To obtain an education loan for studying in Canada, a student typically needs to meet several eligibility criteria set by the lender. These often include admission to a recognized Canadian institution, good academic history, and a co-applicant or guarantor with a stable income (usually a parent or guardian). In many cases, the co-applicant's credit history and financial background are crucial to determine the student’s loan eligibility. Some lenders may also require collateral such as property, fixed deposits, or life insurance policies for higher loan amounts.
There are two main types of education loans available to Indian students planning to study in Canada: secured and unsecured loans. Secured loans are backed by collateral and usually offer lower interest rates and more favorable terms. Unsecured loans, on the other hand, do not require any security but come with higher interest rates and stricter eligibility conditions. Many public and private banks, as well as Non-Banking Financial Companies (NBFCs), offer education loans to students pursuing courses abroad.