Education Loan In Canada | Student Loan In Canada To Study Abroad

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Hello, in today’s article, we will give you information about each and every aspect of study loan for Canada country. From the eligibility and loan application process to the documents required to get an education loan to study in Canada. Apart from this, we will also tell you which expenses are covered under student loan for Canada.

Student Loan for Canada

Canada is competing with the United States as the most preferred place to pursue higher education among all countries. The cost of studying in Canada depends on the university, course, duration of study and cost of living. Although India also has many good universities, excellent career opportunities and high standard of living motivate students to study abroad. India is also a good place to study. Not every student who wishes to study abroad can afford to live and study in Canada. Therefore, various banks and other financial institutions provide study loans for Canada. Although various financial aids and scholarships are also available, but due to stiff competition, not every student can avail them.

Study Loan for Canada – Eligibility, Documents Required

International Student Loans Canada: Process

Whenever someone applies for a loan, it is common that it takes time. Getting a loan approved is not only difficult but also time consuming, hence to avoid last minute rush, one should always start applying for the loan early. After receiving the admit card from the university, students get an idea of the total expenses including studies and accommodation. Calculate yourself how much money you need to finance and how much you are going to or can afford to spend from your own pocket. Before applying for a loan do some research and check which banks are offering the best deals on loans. Also, check out how to choose your bank for education loan to study abroad.

Compare the loan offers of different banks on these parameters:-

Interest rate
Processing fee
Loan processing time
Prepayment terms and duration
Expenses covered under the education loan

Once you have selected the bank, fill the application form along with the required documents and check the requirements of the bank. Inability to show sufficient funds may also lead to rejection, hence, it is always advisable to approach at least two-three banks for a loan. Students interested in applying for loans to study abroad can contact India’s leading education loan providers through Shiksha Study Abroad.

Study Loan for Canada Requirements

In the last few years, the number of Indian students going abroad to study has increased rapidly, hence the demand for loans has also increased significantly. Banks also verify the details given by the applicants to approve the loan. So, there is a list of documents that the applicant must submit to the banks to get a study loan for Canada.

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Here’s a list of the documents required while applying for the education loan:

Admission letter from university/institution (Proof of admission)
Loan application form
Passport size photographs
Academic documents (certificates and mark sheets)
Documents of qualifying exams (like GMAT, IELTS)
Resident proof of the student and the guarantor
Statements of borrowers’ bank accounts (last year)
Income proof of the guarantor

Note: Documents required may vary as per banks’ own rules and regulations, so it is always advisable to check the list of required documents with the concerned bank and be prepared beforehand.

Courses for which banks provide a loan to study in Canada?

Those courses are also funded by the bank. For which students want to apply for undergraduate, postgraduate or research programs in established institutions. Also banks also provide loans for SDS colleges. Generally nationalized banks do not offer education loans for professional, short-term or diploma courses. Since banks always think about getting the amount back from students seeking money, they always prefer to distribute loans for job-oriented courses.

Education Loan for Studying in Canada: Eligibility

Criteria are a means by which banks decide whether to give loan to someone or not. Before applying for an education loan one must check the eligibility criteria to get the loan approval.

Some factors that all banks consider:

The loan applicant must be an Indian citizen.
The applicant must have secured admission to a recognized foreign university/institution.
The loan applicant must be above the age of 18 years or his/her parents will have to apply for the loan.
The applicant must have secured admission to a professional course.
Repayment of Study Loan for Canada

Repayment starts after a period of one year or six months, whichever is earlier, after the completion of the course once the candidate gets the job. The loan amount has to be repaid in 5 to 10 years once the repayment starts.

Note: The repayment conditions vary according to the banks’ rules or conditions covered under the loan scheme.

Expenses covered under Student Loan for Canada

This is one of the most important factors to keep in mind while applying for an education loan. As there are a lot of student loan schemes offered by banks, it is always recommended to check which scheme suits your needs the best. Different expenses are covered under different schemes, so one should always check with the bank as to what all other expenses are covered in the loan scheme apart from the tuition fee.

