Education Loan for Studying in Canada: Canada is a well-known country and is preferred for seeking education. There are many students in the world looking forward to attaining higher education in Canada. The cost of studying in Canada depends on the college/university selected. However, education loan for studying in Canada is a plus point for students as they can fulfill their dream of studying abroad. The high cost incurred on the course, cost of living, and course duration are too high but with the provision of education loans, students are unable to afford education.
To apply for a loan education, several banks, and financial institutions are always there. Besides banks, scholarships are also available in this regard. Find out important information on Education Loans for studying in Canada eligibility criteria, the process to apply, documents required for a loan, etc. In addition to this, the article will inform you of the expenses covered by the education loan.
Procedure to Apply for Education Loan:
If you apply for the loan on time, it won’t be troublesome for a loan to be sanctioned. It is thus crucial to apply as soon as you receive the admit letter from the university. This will give an idea about the total expenditure to be spent on study and living. Make sure to do research on various banks before applying for a loan. It is equally important to compare the loan offers at different banks. With comparison, you can make a better choice for yourself. Here are the parameters to keep in mind for seeking the loan:
- Interest rate
- Processing Charges
- Expenses covered under the education loan
- Loan processing time
- Prepayment terms and duration
Choose the bank and fill out the application form. Ensure to check the requirements of the bank. It is suggested to reach more than one leading bank for loans.
Documents Required for Loan:
Here is the list of documents needed to apply for an education loan:
- Letter of Admission from University/Institution
- Loan application form
- Recent Passport size photos
- Academic documents such as certificates and mark sheets
- Documents of qualifying exams such as GMAT, IELTS
- Residence proof of the student as well as guarantor
- Income proof of the guarantor
- Statements of borrowers’ bank accounts (at least of a year)
Every bank has its specific document requirement, ensure to check the document list required at the specific bank.
Eligibility Conditions for Education Loan for Studying in Canada:
Once must go through the eligibility criteria before applying for an education loan in Canada:
- Applicant must be a citizen of India.
- Candidate must have attained admission in a recognized foreign university/institution.
- Age of the applicant should be more than 18 years
- Parents may also apply for the loan.
- Candidate must have acquired admission in the professional course.
The repayment of the loan starts after a year or six months after completing the course as soon as the applicant gets the job. The loan amount has to be repaid in 5 to 10 years as soon as the repayment begins. The condition of repayment varies from one bank to the other or conditions covered in the loan scheme.
Expenses Covered in Education Loan:
This is one of the essential factors to keep in mind while applying for an education loan. Different schemes are covered under different schemes. Thus, one should check the expenses covered in loan. Here is the list of expenses include:
- Tuition fee
- Travel expenses
- Cost of buying books and other study material
- Lab Fee
- Hostel fee
- Laptop (If needed for the course)
- Expenses on project work or study tours
If the loan goes beyond INR 7.5 lakh then physical assets are required for collateral security. Besides this, parents need to become co-borrowers for the education loan.