• Education Loans

Study Loan for Canada : A Complete Guide

2068 Reads
3 min Read

By:CANAM Group
Updated On:Mar 18,2024 05:23 PM IST

This blog is the go-to resource for learning how to use student loans to pay for one’s overseas education in Canada. Examine eligibility requirements, loan categories, application procedures, payback schedules, and important points for students. Get professional advice and confidently manage the procedure to realize the dream of studying in Canada.

An ideal destination for international students from all around the world is Canada. The best institutions have an abundance of possibilities and experiences. However, there is a cost associated with this chance. Choosing to apply for a study loan for Canada is one option for financing education there. A good way to obtain funding for further study in Canada is through an education loan.

With the help of this thorough guide, students may finally understand the complexities surrounding student loans for international students and obtain the money they need to fulfill their academic dreams.

Types of Study Loans for Canada

Broadly divided, study loans for students to study in Canada can be of the following two types.

Collateral Loan

The candidate for this form of study loan for Canada must offer collateral of some kind. Here, the collateral is pledged as security for a loan amount to a lender. Such a Canadian education loan's collateral consists of:

• Tangible assets, such as non-agricultural land, homes, apartments, or other structures of a similar nature.

• Intangible assets include government bonds, life insurance, and fixed deposits, among others.

The majority of secured school loans to study in Canada are given by Indian government banks. Any government bank education program's maximum loan amount is determined by the collateral security's worth.

Non-Collateral Loan

This is Canada's second kind of student loan. If you don't have collateral to pledge, don't panic; lenders such as private banks, NBFCs, and overseas lenders are ready to assist you in this situation. Private banks and NBFCs may need a co-applicant/co-signer with a minimum financial income and no liabilities, however foreign lenders may approve loans without a co-applicant or collateral.

In this case, obtaining a loan does not require the applicants to give the lender any collateral. However, a co-applicant is required, whose income establishes the likelihood of a loan sanction. It's important to remember that only private lenders as well as a select few foreign ones offer unsecured education loans to students seeking to finance their studies in Canada. NBFCs and private banks like ICICI Bank, Axis Bank, etc. are the primary providers of unsecured education loans.

Study Loans for Canada: Eligibility

The fundamentals of eligibility for applying a student loan for Canada are: -

Immigration status	For the full term of study program, student must possess a valid study permit.
Enrollment	Be enrolled in a government-approved program at a specified public post-secondary institution in Canada at least half-time
Financial need	Student should possess proof for their financial need and inability to pursue education in Canada.

Student Loans for Canada : Documents Required

The following papers are on a list of those needed for a study loan in Canada.

• Acceptance or Admissions letter

• Application for Student Loans

• Passport size photos

• Identity verification (valid driver's license, passport, voter ID, and Adhaar card)

• Evidence of age

• Academic proofs

• Score cards IELTS/TOEFL and GMAT/GRE

• Permanent Residency Certificate

• Bank Statements

Courses Eligible for Canada Study Loan

The banks provide funding to students who want to apply to reputable universities for undergraduate, graduate, or research degrees. Vocational, short-term, and diploma courses in Canada are typically not eligible for education loans from nationalized banks. Banks always favor disbursing loans for courses that are career-oriented since they always consider recovering the whole amount from the student requesting money.

Canada Education Loan Process

Prepared to apply for a Canadian student loan? This is a broad road map:

Research and Compare Loan options	Examine the conditions, interest rates, and qualifications for each lender.
Gather Documents	Get ready with the necessary paperwork, such as academic transcripts, study permission, evidence of financial stability, and (if relevant) co-signer's data.
Complete the Application	It's possible that every lender has a distinct application process. Pay close attention to the guidelines they provide.
Await Judgment and Complete the Loan	Before funds are issued, examine and accept the loan terms upon approval.

