Study Loan for Canada for International Students

With over 319,130 Indian students currently enrolled in Canadian institutions, Canada is clearly a top choice for higher education. Its quality of education, multicultural environment, and growth opportunities make it an ideal destination. 

However, the cost of studying abroad can be a significant hurdle. This is where a study loan for Canada comes in. It offers a financial bridge to help you achieve your academic ambitions without compromising your dreams. 

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So if you’re considering an education loan for studying in Canada, this blog covers everything you need to know!

Dive in! 

Key Highlights

Here’s a quick overview of the key points discussed in this article about a loan for international students in Canada.  

Types of Study Loan for Canada

Canada’s universities aren’t just about classrooms. They’re at the forefront of innovation, with over $17 billion invested in research and development. This amazing academic environment makes Canada an attractive destination for ambitious students like you. 

However, financing your studies in such a dynamic setting can be a hurdle. That’s where an education loan for studying in Canada becomes essential.

Here are the types of loans to study in Canada.  

Top Study Loan for Canada

Ready to join over 807,260 international students in Canada? But first, it’s time to find the right study loan for Canada, and it doesn’t have to be a headache. 

Whether it’s tuition or living expenses, this section has the lowdown on the best loans to make your Canadian dream a reality. 

Check out the top loans that can help you get there. 

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1. SBI Global Ed-Vantage Scheme

The SBI Global Ed-Vantage Scheme is the best education loan for a UG diploma in Canada and other educational levels too. This loan offers substantial financial backing, ensuring you can focus on your studies without worrying about funding.

Here are the details of this study loan for Canada. 

1. Covers tuition fees, living expenses, and even travel costs.
   
2. 11.15% interest rate
   
3. The repayment period extends up to 15 years, giving you ample time to manage your finances post-graduation.
   
4. You get a grace period during your study duration and an additional six months after completing your course.

5. The loan processing is streamlined, ensuring that you get the funds you need without unnecessary delays.

Eligibility Criteria 

Here is the eligibility criteria for this study loan for Canada. 

1. You must be an Indian national.
   
2. You need to have secured admission to a full-time regular course at a foreign university or institute.
   
3. Regular graduate, postgraduate, and doctorate degree, diploma, or certificate courses in any discipline offered by foreign institutes. 

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2. HDFC Credila Education Loan

HDFC Credila offers flexible and customised loan solutions to meet your needs. It is the best education loan for a PG diploma in Canada. 

They have made cumulative disbursements of over USD 1 billion, supporting countless students in achieving their international education dreams.

Here are the details of this study loan for Canada. 

1. Covers up to 100% of additional expenses, including living and hostel costs, ensuring comprehensive financial support.
   
2. 10.50% – 12.25% interest rates
   
3. Easy EMIs with repayment tenure of up to 15 years.
   
4. Ease of application with online & doorstep service.
   
5. The loan is sanctioned even before your admission confirmation.
    
6.  Maximum tenure of 12 years.
   

Eligibility Criteria

Here is the eligibility criteria for this study loan for Canada.

1. You must be an Indian national.
   
2. Co-applicants(s) must be an Indian citizen.
   
3. Co-borrower(s) must have a bank account with cheque writing facilities at any bank in India.
   
4. Confirmed admission across various disciplines in a foreign college before disbursement.
   
5. Borrower and Co-applicant(s) to meet HDFC Credila’s credit and underwriting norms as applicable occasionally.

3. Axis Bank Education Loan

When it comes to securing a study loan for Canada, this loan offers everything you need to turn your academic dreams into reality. Whether it’s tuition fees, travel expenses, or even living costs, Axis Bank ensures you’re fully supported. 

Here are the details of this study loan for Canada. 

1. Interest rates are between 8% to 16%.
   
2. Once your education loan is approved, the funds are transferred within two days.
   
3. Provides a provisional loan sanction letter even before you secure admission to a university.

Eligibility Criteria

Here is the eligibility criteria for this study loan for Canada. 

1. Holding an Indian Citizenship.
   
2. Achieve a minimum of 50% marks in HSC and graduation.
   
3. Gain admission to career-focused courses such as medicine, engineering, and management, either graduate or postgraduate levels.
   
