Study Loan for Canada – Know about Loan Providers

Study Loan for Canada– Canada fares as a second alternative for many students who wish to study in the US. Education in Canada is comparatively more synchronized to the Indian curriculum as compared to any other country. Students who wish to study in Canada can find multiple options of undergraduate, postgraduate and doctoral courses at top-ranking universities like the University of Toronto, University of British Columbia and The University of Western Ontario. 17 out of the top 500 Global QS ranking universities are situated in Canada.

Study Loan for Canada – Scope of Expenses

The general cost to study in Canada, includes expenses for tuition fees, accommodation, visa and insurance. An average Indian student has to spend close to CAD 65000 or ₹33 Lakhs (approx.) per year. To finance the cost of studies in Canada, Indian students have numerous student loan options but not many international student loan providers. The recent changes in the Canadian visa application process also obligate Indians to show proof of funds to study in Canada. Indian Education Loans to Study in Canada cover all such conditions. Here we are providing you with complete information about Study Loan for Canada, including Loan for GIC Canada, pre-visa student loans, and more.

ALSO READ: COST OF LIVING IN CANADA FOR INTERNATIONAL STUDENTS

Study Loan for Canada – Cost to Study in Canada

Cost calculations for study in Canada start with visa application cost and the mandatory proof of funds for Canadian education. Under the latest Student Direct Stream Program (SDS), every international student has to submit proof of funds for at least one year of education in Canada. This is done by depositing CAD 10000 plus service charges towards the ‘Guaranteed Investment Certificate’ (GIC). Another way to give proof of funds for studies in Canada is to show a liquid asset volume of CAD 10000 (or equivalent) in the applicant’s personal bank account. Some Indian banks offer a loan for GIC Canada, while most Non-Banking Financial Corporations provide this service.

Average tuition fees in Canada for undergraduate courses fall close to CAD 30000 per annum, while master’s courses could go as high as CAD 45000. Education loans to study in Canada cover a maximum of 80% of these expenses. Living expenses in Canada for Indian students fall between CAD 6000 per annum to CAD 15000 per annum. Not all International Scholarships for Indians to study in Canada cover 100% student expenses. The total cost of study in Canada for Indian students, thus, equates to almost ₹60 Lakhs for graduation or post-graduation courses. Education Loans for Study Abroad in India are well equipped to cover these expenses at convenient interest rates and repayment conditions.

Note: Students can also choose to show funds equivalent to CAD 10000 in their loan account and get a student visa to study in Canada. Canadian Government recommends GIC as it provides returns on investments which can be withdrawn on a monthly basis.

ALSO READ: HOW TO WORK WHILE STUDYING IN CANADA? – BENEFITS AND OPPORTUNITIES

Study Loan for Canada – Main Details

It is often seen that students find it comparatively easier to secure admissions for international study in countries like USA, Singapore, Ireland, Canada etc. But the education loan process has not been that easy in recent times. However, to get a student loan for Canada in India applicants don’t need to put up with as many hassles as any other study abroad loan would require. International Private Student Loan lenders do service study in Canada requests from Indians. This makes it easier for students to select their banking partner for their Canadian higher education. Here is a brief list of key special factors to consider for Canada Student Loans.

  • Students require a Certificat d’acceptation du Québec (CAQ) for Study in Quebec, and the subsequent student loan for Canada
  • Some Canadian banks provide student loans to Indians based on a Standby Letter of Credit (SBLC). This is equivalent to a third-party collateral bank guarantee in India
  • Students below the age of 18 years cannot apply for education loan to study in Canada
  • Students taking a loan for GIC Canada should make the Guaranteed Investment Certificate (GIC) payment from a personal or joint account (with parents) only

a. Loan accounts may not be eligible for such transactions

b. Students can get the loan disbursed in their personal accounts and then deposit the payment of GIC Canada

  • It is mandatory for students to give IELTS or equivalent exam and score above 6.0 in all sections to get a study loan for Canada
  • Students need to score at least 65% marks in Class 12th or equivalent to get a loan for studies in Canada

ALSO READ: COLLATERAL FOR EDUCATION LOAN TO STUDY ABROAD

Study Loan for Canada- Top Loan Providers

Some of the premier banking institutions in India, both government and private provide education loans to study in Canada. Non-Banking Financial Corporations provide study loan for Canada without security as well. However, students need to carefully choose their loan provider as refinancing of Canada student loans is not as convenient as USA Education loans. Here is a list of some of the top providers of education loan for Canada.

