Canada is one of the most preferred countries for higher education. From January to June 2024, one lakh international students went to Canada for studies while 2.78 lakh students in 2023 and 2.25 lakh students in 2022.
Managing finance is one of the most important things that comes as a barrier for students who want to pursue higher studies abroad. If you’re worried about the need for collateral to secure an education loan, rest assured there are options available that don’t require you to put up physical assets. Keep reading further to know the procedure for securing an education loan to study in Canada without collateral.
Table of contents
Education Loan to Study in Canada: Eligibility
To obtain an education loan to study in Canada, you should meet the eligibility criteria. Keep reading to confirm your eligibility.
- Letter of Acceptance from a recognised Canadian university.
- You should be at least 18 years old.
- A proven academic record is also required.
- Co- applicant’s financial record (usually parents or guardians)
- The loan applicant must be an Indian citizen.
Education Loan Without Collateral: Lenders
An unsecured loan to study in Canada does not necessitate collateral. The approval process for education loan without collateral is quicker, convenient, and applicants are not at risk of losing assets in case of default. It may have lower borrowing limits but unsecured loans usually come with higher interest rates. If you don’t have the security to pledge, several financial institutions lend education loans to study in Canada without collateral. Check out the lenders that can provide you with collateral-free education loans for study in Canada.
| Lender | Loan Amount | Interest Rate |
| SBI | Up to 7.5 Lakhs INR | 10.65% – 11.50% |
| IOB | Up to INR 60 lakhs | 11.55% – 12.55% |
| UBI | Up to 40 Lakhs INR | 9.80% – 11.30% |
| Axis Bank | Up to 50 Lakhs INR | 11.00% – 11.50% |
| ICICI Bank | Up to 50 Lakhs INR | 10.85% – 12.50% |
| IDFC FIRST Bank | Up to 50 Lakhs INR | 11.50% – 13.25% |
| HDFC Credila | Up to 65 Lakhs INR | 11.25% – 13.00% |
| Avanse | Up to 75 Lakhs INR | 12.50% – 13.50% |
| Auxilo | Up to 65 Lakhs INR | 11.25% – 14.00% |
| Incred | Up to 60 Lakhs INR | 12.00% – 14.00% |
Also Read: Do you want to know about the terms associated with the transfer of money in a foreign market? Check this blog on What is Remittance: Types, Modes & Tax Deduction.
Study Abroad Education Loan Without Collateral: Documents Required
Now as you know you can obtain an education loan to study in Canada without collateral and collect all the required documents. And be prepared to make your dream a reality. Check out the required documents below.
- Loan application form
- Identity proof – PAN Card, Passport, Voter ID card.
- Address proof – a recent copy of the telephone bill, electricity bill, or water bill.
- Academic transcripts.
- Past academic record – 10th, 12th, undergraduate mark sheet, test scores of entrance tests like GRE, TOEFL, IELTS, etc.
- Proof of admission – you can submit a conditional offer of admission as well.
- Statement of expenses – the entire cost of education.
- Passport-size photographs
- Loan account statement of one year, if there are any previous loans taken from any lender.
- Identity proof, address proof, and income proof of co-applicant
- Last 2 years IT returns and TDS Certificate if co-applicant is self-employed.
- Salary slips of the last 3 months and copy of Form 16 for the last 2 years, if the co-applicant is salaried.
How to Apply For Education Loan to Study in Canada Without Collateral
Application procedure for an education loan to study in Canada without collateral is a straightforward process. Here is how you can get started.
- You can easily start your application form either online or by visiting the lender’s nearest branch.
- Explore all the available and pre-approved loan options.
- Before applying for the education loan to study in Canada be sure to check the eligibility criteria.
- Prepare the necessary documents for your loan application.
- Fill out the loan application form provided by the lender.
- Submit your completed application along with the required documentation.
- After submission, keep in touch with the lender to track the status of your application.
- If your application is approved, you will receive a loan offer detailing the terms and conditions.
- Carefully review these terms before accepting the loan.
- After receiving the loan, manage the funds wisely and keep track of your expenses.
Also Read: Studying abroad with an education loan? Check here all about income tax rebate on education loan.
FAQs
An education loan without collateral is a type of loan that doesn’t require you to pledge physical assets, such as property or savings, as security.
Yes, many lenders require a co-borrower or guarantor, especially for unsecured loans. Co-borrower or guarantor usually needs to have a good credit history and stable financial status.
The loan amount you can borrow depends on the cost of your education and the lender’s maximum limit. Most lenders cover tuition fees, living expenses, travel, and other related costs.
Interest rates and repayment terms vary by lender. Generally, rates for unsecured loans might be higher compared to secured loans. Repayment terms usually start after a grace period post-graduation and can extend up to 10-15 years, depending on the lender and loan amount.
Yes, you can apply for scholarships and grants alongside an education loan. Many scholarships and grants can reduce the overall amount you need to borrow. Research and apply for available financial aid to lower your financial burden.
This was all about the education loan to study in Canada without collateral. To know more about education loans, the best 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.
