Education Loan for Study in Canada
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Do you aspire to study in Canada? Pursuing academics in Canada is a dream for many students. The country is quickly becoming a preferred study destination. It is known for its education system, cultural diversity, and student life with a high possibility of migration. But the cost of education there always causes concern. This is where an education loan for study in Canada comes in handy. Opting for such a loan is a great way to finance your education there.
Types of Education Loans for Study in Canada
There are mainly two types of education loans to study in Canada. Both are discussed below:
- Secured Loans
A secured education loan means you need to give something valuable (called collateral) as a guarantee to the bank. This can be things like a fixed deposit, an LIC policy, land, a house, or a shop. Most government banks in India ask for such security when giving a loan to study abroad.
- Unsecured Loans
An unsecured education loan does not need any collateral. Since there’s no guarantee given, the risk for the bank is higher. That’s why these loans usually have higher interest rates. You will also need a co-applicant (like a parent or guardian), and the loan approval depends on their income and credit score.
Choosing a loan can be hassle But we make it simpler
Study Programs Eligible for an Educational Loan for Canada
Educational loans for studying in Canada are generally available for a wide range of programs at recognized institutions. The key is that the program should be career-oriented and offered by universities or colleges approved by the lending bank or NBFC. Common eligible programs include:
- Undergraduate (Bachelor’s) Degrees
- Postgraduate (Master’s) Degrees
- Diploma and Advanced Diploma Courses
- Postgraduate Diplomas and Certificates
- PhD and Research Programs
- Professional Courses (e.g., Engineering, Medicine, Law, MBA)
- Vocational and Skill-Based Programs at approved institutions
Always check with the bank for a list of approved colleges and courses, as eligibility can vary.
Top Banks and Financial Institutions Providing Education Loans for Canada
A plethora of banks and financial institutions in India provide education loans to support students aspiring to study in Canada. These institutions offer customized loan options based on the student’s profile, university, and course of study. Here’s a categorized list of top lenders:
| Category | Institutions |
|---|---|
| Nationalised Banks | State Bank of India (SBI), Bank of Baroda, Bank of India, Union Bank of India, Bank of Maharashtra |
| Private Banks | Axis Bank, ICICI Bank, IDFC First Bank |
| Co-operative Banks | Saraswat Bank |
| NBFCs | HDFC Credila, Avanse, InCred, Auxilo, Credenc |
| International Lenders | MPower Finance, Prodigy Finance |
These institutions offer loans that cover tuition fees, living expenses, travel, and other related costs. Some lenders offer collateral-free loans based on the student’s and co-applicant’s financial background and the university’s ranking.
QCKLoans stands out as a trusted platform that helps students compare and choose the best education loan options. From eligibility checks to documentation and final disbursal, QCKLoans simplifies the loan application process. Their team works closely with top banks and NBFCs, ensuring you secure the most suitable financing for your Canadian education journey.
Expenses Covered by Abroad Education Loan for Canada
When opting for an education loan for Canada, you can either receive the full sanctioned amount at once or opt for periodic disbursements based on your needs. Periodic disbursement is usually better, as interest is charged only on the disbursed amount, not the entire sanctioned loan. This helps you save on unnecessary interest.
Most banks and financial institutions cover a wide range of expenses under the education loan, ensuring you can focus entirely on your studies without financial stress. Here’s a quick look at the major expenses typically covered:
| Category | Expenses Covered |
|---|---|
| Cost to Study | Tuition fees, admission fees, examination fees |
| Academic Materials | Books, laptops, study tour expenses |
| Living Expenses | Accommodation/hostel fees, food expenses |
| Other Costs | Travel expenses, caution deposit, health insurance, and other miscellaneous expenses |
Eligibility Criteria of Education Loan for Study in Canada
Before applying for an education loan for studies in Canada, you need to check the eligibility requirements, which can vary. Reach out to Qck Loans to know the criteria. The basic eligibility criteria to apply for an education loan for Canada are:
- Your age should be 18 years and above
- You must be an Indian citizen
- You must have an admission letter from a recognised Canadian university
- The course must be valid
Eligibility Criteria of Studying in Canada
The eligibility requirements vary from one educational institute to another. As a student, meeting the criteria is necessary. Listed below are some basic criteria:
- Age Requirement
The age criteria vary from program to program. The minimum age criteria to study in Canada is 18 years or older. However, a few programs might have extra age-related criteria based on the course.
- Educational Qualification
Every university has set educational requirements. You need to meet the educational criteria for admission. You need to submit your 12th-grade marksheet if you want admission in a UG course, or your bachelor’s degree marksheet for a PG program. Additionally, many educational institutions need you to fulfill the merit score benchmark. For example, many Canadian universities accept students with over 75% marks.
- English Proficiency Test
Since English is widely spoken in Canada, you need to prove your proficiency in the language. IELTS, TOEFL, and PTE are accepted English Proficiency Exams. Check the score criteria on your preferred university’s website and try to acquire that score.
- Entrance Test
Like CUET in India, educational institutes in Canada have set specific entrance tests for students. You need to appear for these standard entrance examinations to gain admission to your dream university. Your marks will help you ascertain your options for studying overseas in Canada. The Graduate Record Examinations (GRE) are especially for bachelor’s degree courses, whereas the Graduate Management Admission Test (GMAT) is for master’s degree programs.
