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

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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.

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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

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