4. Securing admission abroad based on entrance exams or a merit-based selection process after completing HSC (10+2).
   
5. Proof of regular income is mandatory for the co-applicant (parents, sibling, or guarantor).
   
6. Punjab National Bank Udaan

This loan is specifically designed to support Indian students in pursuing higher education at renowned institutions in Canada. Udaan ensures that your dreams take flight without the weight of financial stress.  

Here are the details of this study loan for Canada.

1. Covers undergraduate job-oriented professional/technical courses from reputed universities.
   
2. Covers postgraduate courses like MCA, MBA, MS, CIMA (London), and CPA (USA).
   
3. Includes degree/diploma courses in fields like aeronautical, pilot training, and shipping, recognised by competent regulatory bodies abroad.
   
4. The loan covers tuition fees, living expenses, travel, books, equipment, and other related costs.
   
5. Interest rates are usually 10.50%.
   
6. The repayment period is up to 15 years, with a moratorium period of course duration plus 1 year.
   

Eligibility Criteria

Here is the eligibility criteria for this study loan for Canada. 

1. You must be an Indian resident.
   
2. Must have secured admission to a recognised higher education course abroad through an entrance test or merit-based selection process.
   
3. Completed HSC (10+2 or equivalent).
   

5. ICICI Bank Study Abroad Loan

The ICICI Bank Study Abroad Loan is here to support your dream of studying at top international universities in Canada. With competitive interest rates and flexible repayment options, you can cover all your education expenses. 

Here are the details of this study loan for Canada.

1. The ICICI Bank Education Loan covers tuition fees, living expenses, travel, books, study materials, insurance, computer purchases, and other related educational costs
   
2. The interest rate starts from REPO plus a 3.75% spread.
   
3. The loan tenure is up to 10 or 12 years for undergraduate courses and up to 12 or 14 years for postgraduate courses.
   
4. Collateral can be provided as a Fixed Deposit, fresh property, or by cross-collateralising with existing mortgage loans.
    
5. The moratorium period includes the course duration plus up to 12 months of grace.
   

Eligibility Criteria 

Here is the eligibility criteria for this study loan for Canada.

1. You must be an Indian national between the ages of 16 and 35 with a proven good academic record.
   
2. You must have completed 12th Standard or a Diploma.
   
3. You can avail of this education loan for a PG Diploma in Canada, as well as for a Graduation or Postgraduate Degree.
   

Study Loan for Canada: Documents and Process

Studying in Canada is more than just earning a degree. It’s a transformative experience. In fact, 98% of students who studied abroad said it helped them better understand their own cultural values and 82% felt it gave them a more sophisticated worldview. 

But before you can get on this journey, you must tackle the study loan for Canada requirements.

Documents Required for a Study Loan for Canada

Getting your study loan for Canada is like packing your bags for an adventure! You just need the right documents to get started. 

Here are the documents required for a study loan for Canada. 

1. Proof of admission
   
2. Completed loan application form
   
3. Relevant academic documents like certificates, mark sheets
    
4. Resident proof of applicant and guarantor
   
5. Income proof of guarantor
   
6. Passport size photographs
   
7. Documents of qualifying exams with minimum scores are given below. 

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Application Process

Here are the steps to help you with the application process for your study loan for Canada.

1. Log into the website of your chosen lender or visit their branch to explore the various loan options available.
   
2. Familiarise yourself with your lender’s loan application process, as it can vary between institutions.
   
3. Complete the loan application form, including essential details like the cost of studying in Canada and estimated tuition fees.
   
4. Submit the necessary documents, including your offer of admission from the university you plan to attend.
   
5. Follow the lender’s instructions to complete your registration and the KYC process using your Aadhar number.
   
6. Await communication from your lender regarding the status of your loan application.

How to Choose the Best Study Loan for Canada? 

“Education is the most powerful weapon which you can use to change the world.” –  Nelson Mandela. 

As you prepare for your journey to study in Canada, choosing the right study loan can be a game-changer in making your dreams a reality. With various options available, it’s essential to find the loan that best fits your needs. 

Explore the key factors to consider when selecting the best study loan for Canada.

