Table of Contents
- Top universities and cost of study in Canada
- Top Education Loan Options for Canada
- Top lenders for education loans for Canada
- Education loan for Canada: Maximum amount, interest, and repayment
- Education loan for Canada: Eligibility criteria
- Documents required for Canada education loan
- Education loan for Canada: Eligible courses
- Expenses covered by education loans for Canada
- How to find out your top education loan options for Canada?
- Frequently Asked Questions
Studying in Canada is expensive beyond a doubt. With the cost of studying and living rising every year, it can be taxing for the average middle-class student to meet the financial requirements for Canada alone. At this point, an education loan comes to the rescue. They help with affordable interest rates, high amounts, up to 100% financing, and favorable repayment conditions.
Top universities and cost of study in Canada
| Top Universities in Canada | Tuition Fee |
| University of Toronto | 62,580 USD per year |
| McGill University | 12,000 – 20,000 USD per term |
| University of British Columbia | 45,404 USD per year |
| University of Alberta | 29,136 USD per year |
| University of Waterloo | 50,460 USD per year |
| Western University | 59,655 USD per year |
| University of Calgary | 29,027 USD |
| McMaster University | 30,000 – 50,000 USD per year |
| University of Ottawa | 10,000 – 30,000 USD per year |
Top Education Loan Options for Canada
In the study abroad marketplace, Canada is a prominent destination for education loans. Students have diverse education loan options from India and abroad to study in Canada. Education loan options for Canada comes mainly under two categories, namely secured and unsecured.
Secured education loans: Secured education loans also known as collateral education loans. Applicants need to pledge collateral to get a secure education loan. For students, the collateral can be owned by their parents, close relatives, or friends.
Unsecured education loans: Unsecured education loans or education loans without collateral helps students without collateral security to get financial assistance. These are provided on the guarantee of an earning co-applicant (coborrower) who can be the student’s parent or relative. The co-applicant rules and minimum income requirement vary for different lenders.
Top lenders for education loans for Canada
Once you decide your choice between secured and unsecured loan options, the next step is to identify your lender. Choosing the right lender saves more money for you in the loan interest and tax payments. Four different types of lenders are prominent for student loans for Canada:
- Public banks: In India, public banks play a vital role in empowering education sector. They offer education loans to sponsor higher studies of Indian overseas with lower interest rates and tax benefits. A key advantage of public banks is their presence across the urban and rural areas of India, making themselves easily accessible to the needy students.
- Private banks: Private banks offer education loans with low interest rates and high amounts. Compared to public banks, their unsecured student loans for Canada offer a higher amount, whereas most public banks provide only up to INR 7.5 Lakhs in unsecured category.
- NBFCs: Non-Banking Financial Companies are prominent in the education abroad marketplace for student loans. They offer unsecured education loans to study in Canada for various courses with affordable terms and conditions. Compared to banks, NBFCs have a higher chance for education loan approval.
- International lenders: International lenders offer educations loans to study at select schools in Canada for their listed courses. Eligible students can get education loans from internation lenders often without collateral or a co-applicant.
Education loan for Canada: Maximum amount, interest, and repayment
Your choice of education loan for Canada must be made based on the overall affordability. Most lenders offer friendly terms and conditions, aiming to help more students study in Canada without having to worry about the finances. Scrutinizing the amount, interest rates, and repayment policies of various lenders will help you make a better choice.
Look closely the table below comparing features of education loans for Canada.
| Features | Public banks | Private banks | NBFCs | International lenders |
| Maximum loan amount | Up to INR 1.5 Cr | Up to INR 60 Lakh – 1 Cr Approx. | Up to INR 40 – 60 Lakh Approx. | 100,000 USD (INR 83 Lakh Approx.) |
| Loan type | Secured & Unsecured | Secured & Unsecured | Unsecured | Unsecured |
| Interest rates | 9.5% – 10% | 10.28% – 12.5% | 10.5% – 13.5% | 11% – 20% APR |
| Processing fee | INR 10,000 | 1% of the loan amount | 1% of the loan amount | 5% of the loan amount |
| Repayment tenure | Up to 15 years | Up to 15 years | Up to 15 years | Up to 10 – 20 years |
Which lender suits you the most? It depends on your course, banking history, and co-applicant. And many other factors. To find that, unlock personalized assistance in navigating your education loan options for Canada. Reach out to Nomad Credit’s expert counselor who streamlines the hassles and guides you to get affordable options without charging you a penny! Connect now and explore your options with us.
