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Study Loan for Canada: Documents Required, Eligibility, Process
Edited By Ipshita ghosh | Updated on Dec 26, 2024 11:22 AM IST
Study loan for Canada - Canada is one of the top most preferred countries for studying, chosen by most people worldwide. Even though there are many top universities in India, people opt to pursue career courses in Canada in the scope of better career opportunities and living standards. Well, the cost of the education for studying in Canada depends on the university and course you prefer. These rates are considerably high in comparison to India, so most people depend on merit scholarships and loans. As the scholarship availability is limited, most people choose an education loan for studying in Canada. The expenses in Canada not only cover the university fees and living costs but also include the deposits as a Guaranteed Investment Certificate in banks. This article of study loan for Canada includes all the information related to education loans, loans without collaterals, interest rates, documents requirements, steps to be taken for education loans, etc.
Latest: Canada Country Guide
This Story also Contains
- Types of Education Loan for Studying in Canada
- Study Loan for Canada from India
- Study Loan for Canada Interest Rate
- What is the Process to Apply for a Study Loan for Canada?
- Study Loan for Canada Requirements
- Courses Covered Under a Study Loan
- Documents Required for Applying a Study Loan for Canada
- Repaying the Study Loan
- Study in Canada Education Loan Interest Rate Details
- Education Loan for Canada Tax Benefits
- Canada Student Loan for Studying Abroad
Types of Education Loan for Studying in Canada
There are two types of education loans in Canada: secured and unsecured.
- For secured loans, banks may request to provide collateral.
- Unsecured loans are provided without any collateral.
Collateral Loan
Collateral means a loan with a security requirement, whose value is higher than your loan amount agreed to be given in the course of failure to repay the borrowed money. For any study loan in Canada for students, parents have to be the co-borrowers. Proofs valid as collateral security are land documents, policies, bank deposits, bonds and also shares, etc.
Non - Collateral loan
These non-collateral loans are called unsecured loans. With this, we can get an education loan for Canada without collateral. The loan amount is provided and determined by the co-applicant salary. Private institutions like NBFCs (Non-Banking Financial Companies) like HDFC Credila, Avanse, Incred, etc., and private banks like ICIC, Axis, etc., provide the student loan for Canada from India.
Top lenders for study loan for Canada
After choosing the type of loan, applicants must identify the best lenders. Selecting the proper lender will assist in saving money in the interest rate and tax payments. There are four main lenders for study or student loans in Canada:
Public banks
Private banks
Non-Banking Financial Companies (NBFC)
International Lenders
Study Loan for Canada from India
Canada has invested over $17 billion in research and development. Due to more opportunities, over 437,000 Indian students have recently been admitted to pursue higher studies. Many applicants face financial crises, so obtaining a study loan for Canada in India is the best option. Here are the popular study loans for Canada:
Top Study Loan for Canada 2025
Student Loan for Canada | Amount |
SBI Global Ed-Vantage Scheme | Rs 20.0 lakh to 1.5 crore |
HDFC Credila Education Loan |
|
Axis Bank Education Loan | Rs 50,000 with no upper limit |
Punjab National Bank Udaan | Rs 1.5 Crores |
ICICI Bank Study Abroad Loan |
|
Study Loan for Canada Interest Rate
The interest rate on study loans in Canada varies depending on the bank, terms, and conditions of the loan. Typically, it is between 6.5% and 14%. The education loan interest rate on unsecured loans is higher than the secured loan interest. The other best way to minimise your interest rate is by maintaining a good credit score. This can be improved by paying loans and EMIs on time.
What is the Process to Apply for a Study Loan for Canada?
Candidates are recommended to check these processes and steps before choosing a university or beginning the application process, just for an overall idea. Here are the steps involved in acquiring a student loan for Canada -
After having the admission letter from your desired Canadian university, estimate the cost of living based on the inflation and tuition fees.
Divide the expenses for self and the loan.
Go through the existing education loan options and opt for the bank by considering the study loan for Canada interest rate, the processing fee and time, expenses incurred under the loan, loan tenure, the moratorium period, and the terms and conditions.
After a thorough examination, select the bank and submit the essential details. The details of each step are discussed below.
Study Loan for Canada Requirements
There are a few requirements to apply for a student loan for Canada from India. Some of the factors that are considered by all the banks are:
Must be an Indian citizen.
Age must be above the age of 18 years; if not, his/her parents will have to apply for the loan.
The applicant must have secured admission to a recognised university in Canada.