Documents Needed for Education Loan for Study in Canada
The documents required to apply for an education loan to embark on your academic journey in Canada can vary. Contact Qck Loans to know which documents you require for your application. The following are some basic documents you need to apply for an education loan to study in Canada:
- A duly filled-out loan application form
- Entrance exam results
- Qualifying exams marksheets
- Admission Letter
- Statement of cost of education
- Passport-size photographs
- Residential Address proof like Adhaar, utility bill, etc.
- Identification proof like Adhaar, PAN, Voter ID, and Passport
- Your bank account statement for the last 6 months
- Parents/guardians’ ITR for the last 2 years
- Additional documents asked by Qck Loans
Guaranteed Investment Certificate (GIC)
To study in Canada, international students must open a Guaranteed Investment Certificate (GIC) account with a minimum of CAD 10,000 as proof of living expenses. This GIC acts as a short-term liquid investment with a guaranteed return, making it a secure financial requirement for the Canada student visa process.
Students can apply for a GIC account online through authorized Canadian banks such as Scotiabank, ICICI Bank Canada, HSBC, SBI Canada Bank, and CIBC. A one-time processing fee of CAD 200 is also required. Once the payment is made, students receive an Investment Balance Confirmation, which is essential for the visa application.
Upon arrival in Canada, students must open a personal bank account. An initial amount of CAD 2,000 is transferred to this account, while the remaining CAD 8,000 is disbursed in monthly installments of CAD 666, helping manage living expenses in Canada throughout the year.
This structured GIC payment plan supports international students in covering essential costs while meeting student visa requirements for Canada.
How to Get an Abroad Education Loan to Study in Canada?
Getting an education loan to study in Canada can take time, depending on the lender. That’s why it’s smart to start your loan process 4 – 6 months before your course begins. Visiting each lender individually can be confusing and time-consuming, but that’s where QCKLoans makes it easy.
Follow these simple steps to get your education loan:
- Step 1 – Check Your Eligibility
Start by checking your eligibility for an abroad education loan to study in Canada through the QCKLoans eligibility checker tool.
- Step 2 – Get Expert Guidance
A loan expert from QCKLoans will contact you and help you choose the best lender based on your profile and course.
- Step 3 – Submit Documents Easily
You’ll get a customized checklist to gather all necessary documents. Our team will also guide you with alternatives if you’re missing anything.
- Step 4 – Quick Verification & Approval
Once you submit your documents, QCKLoans will handle the processing. Loan approval usually takes 7–15 days, depending on the lender.
- Step 5 – Loan Disbursement
After signing the agreement, your loan is disbursed, either directly to you or your university, based on lender rules.
Loan Sanction and Pre-Visa Disbursement Process for Canada
Once your education loan for Canada is sanctioned, you will receive a loan agreement detailing all the terms and conditions. It’s important to review this document thoroughly before moving forward with the disbursement.
For your Canada student visa, a pre-visa loan disbursement is often required, as per the guidelines issued by Canadian immigration authorities. This step is crucial to show proof of funds while applying for the visa. Make sure your lender supports pre-visa disbursement to avoid delays in your visa approval process.
Want to know more about the Canada Student Visa? Check out this link: https://qckloans.com/blogs/a-complete-guide-for-canada-student-visa-process/
Part-Time Jobs in Canada
An academic permit in Canada lets you work part-time when you are still studying. Several students benefit from this chance of earning some money and covering basic expenses. Your education loan for study in Canada will only cover your academic-related expenses. For covering other expenses, you need to work and gain experience while balancing your studies.
You can also join internships and gain work experience before actually seeking a job. You can work in libraries, restaurants, cafes, departmental stores, administrative offices, etc. Both off-campus and on-campus part-time employment opportunities are available. You can work as a translator, tutor, babysitter, dog walker, cleaner, or take up freelance gigs.
Click below to learn more about part-time jobs available in Canada.
What to do After Completing Studies in Canada?
Post-completing your studies with an education loan for Canada, you can search for ways to establish yourself in the country. Listed below are two ways:
- Post-Graduation Work Permit (PGWP)
If you have finished an educational program whose duration is over 8 months, you are eligible for the PGWP. It has the same validity as that of your course duration, a 3 year validity. It is a good way to extend your stay and gain valuable work experience, which opens doors to more jobs.
- Permanent Residency (PR)
When you have earned ample work experience through the PGWP, you can apply for PR. Getting the status takes time and has certain requirements. You need to fulfill those criteria during the course of your application. Therefore, consider other options for extending your stay while your PR application is in process.
Our free tools will help you out
Our advanced tools, such as the EMI calculator and loan eligibility checker, streamline the process of obtaining quick student loans for studying abroad by eliminating complex procedures.
EMI Calculator
Determine your EMIs and repayment schedules before committing to a student loan.
EMI Calculator
Determine your EMIs and repayment schedules before committing to a student loan.
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Everything you need to know
Canada is a dream study destination for many people. It is famous for its incredible education system and universities, apart from healthcare and tourist places. The country offers a special Indian Card Status that allows you to continue your studies without a study permit. That is the reason Canada is popular among Indian students.
Yes, of course! You can apply for an education loan from Qck Loans and pursue your dream of embarking on your academic journey in Canada.
The amount of an education loan for Canada is based on your course type and university. UG courses cost approximately CAD 20,000 to CAD 35,000 per year. On the contrary, PG courses cost around CAD 20,000 to CAD 40,000 annually, and Ph.D. courses cost CAD 10,000 and CAD 25,000 yearly on average.