Canada is one of the major and popular educational hubs for native and international students. Numerous top-notch universities in Canada offer different study courses to shape the future of students and allow them to succeed. Specifically for native students, there are numerous opportunities to enroll for a particular course in Canada and gain admission with the help of loans for studying in Canada, available online. Also, referred to as educational loan in Canada online, Canada study loan online, loan for students, and terms like that.
If you are a budding student or a parent looking for the perfect financial aid for your kid, then apply for a loan for studying in Canada online. This loan is all about sharing imperative details about educational loans in Canada for interested students and parents. Thereafter, applying for an ideal loan assistance with ease and comfort.
Payday City will try to cover everything in terms of types of education loans in Canada, their prerequisites, documents to submit, expenses to cover, the applicationn process, and many more.
So, with no further ado, let's get started on the same.
Types of Study Loan in Canada
In general, there are two types of loans for studying in Canada.
- ✅ Collateral Loan: As the name itself implies, collateral loans for students allow the borrowers to give something as security while applying for this financial assistance. The lender asks the borrower to provide the loan equivalent amount of security against the loan money. In terms of security, it can be any tangible asset (houses, flats, or any establishment) or it can be any intangible asset like fixed deposit, government bonds, and something like that.
- ✅ Non-collateral Loan: Quite opposite to the collateral loan is the unsecured education loan in Canada. There is no such need for security required for the loan to get approved. Only the student documents and properly along with completely filled application form are required to apply for the loan.
Depending on the educational fee, you can decide, whether to apply for a secured or an unsecured loan. All you have to do is find a reliable online lender of your choice, compare the interest rate, and review the success rate, license, and overall reputation of the lender, before applying.
How to Apply for a Loan for Studying in Canada?
When it comes to applying for a loan to study in Canada online, you need to go through a simple and easy-to-understand process. An online application is what you need to fill with the complete and correct sort of information. However, to undergo such a fast process of applying for a study loan in Canada, you need to prepare a few things in advance.
- Research for the reliable list of loans for studying in Canada websites and go through every single detail.
- Check the lender's details in terms of license, recognition, and certification.
- Finalize the total education loan you require and find a lender that can offer that amount.
- Make a comparison of different education loan lenders online based on interest rate, processing charges, loan amount, time process, and other factors.
- Prepare the list of documents you need for the loan to get approved in the shortest possible time.
In short, applying for a loan to study in Canada is not that difficult for native students. Having proper research and reference to this blog will help you find the right financial deal. And, pursue the desired educational skill ahead to brighten up your future.
Prerequisites to Meet for Applying for an Educational Loan
Undoubtedly, applying for a study loan in Canada requires students to meet respective eligibility criteria. And, that too based on the following few points.
- You must have an acceptance letter from the university, in which you have taken the admission.
- You must of above 18 years of age and have valid proof of the same.
- Having a decent academic record is necessary to apply for a study loan online.
- The course that you have applied for must be job-oriented and offer you a decent package after completion.
- When applying for a secured education loan, you must provide valid collateral as a matter of security.
Documents You Need to Submit
Now, we come to the part of the documentation required for a loan for studying in Canada. Here's the list of papers, you need to submit.
- Acceptance letter of the university or the admission letter.
- Student application form duly filled.
- Passport-size photographs.
- Address proof.
- Proof age.
- Academic records including certifications, mark sheets, reports, and even transcripts.
- Permanent resident proof of student and the guardian.
- Bank statement of the past one year or more (depending on the lender).
- Guarantor's income proof.
- Extra-curricular activities certificate, if have any.
- Illness or disability certificate, if have any.
Types of Expenditures Covered on the Study Loan
One of the most important things you should know about loans for studying in Canada is where to spend the amount. In short, what sort of expenditures are covered? Well, there is a complete list of expenditures to meet with the help of loan amounts obtained from student loans in Canada.
- Tuition fee.
- Trip cost (if applying for another state course).
- Cost of purchasing course-related books and other required education sources.
- Laboratory fees.
- Hostel fees.
- Purchase a laptop (if applicable).
- Cost of project-related work.
Parameters Examined by Education Loan Providers
Another imperative thing to understand about student loans in Canada is the parameters set by lenders. In general, loan lenders look at the potential of students to earn better in the future and repay the loan with ease and comfort. And, they get to know about potential borrowers (students) based on the following few key points.
- Past academic results.
- Pedigree of the university, where the student has taken up the admission.
- Course offered by the selected university.
Finance is no longer a hurdle for students in Canada to enroll in their desired choice of course and the university. Apply for a loan to study in Canada to meet the requirements and acquire the required skills in a hassle-free manner. Easy to apply online loan facility allows the borrowers to arrange much-needed cash and experience credit in the bank account.
Frequently Asked Questions (FAQs)
Is it worth applying for a loan to study in Canada?
Yes, applying for a study loan in Canada is beneficial to get enrolled at the selected choice of university without thinking about the monetary issue.
What is the tenure of a study loan in Canada?
The tenure varies from one year to five years depending on the requirement of borrowers. It also depends on the repayment capability of the borrower.
Is the interest rate charged on the study loan?
Yes, interest charges are levied on the loan amount and will be included in the loan EMI that you pay in small equal parts.
Does the loan cover living expenses?
Yes, the student's life expenditures in the hostel will be covered by the loan.