Education Loan For Canada
High salary potential, career opportunities, top universities, a warm and welcoming environment, and quality of life are why Canada is a top study-abroad destination for international students.
Studying abroad is more expensive than studying in your home country. Studying in Canada usually requires a student loan or scholarship to cover all the expenses. Let’s discuss the cost of studying, eligibility criteria, documents required, and more.
Cost of Studying in Canada
The cost of studying in Canada depends on your chosen university, program, and specialization. To understand the average cost of studying, refer to the table below:
| Degree | Average Tuition Fee |
|---|---|
| Undergraduate | CAD 12,000 – 40,000 |
| Postgraduate | CAD 20,000 – 65,000 |
| Doctoral | CAD 4,000 – 19,000 |
| Diploma | CAD 16,000 – 25,000 |
Types of Education Loans for Study in Canada
Two types of education loans are available for study in Canada – Secured and Unsecured. The features of both types of loans are tabulated below:
Features | Secured (Education Loan with Collateral) | Unsecured (Education Loan without Collateral) |
Security | Requires collateral as security, such as property, investment accounts, fixed deposits, and more | Does not require collateral, is approved based on student’s credit history and other factors |
Interest Rates | Lower interest rates as loans are backed by collateral | Higher interest rates due to lack of collateral |
Offered by | Public or Private Bank and NBFCs | Private Banks, NBFCs, and International Lenders |
Loan Amount | Higher amount due to security | Less amount than a Secured loan |
Repayment | Depends on loan amount, usually 10 – 15 years | A shorter repayment period usually requires partial payments while studying |
Application Process | Usually, 1 – 6 weeks as banks need to verify all collateral-related documents | 2 days – 2 weeks if documents are correct and in order |
Eligibility Criteria for Education Loan for Study in Canada
The eligibility criteria may differ. However, the basic requirements for student loans in Canada are as follows:
- Applicant must be an Indian citizen
- Applicant must be above 18 years of age (if not 18 years, then must have a parent or guardian who can apply for the loan)
- Acceptance letter from a Designated Learning Institution (DLI) in Canada
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.
Documents Required for Education Loan for Study in Canada
Applying for an education loan is advisable as soon as you get your acceptance letter. Ensure that you have all the required documents for your education loan application. Common documents needed for education loans for study in Canada include:
- Duly filled loan application form
- Academic transcripts
- IELTS, GRE, GMAT, TOEFL, test scores
- KYC documents such as Aadhar card, Driving license, passport, etc
- Bank statements for the last 6 months
- Address & Income proof
- Passport size photographs
How do you apply for an education loan to study in Canada?
- Visit your preferred bank or lending institution or check their official website to learn what loans they offer for Canada.
- Ensure you understand the loan terms and conditions, as they vary from lender to lender.
- Fill out your loan application form with all the necessary information and submit the required documents.
- Wait for your lender to disburse your loan.
If all this information is too much for you, you can consult Nomad Credit’s expert or counselors at no cost. Our experts are well-experienced and will assist you in the loan application process, visa and SOP guidance, university admissions, and more.
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.
Education loan for Canada: Eligible courses
ften, 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
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 |
Frequently Asked Questions
Can I get tax benefits on my student loan for Canada?
Yes, as per Section 80E of the Income Tax Act of 1967, you can get tax benefits on your student education loan for Canada. You can claim tax benefits on the interest you pay on your education loan.
How much student loan can I get for a Master’s degree in Canada?
Your loan limits depend on your master’s specialization in Canada. For STEM courses, the amount is usually higher than for non-STEM courses.
How much money do I need to study in Canada?
As an international student, you would require approximately CAD 1100 monthly to cover your rent, groceries, public transportation, phone bill, miscellaneous expenses, and more.
What types of education loans are available for international students to study in Canada?
International students can apply for various types of education loans in Canada. They can apply for a loan from their home country or Canadian banks. They can also apply for loans from private lenders. Students can opt for a secured loan with collateral or an unsecured loan without collateral to study in Canada.
Can I get assistance with my loan application?
Yes, you can consult Nomad Credit’s experts for free assistance with your loan application.
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.
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