Embarking on a journey of higher education in Canada is an exciting prospect, but the road to securing the necessary funds through student loans can be complex. To ensure a smooth process, it’s crucial to start your application as soon as you receive your acceptance letter from the university. Let’s delve into the essential steps and considerations for obtaining student loans for studying in Canada.
Researching and Selecting the Right Study Loan:
Upon acceptance to a Canadian university, the next step is to explore study loan options offered by various banks. Consider the following parameters to make an informed decision:
- Processing Fee:
- Understand the charges associated with processing the study loan.
- Prepayment Terms and Loan Duration:
- Review prepayment conditions and the overall duration of the loan.
- Processing Time:
- Inquire about the time it takes for the loan to be processed.
- Interest Rate on Repayment:
- Examine the interest rates for the repayment period.
- Expenses Covered:
- Clarify which expenses are covered by the study loan.
Documentation Required:
Different banks may have specific requirements, but generally, the following documents are necessary:
- Proof of Admission/Acceptance Letter
- Completed Student Loan Application Form
- Passport Size Photographs
- Academic Mark Sheets, Certificates, and Degrees
- Exam Scores (GMAT/GRE/IELTS/TOEFL)
- Residence Proof for both Student and Guarantor
- One-year Bank Statements
- Guarantor’s Income Proof
Courses Eligible for Study Loans:
Study loans are available for bachelor’s, master’s, and research programs. Banks typically favor students pursuing job-oriented studies at Canadian universities. Full-time courses are preferred, especially for SDS colleges and universities, where having CAD 10,000 in Scotia Bank of Canada is a requirement.
Eligibility Criteria:
Before applying for a study loan, consider the following eligibility criteria:
- The loan applicant must be an Indian citizen.
- The student must be accepted into a recognized Canadian institute for a full-time program.
- The applicant must be at least 18 years old. For applicants under 18, parents will need to apply.
Repayment Terms:
Repayment of student loans for Canada usually begins six months to a year after completing the study program, with a duration ranging from five to ten years. However, repayment terms can vary among different banks, such as SBI Ed-vantage, which offers a 15-year repayment duration.
Expenses Covered by Education Loan:
Before finalizing a loan scheme, carefully review the expenses covered, which may include:
- Tuition Fees
- Accommodation/Hostel Fees
- Travel Expenses
- Cost of Study Materials
- Other Program-Related Expenses
Collateral Rules:
If the loan amount exceeds INR 750,000, tangible assets like buildings, properties, or land may be required as security deposits. Parents are typically co-borrowers in these cases.
Embarking on a foreign education journey is a significant investment, and securing the right study loan is a critical step. By understanding the intricacies of the application process and considering the key factors mentioned above, you can navigate the student loan landscape with confidence. Start early, be thorough in your research, and make informed decisions to ensure a successful and financially sound academic pursuit in Canada.