Education Loan for Canada

Students can obtain an education loan of up to 1.5 Cr to study in Canada. Students can also take education loans to pursue UG or PG diploma in Canada. To study in Canada, you will have tuition fee expenses plus around 6 lacs per annum as living expenses. The living expenses will have to be deposited as GIC(guaranteed Investment Certificate)

You can obtain funds for your studies as well as GIC for Canada by choosing from different types of education loans like unsecured education loans or secured education loans.

Lenders can offer up to 75 lacs of unsecured education loans for Canada. However, you will require to select a STEM course in a well-established university or have a good co-applicant for the maximum amount of loan.

Tips: 

• Try to nominate a co-applicant who is financially strong. This can increase your chances of an unsecured education loan for Canada by many folds.
• In addition to being a strong co-applicant, you can also look to apply to top universities, which will help you in your eligibility. Universities are a deciding factor in getting an unsecured education loan for Canada.

The following are the lenders that you can head to for an unsecured education loan for Canada

• EliteScholars
• ICICI Banks
• IDFC First Bank
• Axis Bank
• HDFC Credila
• Auxilo
• Incred 
• Avanse

You might have heard about all the above lenders except EliteScholars, which is an initiative started by WeMakeScholars.

EliteScholars to Study in Canada

EliteScholars is an initiative from WeMakeScholars to fund the education of students wanting to pursue STEM/MBA programs in top countries like the USA, the UK, Germany, and Canada. It can provide a loan of up to 75 lacs at an interest rate of 11 to 11.5%.

Tips:

• EliteScholars consider students who are going for MBA or STEM courses, so choose such courses, to have the best chance at education loan sanction.
• EliteScholars do not require you to arrange a financial co-applicant. However, you will require a primary co-applicant, though for the namesake.

An unsecured education loan usually is sanctioned keeping in mind the below three key parameters.

• Co-applicant- To obtain an unsecured education loan you need to have a financially strong co-applicant. A co-applicant who has an annual income of at least 4.5 to 6 LPA.
• University or college- The university or college a student is going to is another key criterion for obtaining an unsecured education loan. The better the university is ranked, the better your chances for an education loan.
• Academic merit- The academic merit of a student adds to their eligibility of obtaining an unsecured education loan for Canada. You can also give different competitive exams to increase your chances of an unsecured education loan.

Once you are done checking the above parameters, you can apply for an unsecured education loan through WeMakecholars. You can also refer the following video for your easy of understanding.

Apply for an Unsecured Education Loan for Canada

Follow the below steps to apply for an unsecured loan for Canada through WeMakeScholars

Step 1- Request a callback from WeMakeScholars

Step 2- A financial officer will get back to you in no time. He/she will then ask you a few basic questions to check your eligibility for an education loan for Canada

Step 3- He/she will then send you a secure document uploading link where you will need to upload all the asked documents

Step 4- He/she will then connect you to suitable lenders who will carry the next process of your education loan. However, your financial officer from WeMakeScholars will be in touch with you until your loan is sanctioned.

Step 5- you will receive the sanction letter within the time promised by your financial officer.

Disadvantages of going directly through banks for an Unsecured Education Loan

Here are the disadvantages of applying for an unsecured education loan directly through banks!

• The rate of interest will be higher than when you go through WeMakeScholars
• A lot of charges like the type of interest charged in the moratorium period will be hidden from the students
• You might face a lot of issues in the repayment duration like a sudden increase in ROI
• You might face problems with disbursement if you go directly through banks

You can avoid all the above issues by going through WeMakeScholars!

WeMakeScholars is an organization that was started to provide unbiased education loans to students planning to pursue higher education in India or abroad. It was started with the support of the Ministry of IT, govt. of India under the Digital India campaign. Below are some of the benefits of going through WeMakeScholars for an Unsecured education loan.

