Study Loan for Canada: Your One-Stop Guide to Student Financing.

This article is a one-stop guide to student financing. This article will provide detailed information about study loans for Canada.

For students who want to pursue their education abroad, Canada is viewed as a desirable hub. In Canada, there are many universities that allow students to enroll in the course of their choice.

For those looking to pursue an international education, Canada is undoubtedly promising. But this opportunity comes at a certain price.

Education loans seem to be the best option for students to cover the high cost of their education. Student loans are also one of the best ways to show proof of funds for a Canadian student visa. To know more about the Study loan for Canada keep on reading this article!

Study loan for Canada: Documents Required

You must submit the documents in accordance with bank policies to complete the loan application process. The following documents must be submitted in order to apply for an education loan to study in Canada.

• Proof of admission (Admission letter from the Canadian University)
• Passport photos
• Qualification exam scores proof
• Copy of previous school/college mark sheets
• Bank statement of the last year
• Income proof
• Proof of residence
• Collaterals (if needed)
• Statement of cost of education.
• Any other documents required by the lender.

Other Optional Documents:

• Official Certificate of Minority Caste.
• Certificates of Extra-curricular activities 
• Documents regarding any disability or illness

For the Canada student loan application process, banks may have different rules. So, the document list can vary accordingly.

Study Loan for Canada: Eligibility Criteria

Indian banks have special student loan approval requirements. Therefore, consider these aspects before submitting your application:

• The applicant should be aged 18 years and above.
• The applicant should be a citizen of India.
• The candidate should have secured admission to a recognized Canadian university.
• The course should be valid.
• In the case of minors, parents require to apply for the loan

Expenses Covered under Education Loan

Following expenses are covered under an educational loan:

• Examination, library, and laboratory fees.
• Expenses for traveling: These expenses include airfare, parking permit, monthly bus/train pass, etc
• Fees for college and hostel: This expense includes on-campus or off-campus living expenses. For example- Rent expense, price of Regular meals, etc
• Caution deposit
• Cost incurred for uniforms, books, etc.
• Cost of laptop or computer.
• Other expenses.

Courses Covered Under Education Loan

The banks prefer to provide loans to students who are pursuing more job-oriented studies at Universities. Courses that are covered under Education Loans are 

• Undergraduate degrees
• Postgraduate degrees
• Doctorate programs
• Diploma courses
• Vocational courses
• Skill development courses

Important Note: Nationalized Banks do not offer education loans for Vocational Courses and Skill Development courses

Indian Banks that offer Study Loan for Canada

• HDFC Bank  9.55% p.a. Onwards    Up to 15 years

• State Bank of India     8.65% p.a. Onwards    Up to 15 years

• Union Bank of India    6.80% p.a. Onwards   Up to 15 years

• Axis Bank      13.70% p.a. Onwards    Up to 20 years

Study Loan for Canada: Application Process

As soon as you receive the acceptance letter from the university you applied to, you should begin applying for Study Loans for Canada.

You can visit the bank's official website from where you want to apply for an education loan. You must submit the necessary documents, including a duly signed application form. You will receive assistance from a bank representative with the application process.

You can also visit the nearest bank branch of your choice and apply for an education loan. Necessary documents and a duly signed application form should be submitted there.

Study loan for Canada: Key Points to consider before applying for a loan 

Before you apply for a student loan to study at a Canadian university, you need to know ​​how much money you will need and how much you can manage on your own.

Some other key points that you should consider are

• Research about the banks providing international education loans for Canada, their eligibility, and document requirements.

• Decide on the university and course you want to study in Canada.

• You should compare the different loan options provided by the different banks for studying in Canada and select the one which suits your needs.

• Estimate the time of fund disbursement.

• Make sure to be ready with the collateral or guarantor.

Points to be considered while choosing a bank for a Loan Application:

• A processing fee of the Study Loan
• Prepayment terms, conditions, and Loan Duration
• Processing Time
• Interest rate on repayment
• Expenses Covered.
• Loan margin
• Moratorium Period
• Tax Benefits 
• Loan Duration 

Study Loan for Canada: Loan Repayment

Repayment of Canada student loans begins six months or one year after completing the degree program

The time period for repayment can range from five to ten years after that. The length of the repayment period can, however, differ between banks.

Important Note: 

• Choosing job-oriented courses can reduce your repayment burden.

• Your chances of obtaining high-paying jobs will also increase if you receive your education from renowned Canadian institutions. 

This way, you can reduce your student loan repayment costs while you are in Canada.

Conclusion

The most challenging situation that international students face who choose to pursue education in Canada is making financial arrangements.

Many students find it challenging to afford the high cost of studying in Canada.

You can take out an educational loan and pay it back with interest if you decide to complete your education at a Canadian university.

This article has tried to cover everything related to Study loans for Canada. We hope you like this article!

FAQ

1. How long does it take to process an application for an education loan?

The duration of your student loan process varies from lender to lender. Some banks have a quick approval time of 15 days.

2. Which Bank is best for applying for a study loan?

SBI can be considered the best bank to apply for a study loan. Interest rate through SBI Ed-Vantage is as low as 8.00%. Renowned banks like HDFC, State Bank of India, Axis, and Union Bank of India offer student loans for Canada. 

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