Planning to study in Canada and looking for education loan.
Canada is undoubtedly promising for abroad education aspirants. But this opportunity comes at a certain price. Other than the cost of study and living, one also needs to deposit CAD 10,000 as a Guaranteed Investment Certificate (GIC) amount in banks like CIBC or SBI Canada.
What are the types of education loans available in India for study in Canada?
Broadly, there education loan options in India to study in Canada fall under two brackets:
- Education Loans with Collateral: These are the education loans where applicants require to provide collateral as security. This collateral is pledged to a lender as a security for the loan amount. This collateral can be of two types:
- Tangible assets such as flats, land (non-agricultural), shops, etc.
- Intangible assets such as fixed deposits, life insurance, government bonds, etc.
- Education Loans without Collateral: These are the education loans in which the applicant does not need to pledge any security to the lender in order to avail of the education loan. However, there has to be a co-applicant and his/her income becomes a major determinant of the loan sanction probability. Also, only the private lenders in the country and a few international players offer an unsecured education loan for an amount more than INR 7.5 Lakhs to study in Canada.
What are the types of lenders offering education loans to study in Canada?
There are mainly 4 types of lenders that provide education loans to study in Canada for Indian students:
- Public-sector banks
- Private-sector banks
- Non-banking financial companies (NBFCs)
- International lenders