• Better interest rates: Going through WeMakeScholars for an unsecured education loan reduces interest rates by up to 2%
• Faster Education Loan process: We process an unsecured education loan within 7 working days after the submission of documents. There have been cases where we sanctioned an unsecured education loan in 2 days
• Multiple options: We are partnered with 14+ banks(Public/Pvt) and hence chances of your loan rejection at WeMakeScholars are very low
• Negotiation: We make sure that the lenders disburse the amount for GIC before the students apply for Visa
• End-to-end support: We support students from the time of the start of the education loan process till the repayment of the loan.
• Cashback: You will receive a cashback of ₹3000 in your first disbursement when you go through WeMakeScholars

Do not miss out on the above-listed advantages by going through WeMakeScholars!

Check your education loan eligibility and apply for a loan without collateral for Canada by arranging the following documents

Application form

WeMakeScholars financial officer will provide the form. Submit the form by filling it out and signing it along with your 2 photographs.

Documents for proof of identity of the applicant

• Passport
• Aadhar card
• PAN card

Required documents for proof of residence

• Aadhar card
• Voter ID card
• Ration card
• Utility bills(electricity bill, gas bill)

Academic documents of the applicant

• Marksheets of your studies in 10th, 12th and degree
• The fee structure for the course
• Admit proof
• Scorecard of exams like IELTS
• University rank

Required documents for the co-applicant

• 6 months bank account statement of the salaried co-applicant
• Business transactions of 1 year for self-employed co-applicant
• Personal Asset and Liability Statement

Documents required for financial co-applicant

• Salaried
  • 3 months payslips
  • Form 16 for the last 2 years
  • Last 2 years ITR
  • ID card of the employer
• Self-employed
  • Business address proof
  • Last 3 years ITR
  • Balance sheet and profit and loss account

Other required documents

• A letter in which your co-applicant declares that the leftover expenses will be taken care off by him/her(WeMakeScholars financial officer will provide the format)
• Notarised joint affidavit of student and co-applicant in the standard format of the bank

Additional documents

• If you have paid the fee to the university, provide a receipt of it, if you want to include that in the loan amount.
• Statement of any pending loans from the past 1 yearIn case you have had any gap in your studies, explain it in a letter, whose format will be provided to you by your financial officer.

The above is a general list of documents for an unsecured education loan for Canada. However, the exact list may differ from case to case. To get an accurate list of required documents, request a callback from WeMakeScholars today!

Lenders offering unsecured education loans will usually ask you to pay interest in the moratorium period. However, your EMIs will only start after the moratorium period. Learn through the below example to calculate your EMIs.

Let us suppose that you have taken an education loan of 70 lacs for a course period of 2 years. Your moratorium period will be of 3 years and your repayment duration will be of 12 years excluding the moratorium period.

Here’s how much you will pay yearly!

If you find it tough to calculate your EMIs, ask your financial officer from WeMakeScholars to do it for you.

Secured education loans of up to 1.5 Cr can be offered to study in Canada at an interest rate that ranges between 9.2% to 10.05%.

Tips: Co-applicant in case of a secured education loan is mostly for namesake and hence a strong financial co-applicant is not required. However, you will require collateral that is at least 125% of the loan value that you are asking for. Request a callback from us now to understand the intricacies of a secured education loan for Canada.

Below are the lenders that offer attractive secured education loan schemes for Canada

- SBI 
- BOB
- Karur Vysya Bank
- IDFC Bank
- Axis Bank
- ICICI Bank
- Incred
- Auxilo
- Avanse
- HDFC Credila

A secured education loan can be obtained if you have eligible collateral to pledge for it. The collateral you are planning to pledge should at least be 125% of the loan amount.

Apply for a Secured Education Loan for Canada

Follow the below steps to apply for an Education loan to study in Canada through WeMakeScholars.

Step 1- Request a callback from WeMakeScholars

Step 2- A financial officer from WeMakeScholars will call you and will ask you a few basic questions to check your loan eligibility

Step 3- He/she will then send you a document checklist, which you will have to submit to the nearest branch of the bank, where you are suitable for an education loan

Step 4- The next steps in the process will be taken by the assigned lender. However, you can also talk to your financial officer at any time of the process to clear off any doubts.

Step 5- Your loan will be sanctioned in the time promised by your WeMakeScholars financial officer.

