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Education Loan for PG Diploma in Canada

UniCreds
August 2, 2023
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Last Updated: September 10, 2024

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Are you aspiring to pursue a Postgraduate (PG) Diploma in Canada? Congratulations on taking this significant step toward advancing your education and career! However, for many students, the expense of studying abroad is a serious concern. That’s where study abroad education loans come in. In this blog post, we will provide you with a brief introduction to education loan for PG diploma in Canada. Discover how these loans can help you finance your studies and fulfil your educational dreams in the Great White North. Let’s dive in!

Why Would You Want A Graduate (PG) Diploma Over A Master’s Degree?

Students choose the PG Diploma Course because it provides easy entry into the country and does not require extremely high grades to apply for, as this degree is given by Canadian institutions and a few Canadian universities.

Many individuals opt for a PG Diploma in Canada because a standard postgraduate degree programme in Canada can be quite expensive.
A relevant undergraduate degree with a cumulative score of at least 50% and an IELTS English Proficiency Score of 6.5 is necessary for admission.

Financial Requirements For PG Diploma In Canada

Students must pay a set sum to GIC—Guaranteed Investment Certificate—before applying for a visa for a PG Diploma study. Before applying for a visa, they must also pay their tuition and living expenses in full. The cost of a PG Diploma in Canada ranges from C$23,000 to C$27,000 including GIC. People who are unable to pay the entire fee upfront must then apply for an education loan to study in Canada.

Secured PG Diploma Education Loan in Canada

Borrowers must furnish collateral as security for a secured education loan throughout the application process. Property, fixed deposits (FDs), and insurance policies are examples of collateral. This form of loan typically has lower interest rates, longer repayment terms, and the possibility of larger borrowing amounts. These loans are more available since lenders view the collateral as a safety net in the event of a default. Let us look at various financial institutions offering secured education loans and their important qualities.

Lender Name	Maximum Loan Amount (in INR)	Rate of Interest	Margin Money
SBI	Up to 1.5 Cr	10.65% (for girls)11.50% (for boys)	10%
UBI	Up to 1.5 Cr	10.5% – 10.85%	10% (listed university)15% (non-listed university)

Unsecured Education Loan For PG Diploma In Canada

During the application procedure, an unsecured education loan for PG Diploma in Canada for Indian students does not require collateral. Unsecured loans feature shorter repayment terms and higher interest rates than secured loans due to increased lender risk. Three categories of lenders provide significant unsecured student loans for PG Diploma courses. Private banks provide longer repayment terms, higher interest rates, and fewer loan possibilities for certain universities and schools. Non-banking financial firms (NBFCs) offer unsecured loans with a 10-year repayment term, higher interest rates, and limited loan possibilities. Unlike the previous two options, international lenders provide unsecured loans with the highest interest rates but no co-applicant requirement.

Lender Name	Maximum Loan Amount	Rate of Interest	Margin Money
Axis Bank	Up to 50 Lakhs INR	11% – 13.50%	5%
ICICI Bank	Up to 50 Lakhs INR	10.85% – 12.50%	0 – 15%
IDFC FIRST Bank	Up to 35 Lakhs INR	11.75% – 13.25%	Nil
HDFC Credila	Up to 40 Lakhs INR	11.75% – 12.50%	Nil
Auxilo	Up to 30 Lakhs INR	12% – 13%	Nil
Incred	Up to 30 Lakhs INR	12% – 13%	Nil
Avanse	Up to 25 Lakhs INR	12.50% – 13%	Nil
MPOWER Financing	Up to 100,000 USD	12.99% – 13.99%	Nil
Prodigy Finance	Up to 100,000 USD	12% – 14%	Nil

How To Choose The Best Education Loan Options?

You are now prepared to make an informed decision after researching numerous lending options for your education loan for PG diploma in Canada for international students. The number of options, on the other hand, can be intimidating. It is critical to compare the following variables while determining the appropriate lender for your needs:

Interest Rate
Processing fee and time
Margin Money
Moratorium Period
Tax Benefit
Loan Duration
Covered Expenses
Prepayment terms and conditions

By carefully weighing these aspects, you can find the finest student loan choice that meets your requirements and provides favourable terms and conditions.

Education Loan Eligibility

Once you’ve decided on a lender based on the information provided above, it’s critical to study and meet the eligibility requirements before beginning the loan application process. This assures a pleasant and trouble-free experience. The following general eligibility requirements apply:

Admission to a reputable Canadian institute is confirmed.
The candidate must be at least eighteen.
The previous academic records must be excellent.
An English proficiency test, as well as a score on another standardised test (if necessary), will be required.

Documents Required For Education Loan

When your eligibility has been determined, you can begin the documentation procedure. The following documents are required for obtaining an education loan to study for a PG Diploma in Canada:

From Applicant:

PAN/Passport/License/Voter Driver’s ID card are acceptable forms of identification.
Address: A recent copy of your telephone bill, electric bill, water bill, piped gas bill, or a copy of your passport, driving licence, or Aadhaar card.
Passport
Results from the undergraduate, 12th, and 10th grades in academic history
Exam results (e.g., GMAT, GRE, TOEFL, etc.)
Admissions documentation: Letter of Acceptance. A conditional admission letter is also valid.
Cost and expense report.
Two passport-sized pictures.
If you have a past loan from another bank or lender, please provide a one-year loan A/C statement.
If the student has work experience, he or she will be paid for three months.
Property documents (for secured education loan)

From Co-Applicant:

ID and Address Proof (PAN and Aadhar/Any)
A three-month pay stub or business address documentation
Latest 6 months’ bank statements
ITR for two years and Form 16 for two years
Own residence proof (E-Bill)
Passport Size Photograph

How To Apply for an Education Loan?

It is simple to apply for an education loan for PG Diploma in Canada. Managing several lenders, on the other hand, might be daunting. To make things easier, we’ve streamlined the process of obtaining an education loan for a PG Diploma in Canada by doing the following steps:

To calculate the amount of the education loan for your international study, check your eligibility. Then, start the application.
A counsellor for student loans will contact you and make recommendations for the best lenders based on your needs.
Send in your paperwork online or offline, depending on the lender’s preference. After submission, the verification procedure starts.
After everything is finished, you will get a letter of loan acceptance. The process will be completed and the money will be released after you sign the contract based on the letter.

FAQs

1.What is the repayment process for education loans for PG Diploma programmes in Canada?

The repayment process typically starts after completing the PG Diploma programme or a grace period provided by the lender. Repayment terms vary among lenders, including the duration and monthly instalment amount.

2. Do I need a co-signer or collateral to secure an education loan for PG Diploma in Canada?

Some lenders may ask for a co-signer or collateral to secure the loan, while others may not require them. It is essential to check with different lenders to understand their specific requirements.

3. Can international students apply for education loans for PG Diploma programmes in Canada?

Yes, international students can apply for education loans for PG Diploma programmes in Canada. However, the eligibility criteria and documentation requirements may vary for international students.