A Canadian education promises excellent academic facilities, interdisciplinary teaching, and diverse classrooms for international students. These world-class academic amenities come at the cost of a financial investment in the form of tuition fees, living costs, travel, and other costs. However, this investment is made easier with the help of overseas education loans. Among the various lenders that dot the market with attractive overseas education loan offers, Nationalized and Private Banks stand out as trusted and reliable lenders that offer several amenities alongside loans for students headed to Canada for higher education.

Entering the top Universities in Canada can be a challenging task, with the competition increasing across the world each year. However, choosing a study loan for Canada does not have to be equally challenging. All one has to do is choose a bank that gives reliable financial services, competitive interest rates, and follows the norms for immigration to Canada. In this article, we will explore the top Indian banks that fit all these criteria.

Canada's Guaranteed Investment Certificate (GIC) Norms

Canada's education system is split into Universities and colleges, giving students thousands of avenues to pursue Master's and Bachelor's courses across various disciplines. The tuition fees and living costs may change based on the student's chosen program, institution, and city of residence. The Canadian government usually asks for confirmation that a student can cover the living costs in Canada through a Guaranteed Investment Certificate or GIC account. Let us further discuss the GIC below.

  • A GIC account refers to an account created in a bank recognized by the Canadian immigration authorities that acts as proof that the student can manage their living expenses.
  • Students must deposit CA$ 20,635 in Scotiabank, ICICI Bank Canada, HSBC, SBI Canada, or the Canadian Imperial Bank of Commerce and receive an ‘Investment Balance Confirmation' before they start applying for a Canadian student visa.

The GIC is an important part of the visa procedure and requires a pre-visa disbursement of the study loan for Canada. Next, we will glance through the banks that offer these services.

Best Banks Offering Study Loans for Canada

Most Nationalized and Private Banks offer secured education loans as well as study loans for Canada without security. Additionally, there is an attractive overseas education loan offer from the Co-Operative Saraswat Bank that applies to students aiming for Canadian educational institutions. Let us learn briefly about the best schemes from these banks below.

  1. Bank of Baroda
  • Maximum Loan Amount: Up to INR 1.5 crore for secured education loans for Premium Institutions listed by the bank.
  • Rate of Interest: Starts at 9.45% per annum for educational institutions on the Premium List, with a 0.20% concession for female students.
  • Repayment Tenure: Up to 15 years, including the duration of the course.
  1. Bank of India
  • Maximum Loan Amount: Up to INR 1.5 crore for secured education loans to recognized institutions.
  • Rate of Interest: Starts at 10.60% per annum, with further concessions of 0.50% for female students, loan amounts above INR 20 lakhs, institutions with QS rankings under 1,000, and students applying to Medical, Engineering, or Management courses abroad.
  • Repayment Tenure: Up to 15 years, including the duration of the course.
  1. Axis Bank
  • Maximum Loan Amount: Up to INR 1.5 crores for secured education loans and INR 1 crore for unsecured education loans.
  • Rate of Interest: Starts at 10.5% for both secured and unsecured education loans.
  • Repayment Tenure: Up to 10 or 15 years, including the duration of the course.
  1. ICICI Bank
  • Maximum Loan Amount: Up to INR 2 crores for secured education loans and INR 1 crore for unsecured education loans to study in Premium-Listed Universities.
  • Rate of Interest: Starts at 10.5% for both secured and unsecured education loans.
  • Repayment Tenure: Up to 15 years, including the duration of the course.
  1. Saraswat Bank
  • Maximum Loan Amount: Up to INR 1.5 crore for secured education loans to study in IBA-approved educational institutions.
  • Rate of Interest: Starts at 8.50% per annum, with concessions of 0.50% for female and Divyang students.
  • Repayment Tenure: Up to 15 years, including the duration of the course.

To apply for a study loan for Canada from any of these banks, students must follow the general eligibility criteria. For starters, they must show proof of admission into a recognized institution in Canada, followed by their complete academic records. Most banks also require the student to have a co-applicant (usually, an immediate family member or guardian) with a good financial record. Of course, if applying for a secured education loan, the student must provide acceptable collateral as security against the loan.

To sum up, studying in Canada is just a step away once one confirms the finances through an overseas education loan from the myriad options available. Students can make the whole loan process easier by reaching out to trusted study abroad loan consultants, who can assess the student's profile and help find the best fit to study in Canada.