Going directly to banks for an education loan has many disadvantages which are listed below.

• Inaccurate information about the education loan process
• Incomplete list of documents
• You will have to pay multiple visits to the bank to get the complete list of documents
• You won’t be able to get pre-Visa disbursement for GIC
• The education loan process will be longer than usual
• Education loan sanction chances will be way slimmer than when you go through WeMakeScholars

Here are the reasons for you to process your education loan through WeMakeScholars rather than going directly through banks.

• Transparent process: We believe in establishing trust with the students and hence provide all the information to the students regarding the education loan process without hiding any kind of charges
• Tax benefits: Students generally are unaware of the benefits under certain sections like 80E which exempts your tax on an education loan.
• Faster Loan Process: We can process a Secured education loan in 21 working days after the submission of documents, which is 50% lesser time than when you go directly through banks.
• End-to-end support: We help students throughout the education loan process until the full repayment. We assist students even when they are in a different time zone.
• Cashback: Students going through us receive a cashback of ₹3000 after the first disbursement.

Students interested in an education loan with benefits from sanction to repayment can request a callback from WeMakeScholars.

In addition to the above documents(except the financial co-applicant documents) listed in unsecured section, you will require the below-mentioned collateral documents.

Collateral documents

• Basic Title deed
• Sale agreement/will deed/gift deed(should be registered)
• Original registration receipt 
• Allotment letter by the municipal corporation/ authorized govt. authority
• 30 years link document or the previous sale deed is enough if you have been owning the property for more than 30 years
• Property tax bill(latest) and electricity bill with the same address
• Copy of municipality-approved building plan or plot layout

The list of collateral documents varies with the state you are applying from. The below-given list is a general list of documents and you can refer to the documents required for the state you are applying from.

• Tamil Nadu
• Andhra Pradesh
• Kerala
• Amritsar
• Karnataka
• Jaipur
• MP and Chattisgarh
• Hyderabad
• West Bengal
• Goa
• Gujarat
• Mumbai
• Delhi
• Jharkhand
• Pune

Before taking a secured education loan, you need to be aware of the EMIs that you will have to repay. Here’s an example that will help you in learning to calculate your EMIs. Secured Education loan lenders won’t ask you to pay interest in the moratorium period.

Let us suppose that you have taken an education loan of 20 lacs at an interest rate of 9.7% P.A. Your course duration is of 2 years and a grace period of 12 months. You will have to repay the loan in 12 years after the moratorium period.

Here’s how much you will have to pay yearly!

Students in the repayment phase come across problems such as an increase in the ROI and have no one to talk to about it. That is the reason you should not process your education loan directly through banks.

The expenses to study in Canada are lower than in other top countries while also offering education of similar quality and identical return on investment.

These expenses can be managed either through scholarships or by taking an education loan

• Tuition fees
• Living expenses including the 1 year GIC amount
• Miscellaneous expenses

Scholarships for studying in Canada

Students can look for scholarships before applying for an education loan. Below are the most popular scholarships offered for students wanting to study abroad. 

• Trudeau Doctoral Scholarship
• Dalhousie University Scholarships
• HEC Montréal Scholarships
• Humber College Institute of Technology and Advanced Learning, Canada Scholarships
• Scholarships for McGill University

Education Loan for Canada

When taking an education loan, living expenses will have to be deposited as Ga uaranteed Investment Certificate(GIC) in banks like Nova Scotia, CIBC, SBI Canada, or ICICI Canada before applying for a Visa. The tuition fee will also have to be transferred to the university before applying for a Visa. Also, take an education loan through WeMakeScholars, as we will educate you about all the tax benefits of an education loan.

Guaranteed Investment Certificate

The Canadian government wants to make sure that you have at least 1-year living expenses and hence asks you to deposit CAD 10,000 as GIC which you can do in banks such as Nova Scotia, CIBC, SBI Canada, or ICICI Canada. It takes up to 1 week to create GIC, hence plan your education loan accordingly.

