Explore Courses

Study Loan for Canada – Process, Eligibility, Documents & More

Updated on 10 September, 2023

Shivangi Mishra

Shivangi Mishra

Sr. Content Editor

In 2020, around 4,00,000 international students enrolled in Canadian post-secondary institutes. This figure is a testament to the top-notch education you can avail in Canada. 

However, studying abroad is not cheap and if you have funding concerns, availing study loan for Canada is a viable option. 

Here’s all the information on the education loan process for Canada studies.

Study & Settle in Canada – Know where to start!

Process of Applying for an Education Loan

The procedure to avail education loan for study in Canada needs knowledge of the aspects involved. Your focus should be on avoiding last-minute rush after the admissions.

Here’s the general process to acquire a student loan for Canada admissions:

  • Acquire the admit letter from your Canadian university
  • Analyze the cost of living and tuition fees
  • Segregate your finances into two categories – self and loan
  • Study the existing education loan options
  • Select the bank by considering aspects like interest rates, the processing time
  • Fill the application form with proof of required funds

Different banks have distinct study loan for Canada requirements. Hence, it is crucial to approach multiple financial institutes to shortlist the lender. 

Important Reads: Digital Marketing MBA in Canada | Psychology Courses in Canada for Indian Students

Eligibility Criteria for an Education Loan in Canada

Indian banks have specific requirements to clear study loans. So, be aware of these aspects before filing your application:

  • You must be an Indian citizen 
  • The institute’s admission letter is mandatory
  • You must be over 18 years old
  • In the case of minors, parents require to apply for the loan

Overall, to get an education loan for Canada, the eligibility aspects need to be met. Hence, you can visit different banks and secure a loan before departure in a timely schedule.

Important Reads: BioinformatiCS Courses in Canada | Marine Engineering in Canada

List of Documents Necessary for an Education Loan in Canada   

To complete all the loan formalities, you need to provide proof as per bank policies. Here are the documents required to avail education loan for study in Canada:

  • Proof of admission (Admission letter of the Canadian University)
  • Passport photos
  • Qualification exam scores proof
  • Copy of previous school/college mark sheets
  • Bank statement of the last year
  • Income proof
  • Proof of residence
  • Collaterals (if needed)

Banks can have different rules for student loan for Canada process. So, the document list can vary accordingly. Check the authentic documents as per your lender regulations.

Courses Covered under an Educational Loan  

The education loan in Canada for international students is available from the following types of lenders:

  • Public and private sector banks
  • Financial companies
  • International funding institutes

All these bodies offer education loans, primarily for full-time courses. In general, you won’t face any issues if you pursue the following programs:

  • Undergraduate courses
  • Post-graduate courses
  • Doctorate courses
  • Post-graduate diploma programs

You can also get a study loan for Canada if you pursue short-duration programs. However, the likelihood of acquiring such loans from nationalized banks is low. 

Moreover, you must remember that lending institutes also consider your preferred institute’s recognition. So, if you pursue job-oriented courses, the chances of funding from education loan for Canada are high. 

Read More:

MS in Industrial Engineering in Canada

One Year MS Courses in CanadaComputer Networking Courses in Canada
University of LethbridgeUniversity of Toronto Fees for Indian Students

Hospitality and Tourism Management

Master’s in Aerospace Engineering in Canada

Human Resources Courses in CanadaMasters in Brand Management in Canada
Vocational Courses in Canada for International StudentsOne Year Post Graduation Courses in Canada

One Year MBA Programs in Canada


Once you know how to get study loan for Canada, it is also vital to think about the best ways to repay this loan. Lenders give a repayment relaxation for the course duration and a period of six months after graduation. This implies that you can initiate the repayment after six months from the end of your program. You have a window of five to seven years for repaying the entire student loan from that moment.  

Notably, choosing job-oriented courses can minimize the burden of repayment. In addition, education from prestigious Canadian institutes will improve your chance of landing high-paying jobs. This way, you can reduce the repayment of your education loan for Canada period.  

Important Reads: MBA in Pharmaceutical Management in Canada | Tourism Course in Canada

Collateral Rules

Collateral is something valuable and tangible that you agree to give to somebody if you cannot pay back money that you have borrowed. You can avail of an unsecured education loan for Canada up to the limit of ₹4,00,000. However, opting for loans above this value requires collateral security.

Here are the conditions for collateral security:

  • Security equal to 100% of the study loan for Canada  
  • Guarantee of a third person known to the bank
  • Document execution from both you and your parents

In terms of collateral security, you can show proof of land, public sector bond, LIC policy, gold, bank deposit, etc. Banks can also accept shares, NSC, or KVP as collateral. 

On the other hand, you can contact private institutions like NBFCs (Non-Banking Financial Company) to receive an education loan for Canada. These organizations provide both secured and unsecured loans to students.

Tax Benefits

The study loan for Canada interest rate can influence your tax benefits. The interest paid on your education loan is allowed as a deduction from total income. This interest from education loan is included under section 80E. Overall, an education loan for Canada can help fund your studies and provide some fiscal benefits. 

Important Reads: Criminology Courses in Canada | MBA in Digital Marketing in Canada

Study in Canada with upGrad Abroad

upGrad Abroad has collaborated with top universities of Canada including University Canada West, Trinity Western University and Yorkville University to offer blended BBA and MBA programs that help you gain foreign education at an affordable cost. To know more, get in touch with our counsellors

Frequently Asked Questions

How much time does an education loan application take to be processed?

Your education loan process duration ranges from lender to lender. For instance, some banks can approve your education loan for Canada in a short duration of 15 days. So, you can contact the desired branch to note the exact loan application processing period. 






Can I take an education loan without collateral?

According to RBI guidelines, you can avail a study loan up to ₹4,00,000 without collateral. Beyond this point, you need to provide information on collateral security to the specific financial lender.  






Why my application for the education loan is rejected?

In most cases, your study loan gets rejected due to wrong information on your collateral security. Hence, always check the type of collaterals that the lender accepts. For this purpose, read the loan document carefully. 






What are some banks offering education loans for Canada?

Renowned banks like HDFC, State Bank of India, Axis, and Union Bank of India offer student loan for Canada. These banks offer a long tenure to repay the student loan. So, you can pursue your course and find an appropriate job to cover all the funding expenses.  








Shivangi Mishra

Sr. Content Editor

She is an experienced writer and journalist who has extensively covered the education sector in India and Abroad. Now helping Indian aspirants realise their foreign education dream by providing them with relevant content and information through upGrad Abroad. Amateur traveller, loves to read Architectural Digest!

See More



Study Abroad Resources

Top Reads


Other Exams