All You Need To Know About How to Get Student Loans for Canada

Process for Applying for an Education Loan

The student loan application is a lengthy process. You should start applying for the Study Loans for Canada as soon as you get the acceptance letter from the University you have applied to. Student Loan application is a complex, tedious process, and it should be approached carefully. Once you are accepted at a University, you will get an idea of the education and living expenses for Study in Canada.

The next step is to research for the Study Loans for Canada available at the banks. Check out which banks are giving you best deals on study loans and decide. Here are some of the parameters that you can apply to understand the Loan process and decide the best study loans for Canada:

• Processing fee of the Study Loan
• Prepayment terms, conditions and Loan Duration
• Processing Time
• Interest rate on repayment
• Expenses Covered.

How to Apply for student loans for Canada?

Here is the list of documents required while applying for an Education Loan

Keep in mind that every bank will have different student loan requirements. These are the general documents required for Study Loans for Canada:

• Proof of Admission / Acceptance Letter
• Student Loan Application Form
• Passport Size Photographs
• Academic Mark Sheets, Certificates and Degrees
• Exam scores (GMAT / GRE / IELTS / TOEFL)
• Residence proof of both Student and Guarantor
• One year statements of the bank
• Guarantor’s income Proof

Courses for which banks provide a loan to study in Canada?

There are loans available for bachelors, masters and research programs. The banks prefer to provide loans to the students who are pursuing more job-oriented studies at Universities for obvious reasons. Moreover, it is always preferred that you enrol for a full time course at a Canadian University.

For SDS colleges and Universities, you are required to have CAD10000 in the Scotia Bank of Canada.

Eligibility criteria to apply for an education loan to study in Canada

There are some basic eligibility criteria to apply for a Study Loan for Canada. You should consider these factors before applying for a loan:

• The loan applicant must be citizen of India
• The student must have applied and been accepted in a recognised Canadian institute for a full time program.
• The applicant must be of 18 years. If the applicant is younger than 18, the parents will have to apply.

Repayment

The repayment of Student loans for Canada starts six months or one year after your study program is over. The repayment duration can be five to ten years from then. However, the repayment duration can vary with banks. For Example, SBI Ed-vantage has a repayment duration of 15 years.

Expenses covered under Education Loan

Before deciding on a scheme, you should check the inclusions, the expenses that are covered in the loan, and which are not. These are some of the expenses that are included in different types of Study Loans for Canada:

• Tuition Fees
• Accommodation / Hostel Fees
• Travel Expenses
• Cost of Study Materials
• Other expenses that are includes in the study program 

Collateral Rules

If the loan amount is more than 750000 INR, you are required to provide tangible assets as security deposits to the bank. The securities can be buildings, properties, land, etc. The Parents are always co-borrowers in Study loans in Canada.

Tax Benefits

Under section 80E, the tax benefits can be claimed on the interest paid on the loan. After the repayment starts, the benefits can be claimed up to seven consecutive years.