, parents must apply for the loan.

Documents Required for Education Loan

To apply for an education loan to study in Canada, students are required to submit various documents required by the bank. Following is the list of documents required by the bank:

Proof of admission (admission letter from the Canadian university)
Passport size photograph
Qualification exam scores proof
Copy of previous school/college mark sheets
Bank statement of the last year
Income proof
Proof of residence
Collaterals (if needed)

Expenses Covered Under Education Loans

Before exploring education loans to study abroad, students must check the expenses covered under it. Only after that should they move forward and apply for the loan. Here is a list of the expenses covered under most education loans to study in Canada:

Tuition fee
Travel expenses
Cost of books and other study materials
Laboratory fee
Hostel fee
Purchase of a laptop (if required for the course)
Expenses related to project work or study tours.

Courses Covered under an Educational Loan

All bodies, such as public banks, private banks, financial companies, and international funding institutes, provide education loans for full-time courses in Canada. Generally, students can get student loans to study in Canada for the following courses:

Undergraduate courses
Post-graduate courses
Post-graduate diploma programs
Doctorate courses

How to Choose the Best Educational Loan Option?

Various financial institutions provide education loans for Canada, but choosing the right one is essential. Here is a list of factors Indian students can consider before applying for a study loan for Canada:

How to choose best education loan.webp

Repayment

After taking a student loan for Canada, students must also think about how to pay the loan. Loan providers give a relaxation period of 6 months after graduation. This means that one can start repaying the loan after six months from the end of the program. The repayment period is at least 6 months, which can increase depending on the loan provider. Other than that, students usually get 5 to 7 years to repay the loan. Students can minimize their repayment burden by choosing job-oriented courses and getting high-paying jobs.

Application Process

Applying for a student loan for abroad studies is simple if the applicant follows the instructions properly. The applicant needs to start around 4-6 months before their enrolment date, as getting an education loan for international students in Canada may take time. To apply for the loan, applicants can follow these simple steps:

Step 1	Check eligibility for an education loan.
Step 2	Contact an expert to gather information about the application process and guidance regarding lenders.
Step 3	After choosing the lender, check their document requirements and collect documents.
Step 4	Submit all the documents as per the instructions and wait for verification. The verification process usually takes 1-15 days after all the necessary documents are submitted.
Step 5	Once the application is approved, the applicant can sign the agreement letter and wait for disbursement.
Step 6	The amount disbursed will be deposited directly into the student’s account or to the university according to the agreement.

Students might think it’s easier said than done, but here’s the thing: they do not need to handle the entire process alone. They can connect with Canam experts who will guide them regarding education loans for Canada.

Tips for a Successful Student Loan Application

Applying for an education loan is a critical step in the journey of studying abroad, so students must ensure they submit an error-free application. The following are tips students can use to apply for study loans successfully.

Start Early	Students must begin their study loan process early to avoid last-minute stress. They must research different loan options, know the requirements, and plan finance accordingly.
Research	Students must explore different study loans for Canada. They should compare all study loans based on repayment terms, interest rates, and other additional benefits.
Maintain a good credit score	A good CIBIL score can impact the success of a study loan application. They must ensure that they are paying bills on time.
Get all documents	Students must collect all documents required to apply for an education loan to study in Canada. Standard documents required for a study loan application are an admission letter from a Canadian university, a financial statement, and a study plan.
Consider Collateral or Co-Applicant Options	If students find it challenging to get an unsecured study loan in Canada, they can consider adding a co-applicant or offering collateral to improve the chances of approval.
Explore Scholarship and Grant Opportunities	Students can reduce their dependency on loans to study in Canada by exploring other financial aid options, such as scholarships.
Understand the Terms and Conditions	The applicant must read all the terms and conditions associated with the study loan. They must pay attention to repayment schedules, interest rates, or additional fees.
Seek Professional Guidance	Students may find the study loan application process complex, so they can consider seeking assistance from an education consultant or financial advisor.

