Student Loan Requirements To Study In Canada: Canada is one of the most preferable destinations for Indian students because of the cost of studying, high standard of living, quality education, accommodation, employment opportunities, healthcare, and safety. It stands among the top five study-abroad countries around the world. However, due to financial instabilities and status, every aspiring student cannot pursue higher education in Canada. Here comes the requirement of study loans, financial aid, and scholarships.
According to the recent data released by the Ministry of External Affairs, 1.6 lakh nearly 20% of Indians renounced their citizenship between January 2018 and June 2023. According to data released Canada has become the second most preferred destination after the USA while the UK is on third and Australia is on 4th. Nearly 8.4 lakh Indians renounced their citizenship and 58.4% have become citizens of the US and Canada.
Education Loan is the most easiest and accessible method to pursue higher education. If your financial condition is not allowing you to study in your dream country or dream university, then study abroad scholarships or an education loan to study abroad can help you out.
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Also Read: 5 Things to Keep in Mind to Apply for an Education Loan
Student Loans
In India, several banks and financial institutions are providing financial aid and loans to students who want to pursue higher education in Canada. Both private banks and NBFCs provide education loans to students who are seeking loans to study in Canada. Generally, student loans fall under two brackets:
Secured Education Loan for Canada
Secured education loans are also known as Collateral loans. These loans are basically provided by government banks. An applicant has to provide some collateral to avail of this kind of loan in India. The amount of the loan may vary according to the amount of the collateral provided. The collateral may include tangible assets like non-agricultural land and houses, or intangible assets like insurance, FD, government bonds, etc.
Unsecured Education Loan for Canada
An unsecured education loan is also known as a non-collateral loan provided to study in Canada. These unsecured loans are usually provided either by private banks or by NBFCs. To apply for this kind of loan, a co-applicant with financial stability is required in this kind of loan. The interest rates are slightly higher in unsecured loans when compared with secured loans. The amount of loan can be approved only up to INR 7.5 lakhs. Also, the approval of the loan depends upon the credit score and financial credibility of the co-applicant.
Also Read: Top Universities in Canada
How to Get a Student Loan to Study in Canada?
To avail a student loan to study abroad the process needs to be started at least 6 months prior to your joining date. It involves a lengthy process and is also time-consuming. So, if you are looking forward to studying in Canada, then follow these steps to avail student loan easily.
- Choose the university you want to study in Canada.
- Analyse the tuition fees, other expenses, and cost of living in Canada.
- Calculate the total funds and expenses required to study abroad.
- Research for the banks providing loans or scholarships as per your eligibility.
- Compare the loan offers by at least 3 banks on the below-mentioned parameters.
- Interest rate
- Processing time and fee
- Loan tenure
- Moratorium period
- Expenses covered under the loan
- Prepayment duration and terms
- Check out the requirements of the bank to fill out the loan application form.
- Finalize the best offer by the best bank.
- Fill out the application form.
- Post approval, you will receive a loan document.
- Read it carefully, sign it, and submit it. Your task is done.
Eligibility Criteria
Before applying for a loan to study in Canada, be sure to check the eligibility criteria. There are certain eligibility needs and requirements which need to be fulfilled by an applicant.
- An applicant or co-applicant must be a citizen of India.
- The student must be at least 18 years of age. Parents can become applicants if age eligibility is not fulfilled.
- An excellent academic record of previous years of education is helpful in securing a better amount.
- The course applied for should be job-oriented.
- Letter of acceptance from an authorised and recognised university in Canada.
- If applying for a Secured loan, collateral security is required.
Also Read: List of Top International Student Loans
Documents Required
There are certain documents that are required to apply before availing student loan. The list of basic documents includes
- Loan application form
- Letter of acceptance
- Voter ID or Aadhaar Card for identity verification
- Permanent residential proof
- 10th mark sheet for age proof
- Passport size photographs
- Bank statement of current year
- Academic transcripts
- GRE, GMAT, TOEFL, and IELTS scorecard, if applicable.
- Income certificate for verification
- Minority Caste Certificate, if applicable
- Co-curricular Activities Certificates, if applicable
- Illness or Disability Certificate if applicable
- Collateral documents, if needed
- Property title deed and NOC for collateral documentation.
The document requirements may vary from bank to bank. These are some basic documents that are required to avail an education loan to study in Canada.
Expenses Covered
The expenses covered under the loan may vary depending on the amount and the bank chosen. It may cover the following.
- Admission fees and tuition fees
- Examination fees
- Books, equipment, instruments, laboratory fees
- Travel expenses including boarding and lodging.
- Insurance premium, if applicable
- Other expenses including thesis, study tour, etc.
Also Read: Types of Education Loans for Indian Students
FAQs
Yes, it is compulsory. A letter of acceptance is a mandatory document to apply for a loan.
According to the RBI guidelines, without collateral, an INR 7.5 lakh loan can be availed.
The essential documents required to apply for a government loan to study in the USA include
– ID proof
– Residence proof
– Income proof
– Academic proof
– Admission proof
It may vary depending on the amount of loan and bank chosen. Sometimes, it is covered under a loan and sometimes it is not.
Education loans are becoming a necessity with the soaring costs of higher education. Just be aware of the updates and all the amendments related to the education loan, and live the dream of studying in your dream country.
To know more about the loan requirements, the best international bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience. Follow our social media handles on Twitter, LinkedIn and Instagram.
