When it comes to studying abroad there are numerous universities that come to your mind. But there are few popular destinations among which Canada stands high. A huge influx of international students is willing to study in this country, but one of the biggest challenges that comes down the way is the cost of education. It becomes difficult to manage finances for many students, due to which many compromise for their dream. But what if we tell you that we have one of the best ways to manage your expenses?
Overseas Education loans are the one-stop solution for many students, for better understanding there are two types of loans that are secured and unsecured. A secured loan is for students who have collateral to pledge as a security. And for those who wish to opt for an education loan without collateral for Canada, an unsecured loan is the best option for them.
If Canada is your dream destination, this article will give you a comprehensive understanding of the cost of education, popular Government lenders, and more. So, stay glued as we explore more.
Cost of Education
Before we jump into picking the right bank for education loans in Canada, let us break down the cost of education. The cost of studying covers tuition fees, living costs, and other random spending. The tuition fee for undergraduate programs is about $36,100 yearly, while for postgraduate programs it is around $21,100 per year. Add in living, you are looking at an extra $15,000 each year. Now, here is the best part – the Guaranteed Investment Certificate (GIC) in Canada is like a money helper for international students. When applying for a Canadian student visa, you need to invest $20,635 into a GIC. This proof is a must, it provides students with a steady financial support system, as the invested funds are disbursed in installments over the course of the investment term. Thus, now it is time to glance at one of the most important parts which is choosing the right financial lender.
Popular Government Lenders
Before we opt for any financial lender the study loan for Canada interest rate varies among lenders. So let us move and explore some of the popular ones.
- State Bank of India (SBI)
SBI, a trusted bank, offers overseas education loans for studying in Canada. With flexible terms, SBI aims to support students in pursuing their educational dreams abroad. The minimum loan amount offered is above Rs. 7.50 Lakh and the maximum goes up to Rs 1.5 CR - Union Bank of India (UBI)
As a government lender, Union Bank of India extends its support to students aspiring to study in Canada. The bank offers overseas education loans with favorable conditions. Notably, the minimum amount offered by UBI is Rs 7.50 Lakh and the maximum amount is 150.00 Lakh. goes up to 1.5 CR. - Punjab National Bank (PNB)
PNB is another reliable source to opt for an education loan. Known for its customer-friendly approach, PNB provides financial assistance with competitive terms. The quantum of finance is need-based and subject to margin as per the directions of the bank. - Bank of Baroda (BOB)
Bank of Baroda facilitates education loans for Canadian studies. Students benefit from BOB’s global presence and transparent loan terms, making the financial process smoother. Bank of Baroda education loan for abroad provides no processing charges for up to Rs.7.50 Lakh. And maximum amount up to 1.5 CR depending upon university ranking. - Bank of India (BOI)
Bank of India is a reputable choice for students planning to pursue education in Canada. The bank offers competitive education loans like it offers a maximum amount of Rs. 1.5 CR for most of the courses.
Apart from these, there are other lenders such as the Bank of Maharashtra. The interest rates for education loans for these banks typically fluctuate within the range of 9.75% to 11.5%. However, for precise and up-to-date information on interest rates, it is recommended to consult with leading overseas education loan advisors. Now, let’s delve into the essential factors to consider before opting for an education loan in Canada.
Key Considerations for Education Loans to Study in Canada
Understanding these key considerations will help students make well-informed decisions regarding their financial support for studying abroad.
- Loan Amount
– Determine the maximum loan amount available based on your program and institution.
– Ensure the loan covers your tuition fees, living expenses, and other associated costs. - Interest Rates
– Understand the interest rates offered by different government lenders.
– Compare rates to ensure you secure the most favorable terms for your education loan. - Loan Terms
– Examine the repayment period and any grace periods offered by the lender.
– Choose a loan term that aligns with your financial capacity and post-graduation plans. - Collateral Requirements
– Check if the loan requires collateral and understand the implications.
– Evaluate the feasibility of providing collateral and explore options with or without it. - Processing Fees
– Be aware of any processing fees associated with the loan application.
– Factor in these costs to understand the total financial commitment. - Repayment Options
– Inquire about the flexibility of repayment options, such as interest-only payments during the study period.
– Choose a plan that suits your financial situation and offers a smooth repayment process. - Credit Score Requirements
– Understand the credit score criteria for loan approval.
– Take steps to maintain or improve your credit score to enhance loan eligibility. - Prepayment Terms
– Clarify the terms and conditions related to prepayment of the loan.
– Check for any penalties or restrictions on repaying the loan before the scheduled tenure. - Communication with Loan Advisors
– Maintain open communication with education loan advisors.
– Seek guidance on interest rates, loan structures, and other relevant details to make informed decisions. - Documentation Requirements
– Compile all necessary documents required for study loan for Canada and understand the application process.
– Ensure timely submission of required paperwork to avoid delays in loan approval.
Bringing it Together
Pursuing higher education in Canada is an exciting opportunity, and overcoming financial challenges can be made easier with the support of popular government banks in India. Government lenders offer competitive education loans with varying terms. By carefully considering factors such as loan amount, interest rates, collateral requirements, etc. students make well-informed decisions and turn their dream of studying in Canada into reality. Good luck!