Education loan for Canada: Eligibility criteria
Checking your education loan eligibility is crucial before application. Though the eligibility criteria vary with lenders, the basic requirements remain the same in most cases.
- Indian citizenship of the student and co-applicant
- Admission letter from a Designated Learning Institution (DLI) in Canada
- The student must be at least 18 years old. If not, parents can apply for a loan
Documents required for Canada education loan
Proper documentation is at the core of a successful education loan application. Typically, lenders ask for the following documents to grant education loans to students for Canada:
- Proof of admission from a Canadian institution
- Loan application form
- Passport size photographs
- Academic documents
- Qualifying exams certificate – GMAT, IELTS, etc.
- Borrower’s bank account statements for the last year
- Loan guarantor’s income proof
- Proof of residence
- Collateral documents (if needed)
Education loan for Canada: Eligible courses
Often, full-time programs are considered for education loans to Canada. Part-time or online programs do not come under the list of most lenders. The full-time programs can be undergraduate, postgraduate, or doctoral level culminating in a degree, diploma, or professional certification.
Here’s a summary of courses eligible for an education loan to study in Canada:
- Undergraduate degrees
- Post-graduate degrees
- Doctorate courses
- Post-graduate diploma programs
- Undergraduate diploma programs
Expenses covered by education loans for Canada
Education loans for Canada cover all major expenses, including the tuition fee, accommodation charges, travel costs, and miscellaneous expenses. While public and private banks require you to cover a small percent of the total estimated expenses (often 5% – 15%, known as Margin money), NBFCs and international lenders cover 100% of the expenses.
Expenses covered by education loans for Canada include:
- Examination, library, and laboratory fees.
- Flight tickets and intra-travel
- Tuition fee
- Monthly rent
- Caution deposit
- Money required for uniforms, books, etc.
- Cost of laptop or computer.
How to find out your top education loan options for Canada?
Finding out your education loan options for Canada is crucial, as your decision accounts for a financial responsibility. Examine the following key points prior to selecting your education loan for Canada:
- Interest rate: Always prioritize the minimal-interest options, as even a small difference in interest rates can save you more in repayment.
- Loan repayment tenure: Scrutinize your repayment capacity and compare it with the policy of your lender before finalizing your loan. It will help you manage your transactions better post completing your education in Canada.
- Tax reduction: There is tax reduction for a few education loan options under Section 80 E of the Income Tax Law. Consider it while applying for an education loan to save better.
- Processing fee & hidden charges: It is important to check for hidden charges and processing fee. Many lenders charge around 1% – 5% in loan processing fee, which may be added to your repayment.
It is extremely important to apply for an education loan that aligns with your plans and matches your profile. How about personalized suggestions based on your profile? Visit Nomad Credit and our counselors will guide you for the better. More options, minimal-interest deals, and negotiations with the lender on your behalf, all at zero cost to you! Connect with us now to soar high in your Canada dreams without worrying about the financial challenge.
Frequently Asked Questions
What is the interest rate for education loans for Canada?
The interest rates for education loans for Canada vary with lenders and type of education loan. Typically, the interest rate falls between 9% – 14% for education loans for Canada.
Which bank is the best for education loan for Canada?
You must evaluate your profile and see which bank offers an education loan to study in Canada. It depends on your co-applicant’s income, CIBIL score, loan history and other factors to decide your bank. Reach out to Nomad Credit’s counselor for personalized guidance in finding your loan options.
Can I get INR 50 Lakhs to study in Canada?
You can get INR 50 Lakhs or more to study abroad, with or without collateral. Provide your profile details to Nomad Credit’s counselor and get customized suggestions on getting minimal-interest education loan options.
How much show money is required to study in Canada?
You need around 10,000 USD (INR 8.3 Lakhs) per year and 833 USD (INR 70,000) per month in addition to the tuition fee for Canada. Luckily, most education loans cover the amount. Explore your options now with the help of Nomad Credit.
Who is eligible for a student loan to study in Canada?
If you are an Indian citizen and got admit letter from a Canadian institution, you have cleared the basic requirements for an education loan from India. For detailed eligibility check and to explore your options, connect now with Nomad Credit and avail the services at zero cost.
