Education Loan for Studying in Canada: Eligibility, Banks & How to Apply

It is known to all that studying in Canada is more expensive than in India. Not all students have financial support so they either need scholarships or education loans to study in Canada. Banks and NBFCs offer financial aid to students in the form of study loans. Make sure, you follow the eligibility and present the required documents to borrow a loan.
Getting a scholarship, borrowing an education loan and using personal savings are three options available to every student to cover the cost of studying in Canada. Not everyone can get a scholarship or have a lot of money saved in bank accounts. That's why they choose Many students choose to borrow an education loan to study in Canada. The university type, course type, program duration and total cost of living are the key factors in deciding the overall cost of studying in Canada.
This article will help you complete the application process and get an education loan to study in Canada. We will also discuss the eligibility, list of documents, application process and other important details.
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Application Process of Education Loan for Studying in Canada
Getting a loan sanctioned is not only tedious but also time-consuming, so in order to avoid any last-minute rush, one should always start applying for a loan early. After getting the admission letter from the university, students get an idea of the total expenditure, including study and living. Calculate the amount you need to finance and how much you are going to spend from your own pocket. Do some research before applying for a loan and check which banks are giving the best deals on loans.
Compare the loan offers of different banks on these parameters:
- Interest rate
- Processing fee
- Expenses covered under the education loan
- Loan processing time
- Prepayment terms and duration
After selecting the bank, fill out the application form and check the requirements of the bank. The inability to show sufficient funds can also result in rejection, therefore, it is always recommended to approach at least two-three banks for loans. Students looking to apply for study abroad loans may contact India’s leading education loan providers through Shiksha Study Abroad.
Also Read:
Study Loan for Canada Requirements
In the last few years, the number of Indian students going to study abroad has increased exponentially, therefore, demand for loans has also risen significantly. In order to sanction the loan, banks also verify the details given by the applicants. So, there is a list of documents that the applicant needs to submit to the banks to obtain study loan for Canada. Here’s a list of the documents required for education loan:
- Admission letter from university/institution (Proof of admission)
- Loan application form
- Passport size photographs
- Academic documents (certificates and mark sheets)
- Documents of qualifying exams (like GMAT, IELTS)
- Resident proof of the student and the guarantor
- Statements of borrowers' bank accounts (last year)
- Income proof of the guarantor
Note: The requirement of documents can vary as per the banks’ own rules and regulations, so it is always advised to check the list of the documents required with the respective bank.
Shiksha has partnered with India’s topmost and trusted loan providers who will assist you in getting an education loan. Find out more!
Courses for which banks provide a loan to study in Canada?
Those students who wish to apply for undergraduate, master's or research programs in established institutions are funded by the banks. Banks also provide loans for SDS Colleges. Nationalized banks generally do not offer education loans for vocational, short-term or diploma courses. As banks always think about getting the amount back from the student seeking funds, they always prefer to disburse loans for job-oriented courses.
Education Loan for Studying in Canada: Eligibility
Before applying, one must check the eligibility criteria for getting the student loan approval. Some of the factors that are considered by all the banks are:
- The loan applicant must be an Indian citizen.
- The applicant must have secured admission to a recognized foreign university/institution.
- The loan applicant must be above the age of 18 years or his/her parents will have to apply for the loan.
- The applicant must have secured admission to a professional course.
Repayment of Study Loan for Canada
Repayment starts after a period of one year or six months, whichever is earlier, after the completion of the course once the candidate gets the job. The loan amount has to be repaid in 5 to 10 years once the repayment starts.
Note: The repayment conditions vary according to the banks’ rules or conditions covered under the loan scheme.
Expenses Covered Under the Student Loan
This is one of the most important factors to keep in mind while applying for an education loan. As there are a lot of student loan schemes offered by banks, it is always recommended to check which scheme suits your needs the best. Different expenses are covered under different schemes, so one should always check with the bank as to what all other expenses are covered in the loan scheme apart from the tuition fee. The list of expenses includes:
- Tuition fee
- Travel expenses
- Cost of buying books and other study material
- Laboratory fee
- Hostel fee
- Purchase of a laptop (If required for the course)
- Expenses for project work or study tours
Collateral Rules
If the loan amount exceeds INR 7.5 lakh then tangible assets are needed as collateral security. Also, parents are required to be co-borrowers for all education loans.
