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Education Loan To Study In Canada

Loan Coverage: Tuition fees, GIC deposits, housing, travel, insurance
Margin Percentage: ✅ 10% loan margin — banks funds 90% of total costs. Students contribute 10%, often through the GIC account (as per SDS norms).
Example: For ₹35 lakhs total cost, banks covers ₹31.5 lakhs; you fund ₹3.5 lakhs.

Key Benefits:
● Collateral-free loans up to ₹50 lakhs
● Sanction letter for SDS/Non-SDS universities
● 100% digital process

Check Your Education Loan Eligibility

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Types of Overseas Education Loans for Studying in Canada

In general, International student loan Canada can be classified into two categories.

Indian students planning to study in Canada typically have two main categories of education loans to choose from

Secured Education Loan

Also referred to as a loan with collateral, a secured education loan requires the applicant to pledge an asset as security. This collateral can include movable assets like fixed deposits or LIC policies, as well as immovable assets such as non-agricultural land, residential, or commercial property. Most public sector banks in India generally offer education loans for abroad studies only against such collateral.

Want to explore the various types of acceptable collateral? Click here!

Lender Name	Maximum Loan Amount (in INR)	Rate of Interest	Margin Money
SBI	Up to 1.5 Cr	10.65% (for girls) 11.50% (for boys)	10%
UBI	Up to 1.5 Cr	10.65% (for girls) 11.50% (for boys)	10%

Unsecured Education Loan

This type of loan does not require the borrower to provide any collateral. However, because there’s no pledged security, the lending risk increases for the financial institution, which usually results in higher interest rates compared to secured loans. Additionally, unsecured loans often require a co-applicant or co-signer, and the loan approval largely depends on the co-applicant’s income level and CIBIL score.

Secured Education Loans for Studying in Canada – An Overview

As mentioned earlier, secured education loans require the borrower to offer collateral as a form of security. This added assurance allows students to access higher loan amounts compared to unsecured loans. One major advantage of a secured loan is that you may not need a co-applicant, making the process more flexible for some applicants.

For Indian students planning to study in Canada, two major public sector banks offering secured education loans are the State Bank of India (SBI) and the Union Bank of India (UBI).

Lender Name	Maximum Loan Amount	Rate of Interest	Margin Money
Axis Bank	Up to 50 Lakhs INR	11% – 13.50%	5%
ICICI Bank	Up to 1.5 Cr	10.85% – 12.50%	0 – 15%
IDFC FIRST Bank	Up to 35 Lakhs INR	11.50% – 12.25%	Nil
HDFC Credila	Up to 65 Lakhs INR	11.25% – 13%	Nil
ICICI Bank	Up to 1.5 Cr	10.85% – 12.50%	0 – 15%
Auxilo	Up to 65 Lakhs INR	11.25% – 13%	Nil
Incred	Up to 60 Lakhs INR	12.25% – 14%	Nil

Unsecured Education Loans for Studying in Canada – A Detailed Guide

If you don’t have any collateral to offer, there’s no need to worry—there are several financial institutions that can support your education journey. A wide range of private banks, Non-Banking Financial Companies (NBFCs), and international lenders offer unsecured education loans for studying in Canada.

For private banks and NBFCs, having a co-applicant or co-signer with a stable income and minimal financial liabilities is usually required. However, international lenders often provide loans without needing collateral or a co-applicant. One of the key advantages of choosing international lenders is that the loan amount is often disbursed in Canadian Dollars (CAD), helping students avoid foreign exchange charges and related costs. That said, these loans usually come with higher interest rates.

It’s important to understand that every lender has its own set of advantages and limitations. To help students make informed decisions, here’s a comparative overview of different institutions offering unsecured loans to study in Canada. These options are available for a wide range of programs including Bachelor’s, MBA, Master’s, and PGDM courses.

Eligible Study Programs for Education Loans in Canada

A wide range of academic programs in Canada qualify for education loans. These include:

Bachelor’s (Undergraduate) programs
Master’s (Postgraduate) programs
Diploma courses at both UG and PG levels
Doctoral (PhD) programs
Technical and vocational training courses

Before proceeding with a loan application, students should verify that their selected course is recognized and supported by their chosen lender.

Loan Sanction and Pre-Visa Disbursement Procedure

Once your education loan is approved, the lending institution will issue a loan agreement outlining all the terms and conditions. It’s important to review this document thoroughly before moving forward with the disbursement process.

As per the requirements set by Canadian immigration authorities, a pre-visa loan disbursement is necessary to support your student visa application. Make sure to follow these guidelines to ensure a smooth visa process.

Of course! Here’s the complete student-friendly content with the checklist included—perfect for a webpage, brochure, or information guide on education loans for Canada:

Expenses Covered by Education Loans for Studying in Canada

When applying for an education loan, students have the flexibility to either receive the full sanctioned amount at once or opt for periodic disbursals as needed. It’s generally advisable to go for periodic disbursements to avoid borrowing more than required—since interest is charged only on the disbursed amount, not the total approved amount.

Most lenders provide coverage for a wide range of academic and living expenses associated with studying in Canada.

Expenses Covered Under an Education Loan for Studying in Canada

When it comes to disbursing your education loan, you have the option to either receive the entire sanctioned amount in one lump sum or opt for periodic disbursals based on your needs. The latter is generally recommended, as it helps avoid borrowing more than necessary and keeps interest costs lower — since interest is calculated only on the amount disbursed, not the total approved amount.