Canada is among mainstream study abroad destinations and is known for offering a diverse array of courses that can open doorways to lucrative employment opportunities. Did you know that according to The Canadian Bureau for International Education (CBIE) survey, 79.2% of students consider Canada a safe and stable country?

However, studying in Canada can be super expensive, and therefore, most students opt for an education loan to study in Canada. Let’s understand all the important aspects of an education loan, such as the types of education loans, the application process, the documents required and other related information.

Key Highlights

• Benefits of an education loan for Canada
• Types of Canada student loans
• How to get a loan to study in Canada?
• List of documents required for loan
• How much loan can you opt for to study in Canada?
• Some parameters examined by the lender when you apply for a student loan

Benefits of an education loan for Canada

• Parents save for contingencies. If they utilise this fund for your higher education, they will have nothing to fall back on during an emergency. This is where an education loan will help finance your education without disturbing your family’s savings.
• If you want to be an Atmanirbhar individual, you can choose a student loan to finance your education independently.
• If you aspire to access quality education by securing a seat at your preferred varsity, nothing can stop you if you opt for a student loan, no matter what it costs.
• When you pay back the loan, you can build a healthy credit score that will unlock multiple benefits when you purchase other financial products such as credit cards, home loans or car loans.

Types of Canada student loans

• Secured education loan for Canada
  Let’s say you have an asset, such as a residential property, that you offer as a security against the loan. In this case, it is a secured loan, and the asset that you offer will be known as collateral.
• Unsecured education loan for Canada
  You don’t have to be disheartened if you do not have any collateral to offer because you can opt for an unsecured student loan.
• Which assets are accepted as collateral?
  Most widely-accepted collateral includes residential property (apartment/house), fixed deposit and non-agricultural land. However, it is imperative to check with your lender to understand the specific types of collateral they will need.

How to get a loan to study in Canada?
Indian students can definitely get a loan to pursue higher studies in Canada. With new-age financiers moving their application process online, applying for a loan has become extremely easy. All you have to do is apply online, submit the documents, and if you meet the criteria, your loan will be disbursed.

List of documents required for loan
For applicant:

• Academic transcripts
• Student KYC
• Documents to verify the signature
• Fee structure
• Admission confirmation letter from your university

For co-applicant

• Co-borrower KYC and income details
• 2 colour passport-sized Photos
• Documents to verify the signature
• Income Proof
• Collateral documents (if any)

Important note: Most financial institutions will require a co-applicant when you apply for a loan.

How much loan can you opt for to study in Canada?
It will depend on multiple factors, such as the total cost of education. Also, it is important to apply for the right amount. If you borrow more than required, you will end up paying more interest. On the other hand, if you borrow a lesser amount than required, you will face challenges in your academic journey. So, using College Course Expense Calculator is advised to ascertain your overall course cost. You can also use Education Loan Eligibility Calculator to approximate the education loan amount you can borrow based on your current finances.

Some parameters examined by the lender when you apply for a student loan
Lenders determine student employability potential to understand if the repayment will be seamless. Here are some parameters considered by the financiers.

• Academic and entrance exam score
  Your past academic qualifications, scores, and certifications (if any) will be examined. Also, competitive exams such as Graduate Record Examinations (GRE) and Graduate Management Admission Test (GMAT) scores will play a crucial role.
  
• Pedigree of your university
  The lenders will prefer reputed and well-ranked universities over other varsities.
  
• Courses
  Study programs that are in demand and are aligned with your previous academic qualification and career aspirations will be preferred.

If finance is the only piece of the puzzle keeping you from studying in Canada, a study loan for abroad programs can help you achieve your academic aspirations. At Avanse Financial Services, we offer education loans with multiple benefits. If you have queries about an education loan rate of interest or the documentation process, please get in touch with us. We will be glad to answer all your queries.