SBI Ed Vantage Education Loan – Student GIC Program Canada

SBI Ed Vantage Education Loan provides education loan for study abroad in Canada at interest rates as low as 8.00%. Students can get education loan up to 90% of their tuition fees and non-academic expenses. Some of the main features of SBI-Ed Vantage Education Loan are:-

  • Students can get Canada Education Loans for over 48 Student Direct Stream (SDS) and additional 1200+ Canada Universities
  • Co-applicants are necessary for student loan application
  • Immovable collateral security equivalent to 100% of the sanctioned loan amount is mandatory to get Study Loan for Canada
  • SBI also provides loans against GIC Deposits. Students can use the GIC dividends to pay for loan EMIs
  • SBI provides education loan of up to ₹1.5 Crores at interest rates starting from 8.50% to 11.25% for studies in Canada

ICICI Study Abroad Education Loan – ICICI Canada GIC Program

ICICI is a GIC partner of Canada SDS program which was earlier known as ‘Student partners Program’. They provide services for purchasing GIC to Study in Canada and student loans to pursue higher education there. ICICI also provides additional forex services, outward remittances, in-flight expenses and travel cards. Students with international scholarships and fellowships can get scholarship adjustable loans for Canada. Here are some peculiar features of the ICICI Education Loan for Studies in Canada.

  • ICICI Study Abroad Education Loan for Canada provides funds up to ₹1.00 crore for all expenses
  • The bank provides partial fee loans to aspirants who wish to study in Canada
  • Interest rates of study loan for Canada start from 11.40% to 14.00%
  • Loan against securities (Fixed deposits, shares, RDs, Gold bonds, etc.) are provided at 11.00% fixed interest rate to study in Canada
  • ICICI GIC Student Program provides interest rates up to 1.25% for multi-year deposits
  • Applicants can pay for the GIC program by using the ICICI Loan for Study Abroad

ALSO READ: IELTS VS TOEFL VS PTE: WHICH ENGLISH LANGUAGE TEST SHOULD YOU TAKE?

HDFC Credila Study Loan for Canada

HDFC Credila is an NBFC that provides education loans to study abroad without collaterals as well. The HDFC Study loan for Canada provides funds up to 100% of the academic expenses. It has a lower turn-around-time for Study in Canada applications. HDFC includes all 1398+ SDS Colleges and other SPP Colleges in its eligibility list. Students can get flexible repayment options with HDFC Credila Loans. HDFC Credila Education Loans are also applicable to cover expenses of International Admission Examinations of SAT, IELTS, TOEFL, GRE, GMAT etc. Here are the details of HDFC education loan for Canada.

  • Students can get loans to study in Canada up to ₹36,00,000 (36 Lakhs) and more depending on course type and university
  • HDFC Loans against properties mortgaged to HDFC Ltd are also available
  • Collaterals for Canada student loans are necessary but are valued at current market value only.
    • Students can avail education equivalent to the actual value of their collateral
  • Credila provides Multi-city loans to study in Canada. Applicant and Co-applicant need not be from the same city
  • HDFC Credila does provide loans for GIC Canada

Studying in Canada can help students to improve their career prospects in different ways. After getting an admission at premier international institutions in Canada, finances are the next big concern for every student. As compared to self-financing, student loans for Canada help applicants in creating an international credit history. With the entry of NBFCs, Study Abroad Education Loan interest rates have become negotiable nowadays. Still, it is always recommended to consult a study abroad expert before finalizing education loan options. Keep watching this space for the latest information about scholarships to study abroad, student loans and international admissions assistance.

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Published by
Ankur Gupta