What are the types of education loans available in India for study in Canada?
Broadly, there education loan options in India to study in Canada fall under two brackets:
Education Loans with Collateral: These are the education loans where applicants require to provide collateral as security. This collateral is pledged to a lender as a security for the loan amount. This collateral can be of two types:
Tangible assets such as flats, land (non-agricultural), shops, etc.
Intangible assets such as fixed deposits, life insurance, government bonds, etc.
Education Loans without Collateral: These are the education loans in which the applicant does not need to pledge any security to the lender in order to avail of the education loan. However, there has to be a co-applicant and his/her income becomes a major determinant of the loan sanction probability. Also, only the private lenders in the country and a few international players offer an unsecured education loan for an amount more than INR 7.5 Lakhs to study in Canada.
How to get an education loan to study in Canada?
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Get the loan sanction letter after the lender’s approval.
There are mainly 4 types of lenders that provide education loans to study in Canada for Indian students:
- Public-Sector banks
- Private-Sector banks
- Non-banking financial companies (NBFCs)
- International lenders
How to get an education loan for bachelors in Canada?
For undergraduate courses in Canada, Indian lenders only offer loans with collateral. You will need to put an asset as a security to get an education loan for a bachelors’ degree in Canada. For such a loan, you can apply to a government bank as for secured loans, public sector banks are the best options, owing to their lower rate of interest, longer moratorium period, tax benefits under section 80 E, and more.
How to get an education loan for MS in Canada?
You can go for both secured and unsecured education loans to study MS in Canada. As masters in Canada has substantial job scope and also raise high demand among the study abroad aspirants,banks and NBFCs are always open to provide education loans for masters in Canada, providing the applicant fulfills all the financial and academic requirements.
How to get an education loan for PG Diploma in Canada?
A majority of overseas students in Canada get enrolled in PG diploma courses, and a considerable mass of Indian students pursue a Postgraduate diploma in various fields. A postgraduate diploma is done after a bachelors’ degree and is somewhat similar to a Master’s degree. It is needless to say that the cost of a PG Diploma is also very high. Education loan is a silver lining in the dark clouds for all those study abroad aspirants who wish to do higher education in Canada but face impediments due to financial restrictions. Since studying PG diploma courses in Canada is not a cheap affair, many students get deterred and abandon their plans of going there for higher education. For such students, a study loan for a PG diploma in Canada is the best option to fund their studies and other related expenses. Students can take any of the secured education loans or an unsecured education loan for studying abroad depending upon their financial and academic profile.
How to get an education loan for MBA in Canada?
MBA in Canada is indeed a costly affair. Many of the Indian students headed to Canada for an MBA find it difficult to get finances for their education. This necessitates financial aid, and at this point, an education loan comes to the students’ rescue. A study loan for MBA in Canada with collateral from a public sector bank is one of the most cost-effective options for all the study abroad aspirants who are looking for financial help to pursue an MBA in Canada.
However, there are many other options. education loans for MBA Courses in Canada can be broadly divided into two types. They have education loans with collateral and education loans without collateral. Public sector banks, private banks, and NBFCs provide education loans for studying in Canada at varying interest rates and different terms and conditions.