What is the Education Loan Procedure to Study for Canada?

Canada is a popular destination for Indian students. In 2019, the country granted study permits to over 1.39 Lakh Indian students. With the remarkable rise in the number of Indian students opting to study in Canada, there has been a simultaneous rise in the number of loan applications too. 

Although academic prospects in Canada attract students, the substantial expenses of education in the country act as a hindrance.

To mitigate such inconvenience and enable the students to pursue their dream course abroad, various financial institutions in India are providing education loan for Canada. This line of credit is likely to cause a further upsurge in the loan market and enable students to minimize financial troubles.

What is covered under the loan against property for education?

When you apply for an education loan for study in Canada, the loan amount not only covers your education course fees, but it is also likely to cover added expenses as well. These are mentioned below –

• Course fees.

• Cost of flight ticket.

• Cost of course material.

• Fees for lab work.

• Charges for a study tour.

• Expenses related to recreational activities.

• Medical costs.

Although such a loan offers substantial funds, you will need to utilize the amount wisely to manage your finances better while studying abroad. All you have to do is chalk out your regular expenses and distinguish them from the least important ones. This will help you in planning your monthly budget too.

What is the GIC amount to be submitted for studying in Canada?

GIC or Guaranteed Investment Certificate is issued to students when they apply for an investment of their yearly living expenses with a Canadian financial institution. So, when you apply for a Student Partnership Program (SPP), you have to purchase a GIC and deposit the amount before availing the student Visa. 

Often lending institutions in India fail to recognize the changing regulations on admission in Canadian universities or colleges. You should, therefore, make sure they provide you with the deposit amount or directly transfer it to the Canadian lender as per requirement.

Note that the amount has to be submitted irrespective of whether you apply for a study loan for Canada or self-fund your course. The process of depositing GIC amount is as follows –

• Open an account with the Canadian financial institution. Visit their official website to fill the application form.

•  An amount is to be deposited via wire transfer towards purchasing of GIC account.

• Once the purchase is made, the applicant receives an online receipt as a confirmation.

Note that you have to take a print of the same, and present it along with your Visa application form. 

When should you apply for an education loan?

You should apply for an education loan for Canada, only after you receive an admission letter from the concerned college in university in Canada. Nonetheless, you have to deposit a pre-fixed amount to the college towards the first semester fees even before your Visa is approved. 

You should note that all processes, including medical tests, Visa approval, loan disbursal, etc. take quite a considerable duration to get completed. It is thus advised to apply for the loan around two months before your course starts. 

However, make sure you are aware of the things to know before applying for a loan against property for education for a hassle-free loan disbursal. 

Availing loans from financial institutions is often cumbersome due to the involvement of several formalities. In such a case, you can avail a loan against property for education from a non-banking financial institution.

Therefore, when you apply for an education loan for Canada, ensure that you have a plan for repaying the considerable amount. On the other hand, if repaying such unsecured credit becomes too tricky, you can opt for a loan against property to utilize flexible repayment tenor.