- Since 1 September 2025 a single study permit applicant must show CAD 22,895 in proof of funds, up from CAD 20,635, separate from tuition and travel
- A Guaranteed Investment Certificate is one accepted option but is no longer mandatory after the Student Direct Stream closed on 8 November 2024
- Indian lenders such as SBI, HDFC Credila and ICICI fund up to 100% of costs, with rates from about 8.65% and repayment up to 15 years.
Canada remains a leading study destination for Indian students, but tuition, living costs and the mandatory proof-of-funds deposit make financing essential. An education loan is one of the most reliable ways to fund higher studies in Canada, and this guide explains the loan types, eligibility, documents, top lenders, repayment and the current proof-of-funds rules.
What Types of Education Loans Are Available to Study in Canada?
Indian students can fund studies in Canada through two education loan types: collateral or secured loans, which require pledged assets like property or fixed deposits, and non-collateral or unsecured loans, which need a co-applicant instead of security. Government banks favour secured loans, while private banks and NBFCs dominate the unsecured segment.
Collateral Loan (Secured Loan)
A secured study loan requires you to pledge collateral as security for the sanctioned amount. Acceptable collateral usually includes tangible assets such as non-agricultural land, houses and flats, and intangible assets such as life insurance policies, fixed deposits and government bonds. In India, secured education loans for Canada are mostly offered by government banks, and the maximum amount depends on the value of the pledged security.
Non-Collateral Loan (Unsecured Loan)
An unsecured loan needs no collateral, but it does require a co-applicant whose income influences approval. Unsecured education loans in India are offered mainly by private banks and NBFCs such as ICICI Bank, Axis Bank and HDFC Credila. Amounts and rates depend on the co-applicant's profile, the course and the university's ranking.
Complete guide to studying in CanadaRead →How Can You Get a Study Loan for Canada?
Getting a Canada study loan is straightforward but lengthy, so begin roughly six to seven months before your course starts. Research lenders and eligibility, secure your admission letter, compare loan offers, submit the application with documents, and sign the sanction papers before the bank disburses the approved amount to your institution or account.
- Identify banks and NBFCs that lend to international students in Canada, and check their eligibility and documentation rules.
- Estimate the total cost of your course, including tuition, living expenses and the GIC or proof-of-funds deposit.
- Obtain a letter of acceptance from your chosen Canadian institution.
- Compare loan offers across lenders on interest rate, margin, processing fee and repayment terms, then pick the best.
- Complete the loan application form and confirm the loan amount with the chosen lender.
- Read the sanction letter and loan agreement carefully before signing once approved.
- The bank disburses the loan after you accept its terms, usually directly to the university or in tranches.
What Are the Eligibility Criteria for a Canada Study Loan?
To qualify for a Canada education loan you generally need an admission letter from a recognised full-time programme, an applicant aged at least 18 (parents apply if younger), and a strong academic record. Job-oriented courses improve approval odds, and secured loans additionally require you to pledge acceptable collateral security to the lender.
- An acceptance letter from a recognised Canadian institution for a full-time programme.
- Applicant aged at least 18; if younger, a parent must apply for the loan.
- A strong academic record, which improves your chances though it is not strictly mandatory.
- A course that is job-oriented or has strong career prospects.
- For a secured loan, collateral security that you can pledge to the lender.
Which Documents Are Required for a Canada Study Loan?
Core documents for a Canada study loan include the guarantor's income proof, one year of bank statements, age and identity proof, academic transcripts, proof of admission, the completed loan application form, and test scorecards such as IELTS, TOEFL, GRE or GMAT. Secured loans also need collateral ownership papers and valuation documents.
- Guarantor's proof of income, for example salary slips
- Bank statements for the last one year
- Age proof and identity proof (passport, voter ID, driving licence or Aadhaar card)
- Academic transcripts and certificates
- Proof of admission from the Canadian institution
- Completed student loan application form
- Passport-size photographs
- Test scorecards such as IELTS, TOEFL, GRE or GMAT
- For secured loans, collateral ownership and valuation papers
Which Are the Best Loan Providers for Studying in Canada?