Tax Benefits
Tax benefits can be claimed on the interest paid on the entire loan amount under section 80E. Further, the tax benefits can be claimed for up to seven consecutive years once the repayment starts.
Loans are a boon for brilliant students who can make big in life but due to rising costs are not able to gain a quality education. However, it is recommended to carefully check the conditions of the loan agreement.
Here are some important points for obtaining a student loan for Canada without security or collateral:
- Creditworthiness of the co-applicant must be good.
- Good academic score and profile.
- Admission to a good college or university that can help you get a good job.
It is vital to keep in mind that the eligibility requirements and loan conditions may vary between lenders, so it is crucial to fully explore your alternatives and evaluate various offers to discover the one that best suits your unique circumstances.
Documents required for a study loan for Canada vary as per the needs of the financial institution. Certain common documents required for study loan for Canada include:
- Proof of admission to a Canadian University/College
- Loan application form
- Passport-size photographs
- Income proof of the co-signer
- Academic records/transcripts
- Entrance exam results (GMAT/GRE/IELTS/TOEFL)
- Proof of identity (passport, ID card, etc.)
- Bank account statements
- Evidence of purchase of a special Guaranteed Investment Certificate (GIC) from a participating Canadian financial institution
Vancouver Community College is a premier and one of the oldest community colleges in Canada. VCC does not officially publish data on the acceptance rate. However as per some unofficial sources, Vancouver Community College acceptance rate ranges between 50% - 75%. VCC is one of the most sought-after and popular college among international students. Please note, that the data on acceptance rate given above is taken from an unofficial source, therefore, it is subject to vary.
Bishop's University is a well-known and highly reputed university located in Canada. The university provides over 106 programs offered under the multiple faculties and 25 departments at the university. Furthermore, the university also offers scholarship opportunities to students pursuing their Master's, Doctorate, Postdoctoral, and Short-term research at the university. The university also offers multiple placement opportunities to the graduates of the university across multiple organizations and industries such as Deloitte, CGI, and RBC. Bishop's University also offers accommodation facilities to ensure that the students enjoy a safe and comfortable time while at the university. Additionally, the university also offers multiple clubs, culture, sports, and other events, and multiple events to ensure active participation of students outside classrooms as well.
Selkirk College Canada expects a non-refundable application fee from international students, which is USD 100 (INR 8K). International students must fill out the application form where they must upload documents like transcripts, test scores, passport ID page, resume, and more. At the end of the application, international students can expect to pay the application fee, and once their application meets eligibility, they get an offer of acceptance.
International students can apply for St. Clair College admission through the college official portal and submit the required application material before the equal consideration deadline. As application received after the deadline are considered on a first-come, first-serve basis. The admission decision on acceptance to the college can take anywhere between 2-6 weeks. However, there is no special mention about admission decision timeline, it is recommended to reach out to the college for further clarity.
For FDU Vancouver, the acceptance rate has not been mentioned but, this is one of the campuses of FDU New Jersey University, so, the acceptance rate can be considered as 87%. The acceptance rate signifies that the university is less selective during admission, but, there are a few of the master’s programs of the university that are highly competitive to get into such as MSc in Applied Computer Science.
Now that students have sufficient knowledge about Student Loan for Canada, they can get in touch with India’s top-rated loan providers and apply for an education loan through Shiksha Study Abroad.
Education Loans By Other Banks
Union Bank of India Education Loan | Axis Bank Education Loan |
Axis Bank Education Loan | Avanse Education Loan |

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a year ago
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2 years ago
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2 years ago
Hello. In this situation, it is advisable that you contact your bank for more clarity. In addition, you can refer to these links: https://studyabroad.shiksha.com/guide-to-student-loans-guidepage-339 , https://studyabroad.shiksha.com/education-loan-applycontent61319 , and https://studyabroad.shiksha
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2 years ago
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2 years ago
Hello Sunita. Job opportunities in USA or Canada will depend on you university, networking skills, location, etc. After Masters in Geology, you can enter academia, work as an exploration geologist, surveyor, research associate, etc. To know about the colleges offering MS in Geology, you can refer t
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2 years ago
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2 years ago
Hello Alfiya. You can check the list of scholarships on this link: https://studyabroad.shiksha.com/scholarships/canada-cp For further information, you can connect with our experts here: https://studyabroad.shiksha.com/apply
Here are some steps that will help you get a study loan for Canada: