Canada, located in North America, is one of the prime choices for numerous international students pursuing higher education. However, financial constraints often deter aspiring students from realizing their dream of studying in Canada. What is the solution for it? You might be thinking scholarships can be of great help. But the nature of it is very competitive and may not cover all expenses, but fret not! A pragmatic solution lies in opting for an overseas education loan.
Taking an education loan for studying abroad can be a game-changer, providing not only financial support but also allowing you to preserve your savings. There are numerous financial lenders that offer study abroad loans with competitive interest rates, offering flexibility with secured or unsecured loan options based on your requirements.
For those aspiring to study in the ‘Land of the Maple Leaf,’ this article serves as a comprehensive guide on procuring an education loan for Canada. Let’s delve into the understanding of taking a study loan for Canada and pave the way for your academic journey without compromising your financial stability.
Cost to Study in Canada for International Students
Before we move ahead let us first glance at the cost of education in Canada for international students. If we bifurcate the costs, it includes tuition fees, living expenses, and miscellaneous expenditures. Moreover, the tuition fees may vary based on the program and educational institution. To give you a brief understanding the approximate annual cost for an undergraduate degree in Canada is $36,100 and for a postgraduate degree, it is $21,100. The overall cost is influenced by factors like location and lifestyle choices, the average cost of living is $15,000 per year. Despite these expenses, the quality of education, diverse cultural experiences, and post-graduation opportunities make Canada an attractive destination for international students.
Key Role of GIC (Guaranteed Investment Certificate)
Well, this might be an advantageous twist in the picture. The Guaranteed Investment Certificate (GIC) in Canada plays a crucial role in facilitating the financial aspects of international student life. As an integral part of the Canadian student visa application process, students are required to invest a predetermined amount of $20,635 amount in a GIC. The investment acts as proof of sufficient funds for international students to live comfortably in Canada during their initial stay.
The GIC funds are disbursed in installments, ensuring a steady financial support system for international students. By participating in the GIC program, students not only fulfill a visa requirement but also gain a practical financial solution that contributes to a seamless transition into their academic journey. Thus, this innovative program demonstrates Canada as a country that provides comprehensive support for international students.
Types of Overseas Education Loans to Study in Canada
By exploring this avenue of overseas education loans, you can bridge the financial gap and turn your dream of studying abroad into a tangible reality. But for that, it is important to understand the types of education loans. Secured and unsecured overseas education loans offer financial flexibility for studying in Canada. Secured loans require collateral, providing lower interest rates, while unsecured loans do not require collateral but may have higher interest rates. Both options cater to diverse financial needs, empowering students to choose a financing solution that aligns with their preferences and ensuring a smooth transition into their educational journey.
Financial Lenders Offering Education Loans to Study in Canada
Before opting for an education loan to study in Canada it is essential to know about the financial lenders, so we have mentioned some of the most popular lenders offering education loans to study in Canada.
Public Banks
- State Bank of India
- Punjab National Bank
- Bank of Baroda
- Bank of India
- Bank of Maharashtra
- Union Bank of India
Private Banks
- ICICI Bank
- Axis Bank
- IDFC First Bank
NBFCs
- HDFC Credila
- Avanse
- Incred
- Auxilo
International Lenders
- MPower Finance
- Prodigy Finance
Now get ready to check whether you are eligible to opt for an education loan to study in Canada. So, let us delve into exploring the essential eligibility requirements.
Eligibility Criteria for Education Loan to Study in Canada
To secure an education loan to study in Canada, international students must fulfill specific requirements. Here’s a concise breakdown.
- Acceptance Letter: Obtain an acceptance letter from a recognized Canadian institution for a full-time program.
- Academic Record: A strong academic record enhances the chances of securing a high-ranking institution in Canada.
- Age Requirement: Applicant should be 18 years or older. If below 18, parents must apply for an education loan.
- Course Selection: Opt for a job-oriented program or one with promising career prospects.
- Collateral for Secured Loans: If applying for secured loans, be prepared to pledge collateral as security for the study abroad loan to study in Canada.
Meeting these criteria ensures a smooth process for obtaining an education loan and pursuing academic aspirations in Canada. Now that you are aware of the eligibility criteria let us gather some essential documents required for study loan for Canada.
Essential Documents to Get an Education Loan to Study in Canada
Below are some of the basic documents that you must file before you opt for an education loan to study in Canada.
- A Thoroughly filled loan application form.
- Academic Transcripts
- Scorecard of English Proficiency Test – IELTS, TOEFL, PTE, etc.
- Scorecard of Standardise Test for master’s degree – GRE and GMAT.
- Letter of Admission with tuition fees mentioned on it.
- Passport-size photographs of the student.
- Identity proof of the applicant and the parents – Aadhar Card/PAN Card.
- Proof of Address – Electricity Bill, etc.
- Bank statement for the past six months.
- Collateral documents if applying for a secured education loan.
Summing Up the Journey of Insights
Studying in Canada can be financially challenging, but education loans offer a viable solution. These loans, provided by various lenders like public banks, private banks, NBFCs, and international lenders, cater to diverse needs. However, for study loan for Canada interest rate may vary but if you reach out to some of the top overseas education loan advisors, they will suggest the best interest rates. Moreover, their expert advisors will help you with all your queries.
Wishing you the very best!