Parameters to Consider for Student Loan

Compare the loan offers of different banks on these parameters:

Expenses Covered Under a Study Loan for Canada

Bank accepts Canadian education loan, issues document, validates agreement, pays amount in segments or lump sum, as per agreement. This is one of the most significant aspects to consider when applying for an education loan. Because banks provide a variety of student loan programs, it is usually advisable to determine which plan best meets your needs. Different expenditures are covered under different plans, therefore it is always a good idea to check with the bank to see what additional expenses, aside from tuition, are covered by the education loan abroad. The list of expenditures includes:

• Tuition fee

• Travel costs

• Cost of purchasing books and other study materials

• Lab charge

• Hostel fees

• Purchase a laptop (if necessary for the course).

• Expenses for project work and study tours

Return of Canadian Study Loan

Once the individual obtains a job, repayment begins six months or one year after the course ends, whichever comes first. Once the payback period begins, the loan balance must be returned in 5 to 10 years. Things to keep in mind for repayment of study loans in Canada are: -

Start Early	Use grace periods for modest payments to lower the amount of interest
Choose a suitable plan	Opt for a repayment plan that aligns with the income and financial situation.
Explore consolidation option	If managing multiple loans, consolidate them for streamlined repayment.
Stay informed	Monitor the loan balance, interest rates, and repayment terms regularly.

Conclusion

This guide provides information on navigating loan options, applying for education, and securing repayment for international students, aiming to help them make informed decisions and achieve their Canadian educational dreams.

In Canada, students frequently choose to finance their education using education loans. Many students who want to study abroad can finance their higher education and realize their goals of study abroad with the help of education loans. Students who now know enough about Canadian student loans can get in touch with expert study abroad counselors for more advice.

FAQ

Are foreign students eligible to apply for Canadian student loans?

Indeed. Student loans are one of the several financial alternatives available to international students studying in Canada.

What conditions must be met in order to apply for a student loan in Canada?

A letter of admission from a Canadian university is required before starting the application procedure for student loans. In order to apply for a student loan in Canada, students must provide documentation of their identity, evidence of age, and proof of money if the loan is secured.

What are the conditions of repayment for student loans in Canada?

The conditions of the student loan repayment will be determined by the lender agreement. The lender will determine the repayment plan prior to approving the loan.

For overseas students studying in Canada, is it worthwhile to take out a student loan?

The primary distinction between loans and other types of financial help, such as grants and scholarships, is that the former need repayment while the latter do not. The final resort for financing education should thus be a loan.

Get great articles direct to your inbox

The latest news, articles, and resources, sent straight to your inbox every month.

Popular Universities to Study Abroad

World class education waiting for you.

Southern Illinois University Edwardsville

Illinois, USA • 240 Programmes

Tuition Fee : USD 18000-18500 / year

Heriot-Watt University - Dubai Campus

Dubai, UAE • 59 Programmes

Tuition Fee : AED 0-0 / year

Texila American University

Guyana, USA • 2 Programmes

Tuition Fee : USD 0-0 / year

Coast Mountain College - Prince Rupert Campus

British Columbia, Canada • 18 Programmes

Tuition Fee : CAD 13500-16500 / year

Vancouver Film School

British Columbia, Canada • 13 Programmes

Tuition Fee : CAD 29000-54000 / year

Lester B. Pearson School Board - Pearson Electrotechnology Centre

Quebec, Canada • 3 Programmes

Tuition Fee : CAD 25000-26000 / year

Regent Middle East - Dubai Campus

Dubai, UAE • 7 Programmes

Tuition Fee : AED 34000-38000 / year

Study Group - Durham University International Study Centre - Queens Campus

England, UK • 186 Programmes

Tuition Fee : GBP 22000-24000 / year

View All Universities

Latest at CANAM

Events, webinar, college / university visits and more.

Dalhousie University Application Week

Study in Canada • Application Days

All Canam Offices, PAN India • 11:00AM

In-Person & Virtual Event

Global Admissions Fair

Study in UK, Germany, Ireland, France

Kolkata • 11:00AM

In-Person Event

American Universities & Colleges Admissions Fair & Workshop 2025

Study in USA

New Delhi • 11:00AM

In-Person Event

Top countries destinations

Popular university and colleges for Studying abroad.