The course you have chosen must have good career prospects, as the bank prefers job-orientated courses.
Courses Covered Under a Study Loan
All the courses, like undergraduate, postgraduate, doctorate, and postgraduate, are covered under study loans for Canada. One can even apply to diploma courses, vocational and skill development courses, or other short-duration programmes, but securing loans for these courses becomes less from nationalised banks. So it is important to take job-securing courses, which later increase the chances of securing and repaying loans.
Documents Required for Applying a Study Loan for Canada
There is a list of documents that must be gathered for applying for a study loan. While the whole set of documents can differ a bit for each and another bank you prefer. Please check these study loans for Canada requirements, which are common.
For the identity of the applicant: passport, Aadhar card, and PAN card of both the candidate and the parent/guardian.
For residency proof of the applicant, an Aadhar card, voter ID card, ration card, electricity bill, gas bill, or residency proof can be obtained from mee seva.
Academic documents:
Admission letter from the university (proof of admission), which was shared by the university, and fee structure for the program.
Certificates and mark sheets of your studies, which included 10th, 12th, graduation, and a few other documents that you have secured.
Scorecards or Documents of qualifying exams like IELTS, GMAT, IELTS, TOFEL, and PTE
Top exams to study abroad:
Other documents:
Income proof, which can be obtained from Meesevava.
Statements of borrowers' bank accounts (last year), IT returns of the guardians for the past two years, and any other proofs requested by the bank.
When opting for collateral loans with assets like flats, houses, non-agricultural land, etc., it requires the following documents: the property title deed, building approved plan, NOC for a mortgage form builder, in case of land have 7/12 extracts, Registered Sale Agreement, and Society Share Certificate. Make sure you have the original registration receipt for the above agreements.
Repaying the Study Loan
There are numerous options for repaying a study loan for Canada; choose the best that suits you. The repayment starts when your moratorium period is ended (moratorium period includes your graduation period + 6 to 1 year after graduation). After which you can choose a time period between five and seven years to repay your entire student loan for Canada. The repayment for the education loan for studying in Canada is two types. One repayment method is the EMI method, where you can pay monthly instalments. The other repayment method is the part payment method, where students pay lump-sum amounts in certain intervals of time between the EMI, which reduces the interest rate on the principal amount.
Also know about Canada:
Study in Canada Education Loan Interest Rate Details
The interest rates details related to a study loan for Canada range from 8%–12%. The interest rate depends on the loan amount requirement, the scheme you choose, and repayment tenure. The study loan interest rate for Canada is quite low for a secured loan, while the interest rates will be in the higher range for unsecured loans or education loans for Canada without collateral. The other best way of reducing your interest rate is by having a good credit score. This credit score can be improved by paying bills and EMIs on time.
Education Loan for Canada Tax Benefits
This interest from an education loan comes under Section 80E. People who are paying taxes for their salaries can claim tax benefits with these bills of study loans for Canada. So the tax claim will start from the repayment period.
Canada Student Loan for Studying Abroad
The following table details the top education loans for Indian students to study in Canada:
Education Loan in Canada | Details |
HDFC Credila study loan for Canada |
|
SBI study loan for Canada |
|
ICICI Bank Study Abroad Loan |
|
Frequently Asked Questions (FAQs)
1. In how many days can one avail an education loan for Studying in Canada?
If all the required documents are there, then it will take up to 30 to 40 days but it can also vary depending on the bank.
2. What is the study loan for Canada SBI interest rate?
The interest ranges from 8- 12 % depending on the loan amount and the scheme you have chosen. For more details regarding the check the details of education loan from SBI to study abroad 2023.
3. How to get a study loan for Canada?
For an international student in Canada, the scholarships cover only a part of the expenses, so there are private banks and firms that provide study loans in Canada for international students. The process for application, and requirements are similar to the information referred to in this article.
4. How to get a study loan for Canada from SBI Bank?
To get a study loan from SBI Bank, the candidate must have obtained admission from any recognized university in Canada and the course chosen must be job oriented.
5. What are the expenses that are covered in an education loan for Studying in Canada?
All the costs related to study like admission fees, university, library, lab fees, etc., and living expenses like hostel or accommodation. Other costs like travel, insurance, and a few miscellaneous expenses are also included.
6. Which bank is best for education loan for canada
There are many best banks like SBI, Axis, HDFC that provide a study loan for Canada. Candidates depending on the requirement of the loan amount, interest rates and courses covered under the loan, etc., they can select their required or suitable education loan.
