With its world-class educational institutes and comparatively affordable tuition fee, Canada is one of the most popular destinations for higher studies among Indian students. Apart from undergraduate and postgraduate programs, students also go for MBA and doctoral programs in Canada.
The presence of a large Indian diaspora also makes it easier for Indian students to ease into the country.
Choosing an education loan
While choosing the education loan, you have to look into the interest rate, the processing fee, the expenses covered as a part of the education loan, loan processing time, and the repayment terms and tenure. You also need to confirm if the course you are planning to enrol in is covered by the education loan.
If you want greater flexibility in the loan amount usage, and faster processing, you can also go for a personal loan. Notably, personal loan interest rates are quite low in the current loan market scenario and you can check your EMI easily with a personal loan EMI calculator.
Documents typically required by the lenders while processing an education loan include the following,
- Photo identity proof of the student as well as the parent. Common KYC documents like Voter ID, Passport, Driver’s license, and Aadhaar suffice for this purpose.
- Admission letter issued by the educational institute, school or college,
- Attested copies of mark sheets and certificates from the 10th standard onwards,
- Bank statement for the past six months,
- The parent/guarantor’s salary slip and ITR,
- Overseas documents like entry permit, I-20 form from the Canadian institute, employment contract, if any,
- In case the student was employed, the resignation letter, acceptance or sanction letter by the employer,
- If any property is offered by the borrower, the property documents as security.
The eligibility criteria of education loans may vary from lender to lender. However the common eligibility norms include,
- Education loans are generally provided to Indian citizens,
- The student can be between the age of 16 and 26, although it may vary from lender to lender,
- The academic record of the student must be respectable,
- The parents of the student must have a steady and stable income source,
- The credit history of the co-applicants is considered while judging the eligibility,
- Either security or a guarantor must be provided while applying for the education loan.
Your lender may provide multiple repayment options for the personal loan taken for educational purposes. However, you need to assess which option would be most suitable for you. You can take the help of a personal loan EMI calculator for the same.
It is important to assess your speed of repayment and the EMI you can afford each month. You should also be comfortable with the personal loan interest rates offered.
If you expect a steady and uniform income, you can go for a standard repayment plan. However, if you anticipate starting at a lower income but with growth in the future, you can ask for a repayment plan where the EMI increases gradually. Inversely, if you have a large fund at your disposal you can go for a step-down EMI plan where the amount of EMI reduces with time.
Aspiring students can also probe into the possibility of landing a scholarship on their way to Canada for higher studies. Shastri Indo-Canadian Institute, Canadian Commonwealth Scholarship, and National Research Council of Canada, etc. are some of the several scholarships available for higher studies in Canada. For covering your educational costs you should explore the education and personal loan options offered by various lenders in India. With affordable personal loan interest rates and flexible repayment terms, you can turn your Canadian education dreams into a reality.