Education Loan

Educational Loan Options for UG Diploma in Canada

Educational Loan Options for UG Diploma in Canada

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Got admitted to a UG-diploma course in Canada? Learn about various education loan financing options with the lowest interest rates, minimum hassle, free doorstep service and other benefits

GyanDhan
Salil Singh
Updated on:  10 Oct 2023  | Reviewed By: 
Aman 
| 8.58K | 11  min read

Indian students constitute a significant chunk of Canada’s international education sector. Since 2014, this segment has seen a 350% rise. Arguably, one reason for this is the diverse range of courses Canada has to offer. Besides the regular bachelor’s and master’s degrees, there is a plethora of UG Diploma Courses in Canada. These are certificates and diploma courses that the last one to three years and offer reasonable employment opportunities.

 


 

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How Much Does UG Diploma in Canada Cost?

When compared to the US or UK, the cost of studying in Canada is slightly less. Even the top colleges of Canada are thirty to forty percent less expensive than those of the USA. Typically, the tuition for an undergraduate degree in Canada lies somewhere between CAD 10,000 to 15,000  annually.
To give you a more precise picture, listed below are the top four colleges in Canada for UG-diploma courses and their approximate yearly tuition. 

Barring fees, one more expense that international students bear is the cost of living which comes to be around CAD 10000-17000 per year (varies from place to place).

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What Are the Education Loan Options in Canada for UG Diploma Courses?

While pursuing an undergraduate diploma course in Canada is comparatively a cheaper affair, the cost is still considerable. This necessitates the need for financial aid for international students to fund their higher education in Canada. And an education loan happens to be one of the most viable financial aids.
Broadly, there are two types of education loans – with collateral and without collateral. Private banks, public banks, and NBFCs (non-banking financial corporations) offer these loans. Different banks and NBFCs provide varying loan amounts necessitating specific requirements and documents.
A few options for education loans in Canada for International Students for UG Diploma are given below along with key elements such as amount, interest rate, processing fees, etc.

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Which Banks Offer Study Loan for Canada ‌Without‌ ‌Collateral‌ ‌?

An unsecured loan or education loan without collateral is one that doesn’t require a student to pledge a property or any other financial asset. The approval of the loan is dependent on the credit history and income of the co-applicant. 
However, no Indian lender provides an unsecured educational loan for UG Diploma in Canada to international students for more than INR 7.5 lakhs.

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Which Banks Provide Study Loan for Canada With Collateral?

An educational loan with collateral sanctions a higher amount range when compared to an unsecured one. Moreover, these offer a lower interest rate. A collateral is a personal asset that the applicant submits to the bank or NBFC.  It acts as an assurance and proves that the student will repay the loan within the specified time. 
When it comes to an educational loan for UG Diploma Course in Canada, secured loans or loans with collateral seem to be the only viable option left for students. This is mainly because, as we have seen above, no lender offers an unsecured education loan for more than INR 7.5 lakhs, which too is an inadequate amount to finance a UG Diploma education in Canada, and will not help you with your expenses. If in case one is unable to pledge a property or asset as collateral for the loan, one could even consider pledging third-party security, that is, an asset owned by a third party. 
Students can, therefore, have a look at the multiple secured loan options available for UG Diploma in Canada given below and their important features. 

Example Lenders

BOB Bank

Axis Bank

Avanse

NA

Loan Amount (INR)

Up to INR 60 lacs

Up to INR 60 Lakhs

Up to INR 60 Lakhs

NA

Interest Rate Range

10.45%

11.5%-13.5%

12.4%-14%

NA

Processing Fees

INR 11800

  0 below INR 20 lacs and INR.750 above INR 20 lacs  

1% - 2%

NA

  Payment During Study Period  

None

Simple Interest

  Interest as well as the principal amount  

NA


 
  • list items Repayment Period - The repayment period for education loans with collateral in the case of public banks is 15 years. In the cases of private banks and NBFCs, the repayment tenures are 20 years and 8-10 years respectively. But in case you want to extend you repayment tenure, feel free to contact GyanDhan. We let your requests be known to the bank and try to get you a customized loan offer suiting your needs.
  • list items Processing Period - Public banks usually take 15-20 working days to process these loans. Private banks take 10-12 days for processing, while NBFCs take 8-10 working days. If there is any delay from the bank’s side, our escalation team gets in touch with the upper management and gets the loan processed immediately.
  • list items Expenses Covered - Loans from public banks cover 90-100% of the total expenses, depending on the bank you are taking the loan from. While private banks cover 85% of the total expenses. NBFCs cover 100% of the total expenses. Going by our experience, in the case of NBFCs, approximately 50% of the co-applicant income should be adequate to at least bear the interest per month, whereas, in the case of banks, this number is approximately 65%. Multiple co-applicants may be combined. 
  • list items Common Decline Reasons - Both public and private banks decline with collateral education loan applications for two key reasons - incomplete collateral documents and poor CIBIL. NBFCs generally decline applications for low co-applicant income and poor CIBIL score

However, students who apply for a loan with our help have 50% more chances of getting the loan approved as compared to those directly approaching the bank.  Our experienced counsellor meticulously analyzes your profile, suggest solutions and then selects and coordinates with that lender first that is most likely to sanction the loan.