If you are taking an education loan from SBI or ICICI then they will create the GIC in those respective banks. If you are going through any other bank, then you will have a choice to create GIC in any of the given banks. The GIC amount will be transferred to you every month after you go to Canada, along with the acquired interest.

Reimbursement process upon arriving in Canada

After you arrive in Canada, you are required to personally visit the respective Canadian bank in which you've opened your Canada GIC account, along with certain documents for a final verification procedure (KYC) and to activate your GIC account.

Post verification, a personal bank account (for daily banking purposes) will be created in the student’s name and 2,000 CAD will be deposited into this account, initially, for you to use. The balance amount of CAD 8,000 CAD will be deposited into a non-redeemable GIC account and will be given to you in regular installments. For Ex: If you are getting the 8,000 CAD in 12 installments over the next 12 months, each month 667 CAD (along with interest) will be deducted from the GIC and will be deposited in your bank account.

Lenders offering Pre-Visa disbursement

The students need to carefully analyze the lenders offering education loans for Canada as they will need them to disburse the amount before applying for a Visa. The lenders though are aware that students who will require pre-Visa disbursement for studies in Canada will still hesitate to disburse the amount. 

That is where WeMakeScholars comes to your rescue. We at WeMakeScholars talk to the lender and convince him/her to disburse the amount for GIC and tuition fees. Request a callback from WeMakeScholars to know more.

Apart from the secured and unsecured education loan schemes that we have gone through in the above article, below are a few Education Loan Schemes specifically designed for Canada.

ICICI Education Loan for Canada

• ICICI bank offers up to 50 lacs of education loans for students going to the universities of Canada. The interest rates range between 10.5% to 12.5% and the student can repay the amount in about 10 years after the moratorium period.
• Be sure to choose the best financial co-applicant you can think of and a top university in Canada for a hassle-free education loan in Canada.

HDFC Credila Education Loan for Canada

• HDFC Credila can offer a loan of up to 40 lacs to students going to universities of Canada or community colleges of Canada. 11.25% to 11.5% is the interest to go through HDFC Credila for an education loan for Canada. 
• If you are seeking a higher loan amount then you can also pledge collateral and hence take a partially secured loan for Canada, or you can talk to a financial officer from WeMakeScholars who will negotiate the loan amount on your behalf. 

Education Loan for PG Diploma in Canada

• Bank employees hesitate to offer education loans to students going for PG diplomas in Canada as they think that these courses are not eligible for loans. This assumption arises because of the course duration and the fact that the PG diploma is offered by colleges and not reputed universities. However, we would like you to know that you can get an unsecured as well as secured education loan for a PG diploma in Canada that will cover all your expenses including the tuition fee and living expenses.
• This assumption about banks is caused by a few bank employees who have half-baked knowledge on this issue. To avoid this issue, you can go through WeMakeScholars for a hassle free loan for Canada. You can also refer the below video for more information on Education Loan for PG Diploma in Canada.

Education Loan for UG Diploma in Canada

• Students can obtain a student loan of 20 to 30 lacs to pursue a UG Diploma in Canada, which is the maximum amount of expenses that you may incur in Canada. The lenders will also provide you with a pre-visa disbursement for creating GIC.
• Request a callback from WeMakeScholars to apply for a loan to study UG diploma in Canada.

Education Loan for MBA in Canada

• Students looking to pursue an MBA can get up to 75 lacs of unsecured education loan and up to 1.5 Cr of secured education loan. However, the loan amount will depend on the requirement of the student and other factors.
• Talk to a financial officer to get started with the dream of pursuing an MBA from Canada by taking an education loan. Request a callback now!

SBI Education Loan for Canada

• SBI offers up to 1.5 Cr of education loans to students wanting to study abroad at attractive interest rates ranging between 9.5% to 10.05%. SBI also allows the student to opt out of interest payments in the moratorium period.

Lenders recognize many Canadian universities and hence they offer special education loan schemes or products for those specific universities. When you go to the specified universities by lenders, you get the maximum amount of loan at a lower rate of interest.

Request a callback from WeMakeScholars to know the list of preferred universities by the lenders and to get started with an education loan.