• Education Loans

Study Loan for Canada : A Complete Guide

1615 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.

University of New Brunswick - Saint John Campus

New Brunswick, Canada • 52 Programmes

Tuition Fee : CAD 16500-22500 / year

Red River College Polytechnic - Winkler Campus

Manitoba, Canada • 4 Programmes

Tuition Fee : CAD 17000-18500 / year

Global University Systems (GUS) - The University of Law - Leeds Campus

England, UK • 21 Programmes

Tuition Fee : GBP 11000-18000 / year

Lester B. Pearson School Board - Verdun Adult and Career Centre

Quebec, Canada • 4 Programmes

Tuition Fee : CAD 10000-26000 / year

INTO Group - Oregon State University - Corvallis Campus

Oregon, USA • 502 Programmes

Tuition Fee : USD 12000-40700 / year

Education Centre of Australia (ECA) Group - Higher Education Leadership Institute - Melbourne Campus

Victoria, Australia • 2 Programmes

Tuition Fee : AUD 0-0 / year

Mount Saint Vincent University

Nova Scotia, Canada • 50 Programmes

Tuition Fee : CAD 15500-20000 / year

TCS - The Chicago School of Professional Psychology - San Diego Campus

California, USA • 1 Programmes

Tuition Fee : USD 16000-17000 / year

View All Universities

Latest at CANAM

Events, webinar, college / university visits and more.

The International Education Fair

Study in Canada, UK, USA, Australia, New Zealand, Dubai, Singapore, Germany, Ireland, France

Amritsar • 11:00AM

In-Person Event

University Visit - University of Law, UK

Study in UK • University Visit

Mohali • 10:30AM

In-Person Event

University Visit - Canterbury Christ Church University, UK

Study in UK • University Visit

Chennai • 10:00AM

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.

Masters in International Business (MIB) in USA

Masters in International Business (MIB) is a 1-2 years long postgraduate degree program offered in the USA. The program offers a unique blend of busin...

Updated on • Nov 05,2024 04:12 PM IST • USA

IELTS Line Graph Model Answer

IELTS Line Graph is one of the two tasks of IELTS writing section. In this task, you will get a visual representation to explain in 150 words. It show...

Updated on • Nov 02,2024 04:35 PM IST • IELTS

Common Reasons for Student Visa Rejection in the USA

Studying in the United States is a dream for countless students worldwide. The idea of exploring expansive campuses, connecting with a diverse global ...

Updated on • Nov 01,2024 05:40 PM IST • USA

Why Study in France

Art and culture are among the most attractive factors that make France a wonderful choice as a study destination. The Eiffel Tower, Notre-Da...

Updated on • Nov 01,2024 01:41 PM IST • France

Study in New Zealand After Graduation

Thinking about pursuing your higher education in a serene and culturally diverse country? New Zealand is indeed your best option! The sceneries of Ne...

Updated on • Oct 29,2024 04:17 PM IST • New Zealand

Statement of Purpose (SOP) for Undergraduates : Format, Sample & Expert Tips

The Statement of Purpose is a cornerstone of every student's dream of pursuing higher education in a foreign country. An SOP allows students to highli...

Updated on • Oct 28,2024 05:52 PM IST • SOP

January Intake in UK : Universities, Timeline, Deadlines & More

Before choosing the UK as your study abroad destination, it is essential to learn about the three study intakes: Fall, Winter, and Summer, beginning i...

Updated on • Oct 28,2024 04:17 PM IST • study in the UK

Part-time Jobs for International Students in USA

A part-time job is more than just extra income; it's a stepping stone to experience, grow, and discover your potential. Going by this quote you might ...

Updated on • Oct 25,2024 05:56 PM IST • USA

Top Perks of Studying in New Zealand

Every year, a large number of students take a leap towards their dream by beginning to study in New Zealand. This island country has the all resource...

Updated on • Oct 25,2024 01:54 PM IST • New Zealand

Top MBA Courses to Specialize in Abroad

MBA (Master of business administration) is a prestigious postgraduate qualification recognized internationally. It is designed to develop ...

Updated on • Oct 25,2024 01:52 PM IST • Study Abroad

Study Abroad: Physiotherapy Guide

With mechanization and inactive lifestyles, people face common muscular-skeletal problems that include neck pain, osteoarthritis knee, backache, a...

Updated on • Oct 25,2024 01:42 PM IST • Study Abroad Guidance

Linking Words for IELTS Speaking - Word List & Tips

Linking words serve as the verbal "glue" that holds your ideas and phrases together. They aid in making connections between your sentences and are cru...

Updated on • Oct 25,2024 01:28 PM IST • IELTS

IELTS Writing Task 2 - Academic and General Topics with Sample Answer

The second component of the IELTS writing test, IELTS Writing Task 2, asks you to produce an essay in response to a point of view, an argument, or a p...

Updated on • Oct 25,2024 01:26 PM IST • IELTS

IELTS Writing Task 2: Tips, Lessons & Models

IELTS Writing task 2 is an essay writing question, and there are a few techniques or strategies that can help you tackle each question uniquely and sy...

Updated on • Oct 25,2024 01:21 PM IST • IELTS

IELTS Test Report Form (TRF): Number, Tracking, Validity and Sample

After taking the IELTS test, a scorecard is received with overall and band scores for each of the module- listening, reading, writing and speaki...

Updated on • Oct 25,2024 01:01 PM IST • IELTS

IELTS Speaking Samples and Answers

The three parts of the IELTS Speaking test take between five and fifteen minutes to complete. The sub-test consists of a talk with a qualified examine...

Updated on • Oct 25,2024 12:59 PM IST • IELTS

IELTS speaking part 3 topics

IELTS has four components on which a candidate is marked: Writing, Listening, Reading and Speaking. The IELTS speaking consists of an 11 to 20-minute ...

Updated on • Oct 25,2024 12:55 PM IST • IELTS

IELTS Speaking Cue Cards

IELTS Speaking One of the modules of an IELTS Exam is the Speaking Module. The Speaking module tests your ability to speak the English Language on ...

Updated on • Oct 25,2024 12:52 PM IST • IELTS

IELTS Sample Charts for Writing Task 1 Practice

IELTS WRITING TASK 1 (Academic Paper) is a report that includes multiple charts such as bar charts, line graphs, tables, pie charts, diagrams, process...

Updated on • Oct 25,2024 12:49 PM IST • IELTS

IELTS GT Writing Task 1/ IELTS Letter Writing

The IELTS letter-writing section evaluates your everyday language use. It also checks your ability to integrate into an English-speaking culture. The ...

Updated on • Oct 25,2024 12:48 PM IST • IELTS

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