Studying in Canada provides access to a top-notch education system and a rich multicultural experience, making it a popular destination for international students. However, the financial aspect of education in Canada is a crucial consideration.
This article delves into the various costs associated with studying in Canada, including tuition fees, accommodation, and living expenses. Additionally, it explores the different types of study loan for Canada available to help manage these expenses.
By understanding these factors, you can make informed decisions and effectively plan your finances for a successful educational journey in Canada. So let us get started!
Cost of Studying in Canada
Let us first begin with the costs, we have divided it into tuition fees and living expenses.
|
Undergraduate Tuition Fees |
Postgraduate Tuition Fees |
Living Costs |
|
$36,100 per year |
$21,100 per year |
Approx $15,000 per year |
Let’s delve into the details and explore the different types of accommodation and associated living expenses.
Types of Student Accommodation & Other Living Costs
There are two types of accommodation; you can choose between the two according to your needs and convenience.
- On-Campus Accommodation: CA$3,000 – 7,500
- Private Shared Accommodation: CA$8,400
University accommodation is often more affordable, and some universities offer meal plans for food purchases at the university’s outlets.
Other Living Expenses
- Eating Out at a Restaurant: CA$16 per person
- A One-way Ticket on Local Public Transport: CA$3
- Loaf of Bread: CA$2.86
- Cinema Ticket: CA$13.50
- Monthly Gym Fee: CA$48.25
Apart from this, it is essential to create a GIC (Guaranteed Investment Certificate) to prove that you can fund your education in Canada. Since it is a mandatory requisite for visa processing, you have to deposit 20,700 CAD into a Canadian bank, which is then gradually released into your account to cover living expenses.
Types of Overseas Education Loans
To manage these costs, you can opt for an education loan to study abroad, so let us first understand its types.
|
Secured Loans |
Unsecured Loans |
|
Require a security to pledge such as property or fixed deposits. |
It does not require collateral but may have higher interest rates and stricter eligibility criteria. |
Now that you are familiar with the types, let’s move forward and take a look at who offers these loans.
Top Financial Lenders
We are going to discuss the top government and private banks that offer overseas education loans.
1. Government Banks
State Bank of India (SBI)
- Quantum of Finance: Up to ₹1.5 Cr.
- Funding & Margin: 90% + 10% with each disbursement
- Rate of Interest: Basic ROI – 11.15%; Concessions available (0.50% for Girl Child, 0.50% for Rin Raksha Insurance)
- Tenure: 15 years
- Disbursement: Tuition fees to university account; living expenses to university account or Forex card/landlord account.
- Security: Loan on residential flat, house, open plot, shop, commercial property, fixed deposit, LIC policy.
- Processing Time (TAT): 20 – 25 days.
Punjab National Bank (PNB)
- Quantum of Finance: Up to ₹1.5 Cr
- Funding & Margin: Up to 1.5 Cr – 85% + 15%
- Rate of Interest:10.50% (0.5% Girl Child Concession) and for top 50 World Universities – 9.25%.
- Tenure:15 years
- Disbursement: Tuition fees and living expenses are managed as per visa norms.
- Security: Loan on residential flat, house, shop, commercial property, fixed deposit, LIC policy.
- Processing Time (TAT): 10 – 25 days.
2. Private Banks
Axis Bank
- Quantum of Finance: Up to ₹ 1.5Cr for Secured Loan, For Unsecured Loan – Prime A up to ₹ 75L, Prime B up to ₹ 50L, and Prime C up to ₹ 15.00 lakhs.
- Funding & Margin: For Unsecured Loans up to 100% Funding. For Secured Loans up to 1.5 Cr and above – 85% + 15%.
- Rate of Interest: 10.5% – 11.25%
- Tenure: 15 years
- Disbursement: Tuition fees and living expenses are managed as per visa norms.
- Processing Time (TAT): 20 – 25
- Moratorium Period: Course Duration + 1 year.
ICICI Bank
- Quantum of Finance: For Secured Loans up to ₹ 2 Cr, For Unsecured Loans, the prime List – is up to ₹ 1 Cr and for the non-premier list, it is up to ₹ 20 lakhs.
- Funding & Margin: For Secured and Unsecured Loans – 100%
- Rate of Interest: 10.5% – 11.25%
- Tenure: 15 years
- Disbursement: Tuition fees and living expenses are managed as per visa norms.
- Processing Time (TAT): 10 – 25
- Moratorium Period: Course Duration + 6 years.
In a Nutshell
Studying in Canada can be financially demanding, but study loans can help manage the costs. Understanding the options available from different lenders and the terms associated with these loans is crucial for making an informed decision. Whether opting for government banks or private banks, you should compare the offerings to find the most suitable financial solution for your educational journey in Canada. Also, you can check the eligibility criteria for education loans from the bank websites or reach out to top overseas education loan advisors for complete loan assistance.
All the Best!
