Education Loan for Studying in Canada: A Detailed Overview

    Updated on: 25 Sep 2022

     


    According to a UN Survey, Canada, famous for its peaceful, friendly, and safe environment is ranked one of the most preferred international education destinations in the world. Canada is also believed to have the most secure study environment offering a high quality of life and studies. The country is a quintessential hub of top-notch universities maintaining high standards of educational excellence with a vast range of professional programs for overseas students. Indian students in huge numbers go to Canada every year for higher education prospects and study in one of the thousands of undergraduate degree, graduate degree, and diploma courses.

    Canada is undoubtedly promising for abroad education aspirants. But this opportunity comes at a certain price. Other than the cost of study and living, one also needs to deposit CAD 10,000 as a Guaranteed Investment Certificate (GIC) amount in banks like CIBC or SBI Canada

    To finance the high cost of studying, education loans seem to be the best resort for students. Education loans are also one of the best ways to show proof of funds for Canadian student visas.

    Check Your Education Loan Eligibility Apply Here

    What are the types of education loans available in India for study in Canada?

    Broadly, there education loan options in India to study in Canada fall under two brackets:

    1. Education Loans with Collateral: These are the education loans where applicants require to provide collateral as security. This collateral is pledged to a lender as a security for the loan amount. This collateral can be of two types:
      • Tangible assets such as flats, land (non-agricultural), shops, etc.
      • Intangible assets such as fixed deposits, life insurance, government bonds, etc.
    2. Education Loans without Collateral: These are the education loans in which the applicant does not need to pledge any security to the lender in order to avail of the education loan. However, there has to be a co-applicant and his/her income becomes a major determinant of the loan sanction probability. Also, only the private lenders in the country and a few international players offer an unsecured education loan for an amount more than INR 7.5 Lakhs to study in Canada.

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    What are the types of lenders offering education loans to study in Canada?

    There are mainly 4 types of lenders that provide education loans to study in Canada for Indian students:

    How to get an education loan for bachelors in Canada?

    For undergraduate courses in Canada, Indian lenders only offer loans with collateral. You will need to put an asset as a security to get an education loan for a bachelors’ degree in Canada. For such a loan, you can apply to a government bank as for secured loans, public sector banks are the best options, owing to their lower rate of interest, longer moratorium period, tax benefits under section 80 E, and more. 

    How to get an education loan for MS in Canada?

    You can go for both secured and unsecured education loans to study MS in Canada. As masters in Canada has substantial job scope and also raise high demand among the study abroad aspirants, banks and NBFCs are always open to provide education loans for masters in Canada, providing the applicant fulfills all the financial and academic requirements. 

    How to get an education loan for PG Diploma in Canada?

    A majority of overseas students in Canada get enrolled in PG diploma courses, and a considerable mass of Indian students pursue a Postgraduate diploma in various fields. A postgraduate diploma is done after a bachelors’ degree and is somewhat similar to a Master’s degree. It is needless to say that the cost of a PG Diploma is also very high. Education loan is a silver lining in the dark clouds for all those study abroad aspirants who wish to do higher education in Canada but face impediments due to financial restrictions. Since studying PG diploma courses in Canada is not a cheap affair, many students get deterred and abandon their plans of going there for higher education. For such students, a study loan for a PG diploma in Canada is the best option to fund their studies and other related expenses. Students can take any of the secured education loans or an unsecured education loan for studying abroad depending upon their financial and academic profile.

    How to get an education loan for MBA in Canada?

    MBA in Canada is indeed a costly affair. Many of the Indian students headed to Canada for an MBA find it difficult to get finances for their education. This necessitates financial aid, and at this point, an education loan comes to the students’ rescue. A study loan for MBA in Canada with collateral from a public sector bank is one of the most cost-effective options for all the study abroad aspirants who are looking for financial help to pursue an MBA in Canada.

    However, there are many other options. education loans for MBA Courses in Canada can be broadly divided into two types. They have education loans with collateral and education loans without collateral. Public sector banks, private banks, and NBFCs provide education loans for studying in Canada at varying interest rates and different terms and conditions.

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    How to get an education loan to study in Canada?

    • Check your loan eligibility
    • Get free expert loan counseling from our counselor to compare the education loan options available. 
    • Select a lender and the application online on our platform.
    • Get your customized document checklist.
    • Submit the documents either online or get documents picked up from your home by our representative.
    • Property & other legal evaluation (in loans with collateral).
    • Get the loan sanction letter after the lender’s approval.

     

    Check Your Education Loan Eligibility Apply Here

    How can GyanDhan help in getting a loan to study in Canada?

    With GyanDhan, you can skip all the hurdles by simply contacting us. You can get the benefit from our streamlined education loan process and free help in getting education loans to study in Canada and several other major countries. Our expert education loan counselor will discuss the loan options available to you after understanding your academic and financial profile. We work in partnership with several lenders in the market, including governments banks, private banks, and NBFCs. Contact GyanDhan and you will not have to worry about your abroad education loan process. To know if you are eligible for a Canada study loan, check your loan eligibility now!

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