Conclusion

Education loans are of great help for any student who wants to study in Canada and needs funding for their education. Depending on the course, students can get either a secured or an unsecured loan, but before applying for any loan, they should do proper research and compare all the options. The loan providers they can consider for an education loan to study in Canada are Yes Bank, Avanse, HDFC Credila, and ICICI. If students need any guidance regarding study loans for Canada, they can contact the experts at Canam today.

FAQ

Can Indian students get education loans in Canada?

Yes, Indian students can get education loans to study in Canada.

How can students choose the best education loan option?

Interest rate, processing fee and time, margin money, moratorium period, tax benefit, loan duration, and expenses covered are some factors students can consider before choosing the best education loan for Canada.

What are the types of education loans for studying in Canada?

Two types of education loans are available for studying in Canada: secured and unsecured.

What documents are required to apply for a study loan in Canada?

The documents required to apply for a study loan in Canada are proof of admission, passport photos, qualification exam scores, copies of previous school/college mark sheets, bank statements, etc.

What is the Canada student visa fee?

The cost of a Canada student visa is $150. Students are advised to check it at the time of applying as it keeps changing.

What is the eligibility criterion to get a study loan for Canada?

To apply for a study loan for Canada, the student must be an Indian citizen, over 18 years old and have an admission letter from the university.

Which bank is best for a Canada study loan?

Yes Bank, Avanse, HDFC Credila, and ICICI are some banks that provide study loans for Canada.

Get great articles direct to your inbox

The latest news, articles, and resources, sent straight to your inbox every month.

Popular Universities to Study Abroad

World class education waiting for you.

Central Queensland University - Melbourne Campus

Victoria, Australia • 45 Programmes

Tuition Fee : AUD 31500-33500 / year

The Chang School Of Continuing Education At Toronto Metropolitan University

Ontario, Canada • 5 Programmes

Tuition Fee : CAD 18000-19000 / year

Cambrian College - Toronto Campus

Ontario, Canada • 3 Programmes

Tuition Fee : CAD 17000-19000 / year

Oxford Brookes University - Harcourt Hill Campus

England, UK • 33 Programmes

Tuition Fee : GBP 14000-17000 / year

IPU Tertiary Institute New Zealand

North Island, New Zealand • 10 Programmes

Tuition Fee : NZD 0-0 / year

Eton College

British Columbia, Canada • 11 Programmes

Tuition Fee : CAD 6500-12500 / year

University of West London

England, UK • 252 Programmes

Tuition Fee : GBP 12500-13500 / year

Shorelight Group - University of Wisconsin - River Falls

Wisconsin, USA • 75 Programmes

Tuition Fee : USD 17000-17500 / year

View All Universities

Latest at CANAM

Events, webinar, college / university visits and more.

Canadian Universities & Colleges Admissions Fair & Workshop - Virtual

Study in Canada

11:00AM

Virtual Event

Canadian Universities & Colleges Admissions Fair & Workshop - Virtual

Study in Canada

11:00AM

Virtual Event

Study Abroad Application Fair

Study in Canada, UK, USA, Australia, New Zealand, Germany, Ireland, France

New Delhi • 11:00AM

In-Person Event

Top countries destinations

Popular university and colleges for Studying abroad.

Bond University Queensland
Central Queensland University - Rockhampton, North Campus Queensland
Charles Sturt University - Wagga Wagga Campus New South Wales
Deakin University - Geelong Waurn Ponds Campus Victoria
Engineering Institute of Technology - Perth campus Western Australia
Griffith University - Nathan Campus Queensland
La Trobe University - Bendigo Campus Victoria
LCI Melbourne - Art & Design School Victoria