Bond University Queensland
Central Queensland University - Rockhampton, North Campus Queensland
Charles Sturt University - Wagga Wagga Campus New South Wales
Deakin University - Geelong Waurn Ponds Campus Victoria
Engineering Institute of Technology - Perth campus Western Australia
Griffith University - Nathan Campus Queensland
La Trobe University - Bendigo Campus Victoria
LCI Melbourne - Art & Design School Victoria

Ara Institute of Canterbury - City Campus Southland
Aspire 2 International - Auckland Campus Auckland
Auckland University of Technology - City Campus Auckland
Eastern Institute of Technology - Hawke Bay Campus Hawke's Bay
Manukau Institute of Technology -Manukau Campus Auckland
Massey University - Auckland Campus Auckland
Nelson Marlborough Institute of Technology (NMIT) - Nelson Campus Southland
New Zealand Institute of Business & Technology (NZIBT) Auckland
The University of Waikato - Hamilton Campus Hamilton

Kent state university Ohio
San Jose State University California
Wright State University Ohio
Clark University Massachusetts
Rowan University New Jersey
Arkansas State University Arkansas
University of Wisconsin Milwaukee Wisconsin
Southern Illinois University Edwardsville Illinois
University of Findlay Ohio

Popular English Language Proficiency Exams

Blogs and Articles

Curated content to keep you updated on the latest education trends, news and more.

IELTS Exam Dates 2025 in India

IELTS (The International English Language Testing System) is a forum to assess the English language ability of a candidate to study abroad across the ...

Updated on • Jan 18,2025 11:09 AM IST • IELTS

USA Study Visa Process

Once you get the offer letter from your dream American university the only thing left to do is to apply for a study visa. The F-1 study visa is the mo...

Updated on • Jan 16,2025 03:32 PM IST • USA

PTE Exam Centers in India 2025: Check City Wise PTE Exam Centers

Pearson Test of English or PTE is conducted all over India at various exam centers. There are 62 PTE exam centers in India, and candidates can also ta...

Updated on • Jan 16,2025 03:12 PM IST • PTE

May Intake in Canada 2025

What is May Intake in Canada 2025?Canada May Intake is considered the third most popular study intake in Canada after the September and January...

Updated on • Jan 15,2025 04:40 PM IST • Study in Canada

IELTS Reading Practice Tests 2025: Reading Passage and Sample Questions

The IELTS or International English Language Testing System exam consists of four modules – Reading, Writing, Speaking and Listening. The IELTS Readi...

Updated on • Jan 15,2025 04:14 PM IST • IELTS

IELTS Letter Writing Topics 2025

There is a 60-minute time limit for the IELTS Writing test, with 20 minutes allotted for Task 1 and 40 minutes for Task 2. IELTS General Writing Task ...

Updated on • Jan 15,2025 04:12 PM IST • IELTS

Summer Intake in Germany 2025

Germany is located in Central Europe and is known for its rich culture, history, strong economy, and high standard of living. Its diverse population h...

Updated on • Jan 14,2025 05:49 PM IST • Study in Germany

February Intake in Australia: Timeline, Courses, Universities, Deadlines & More

Students who desire to study in Australia should consider the February 2025 intake, which is known as the primary intake in Australia for admission, t...

Updated on • Jan 14,2025 10:33 AM IST • Australia

Scholarships to Study in Ireland

Getting scholarships to study in Ireland is no less than an open-eye dream for many of the students out there. What makes getting a scholarship such a...

Updated on • Jan 10,2025 05:28 PM IST • Ireland

Canada IELTS band requirements 2025

Canada's education system is considered the best in the world for international students. Students must fulfil many Canadian Universities' requirement...

Updated on • Jan 10,2025 05:10 PM IST • IELTS

What makes Australia a preferred study destination for Indians?

Australia remains a top choice for Indian students seeking a study-abroad adventure, offering unparalleled advantages. Its blend of quality education,...

Updated on • Jan 10,2025 11:25 AM IST • Australia

PTE Accepted Universities in Australia

In recent years, PTE has emerged as one of the alternatives to IELTS to study abroad. Many top study-abroad destinations like USA, UK and New Zealand ...

