In recent years, Canada has been emerging as the new destination choice for Indian students for their education abroad, because of the diverse range of courses Canada has to offer, and when compared to the US or UK, the cost of living and studying in Canada is evidently less. Even the top universities of Canada cost at least 30% less than those of the USA. 

So, what usually comes to the mind of many when they hear of students going abroad for their education is that students must be going for their master's or PG's diploma, which is in most cases true. The majority of students do go abroad for their master's or PG's diploma, but there are also students who go abroad for a UG degree, UG diploma, and UG certificates program, yes the numbers of these students are comparatively less. The number of students applying for their UG program is much higher than those who actually make it, because of the lack of funds, as lenders deny funding them for their UG program.

In this article, we'll also tell you why exactly lenders are not willing to fund you for your UG programs in Canada. But note that, it is difficult but not impossible to get an education loan for UG degree if you go via 'WeMakeScholars'. It is an organization, funded and supported by the Ministry of IT, Govt. of India, and as this initiative comes under the Digital India Campaign, we do not charge any service charges, hence it's free of cost. 

UG Degree, UG Diploma, and UG Certificate Programs are usually opted by students after 12th, but there are students, who despite having completed their graduation from India still opt for these UG programs in Canada.

If you are facing any difficulty in understanding the concept of abroad education loans for UG Degree, UG Diploma, and UG Certificate Programs in Canada watch our 11th episode of Loanflix where Ms. Damini Mahajan has explained it in detail. 

Duration for these Courses in Canada are

  • UG Degree- 3- 4 years
  • UG Diploma- 2 years
  • UG Certificate- 6 months to 1 year

Education loan options for each of these Canada UG courses

1. UG Degree - If you are planning for an education loan for study in Canada, you should know that there are two types of loan you can opt for-

  • Secured/ collateral loan- There isn't going to be any problem in getting an education loan for UG degree through pledging collateral to banks/NBFCs and you can get any amount based on your collateral value.
    • Unsecured/ non-collateral- Getting an unsecured education loan for UG degree is very difficult. Public banks can only offer up to 7.5 lakhs unsecured loan which won't be enough, so you have to try your luck with private banks and NBFCs who may offer you an unsecured loan, but in that case, you may have to pay EMI right from the first months itself.

2. UG Diploma- If you are planning for an education loan for ug diploma in Canada, then you only have a secured loan as an option. It is impossible to get an unsecured loan for a UG diploma, not even 7.5 lakhs from public banks. Private banks and NBFCs might offer you an unsecured education loan for ug diploma but with very harsh terms like the very high rate of interest, EMI payment right from the first month itself. But the probability of landing on a deal with private banks and NBFCs is 1 in 1000.

3. UG Certificate- The education loan policies for UG Certificate are very much similar to that of the UG diploma i.e no banks or NBFCs will offer you an unsecured education loan for UG certificate program. With collateral though it is somewhat fifty-fifty that you may get a secured education loan for UG certificate program.

Why banks and NBFCs are reluctant to offer an unsecured education loan for UG courses

  • First up there shouldn't be any issue in getting a secured loan from any banks or NBFCs for any Canada UG courses but there is a 50-50 chance with a UG certificate because it is an approx 1-year certificate course and 1-year program is not very much appreciated by banks. 
  • Banks also do not appreciate graduates opting for a UG program because when banks offer unsecured loans they look for a promising profile and graduates opting for the UG program leave a bad impression about the employability potential of the student.
  • Banks presume that since a student is going for a UG program, he/she will in the future opt for a master's too, and in long run, it will be difficult for students to manage EMIs. and banks are not fond of recovering the loan amount by other means.
  • So, banks need interest as soon as possible, especially private banks and NBFCs that's why they start students EMI from day one, and not many agree on that. 
  • Banks want to invest their funds in a profile where it guarantees the return and so they prefer masters instead.
  • With UG certificates and UG diplomas, there aren't many job opportunities.

As mentioned, getting an education loan for ug courses is difficult but not impossible, there is a high probability bank will reject your application if you decide to go on your own like, public banks accept applications for a UG diploma, but sometimes bank managers, themself don't know their own bank's policies about education loans, as they don't process education loans that often, reject the application. But if you take an education loan for study in Canada for any UG program via WeMakeScholars, you won't face this issue because prior to your visit, we'll talk to the bank and if needed tell them about their policies, it has happened before, students visit on their own and got their application rejected, then coming to us and going through WeMakeScholars got the loan done.

If you are looking for a secured loan for your Canada ug courses, then also you can approach WeMakeScholars, we try our best to get students the best deal they can get. So do reach out to our Financial officers by requesting a callback. Our team of Financial officers assists you with the entire education loan process until sanction, disbursement, and beyond.

Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it's free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, New Zealand, France among others.