Canada is an incredibly popular destination for its world-class education system, attracting thousands of international students annually. However, the cost of studying in Canada can be a significant barrier for several students who want to pursue their academic goals in this country. International students may face financial challenges due to limited access to financial aid and scholarships. Fortunately, international student loans, including government loans, private loans, and scholarships, are available in Canada to help them cover the cost of tuition, accommodation, and other related expenses.
Whether you are a prospective international student considering studying in Canada or a current student needing financial assistance, this blog will provide valuable information to help you achieve your educational goals and discuss the eligibility requirements and application process for each option. So, let's get started!
Two main types of education loans are available for international students to study in Canada. Types of loans in Canada
This type of study loan in Canada necessitates the provision of collateral as security. The collateral, in this case, is pledged to a lender as security for the loan amount. The collateral for such a Canadian education loan is
Government banks in India provide the most secure education loans for studying in Canada. The collateral security's value determines the maximum loan amount granted under any government bank education scheme.
Non-collateral is another type of education loan that can be obtained in Canada. In this case, applicants are not required to provide security to the lender to obtain the loan. However, there must be a co-applicant whose income determines the likelihood of loan approval. If you are looking for a student loan for Canada from India, remember that unsecured education loans are only available from private and a few international lenders. NBFCs and private banks such as ICICI Bank, Axis Bank, and others primarily offer unsecured education loans.
The process of applying for an education loan in Canada can vary depending on the type of loan you are applying for. However, the following steps are generally involved
Overall, applying for an education loan in Canada can be complex, so it's important to research and seek AECC experts’ advice if needed. Read the terms and conditions carefully, understand your repayment obligations, and make informed decisions to ensure that you can successfully fund your education.
Education loans in Canada for international students have some needs and requirements that applicants must meet. Among them are
The number of Indian students studying abroad has increased exponentially in recent years, and as a result, the demand for loans has increased significantly. Banks also verify the information provided by the applicants to sanction the loan. As a result, the applicant must submit a list of documents to the banks.
The following are the documents that must be submitted when applying for an education loan
If you need assistance regarding an education loan, Contact AECC and get expert guidance for your burden with ZERO processing fees.
An educational loan in Canada may cover a range of courses and programs of study at accredited Canadian colleges and universities. Most educational loans cover courses that lead to a degree, diploma, or certificate, including undergraduate and graduate programs. It may include business, engineering, health sciences, arts and humanities programs, and more.
In general, education loans cover these courses
You can also get a study loan if you want to pursue short-term programs in Canada. However, the chances of obtaining such loans from nationalised banks are less.
Furthermore, keep in mind that lending institutions take your preferred institute's reputation into account. So, if you pursue career-oriented courses, your chances of receiving funding from a Canadian education loan are high.
You may repay your education loan for Canada anytime during your academic studies or within six months of the completion of your course. If you pay it off completely before the end of your course, the banks will not charge you interest. Students receive documentation from the government detailing the interest rate and repayment amounts owed at the end of the grace period (6 months). In the case of a CIBC student line of credit, it is converted into a personal loan one year after graduation. Students can also extend their repayment period to a maximum of 20 years.
It's one of the most important considerations when applying for an education loan. Because every bank offers various student loan programs, it is always a good idea to research which program best meets your needs. Different schemes cover different expenses, so it is always a good idea to check with the bank to see what other expenses, aside from the tuition fee, are covered by the loan scheme.
The following items are on the expense list.
If the loan exceeds INR 7.5 lakh, tangible assets are required as collateral security. In addition, all education loans require parents to be co-borrowers.
Here are the listed conditions for collateral security
Section 80E allows for tax deductions on interest paid on the loan amount. Furthermore, once the repayment begins, the tax benefits can be claimed for up to seven years.
Loans are a boon for bright students who have the potential to make it big in life but are unable to do so due to rising costs.
Numerous premier banks (both government and non-government) in India provide education loans for Canadians. The following loans can be considered
AECC has collaborated with top Canadian institutions with various programs that help you gain overseas education at an affordable cost. To know more, contact AECC's expert guidance and build your career in Canada.
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