Updated on • Jan 10,2025 11:07 AM IST • PTE

Cheapest MBA in UK for International Students

Earning a Master of Business Administration (MBA) can be a game-changer for your career, opening doors to leadership roles and propelling your earning...

Updated on • Jan 09,2025 04:39 PM IST • UK

How to Choose a Study Abroad Destination?

International education is a dream for many students. It not only helps you excel professionally, but also enhances your perception, and evo...

Updated on • Jan 09,2025 04:32 PM IST • Study Abroad

Why Study in Europe?

A quick question for you readers: What's the most important step in studying abroad? *drumrolls* so? Did your answer include anything like choosing a ...

Updated on • Jan 07,2025 05:36 PM IST • Study Abroad

Top Free Education Countries for Indian Students

Education is the right of every individual on earth. It enhances your knowledge, improves economic opportunities, and promotes personal development. A...

Updated on • Jan 06,2025 11:43 AM IST • International Students

September/Fall Intake Canada 2025: Timeline, Universities & Admission Requirements

Studying in Canada after 12th class is the dream of many Indian students. Students with guidance from study abroad consultants apply for different int...

Updated on • Jan 03,2025 05:27 PM IST • Study in Canada

Study in British Columbia

Imagine waking up and starting your day to a breathtaking view of the Pacific Ocean on one side and snow-covered mountains on the other- Yes! That's B...

Updated on • Jan 02,2025 04:35 PM IST • Study in Canada

Exams Required to Study in USA

If you want to study in the USA, you might have to take a few exams depending on your field, and study goals. These exams help US Universities & C...

Updated on • Dec 31,2024 12:44 PM IST • USA

Study in USA After Diploma

Have you completed your diploma and want to expand your education to unlock new opportunities? the USA welcomes you with open arms. It offers many opp...

Updated on • Dec 31,2024 12:39 PM IST • USA

Study Loan for Canada : A Complete Guide

Table of Contents

Types of Study Loans for Canada

Collateral Loan

Non-Collateral Loan

Study Loans for Canada: Eligibility

Student Loans for Canada : Documents Required

Courses Eligible for Canada Study Loan

Canada Education Loan Process

Parameters to Consider for Student Loan

Expenses Covered Under a Study Loan for Canada

Return of Canadian Study Loan

Conclusion

FAQ

Events, webinar, college / university visits and more.

Popular university and colleges for Studying abroad.

Bond University Queensland

Central Queensland University - Rockhampton, North Campus Queensland

Charles Sturt University - Wagga Wagga Campus New South Wales

Deakin University - Geelong Waurn Ponds Campus Victoria

Engineering Institute of Technology - Perth campus Western Australia

Griffith University - Nathan Campus Queensland

La Trobe University - Bendigo Campus Victoria

LCI Melbourne - Art & Design School Victoria

University Canada West British Columbia

University of Windsor Ontario

Dalhousie University Nova Scotia

Carleton University Ontario

Cape Breton University Nova Scotia

University of ottawa Ontario

University of saskatchewan Saskatchewan

University of regina Saskatchewan

University of guelph Ontario

Ara Institute of Canterbury - City Campus Southland

Aspire 2 International - Auckland Campus Auckland

Auckland University of Technology - City Campus Auckland

Eastern Institute of Technology - Hawke Bay Campus Hawke's Bay

Manukau Institute of Technology -Manukau Campus Auckland

Massey University - Auckland Campus Auckland

Nelson Marlborough Institute of Technology (NMIT) - Nelson Campus Southland

New Zealand Institute of Business & Technology (NZIBT) Auckland

The University of Waikato - Hamilton Campus Hamilton

University of Warwick England

De Montfort University England

University of West London England

University of Strathclyde Scotland

Aston University England

University of Bath England

University of Liverpool England

Durham University England

Newcastle University England

Kent state university Ohio

San Jose State University California

Wright State University Ohio

Clark University Massachusetts

Rowan University New Jersey

Arkansas State University Arkansas

University of Wisconsin Milwaukee Wisconsin

Southern Illinois University Edwardsville Illinois

University of Findlay Ohio

Popular English Language Proficiency Exams