1. Understand Your Financial Needs

Determine the total cost of your education, including tuition fees, living expenses, travel, and other miscellaneous costs. This will give you a clear idea of how much loan you need. 

2. Explore Loan Options Without Collateral

If you prefer not to pledge any assets, consider opting for an education loan in Canada without collateral. These loans are usually based on your academic merit, the reputation of the institution you’re admitted to, and your future earning potential. 

They are a great option if you’re looking for a study loan for Canada without security. 

3. Compare Interest Rates and Repayment Terms

Interest rates and repayment terms vary significantly between lenders, especially for study loans for Canada without security. Look for lenders offering competitive interest rates and flexible repayment options that align with your financial situation. 

A lower interest rate can reduce the overall cost of the loan, while flexible repayment terms can ease the burden once you start working.

4. Tax Benefit 

When choosing a study loan for Canada, it’s also important to consider the tax benefits of education loans. Under Section 80E of the Income Tax Act in India, you can claim a deduction on the interest paid on your education loan, significantly reducing your tax liability. 

This benefit is available for a period of up to 8 years from the start of repayment, making your loan more affordable in the long run.

5. Moratorium Period

The moratorium period is a crucial factor to consider when choosing a study loan for Canada. This is when you are not required to repay any loan. This typically covers the duration of your course plus an additional period (usually six months to a year) after graduation. 

This allows you to focus on your studies without the immediate pressure of repayment, giving you time to secure a job and stabilise your finances before you start repaying the loan.

6. Processing Fee and Time

When choosing a study loan for Canada, consider the processing fee and time. The processing fee varies between lenders and covers administrative costs, while processing time affects how quickly your loan is approved and disbursed. 

Opt for a lender with a reasonable fee and fast processing to ensure a smooth start to your studies.

Study Loan for Canada: Collateral Requirements 

Most study loans, especially secured ones, need collateral. Understanding the collateral requirements is thus crucial. 

Collateral serves as a security for lenders, ensuring the loan’s repayment. This collateral is offered as security to the lender against the loan amount. 

The types of collateral you can pledge include. 

• Tangible assets, such as non-agricultural land, homes, apartments, or similar structures.
  
• Intangible assets, like government bonds, life insurance policies, and fixed deposits.

Most secured education loans for studying in Canada are provided by Indian government banks. The maximum loan amount you can receive through these programs depends on the collateral value you provide. 

Cost of Studying in Canada

Studying in Canada offers more than just a degree. It’s an experience rich with unique traditions like the University of Toronto’s Skule Nite, a spring comedy show by engineering students. 

But before you dive into these cultural experiences, it’s crucial to understand the cost of studying in Canada. From tuition to living expenses, you need to know it all to plan accordingly.

Here are the average tuition fees based on the type of course.   

Also Read: Cost Of Studying In Canada For Indian Students 2024-25: Tuition & Living Costs. 

Top Courses to Pursue in Canada

Choosing the right course is just as important as securing the right study loan for Canada. With various high-demand fields available, it’s essential to align your academic goals with the best financing options. 

Here are some of the top courses in Canada that attract international students. 

Need help with your university applications in Canada? Leap Scholar has got you covered. Our guidance counsellors are ready to assist you over chat or video call. Reach out to us today!

Also Read: Popular Diploma Courses In Canada After 12th For 2024: The Ultimate Guide. 

Cost of Living in Canada 

When planning to study in Canada, it’s crucial to consider the cost of living alongside tuition fees. Understanding these costs, from accommodation to daily expenses, will help you budget effectively. 

Explore the key expenses you’ll encounter while living in Canada. 

Also Read: Cost Of Living In Canada For Indian Students [2024 Updated]. 

Conclusion 

Pursuing your education is a valuable investment. And with the right study loan for Canada, it becomes more accessible. 

With an average salary of INR 33.9L (CAD 54.6K) per year after graduation, the financial commitment pays off. Choose the best loan option, plan your finances carefully, and get on your journey toward a successful future in Canada. Ready to take the next step toward your Canadian education? Leap Scholar is here to guide you every step of the way. Not just with choosing the right university but also with visa assistance, SOP review, and so much more. Connect with us now!

Frequently Asked Questions