Canada, for many years, has been one of the leading hubs for international students who wish to pursue their higher education. Students from India and many countries are increasingly choosing to study in the top universities of Canada like the University of Toronto, University of British Columbia, and McGill University but the cost of studying in these institutions varies between INR 60 lakhs to 1.5 Crore or more for both tuition fees and living expenses. These expenses are quite high to be shelled out and therefore students go for education loans for study abroad so that they can get admission to MS in Canada without any hassles. Besides, students applying for loan for study abroad, one can avail tax benefits under section 80 (E) of the Income Tax Act 1961.
The applicant and co-signer must be a citizen of India.
A co-signer should provide documentary proof to establish their relationship with the student.
The applicant must provide proof that they have secured admission to foreign university or Institution.
All the students who are aspiring to study in regular undergraduate, doctoral, or postgraduate programs offered by the reputed institution are eligible for a loan to study abroad in Canada. Generally, short-term courses and vocational programs are not eligible for educational loans.
There are public banks, private banks, and non-banking financial companies (NBFC) that can provide students with education loans for study abroad. Public banks such as SBI, Bank of Baroda, and Punjab National Bank offer up to 85% of the course fee for overseas education against security. For any loan above INR 4 lakhs, students will need to pay 15% of the sanctioned amount as the margin money. For loan amounts exceeding INR 4 or 5 lakhs, students will need a co-signer (or co-applicant) who can be their parents or any other relative. Sometimes, a third-party guarantor has also required along with collateral security for loans above INR 7.5 lakhs; especially, for the public and private banks.
Private banks like Axis, HDFC, ICICI, etc have interest rates lying between 10.5% to 13.5% whereas NBFCs like Avanse and Credila interest rates range from 11.5% to 14%. They can finance 100% of the tuition fees without leaving any margin money and always ask you to have a co-signer. The expenses covered under an education loan include tuition fees, lab and library fees, exam fees, caution deposit, and travel. Students who take a loan will have a moratorium period or holiday period of around 6-12 months only after which you will be required to start with your EMIs. Students can also present the loan approval letter from a nationalized or private bank to the Embassy or High Commission for visa application purpose as a proof/source of funding, approval letters from NBFCs like Avanse or Credila will not be recognized for visa purposes. In such cases, it’s better to take the whole amount of loan at one go and keep that money in their bank account.
In case you are looking to study for a Postgraduate diploma in Canada the loan for study abroad is limited to secured loans. Banks and NBFC firms look to provide only unsecured loans in Canada for the students who are looking at a masters program in a leading canadian university. Hence in case you are looking for unsecured education loan for study abroad we recommend you join a university for a Masters program.
If you wish to ease your access to the best education loan study abroad offers, Eduloans is right here to help you apply to multiple lenders through a single-window application with complete ease and convenience at your doorsteps. We help you get the complete education loan (Including Tuition, Living, Food, and Misc. Exp. as fast as possible with maximum negotiations for Rate Of Interest and Processing Fees. We have dedicated aggregator and financial guidance counselors to assist you so that you can experience hassle-free and Student Friendly Online Process for your Benefit / Convenience. So if you wish to avail a hassle-free loan process, connect with Eduloans by registering on our platform.