Ara Institute of Canterbury - City Campus Southland
Aspire 2 International - Auckland Campus Auckland
Auckland University of Technology - City Campus Auckland
Eastern Institute of Technology - Hawke Bay Campus Hawke's Bay
Manukau Institute of Technology -Manukau Campus Auckland
Massey University - Auckland Campus Auckland
Nelson Marlborough Institute of Technology (NMIT) - Nelson Campus Southland
New Zealand Institute of Business & Technology (NZIBT) Auckland
The University of Waikato - Hamilton Campus Hamilton

Kent state university Ohio
San Jose State University California
Wright State University Ohio
Clark University Massachusetts
Rowan University New Jersey
Arkansas State University Arkansas
University of Wisconsin Milwaukee Wisconsin
Southern Illinois University Edwardsville Illinois
University of Findlay Ohio

Popular English Language Proficiency Exams

Blogs and Articles

Curated content to keep you updated on the latest education trends, news and more.

ACT vs. SAT: Which One to Choose?

Many colleges and universities require students to submit scores from the SAT or ACT- both recognized standardized exams as part of the admission proc...

Updated on • Apr 12,2025 05:40 PM IST • Study Abroad

Five Types of IELTS Essays

Love giving opinions? Welcome to IELTS writing task 2. In this task, you get different types of essays, one of which is an opinion essay. There are fi...

Updated on • Apr 11,2025 05:53 PM IST • IELTS

Backlog Certificate: A Complete Guide

What is a backlog?In an academic context, a "backlog" refers to a course or subject that a student did not pass on their first attempt during their re...

Updated on • Apr 11,2025 01:47 PM IST • Study Abroad Guidance

PTE Score Chart 2025: PTE Exam Scoring System & Calculation

Most international institutions demand proof of strong English skills, making language proficiency tests a necessity to pursue higher education. While...

Updated on • Apr 09,2025 05:37 PM IST • PTE

Master's in Computer Science in the USA

Silicon Valley in the United States of America has been the global mecca of technology and invention. Every significant technological advancement has ...

Updated on • Apr 08,2025 05:59 PM IST • USA

MBA is one of the most sought-after courses worldwide and consistently tops the list of preferred study abroad courses for Indian students. Now, wheth...

Updated on • Apr 08,2025 04:47 PM IST • Study Abroad

Describe Your Hometown IELTS Speaking Part 1 Topic

The IELTS Speaking part 1 topic ‘Describe your Hometown’ is one of the most often asked and easiest topics to answer in an IELTS test. In this top...

Updated on • Apr 07,2025 05:50 PM IST • IELTS

How to Get a Job in USA in 2025

USA is not just a great destination for studying abroad, but also for pursuing a full-time job. That’s why the internet is filled with queries like ...

Updated on • Apr 07,2025 03:19 PM IST • USA

Highest Paying Jobs in the World

With super-advanced technologies like AI entering every field, the assumptions are high that the job roles that exist today won't exist after some yea...

Updated on • Apr 01,2025 05:31 PM IST • Study Abroad

Student Life in Ireland in 2025

“World-Class Standards, Warmest of Welcomes”. The tagline highlights the ideal balance of a high-quality education and a tremendous, hospitable cu...

Updated on • Mar 29,2025 05:50 PM IST • Ireland

Top Public Universities in Germany

It’s a notion that studying abroad is expensive, but there is one country that is breaking this notion. Germany, also known as the land of ideas, of...

Updated on • Mar 26,2025 04:33 PM IST • Germany

Top Universities for Masters in Ireland in 2025

Learning never stops. Humans learn till their last breath. After completing your bachelor’s degree, you might be considering pursuing a master’s d...

Updated on • Mar 25,2025 04:36 PM IST • Ireland

Cost of Living in Singapore for Indian Students in 2025

Once a poor island nation, Singapore now has become one of the wealthiest countries in the world. Also known as Lion City, Singapore is becoming an in...

Updated on • Mar 22,2025 11:57 AM IST • Singapore

PTE vs IELTS : Know the Difference and Which is Easier?

An English proficiency test is required to study in countries such as Canada, Australia, New Zealand, the US, the UK, and others. PTE and IELTS are th...

Updated on • Mar 21,2025 03:38 PM IST • IELTS

IELTS Score for Germany 2025

Germany is an emerging study-abroad destination for international students seeking affordable, high-quality education. Its other benefits include a wi...

Updated on • Mar 20,2025 10:19 AM IST • Germany

IELTS Score for Ireland 2025

Ireland is one of the top study-abroad destinations targeted by international students. The country is ranked 2nd in the Global Peace Index 2024, has ...

Updated on • Mar 12,2025 11:20 AM IST • Ireland

Master's in Robotics in USA

Technology keeps improving daily and leads to new inventions. One such invention is robotics, which is making human life easier. The USA, being a top ...

Updated on • Mar 11,2025 01:18 PM IST • USA

Best Countries to Study Abroad for Indian Students in 2025

Looking for the best countries to study abroad in 2025? Studying abroad can be an endeavour for Indian students to upgrade their skill set towards bet...

Updated on • Mar 08,2025 01:24 PM IST • Study Abroad

Nursing Courses in UK

Do you want to pursue a nursing course in the United Kingdom? The UK has been at the forefront of professional nursing ever since it has been consider...

Updated on • Mar 05,2025 12:19 PM IST • UK

Fastest Growing Job Sectors in Germany in 2025

Thousands of job opportunities in Germany are waiting for Indians. Fill them before someone else grabs these. But how? Do you know which sector these ...

Updated on • Feb 28,2025 04:04 PM IST • Germany

Student Education Loan to Study in Canada - Eligibility, Documents Required, How to Apply

Table of Contents

What's the Cost of Studying in Canada?

Types of Education Loans

Requirements for Education Loan to Study in Canada

Documents Required for Education Loan

Expenses Covered Under Education Loans

Courses Covered under an Educational Loan

How to Choose the Best Educational Loan Option?

Repayment

Application Process

Tips for a Successful Student Loan Application

Conclusion

FAQ

Events, webinar, college / university visits and more.

Popular university and colleges for Studying abroad.

Bond University Queensland

Central Queensland University - Rockhampton, North Campus Queensland

Charles Sturt University - Wagga Wagga Campus New South Wales

Deakin University - Geelong Waurn Ponds Campus Victoria

Engineering Institute of Technology - Perth campus Western Australia

Griffith University - Nathan Campus Queensland

La Trobe University - Bendigo Campus Victoria

LCI Melbourne - Art & Design School Victoria

University Canada West British Columbia

University of Windsor Ontario

Dalhousie University Nova Scotia

Carleton University Ontario

Cape Breton University Nova Scotia

University of ottawa Ontario

University of saskatchewan Saskatchewan

University of regina Saskatchewan

University of guelph Ontario

Ara Institute of Canterbury - City Campus Southland

Aspire 2 International - Auckland Campus Auckland

Auckland University of Technology - City Campus Auckland

Eastern Institute of Technology - Hawke Bay Campus Hawke's Bay

Manukau Institute of Technology -Manukau Campus Auckland

Massey University - Auckland Campus Auckland

Nelson Marlborough Institute of Technology (NMIT) - Nelson Campus Southland

New Zealand Institute of Business & Technology (NZIBT) Auckland

The University of Waikato - Hamilton Campus Hamilton

University of Warwick England

De Montfort University England

University of West London England

University of Strathclyde Scotland

Aston University England

University of Bath England

University of Liverpool England

Durham University England

Newcastle University England

Kent state university Ohio

San Jose State University California

Wright State University Ohio

Clark University Massachusetts

Rowan University New Jersey

Arkansas State University Arkansas

University of Wisconsin Milwaukee Wisconsin

Southern Illinois University Edwardsville Illinois

University of Findlay Ohio

Popular English Language Proficiency Exams