Study Loans for International Students in Canada - Canada is competing with the USA because the most desired destination for pursuing better studies abroad. Cost of studying in Canada relies upon at the university, course, and period of observe and cost of living. Although there are plenty of correct universities in India as properly, but exceptional career possibilities and excessive living standards force college students to opt for studying overseas.

Not every aspiring scholar can have the funds for to live and observe in Canada. Therefore, diverse banks and different financial institutions are imparting training loans to college students wishing to pursue higher research in Canada.

Although one-of-a-kind economic aids and scholarships are also to be had, however because of the fierce competition, not each student can avail them. In this article, we can tell you about each and every factor from eligibility to loan applying technique to files required for getting an schooling loan to look at in Canada. Apart from this, we are able to also tell you approximately what all fees are protected beneath the schooling mortgage.

Process for applying for an Education Loan

Getting a loan sanctioned is not handiest tedious however additionally time taking, so, on the way to keep away from any final-minute rush, one must always begin applying for a loan early. After getting the admit letter from the university, college students get an concept of the whole expenditure such as study and residing. Calculate the quantity you want to finance and what kind of you will spend out of your very own pocket. Do a few studies before making use of for a mortgage and check which banks are giving the first-class deals on loans. Also, test out how to pick your financial institution for schooling loan to observe overseas.

Compare the loan offers of different banks on these parameters:

Interest rateProcessing feeExpenses covered under the education loanLoan processing timePrepayment terms and duration

After selecting the bank, fill 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. Contact India’s leading education loan providers through Shiksha Study Abroad.

List of documents required while applying for an Education Loan

From last few years, the quantity of Indian students going to take a look at overseas has elevated exponentially, therefore, demand for loans has additionally risen significantly. In order to sanction the loan, banks also verify the info given by means of the applicants. So, there's a list of files which the applicant needs to publish to the banks. Here’s a list of the documents required whilst making use of for the training loan:

Admission letter from university/institution (Proof of admission)Loan application formPassport size photographsAcademic documents (certificates and mark sheets)Documents of qualifying exams (like GMAT, IELTS)Resident proof of the student and the guarantorStatements of borrowers bank accounts (last one year)Income proof of the guarantor

Note: 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.

Courses for which banks provide a loan to study in Canada?

Those students who wish to apply for the undergraduate, masters or research programs in established institutions are funded by the banks. Banks also provide loans for SPP programs. 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.

Eligibility criteria to apply for an education loan to study in Canada

Before applying for an education loan one must check the eligibility criteria for getting the 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 in 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 in a professional course.

Repayment

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 Education 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 tuition fee. The list of expenses includes:

Tuition feeTravel expensesCost of buying books and other study materialLaboratory feeHostel feePurchase 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 the 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 up to seven consecutive years once the repayment starts.