Canada is quickly becoming a favourite destination for young Indians to complete their higher education. Apart from spectacular learning opportunities, the country also offers students a high standard of living and the option to settle down there. Several Indians hope to study in Canada, but the funds can become an obstacle. These individuals can fulfil their academic aspirations with the help of an education loan. Let’s understand how young Indians can get the funding required to complete their higher education in Canada.
Who Should Choose a Study Loan for Abroad?
Young students can opt for a student loan when they:
Want Financial Independence
Students who opt for education loans leave their family’s income intact. They don’t have to worry about dipping into their loved ones’ savings as they manage their costs on their own.
Hope to Build Their Credit Score
Opting for a loan to fund your higher education allows you to build your credit score right from the time you’re 18 or 21. Ensure you repay your loan on time for a good credit rating.
Need a Proof of Funds Certificate
Most universities in Canada require you to show proof of funds. You must submit documents proving you have the money to fund your course. Your education financing partner will help with this paperwork.
How to Apply for an Education Loan for Study Abroad
Once you make the decision to get a student loan, you must start the application process. Here’s how you can apply for a loan for higher education in Canada:
Evaluate the Cost
Before applying for a loan, you must ascertain the amount you require. Start by taking stock of your savings and finances. See how much you can afford to pay for yourself. Then look at how much you need. Calculate the cost of living there, the amount you need for textbooks and learning equipment, and tuition fees. These calculations help you gain a better understanding of the loan amount required. You can also use online loan calculators for a quick estimate.
Understand Your Eligibility
You must fulfil the required criteria to get your loan application approved. To be eligible for a loan, you must:
- Be an Indian citizen over 18
- Have a family member as a co-applicant who earns in India and has an account here that allows them to sign cheques
- Have a confirmed seat at a reputed or recognised university
There’s also a financial component to your eligibility. Lenders will approve amounts based on your family’s finances and credit score. If you apply for a very high loan, which you are not eligible for, your application may get rejected. You can use an online eligibility calculator to understand the ideal loan amount.
Compare the Options
Several financing institutions offer students loans to study abroad. Always compare the offerings of each institution before completing the application. Education-focused finances like Avanse provide high loan amounts at student-friendly interest rates. Additionally, their consultants offer assistance with your paperwork. Ensure you check all the options before selecting an education-financing partner for the future.
Complete the Application
Once you decide where to apply, you must complete the application form. When applying for a loan for Canada, you should start the process at least five or six months before you hope to join the course. Most lenders ask for additional documents, including your previous mark sheets and family’s financial reports. You must get the following documents ready for a smooth application process:
- Admission letter from the university
- Passport-sized photographs
- Previous academic documents such as mark sheets
- Results of your qualifying exams, such as GMAT and IELTS
- Proof of residence for you and your co-applicant
- Statements from your bank account for the previous year
- Income proof for your guarantor or co-applicant
Get the Loan Amount
Your lending partner will evaluate your application and send you the terms and conditions of the loan. You must sign the documents to agree. After this, the lender will start disbursing the amount. They will transfer the tuition fees directly to the institution.
What Are the Best Courses in Canada?
Headed to Canada for your higher education? Here are some of the best courses you can choose to pursue:
- Actuarial Sciences
- Agricultural Sciences and Forestry
- Biosciences, Medicine and Healthcare
- Human Resources
- Information Technology
- Media and Journalism
Young students can pursue their dreams of studying in Canada with a student loan. Along with completing the degree of your dreams, you can also establish yourself as a self-made individual. Opting for a loan could be the best option to earn your place in the world and secure your family’s future finances. Ensure you do not overestimate or underestimate the amount required. Asking for too much could disrupt your future finances. Conversely, asking for too little could make student life difficult. Ensure you complete thorough research on the standard and cost of living before completing your application.