Leading Indian lenders for Canada study loans include SBI Global Ed-Vantage, HDFC Credila and ICICI Bank. SBI offers collateral-free loans up to fifty lakh and larger secured loans, Credila funds up to 100% of costs from 9.95% interest, and ICICI provides study-abroad loans bundled with GIC and forex support.
| Lender (2026) | Coverage | Interest Rate (from) | Repayment |
|---|---|---|---|
| SBI Global Ed-Vantage | Collateral-free up to Rs 50 lakh; larger amounts with collateral | About 8.65% p.a. (floating) | Up to 15 years |
| HDFC Credila | Up to 100% of costs, incl. living expenses and GIC | 9.95% p.a. onwards | Up to 15 years |
| ICICI Bank (iSMART) | Tuition, living costs, GIC and forex services | Bank-specified (floating) | Up to 15 years |
ICICI Education Loan for Canada
ICICI Bank study-abroad loans provide funds for higher education in Canada along with help buying the GIC. The offering bundles the student loan, GIC and savings account, a platform to pay university fees, plus travel cards, forex services and outward remittances. Its 'iSMART' route offers collateral-free loans for select institutions, with the amount and rate depending on your profile.
HDFC Credila Study Loan for Canada
HDFC Credila (now Credila Financial Services) funds up to 100% of educational costs for Canada, including tuition, living expenses and the GIC deposit, with interest from around 9.95% per annum and repayment of up to 15 years. It offers a fast turnaround, flexible repayment and no penalty on prepayment, and covers courses requiring IELTS, TOEFL, SAT, GMAT or GRE.
SBI Global Ed-Vantage Loan for Canada
The SBI Global Ed-Vantage scheme is designed for overseas study in countries such as Canada. SBI offers collateral-free loans up to Rs 50 lakh and larger amounts against security, with floating interest from around 8.65% per annum for women applicants, a 10% margin and repayment up to 15 years. It can cover the bulk of tuition and non-academic expenses.
Jobs in Canada after studyRead →How Is a Canada Education Loan Repaid?
Repayment of a Canada education loan usually begins after a moratorium covering the course duration plus six months to one year. Many Indian lenders allow tenures of up to 15 years, and prepaying before the grace period ends can reduce or waive accrued interest. Interest typically accrues during the study period.
Eligible students may also cut costs through government interest-subsidy schemes. The Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies gives full interest subsidy during the moratorium period to OBC and EBC students pursuing a master's, MPhil or PhD abroad, subject to family-income limits, and is administered through Canara Bank.
How Much Proof of Funds and GIC Do You Need for Canada?
Since 1 September 2025, a single study permit applicant must show CAD 22,895 in proof of funds, separate from tuition and travel. A Guaranteed Investment Certificate remains a popular option but is no longer mandatory after the Student Direct Stream ended in November 2024; bank statements, loans or scholarships also qualify.
The GIC is a locked deposit with a participating Canadian bank that releases funds to you in instalments after you arrive, giving IRCC assurance of your first-year living costs. Banks such as RBC let you open an account and deposit funds before travelling, then receive an IRCC-ready confirmation of deposit. Many education loans, including Credila and ICICI, can finance the GIC amount itself.
Can You Get a Student Loan for Diploma Courses in Canada?
Yes, but it is harder for undergraduate diploma courses. Secured loans are generally available for UG diplomas, while unsecured loans are usually reserved for masters and job-oriented programmes with stronger career prospects. PG diploma applicants often struggle because some lenders do not treat these Canada-specific qualifications as mainstream degree courses.
India remained the top source of international students in Canada, with 510,235 Indian study permit holders at the end of 2024, according to IRCC data, though new permits issued to Indian students fell sharply in 2025 amid tighter approvals and the international-student cap. Demand for loans for STEM and management master's degrees in Canada continues to lead education-loan applications.