The list of expenses includes:

Tuition fee
Travel expenses
Cost of buying books and other study material
Laboratory fee
Hostel fee
Purchase of a laptop (If required for the course)
Expenses for project work or study tours
Collateral Rules

If the loan amount exceeds INR 7.5 lakh then tangible assets are needed as collateral security. Also, parents are required to be co-borrowers for all education loans.

Collateral Rules

If the loan amount exceeds INR 7.5 lakh then tangible assets are needed as collateral security. Also, parents are required to be co-borrowers for all education loans.

Tax Benefits

Tax benefits can be claimed on the interest paid on the entire loan amount under section 80E. Further, the tax benefits can be claimed for up to seven consecutive years once the repayment starts.

Education Loan In Canada | Student Loan In Canada To Study Abroad

Loans are a boon for brilliant students who can make big in life but due to rising costs are not able to gain a quality education. However, it is recommended to carefully check the conditions of the loan agreement. Now that students have sufficient knowledge about Student Loan for Canada, they can get in touch with India’s top-rated loan providers and apply for an education loan through Shiksha Study Abroad.

FAQ’s ( Frequently Asked Questions) –

1- How to get study loan for Canada?

Here are some steps that will help you get a study loan for Canada:

Research: You need to find and compare various financial institutions that offer student loans for Canada. Research their interest rates, terms of study loan, eligibility requirements, repayment options, etc. Eligibility: Each lender has different eligibility requirements for study loans in Canada. Some require a co-signer, while some ask for a collateral. It is important to be clear about the Canada study loan requirements. Documents: Make sure to arrange all the necessary documents such as letter of acceptance, income tax returns, bank statements, etc. as required by the financial institution. Submit Your Application: Submit your Canada student loan application and make sure to meet all the requirements. Review Your Loan Agreement: Make sure to review your Canada student loan agreement before accepting it.

2- What is the study loan for Canada interest rate?

Ans. Study loan for Canada interest rates vary depending on the financial institution and the terms and conditions of the loan. Interest rates for Canada student loans can range from 6.5% to 14%. Moreover, these interest rates are subject to change as per the change in bank guidelines. For instance, current interest rate (as of July 2023) for Canada study loan by HDFC Credila is 13.3%. Finding the best interest rate for your particular needs requires doing some research on several lenders and comparing their offers.

3- How can I obtain study loan for Canada without security?

Here are some important points for obtaining a student loan for Canada without security or collateral:

Creditworthiness of the co-applicant must be good.
Good academic score and profile.
Admission to a good college or university that can help you get a good job.

It is vital to keep in mind that the eligibility requirements and loan conditions may vary between lenders, so it is crucial to fully explore your alternatives and evaluate various offers to discover the one that best suits your unique circumstances.

4- What are the documents required for study loan for Canada?

Documents required for a study loan for Canada vary as per the needs of the financial institution. Certain common documents required for study loan for Canada include:

Proof of admission to a Canadian University/College

Loan application form
Passport-size photographs
Income proof of the co-signer
Academic records/transcripts
Entrance exam results (GMAT/GRE/IELTS/TOEFL)
Proof of identity (passport, ID card, etc.)
Bank account statements
Evidence of purchase of a special Guaranteed Investment Certificate (GIC) from a participating Canadian financial institution

5- Besides study loan for Canada, how can I finance my education in Canada?

Ans. For many students, paying for their education in Canada can be rather expensive. There are other workable solutions to fund your tuition and living costs if you are unable to secure a study loan. Scholarships and Grants: Consider exploring scholarships and grants as one of your greatest possibilities. They may be granted based on merit, need, or even particular academic fields of study. To find out if your preferred Canadian college offers any scholarships or grants that you might be qualified to apply for, check with them directly.

Education Loan In Canada | Student Loan In Canada To Study Abroad

Part-time Work: Another option for paying for your education is to work part-time while you are a student. Canada permits international students to work during their studies, which helps lower living and tuition costs. Additionally, several Canadian businesses provide internships or co-op programmes to students in particular academic subjects, which provide beneficial job experience as well as some financial aid.

Others: Crowdfunding, which has grown in popularity over the years, is a potential alternative. You might also try requesting financial aid from nearby companies, non-profits, or philanthropic organisations that are prepared to help students.

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