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What are the Odds of Getting a Secured Education Loan for Canada from Private Banks and NBFCs?

When it comes to UG Diploma in Canada, it has been observed quite a few times that private banks and NBFCs decline even the with-collateral education loans for UG Diploma in Canada. However, you can safely place your bets on Bank of Baroda which has a higher rate of sanction when it comes to secured loans for UG Diploma courses in Canada. Nevertheless, we suggest that you get in touch with GyanDhan first for loans from BoB to increase the probability of loan approval. 

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What Documents are Required for Study Loans for Canada With Collateral?

The typical documents for study loan for Canada are mentioned below. Please note that the requirements differ for each bank. If you have a specific bank in mind, get in touch with us. GyanDhan provides you with a customized documents list which ensures that you submit all the requisite documents at one go thus expediting your loan approval process.
 

Identity Proof

Identity Proof

Address Proof

Address Proof

Passport

Income Proof

Proof of Admission

Bank Account Statement

Statement of Cost/Expenses

ITR for the last 2 Financial Years

Passport-Size Photographs

Passport-Size Photographs

 Academic Record including mark sheets, certificates and Exam scores (GMAT / GRE / IELTS)  

Legal documents of the collateral

 

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 What‌ ‌is‌ ‌the‌ ‌Application Procedure for Bank Loans for Canadian Education?

The student visa application for Canada requires the purchase of CAD10,000 GIC. Because the Guaranteed Investment Certificate costs a lot, you will need to apply for the education loan and get it disbursed even before the visa. But this is a task which is easier said than done. Although banks do have policies which approve the pre-VISA disbursal of loans, getting it done in reality is extremely difficult and, in some cases, impossible. Bank officials are generally reluctant to disburse loans before VISA and therefore reject such requests. If you are stuck in such a situation or are a potential loan applicant who would like to avoid this scenario, don’t worry! GyanDhan helps students to get these issues resolved too. We not only help you get a pre-VISA disbursal but also finish the process of pre-visa disbursal in just a couple of days which would otherwise take you 7-8 more days if you were to approach the bank directly. 
Besides, below are the basic steps involved in the loan application process:

  1. list items Check your eligibility for an education loan here.
  2. list items Our education loan counsellor will call you to discuss the feasible education loan options. Then our counsellor will suggest the subsequent steps to be taken as per the lender decided on to avail the loan from. 
  3. list items You will be required to submit all the supporting documents. Since this is a critical step, it is advised that you take help from our counsellor to ensure that all the required documents have been submitted. If you reside in a metropolitan city and have applied to a nationalized bank for the education loan, GyanDhan’s relationship officer will pick up the documents from your home for free, however, for other cities, we will set an appointment with the branch manager of the bank and coordinate.  In the case of private banks, our banking partner will pick up the documents from your home, or you can courier it to the sales manager appointed by us. If you take an education loan from NBFC, you just have to upload the documents on our website. There is no need to submit any hard copy.
  4. list items The bank reviews the application. At this stage, the students and parents will be required to give in more details. If the loan application is viable, the bank then goes on to approve it.
  5. list items Once the loan is approved, the student has to accept the offer by signing the sanction letter offered from the bank and by paying the processing fee in the case of NBFCs. 
  6. list items Once the student receives the sanction letter, the student & the co-applicant need to sign the agreement in 2 to 6 months depending on the validity of the sanction letter which varies from lender to lender. Once the agreement is signed, the student can apply for the disbursement of the loan.    

 

Applying for an education loan is a time-consuming and cumbersome process. Any hitches in the process can either lead to a prolonged delay or outright rejection of the loan application. Therefore, it is advised that the applicants start with the loan application process right after receiving their admit letters from the university. 
  

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How‌ ‌to‌ ‌Choose‌ the‌ ‌Best Education Loan for UG Diploma in Canada?‌ 

Shortlisting banks that offer an Education Loan for Abroad is easy. But selecting a loan out of a giant pool of options that suits the diploma course in Canada and your finances is complicated.
 The process requires one to do research and carefully analyze the following factors:

  1. list items Interest Rate
  2. list items Processing fee & Time 
  3. list items Margin Money
  4. list items Moratorium Period
  5. list items Tax Benefits 
  6. list items Loan Duration 
  7. list items Expenses Covered
  8. list items Prepayment terms and conditions

You can also take our help to make this decision. We at GyanDhan hold an impressive record of helping out thousands of students in selecting the best education loan for them. If you are interested in studying UG Diploma in Canada and are confused as to which educational loan to go for, get in touch with us. We will analyze your profile and let you know if it is possible for you to get an education loan sanctioned from the bank even before you receive your admit letter. We also help you to pick out the best education loan out of multiple options available which ensures you the least financial burden in the future.

You can also do your own analysis with the help of our education loan focused customizable EMI calculator which helps you to calculate the EMIs each loan option will incur. Depending on the amount which an option allows you to save, you can select the most suitable loan for yourself. Or you could simply check your loan eligibility using our Loan Eligibility tool which filters out the options perfectly suiting your requirements. 

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