7. Which bank is best for education loans for Canada from India?
SBI Global Ed-Vantage Scheme, HDFC Credila Education Loan, Axis Bank Education Loan, Punjab National Bank Udaan and ICICI Bank Study Abroad Loan are the best education loans for Canada from India.
8. Is Canada student grant free?
Some eligible students may receive funding from the government through the Canadian Student Grant, which does not require repayment and help in covering expenses in Canada. The amount of grants provided is based on the family income and student status.
Articles
Jan 04, 2025
Questions related to
Get answers from students and experts
Hello there,
NEET (National Eligibility cum Entrance Test) is primarily an entrance exam for medical courses in India. If you're considering studying medicine in Canada, here are some key points to consider:
NEET and Medical Studies in Canada:
-
Not Required for Admission : NEET is not required for admission to medical schools in Canada. Canadian medical schools have their own admission criteria, which typically include undergraduate degree requirements and standardized tests like the MCAT (Medical College Admission Test).
-
Eligibility for International Students : To apply to medical schools in Canada, you usually need to complete a bachelor's degree (often with a focus on science) and achieve a good score on the MCAT.
-
Application Process : Each Canadian medical school has specific admission requirements. It's important to research individual schools to understand their criteria, including GPA requirements, volunteer experience, letters of recommendation, and personal statements.
-
Recognition of Indian Medical Degrees : If you complete your medical studies in Canada, your degree will be recognized, but if you study medicine in India, you’ll need to go through the Medical Council of Canada (MCC) exams to practice in Canada.
Recommendations:
-
Research Canadian Medical Schools
: Look into the specific requirements for the medical schools you are interested in.
-
Prepare for MCAT
: If you're aiming for medical school in Canada, focus on preparing for the MCAT and meeting the prerequisite courses for admission.
Conclusion:
NEET is not necessary for studying medicine in Canada. Instead, focus on completing an undergraduate degree, taking the MCAT, and meeting the admission requirements of Canadian medical schools.
I hope this answer helps you. If you have more queries then feel free to share your questions with us we will be happy to assist you.
Thank you and wishing you all the best for your bright future.
kumardurgesh1802 12 October,2024
Hello Aspirant
Foreign Universities require a candidate to have a 4-year Bachelor's degree from a recognized University/college with enough credits. The problem that many Indian students face is that they have a degree in bachelor's but in a 3-year course. This stops them from pursuing further studies at a foreign university. Still, some universities offer bridge courses for such students. For this, they need to reach their universities 2-3 months prior and do the Bridge course. But all of this depends on the university. This is why NEP introduced the new 4-year bachelor's course.
The best course of action is to go to the Canadian Universities' websites that you wish to join and contact their admissions office via mail and talk to them about your situation, they'll help you out with it. Also, when you sit for their interviews and have a valid answer for your gap year after your Bachelor's, it would be great if you have work experience for that duration.
Hope this helps.
Ishita 20 July,2024
The eligibility criteria for MHCET (Maharashtra Common Entrance Test) can be based on domicile rather than place of birth.
MHCET often considers domicile, not necessarily the place of birth, for exam eligibility. Since your son has completed his entire school education in Maharashtra, this might strengthen his case for domicile in the state.
Overall, while being born in Canada might not be a direct disqualifier, having completed his schooling in Maharashtra strengthens his case for domicile in the state. By gathering documents to prove his residence and referring to the official MHCET website or helpline, your son can get a clearer picture of his eligibility for the exam.
https://www.careers360.com/exams/mht-cet
I hope it helps!
Nitin Kumar 08 June,2024
Hello aspirant,
Canada offers ample opportunities in the field of radiology. With a B.Sc in Radiology, you can explore various career paths in Canadian healthcare institutions, including hospitals, diagnostic imaging centers, and clinics. It's advisable to research the specific requirements and licensing procedures for radiology professionals in the province where you plan to settle, as regulations may vary. Pursuing further certifications or examinations recognized by Canadian authorities can enhance your prospects in the field of radiology in Canada.
Thank you
Hope this information helps you.
Sajal Trivedi 08 March,2024
Dear aspirant !!
Hope you are doing good !!
Indian students must have an MBBS and clear USMLE tests to gain admission to post graduation after MBBS abroad in USA . It is important to understand that an MD/Doctor of Medicine (USA equivalent of MBBS in India) degree alone is not enough to practise medicine. A Medical PG in any specialisation is necessary..
Hope it helps you !!
Thanking you !!
Shivanshu 26 February,2024
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