The biggest challenge international students have to deal while pursuing educational degrees in Canada is an arrangement for funds. Studying abroad is no doubt costlier than studying in the home country. Cost of studying in Canada is also expensive and it is difficult for many international students to afford it.
If you are the one who is wishing to pursue your further education in Canadian universities, you can take an educational loan and repay it with interest later on. In this article, we are presenting you with complete information about Education Loan to Study in Canada.
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. A 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.
International Students looking forward to studying in Canada with the help of an education loan must start their process at least 6-7 months before their course begins. Here is the stepwise you need to follow for applying for a student loan:
Now we will present each step in detail. Go through each step thoroughly and take note of the important points, as it is a big decision which will affect your further financial life.
Your process begins with researching different banks and loan options. But before you start your research, there are few elements you should take into account:
Factors to consider for education loan to study in Canada
Before applying for a student loan to study in Candian universities, you should have a clear picture of how much fund you will require and how much you are going to manage on your own. Other important factors are:
Once you are ready according to the above-mentioned things, check your eligibility for an education loan to Study in Canada. Here are the criteria:
There are some basic eligibility criteria to apply for a Study Loan for Canada. You should consider these factors before applying for a loan:
It’s time to estimate the fund requirements for your studies in Canada. 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:
Estimating the Cost of studying in Canada is one of the important steps. Once you get your final amount, you have to check with your savings as to how much you will be able to pay on your own and how much you will require to take a loan.
The universities in Canada accept international students thrice a year. Fall, Winter and Summer Intakes are for overseas students. You have to apply to the Universities and get your letter of acceptance from the university. You can show this as proof while applying for the education loan: The top universities in Canada are listed below:
The list does not end here, there are many best universities in the country. So you have plenty of options in Canada where you can pursue your further studies. You will get full information here: Universities in Canada
You should compare the different loan options provided by the different financial institutions for studying in Canada. Check out which banks are giving you the 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:
Each factor is important, so take your time and choose wisely. If you decide after careful planning and comparing you will be able to save a few dollars.
In this step, you will start the process of applying for your education loan for Canada. Once you finalise the bank and amount of loan you will require, you have to fill the loan application form. You can apply online or offline according to the bank facilities. You must fill the application form accurately and truthfully.
In the application form you will have to fill your Full name, parents name, residential address, date of birth, information of ID proof, course name, duration of the courses, name of the university, Income, Liabilities, employment details, type of security, tuition fees, statement of other expenses etc. Fill each and everything you are asked in the form correctly and recheck it before submitting.
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:
Other Optional Documents
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.
Once your international education loan application is approved by the bank, it will issue a loan document. The document will have all the terms and conditions of the education loan along with the basic details.
The information mentioned is the borrower’s name, agreed loan amount, the period of repayment, interest rate, the signature of both the parties, collateral security details etc. Read all the elements properly and if you agree with those, sign it.
After signing your loan agreement for Canada, the bank disburses the amount. It will pay the amount to you in instalments or lump sum as per agreement. In some cases, the bank may pay the tuition fee directly to the respective university. Once you receive your amount, spend it on the necessary expenses such as tuition fee, books, purchasing laptop, accommodation etc.
What is Collateral?
The security provided against the education loan is referred to as collateral. It can be any property either movable or an immovable, which is accepted by the bank. The biggest benefit of education loans with collateral is paying low-interest rates. The interest rate of education loans to study in Canada depends directly on collateral availability.
How much collateral is required for an international education loan for Canada, is very subjective. It varies from bank to bank. Moreover, the academic record of the student and their scope of future employment are also considered. Most of the banks ask for collateral security to reduce their risk.
Instruments used as collateral:
Student loan without collateral to study in Canada are also provided by some NBFCs at high-interest rates. To get an international private loan, students don’t need collateral but instead, they will need a Guarantor.
A guarantor is required for getting an international education loan. It could be a parent or family member. The bank will check the background of the guarantor’s credit history thoroughly before accepting or denying your education loan application.
There are a few important things bank will examine before granting loan:
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.
You should also read these articles:
Accommodation in Canada for International Students
Cheapest Places to Study in Canada for International Students
Admission Process to visa: Study in Canada
Register here to get newsletters for the latest study abroad news & free counselling assistance.