5 Government Education Loans to Study in Canada: A Detailed Guide

Government Education Loans to Study in Canada

Government Education Loans to Study in Canada: Deciding to study abroad can really change a student’s course of life as it opens doors for many opportunities but to achieve all of this a student really has to go through various challenges. One of which is arranging a sufficient amount of funds so that the student is able to complete their education without facing financial hiccups. In this case, education loans come quite in handy. Apart from banks and financial institutions, the government also offer education loans to students which are generally subsidised and have affordable interest rates. 

In this blog, we will cover some of the government education loans to study in Canada. Keep reading further to know more! 

Government Education Loans to Study in Canada 

To help students achieve their study-abroad dreams, the Indian government offers various loans. In the below sections, we have discussed in detail the various government education loans to study in Canada. 

Dr Ambedkar Central Sector Scheme 

This scheme is offered by the Ministry of Social Justice and Empowerment, Government of India. The purpose behind this central sector scheme is to encourage higher education abroad among the minority communities in India. Under this scheme, loans are offered to meritorious students who do not have a strong financial background with 100% subsidy. This scheme is applicable for higher education-based programs like Masters, M.Phill or Ph.D. Students can avail loans under this scheme only for one time. For instance, if the student has availed loan under this scheme for a master’s program then they cannot take it again for the doctoral program. The moratorium period under this scheme is either 1 year after completion of the course or 6 months after the student gets the job, whichever is earlier. 

Eligibility Criteria 

  • The student applying for this scheme needs to have a caste certificate for OBC or ST categories and should be an Indian citizen. 
  • The programs covered under this scheme are PG, M.Phill, and Ph.D. This means that students who are in high school are not eligible for this scheme. 
  • If a student is in the middle of their course then they will not be eligible for this scheme. The student needs to apply for this scheme before the commencement of the course. 
  • The average gross family income of the applicant should be below INR 3 Lakh. 

Application Process 

  • Firstly students need to visit the official website. 
  • The applicant then needs to create an account and log into the UMANG app. 
  • Fill out the application form by providing all the necessary details and uploading all the required documents according to the mentioned size limit. 
  • Once the application is confirmed an email will be sent to the registered email address. 

Padho Pardesh Scheme 

Under this scheme students who have taken admission in a postgraduate program abroad are eligible to apply for the loan. This loan is offered by the government through Canara Bank. This loan is offered to students who belong to minority sections and have a good academic record. In this scheme, students can avail 100% subsidy. The moratorium period of this loan is either 1 year after the course is completed or 6 months after the candidate gets the job, whichever is earlier. 

Eligibility Criteria 

  • The applicant must have secured at least 60% in their class 12th.
  • The student should have secured admission to a university or college abroad. 
  • The student is eligible to avail this scheme in the first year and not in the middle of the course. 
  • Under this scheme programs that are eligible are – Master’s, M.Phill and Ph.D. courses.
  • The applicant should have all the relevant documents for the application to proceed further. 

Application Process 

  • To apply online the student needs to visit the official student portal. 
  • From this student portal, the candidate needs to register online and download the application form. The student then needs to fill out all the necessary details and submit it will all the necessary documents which need to be scanned and uploaded all the documents as per the requirements. 

Must Read: Study Abroad Loans for OBC category students 

NBCFDC Education Loan 

Under the education loan scheme offered by NBCFDC (National Backward Classes Finance and Development Corporation) students who belong to backward classes and are living below the poverty line, are offered education loans. This scheme is for students who are pursuing technical/general/professional training or courses at graduation or other higher levels. For students wanting to study abroad, a maximum loan amount of INR 20 lakh is granted. The moratorium period under this loan scheme is 5 years. 

Eligibility Criteria

  • The applicant needs to provide their caste certificate.
  • The annual family income of the student should be less than INR 3.30 Lakh.
  • The student should have completed their high school with at least 70% from a recognised board. 

Application Process 

  • The applicant needs to visit the official website of NBCFDC. 
  • Then they need to fill out the online application form and provide all the required details along with the required documents. 

Vidyalakshmi Education Loan 

Vidya Lakshmi Education Loan Scheme covers graduation, postgraduation and doctoral programs. For study abroad programs, the government has set a limit of INR 30 lakh to be provided as a loan to the students. This loan scheme provides a moratorium period of either 1 year after completion of the course or 6 months after the student gets the job. 

Eligibility Criteria 

  • The applicant should be an Indian national. 
  • The student should have secured admission to a university or college abroad. 
  • The applicant should have completed their 12th from a recognised board of India. 

Application Process 

  • Visit the official website of the Vidya Lakshmi. 
  • The applicant then needs to provide all the required details after which all the important information related to the application will be sent to the registered email address of the applicant.  

Also Read: Loans to Study Abroad 

Gujarat Government Education Loan for Studying Abroad 

To encourage higher education this scheme is initiated by the Government of Gujarat. Under this scheme education loan with 100% subsidy is offered to economically backward students in Gujarat. Students are even allowed to apply for a loan extension of up to INR 15 Lakh with a 4% interest rate. These loans are offered by Gujarat Undeserved Education and Economic Development Cooperation or GUEEDC. Gujarat students can take this loan to pursue language programs, professional courses, graduation and post-graduation. Under this loan, the moratorium period involves the duration of the course along with one year extra.  

Eligibility Criteria 

  • The student should be a resident of Gujarat. 
  • The annual family income of the student should be less than INR 6 Lakh. 
  • The student needs to provide an admission letter from a foreign university.
  • The subsidy will only be provided if the loan amount exceeds INR 10 Lakh. 

Application Process

  • The student needs to visit the official website. 
  • Then download the application form. 
  • Fill out the application form and print the acknowledgement slip. After this, the applicant needs to send it directly to KCG or through a courier along with all the necessary self-attested documents which are being asked. 

Also Read: How to Fund Your Education Abroad? 

FAQs

Which bank is best for education loans to study in Canada?

Some of the banks which offer great education loans to study in Canada are: 
– ICICI Study Abroad Education Loan 
– SBI Ed-Vantage Student Loan 
– HDFC Credila Study Loan for Canada 

How much loan can I get to study in Canada?

To study in Canada lenders can offer up to INR 75 lakh in the form of an unsecured education loan. As an eligibility criteria, you must take admission to a STEM course or should have a good co-applicant who has a financially strong background. This will help you get the maximum amount of loan. It is generally required that the salary of the co-applicant should be at least between 4.5 and 6 LPA. 

Do international students get loans in Canada?

Although getting financial aid in Canada as an international student is limited as compared to a domestic student, there are private student loans available to provide aid to international students. The eligibility criteria for a private student loan usually require that the student must be enrolled at a university which is covered under the loan program. 

To know more about the government education loan to study in Canada, 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. Follow our social media handles on Twitter, LinkedIn and Instagram

About Prachi Gupta

Prachi is a SEO content writer who have written many well researched blogs in the field of Finance and Education loans. Through her critical thinking and problem solving skills she strives to help students so that they can overcome financial hurdles in their education journey. She comes up with creative answers for students looking for financial aid by fusing her in-depth financial expertise with her compassionate attitude. She is a sought-after expert in the sector due to her dedication to demystifying complicated financial topics. Numerous students have received the advice they require from her articles and thorough guides, enabling them to overcome financial obstacles and realise their educational aspirations.

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