Education Loan For PG Diploma in Canada
Canada is a popular choice for higher studies among a huge number of Indian students. This is because the country offers a variety of opportunities for them to pursue higher education in different fields. A PG Diploma in Canada is many students’ ticket to better education and employment opportunities abroad. However, when it comes to financial aid, a lot of higher education aspirants are not sure whether they could avail an education loan for PG Diploma in Canada. This article aims to give you a clear idea on how it is possible to obtain higher education funding for a PG Diploma in Canada with the help of an education loan from India. The following is a video of episode 13 of the Loanflix Inshorts series. It will give you an elaborate idea of the same.
When Do Students Enroll For a PG Diploma in Canada?
A PG Diploma in Canada is one of the most easiest ways to study in Canada for a lot of students who are academically poor. This qualification is generally granted to them by Canadian colleges rather than universities. Also, since a typical post graduate degree course in Canada could cost a fortune, a lot of students often tend to apply for a PG Diploma in Canada.
Some Common Problems in The Education Loan Process
An education loan is a very common mode of financing higher education in India, as well as abroad. Since Canada is present in many banks’ list of countries which are eligible for an abroad education loan, a lot of students who have been accepted for full-time, postgraduate courses in Canadian universities may not face problems in getting an education loan for Canada. All types of lenders offer an education loan for Canada, as it is a popular choice for higher education. However, when it comes to a PG Diploma in Canada, many students have a tough time in convincing lenders to grant them a Canada education loan.
This problem arises due to the fact that a lot of bank officials are unaware of the fact that education loans can be granted to students to fund their PG Diploma in Canada. Also, since only colleges in Canada offer a PG Diploma, the course is not considered to be a mainstream one by most lenders in India. It is also due to fact that small-duration courses offered by colleges in Canada are given little importance as compared to full-time postgraduate courses in universities. So what can be done? How do students finance their study in Canada?
Episode 18 of the Loanflix web-series explains the two major sources of getting an education loan to study in Canada for Indian students. Secured education loans which are provided by government banks are granted on the basis of collateral security. The hassles mentioned above are mostly faced by students who apply for a government bank education loan to study in Canada. Many loan officers often hesitate to approve of an education loan for a PG Diploma in Canada based on their assumption that such courses are not eligible for a Canada education loan. Besides that, a lot of students also face trouble regarding their pre visa disbursement from government banks. Before discussing the possible solutions to these problems, here is a brief overview of the different education loan options available for students to fund their study in Canada.
Education Loan Options For PG Diploma in Canada
There are two types of education loans in India; secured education loans and unsecured education loans. Secured education loans are those which are granted when borrowers pledge some collateral security with lenders. In the case of unsecured education loans, borrowers are not required to pledge anything to obtain their higher education funding.
Government banks in India majorly lend secured education loans. Immovable property and liquid security are some of the accepted forms of collateral. The maximum loan amount granted under any government bank education loan scheme depends on the value of the collateral security. Higher the value of the asset, higher is the education loan amount granted. As a result, the interest rates of government bank education loans are lower, their processing fees are lesser and borrowers of education loans from government banks also get to enjoy a payment free moratorium period. However, in order to be able to do so, students will be required to name their parents or siblings as co-applicants.
Most government banks do lend an education loan for PG Diploma in Canada, with certain restrictions on the maximum education loan amount that can be availed. This is due to the nature of the course.
Unsecured education loans are mainly provided by NBFCs and private banks like Axis Bank, ICICI Bank, etc. The maximum amount of unsecured education loan available for a PG Diploma in Canada goes up to INR 25 Lakhs, at a rate of interest of 12.5% to 13.75%. Unfortunately, private banks do not offer unsecured loans for a PG Diploma in Canada.
Read about Canada GIC Process
The Possible Solution To Getting An Education Loan For Canada Without Hassles
WeMakeScholars is a government-funded initiative which has been working towards the cause of making the education loan process in India, an easier affair for students who come from different parts of the country. When students who wish to study in Canada approach our financial team for their education loan application, they are guided and assisted in every step along the way. This is especially applicable to students who have applied for an education loan for PG Diploma in Canada, who tend to come across numerous hurdles in securing higher education funding from government banks and private lenders. So, if you are contemplating on how you can fund your PG Diploma in Canada, do get in touch with the WeMakeScholars team and the financial officer assigned to you will get in touch with you at the earliest opportunity.
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 at 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, China, France among others.