Criteria for Getting an Education Loan for Canada
· Admission Confirmation: You need a confirmed admission letter from a recognized Canadian educational institution.
· Loan Amount Limits: Loan amounts vary by lender and course type. Generally, undergraduate courses may qualify for up to INR 20-30 lakhs, while postgraduate loans can go higher, even up to INR 50 lakhs or more.
· Collateral Requirement: For larger loan amounts, banks typically ask for collateral like property, fixed deposits, etc. Some lenders offer unsecured loans for smaller amounts, depending on your or your co-applicant’s credit score.
· Academic Record: A solid academic history can improve your loan application, as lenders assess past performance to gauge the likelihood of your completing the course.
· Co-Applicant/Guarantor: Many lenders require a co-applicant, usually a parent or guardian, to co-sign the loan. This provides additional security for the bank.
· Interest Rate: Interest rates on education loans for international studies vary widely. Look for 9-13% rates from banks or higher for non-banking financial institutions NBFCs.
· Repayment Terms: Loans generally come with a moratorium period typically covering the course duration plus six months after graduation before repayment begins.
Is It Worth Taking an Education Loan for Canada?
· Quality of Education: Canada offers a high-quality education, globally recognized degrees, and excellent job prospects, particularly in fields like technology, engineering, business, and healthcare.
· Post-Study Work Opportunities: Canada’s post-graduation work permit (PGWP) allows you to stay and work in Canada for up to three years after completing your studies, giving you a chance to earn and repay your loan comfortably.
· PR Opportunities: Canada has a welcoming immigration policy for students who wish to apply for permanent residency, which can add long-term value to your education investment.
· Financial Considerations: Although education loans come with interest, the return on investment is often favourable if you enter a high-demand field with good salary prospects.
Overall, taking an education loan to study in Canada can be worth it if you plan to use the degree to build a career in Canada. GOOD LUCK!
