Canada is one of the leading hubs for international students to pursue their higher education. Students from India are increasingly choosing to study in the top universities of Canada like University of Toronto, McGill University, University of British Columbia etc.
Studying in Canada costs INR 60 lakhs to 1.5 Crore or more (tuition fees and living expenses). For a Master’s degree abroad, you need to shell out INR 20 to 50 Lakhs which is quite expensive and education loans prove to be helpful at this crucial time.Besides, students applying for education loan for study abroad can avail tax benefits under section 80 (E) of the Income Tax Act 1961.
An applicant must be a citizen of India.
A co-signer must be an Indian citizen.
A co-signer must provide documentary proof to establish their relationship with the student.
The applicant must have secured admission to foreign university or Institution and must have the offer letter in hand.
The students who are aspiring to study in regular undergraduate, postgraduate or doctoral programmes offered by the reputed institution are eligible for an educational loan to study in Canada. Generally, the short-term courses are not considered for educational loans. Most of the banks do not offer loan for vocational courses. You must confirm with your bank if your chosen course is covered by your bank loan.
If your course duration is for at least six months then you have to apply for a Canada student visa.
There are public banks, private banks and non-banking financial companies (NBFC) that can provide you with educational loans for studying abroad.Public banks such as SBI, Punjab National Bank, Bank of Baroda etc. These banks offer up to 85% of the course fee for overseas education against security. For any loan above 4 lakhs, you will need to pay 15% of the sanctioned amount as the margin money.
For loan amount exceeding 4 or 5 lakhs, you need a co-signer (or co-applicant). Usually, your parent will be your co-signer. Sometimes, a third party guarantor is also required. You need to provide collateral security for loans above INR 7.5 lakhs; especially, for the public and private banks.
Private banks like Axis etc. have interest rates lying between 10.5% to 13.5% whereas NBFCs like Avanse, Credila etc. interest rates range from 11.5% to 14%. They can finance 100% of the tuition fees without leaving any margin money and always require a co-signer.
You can go through the documents checklist by visiting our page –https://www.credenc.com/documents-required-for-education-loan
The expenses covered under an education loan include tuition fees, exam fees, lab and library fees, caution deposit, travel etc.Your loan will have a moratorium period or holiday period (6-12 month) only after which you will be required to start with your EMIs.
Although the loan approval letter from a nationalized or private bank can be presented to the Embassy or High Commission for visa application purpose as a proof/source of funding, loan approval letters from NBFCs like Avanse or Credila will not be recognized for visa purposes. In that case, it’s better to take the whole amount of loan at one go and keep that money in your bank account.To ease your access to best education loans offers, Credenc is right here to help you apply to multiple lenders through a single window application with utmost ease and convenience at absolutely no service and no visits to any bank.