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Securing an education loan is a key step for many Indian students aspiring to pursue a PG Diploma in Canada, given the significant costs involved. Education loans cover essential expenses such as tuition fees, living costs, and other related expenditures, with total expenses often ranging between C$23,000 and C$27,000.
These loans are available in two forms: secured loans, requiring collateral with lower interest rates, and unsecured loans, which don’t require collateral but may have higher interest rates and shorter repayment terms.
Understanding the loan process, eligibility criteria, and required documentation is essential to make informed decisions and ease the financial journey of studying abroad.
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.
- For admission, a relevant undergraduate degree with a cumulative score of at least 50% and an IELTS English Proficiency Score of 6.5 is necessary.
Fees To Consider For PG Diploma In Canada
The cost of pursuing a PG diploma in Canada is relatively lower than in developed countries like the US, UK, and Australia. The expenses can be categorised into three main sections: pre-arrival costs, university fees, and living expenses in Canada.
Pre-Arrival Costs
Pre-arrival costs include expenses such as application fees, visa fees, and English language proficiency test fees. These are necessary preparations before moving to Canada.
Categories | Amount in CAD |
Program application fees | 75 to 100 |
Health insurance | 13,000 |
Study permit application fees | 235 (varies by university; 150 for a study permit and 85 for biometric fees) |
IELTS fee | Between 243 and 250 |
TOEFL fee | Between 210 and 320 |
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.
They must also pay their tuition and living expenses in full before applying for a visa. The cost of a PG Diploma in Canada ranges from C$23,000 to C$27,000, including GIC.
People who cannot pay the entire fee upfront must then apply for an education loan to study in Canada.
Cost Of Living In Canada
Indian students pursuing PG courses in Canada should plan for monthly living expenses between INR 1 lakh and 1.5 lakh. These expenses typically include accommodation, meals, transportation, and study materials.
Expense Type | Average Cost (CAD) | Cost Equivalent (INR) |
Accommodation | 2,000 | 1.23 lakhs |
Food | 370 | 22,700 |
Transport | 100 | 6,100 |
Internet | 86 | 5,200 |
Books and Supplies | 163 | 10,000 |
Miscellaneous | 350 | 21,500 |
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 loan form 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 | Loan Upper Limit | Education Loan Interest Rates For Abroad Studies | Moratorium Period | Loan Tenure |
UBI Education Loan | Up to INR 1.5 Cr | 9.85% – 10.5% | Course duration + 1 year | 10-15 years |
Axis Bank Education Loan | Up to INR 2.5 Cr | 9.9%-12.5% | Course Duration + 1 year | 10-15 years |
ICICI Bank Education Loan | Up to INR 1.5 Cr | 9.85% – 12% | Course duration + 1 year | 10-15 years |
IDFC Education Loan | Up to INR 1.5 Cr | 9.5% – 12.75% | Course duration + 1 year | 10-15 years |
Bank of Baroda Education Loan | Up to INR 1.5 Cr. | 9.7%-10.2% | Course duration + 1 year | 10-15 years |
HDFC Credila | Up to INR 1.5 Cr | 9.75% – 12.5% | Course duration + 1 year | Up to 15 years |
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 a 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 loan 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:
- Check your eligibility to calculate the amount of the education loan for your international study. Then, start the application.
- A counsellor for student loans will contact you and recommend the best lenders based on your needs.
- You can submit 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 a PG Diploma in Canada?
Some lenders may require a co-signer or collateral to secure the loan, while others may not. 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.
4. What documents are required to apply for an education loan for a PG Diploma in Canada?
Applicants typically need to provide proof of identity (e.g., PAN card, Aadhaar card), proof of admission from a recognised Canadian institution, bank statements, income proof, and academic records. Additional documents, like a co-signer’s financial details, may be required for secured loans.
5. Are there any tax benefits available on education loans for PG Diploma programmes in Canada?
Yes, under Section 80E of the Income Tax Act in India, students or co-borrowers can claim tax deductions on the interest paid on education loans. These benefits are applicable for a maximum of eight years from the start of repayment or until the loan interest is fully paid.
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