Canada is a must-visit destination. The best institutions provide a diverse range of experiences and opportunities. However, there is a cost associated with this possibility. Aside from tuition and living expenses, a student must additionally deposit CAD 10,000 in a Guaranteed Investment Certificate (GIC) with CIBC or SBI Canada. A study loan in Canada is one of the options for funding your studies in Canada. A Canadian education loan is a viable alternative for obtaining financial support in order to pursue higher education in Canada. 

To know everything about loans to study in Canada, read along.

Types of Education Loans to Study in Canada

There are two types of of education loans to study in Canada as following:

1. Collateral Loan (Secured Loan)
2. Non-Collateral Loan (Unsecured Loan)

Collateral Loan (Secured Loan)

This type of study loan in Canada necessitates the provision of some form of collateral as security. In this case, the collateral is committed to a lender as security for the loan amount. The following items can be used as collateral for a Canadian education loan:

• Tangible assets include non-agricultural land, houses, flats, and other similar structures.
• Intangible assets, such as life insurance, fixed deposits, and government bonds, are examples of intangible assets.

In India, secured education loans for study in Canada are mostly provided by government banks. Any government bank education scheme’s maximum loan amount is determined by the value of the collateral security.

Non-Collateral Loan (Unsecured Loan)

This is Canada’s second form of education loan. In order to obtain the loan, the applicants are not required to provide any collateral to the lender. However, there must be a co-applicant whose income impacts the likelihood of the loan being approved. If you’re looking for a student loan in India, keep in mind that unsecured education loans are only available through private lenders and a few international lenders. NBFCs and private banks such as ICICI Bank and Axis Bank are the most common providers of unsecured education loans.

How to Get a Study Loan for Canada?

It is easy to get a study loan for Canada but it is a lengthy process.Because obtaining an education loan in Canada is a lengthy procedure, you should begin the application process at least 6-7 months before the start of your course. 

The following is a step-by-step guide to obtaining a student loan in Canada:

1. Find out which banks in Canada offer student loans to international students, as well as their eligibility and documentation requirements.
2. Calculate how much money you’ll need to study in Canada for the subject you want to take.
3. Acquire a letter of acceptance from your chosen Canadian institution or university.
4. Make a comparison of the many loan alternatives provided by various banks and choose the finest one.
5. Following the selection of a bank, the following step is to determine the loan amount and complete the loan application form.
6. Your bank will produce loan paperwork once your loan application has been approved. Before signing, you must thoroughly read it.
7. The bank will finally distribute the loan amount after you have agreed to all of the bank’s terms.

Eligibility Criteria for Study Loan for Canada

In order to qualify for an education loan in Canada, international students must meet certain demands and conditions. 

Check out the Eligibility criteria for loan to study in Canada:

• For a full-time programme, you must have an acceptance letter from a recognised Canadian institution.
• You must be at least 18 years old to participate. If the candidate is under the age of 18, the parents must apply for an education loan in Canada.
• A strong academic record is not required, but it will greatly assist you in obtaining a study loan in Canada.
• You must apply for a course that is either job-oriented or has high career prospects.
• To grant study abroad loan for Canada, you must be able to pledge some type of collateral security.

Documents Required to Get Study Loan for Canada

Following documents are required to get loan to study in Canada:

• Guarantor’s proof of income. Example: salary slip
• Bank statements of last one year
• Age proof
• Academic transcripts and certificates
• PR certificate of both student and guarantor
• Proof of admission
• Student loan application form
• Passport size photographs
• Identity proof (Voter ID, Valid Passport, Driving License, Adhaar Card)
• Exam scorecards (GMAT/ GRE/ IELTS/ TOEFL)

Other documents that may be required 

• Illness or Disability Certificate
• Minority Caste Certificate
• Extra Co-curricular Activities Certificates

Best Loan Providers for Study Loan in Canada

Many top banks (both government and non-government) in India provide education loans for Canadians.

Here are a few examples:

ICICI Education Loan to study in Canada

ICICI study abroad education loans provide students with money to attend higher education in Canada as well as assistance with GIC purchases. This covers Student Loans, GIC and Savings Accounts, as well as a platform for paying University Fees. Additional in-flight expenditures, travel cards, forex services, and external remittances are also available. Under the ‘iSMART’ version, ICICI offers financing up to 1 crore for studies all around the world. Their interest rates range from 11.40 and 14.00 percent.

HDFC Credila Study Loan to study in Canada

The HDFC study loan for Canada provides up to 100% funding for educational expenses. It also features a faster turnaround time for international students in Canada who need a student loan, as well as flexible repayment choices. International tests such as IELTS, TOEFL, SAT, GMAT, GRE, and others are also covered by HDFC Credila study loans for Canada. Depending on their courses, Indian students can get up to 36 lakhs in HDFC Credila loans.

SBI Ed-Vantage Loan to study in Canada

Another popular student loan is the SBI Ed-Vantage Loan, which is designed exclusively for foreign education in nations such as Canada. SBI Ed-Vantage offers a study loan with an interest rate as low as 8% in Canada. It can pay up to 90% of total tuition fees and non-academic expenses. For Indian students studying in Canada, SBI offers education loans up to 1.5 crores at interest rates ranging from 8.50 percent to 11.25 percent.

Repayment of Education Loan in Canada

You can repay your Canada education loan at any time throughout the course of your studies or six months after they are completed. If you pay it off completely before the end of your course, the banks will not charge you any interest. Students receive documentation from the government showing the interest rate and repayment amounts owed at the end of the grace period (6 months). In the event of a CIBC student line of credit, one year after graduation,and line of credit is changed into a personal loan. Students can also choose to extend their payback duration to a maximum of 20 years.

Study Loan for MS in Canada

Number of Indian students in Canada increased by 40% in 2018. More than 172,600 people were counted. The total number of people is likely to be even higher this year. Science and technology courses have witnessed one of the most consistent growth, with more Indian students enrolling each year.

As the demand for STEM Master’s degrees in Canada grows, so does the need for MS educational loans in the country. Following loans can be obtained to study in Canada ICICI Education Loan to study in Canada, SBI Ed-Vantage Loan to study in Canada, HDFC Credila Study Loan to study in Canada

Can One get a Student Loan for Diploma Courses in Canada?

In Canada, secured and unsecured loans are readily available for courses such as MS. But you can only get an education loan for a UG diploma in Canada if you have a secured loan. One of the reasons for this is the scarcity of job possibilities in Canada after completing UG diploma programmes. Banks favour masters because they want to put their capital in a profile that assures a return. It is not, however, the same as a PG Diploma education loan in Canada. Students, on the other hand, have a difficult time obtaining a study loan for a PG Diploma in Canada.

This issue arises mostly because many bank employees are unaware that education loans can be issued to students in order to pay their post-secondary education in Canada. Furthermore, because a PG Diploma is only offered by Canadian universities, most Indian lenders do not consider it a mainstream course.

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