education loan to study in Canada

All About Education Loan without Collateral for Canada

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Canada, with its world-class educational institutions, is one of the top study destinations for students. However, the cost of studying in Canada can be a significant hurdle. Abroad education loans can be a one-stop solution.

In the past, getting a student loan often meant having to provide some kind of collateral, like a house or property. This can be difficult for many students who don’t have these kinds of assets. But the good news is that the education financing options now have loans available that don’t require collateral.

The unsecured education loan can help students get the funding they need to pursue their academic goals without having to put up valuable possessions as security. Hence this article will explore education loan without collateral for Canada in more detail. So let us get started.

Cost to Study in Canada

The cost of studying in Canada varies depending on the program, university, and your chosen lifestyle.  Here’s a breakdown.

  • Tuition Fees: These can range from CAD 20,000 to CAD 50,000 for undergraduate and postgraduate studies.
  • Living Expenses: Factor in costs like housing, food, transportation, and miscellaneous expenses, which can amount from CAD 10,000 to CAD 15,000 per year.

Guaranteed Investment Certificate (GIC)

Canadian regulations often require students to show proof of financial support for their first year of study. This is fulfilled by a Guaranteed Investment Certificate (GIC). A GIC is a low-risk investment product offered by Canadian banks, where you deposit a specific amount of CAD 20,635 for a fixed term. This demonstrates your financial stability to the authorities. Now that you have a brief understanding of the costs let us proceed and explore some of the top financial lenders.

Top Financial Lenders

Several financial institutions offer education loans without requiring collateral for studies in Canada. Let’s glance at some popular options.

1. Private Banks

Axis Bank

  • Provides education loans for Prime A university list up to ₹75L, Prime B up to ₹50L and Prime C up to ₹15.00 lakhs.
  • Interest Rate: 11% – 12.75%

ICICI Bank

  • Gives education loans up to ₹1 Cr for Premium University List and for Non-Prime University list it is up to ₹ 20 lakhs.
  • Interest Rate: 10.5% – 11.25%

IDFC First Bank

  • It offers unsecured education loans of up to ₹ 50 lakhs to study in Canada.
  • Interest Rate: 10.85% – 12.75%

Yes Bank

  • Provides education loans up to ₹50 lakhs for the A category, ₹40 lakhs for the B category, ₹30 lakhs for the C category and ₹25 lakhs for the D category.
  • Interest Rate: 11% – 13%

2. Non-Banking Financial Companies (NBFCs)

Avanse

  • Provides education loans up to ₹35 lakhs to students.
  • Interest Rate: 11.5% – 14%

HDFC Credila

  • It offers loans up to ₹35 lakhs for studying in Canada.
  • Interest Rate: 11.5% – 12.75%

Incred / Auxilo

  • These NBFCs offer education loans up to ₹25 lakhs.
  • Interest Rate: 11.5% – 12.75%

3. International Lenders

Mpower Finance & Prodigy Finance

  • An international lender offers full or partial funding of loans depending on the project cost and the student’s profile.
  • Interest Rate: 12% – 16%

The loan amount offered and the lowest interest rate for an education loan abroad will vary depending on the lender, your academic profile, your co-signer’s creditworthiness, and the chosen program of study.  It’s crucial to compare offers from multiple lenders before making a decision.

Eligibility Criteria

To be eligible for an education loan without collateral for Canada, you’ll need to meet specific criteria set by the lender.  Here are some general requirements:

  • Should be an Indian citizen and should be above 18 years old.
  • Confirmed admission offer from a recognized university in Canada.
  • Good academic record.
  • Strong co-signer with a healthy credit score

Documents Required for Loan Application

The exact documents required will vary by lender, but here’s a general list.

  • Completed loan application form.
  • University offer letter with fee structure.
  • Academic transcripts and mark sheets.
  • Standardized test scores if required by the program.
  • KYC documents of the applicant and co-signer (ID proof, address proof, etc.).
  • Salary slips and bank statements of the co-signer.

Studying in Canada can be a transformative life experience. With an education loan without collateral, you can channel the financial gap and pursue your academic goals in the land of maple syrup. Moreover, to opt for an education loan for masters in Canada or bachelors or diploma courses you can search for top overseas education loan advisors. They will suggest top lenders with low interest rates and help you with seamless loan processing. So, what are you waiting for? Get started with your loan application process now!

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