Before applying for an education loan, make sure you meet the requirements for loan acceptance. The following are some of the elements that all banks consider:

• The borrower must be an Indian national.

• The applicant must have been accepted into a well-known overseas university or institution.

• The loan applicant must be at least 18 years old, or their parents must apply for the loan.

• The applicant must be enrolled in a professional study program.

A secured education loan ranging from INR 10 lakhs to INR 1.5 crore is appropriate for students. It should be remembered, however, that the specific loan amount is determined by a number of criteria, one of which is the value of the pledged collateral.

SBI, a nationalized bank, approves loans up to 70% of the collateral value, while the Bank of Baroda approves loans up to 100% of the collateral value. Private banks, such as Axis Bank, grant school loans worth 65-70 percent of the collateral, albeit at a higher interest rate.

Leading banks offer education loans to help students achieve their academic objectives. A school loan with a payback duration of up to 15 years starts at 6.60 percent per year in interest. Both in-country and out-of-country higher education can benefit from education loans.

Getting a loan authorized is time-consuming and exhausting, so apply for a loan as soon as possible to minimize any last-minute stress. After getting their university entrance letter, students receive an estimated total cost, including study and living expenses.

Calculate the amount you'll need to borrow and the amount you'll have to pay out of pocket. Do some research before asking for a loan to check which institutions have the best lending rates. Learn how to select a bank for a study abroad school loan as well.

The number of students studying abroad has risen dramatically in recent years, resulting in a tremendous surge in loan demand. Banks examine the information provided by applicants before approving a loan. As a result, the applicant will be required to provide a list of documents to the banks. The following are the documents you'll need to apply for an education loan:

• Admission letter from university/institution

• Loan application form

• Passport size photographs

• Academic documents (certificates and mark sheets)

• Documents of qualifying exams (like GMAT, IELTS)

• Resident proof of the student and the guarantor

• Statements of borrowers' bank accounts (last one year)

• Income proof of the guarantor

Note: Document requirements vary depending on the bank's rules and regulations, so it's always a good idea to double-check the list of required documents with the bank in question.

Section 80E allows you to claim tax benefits on the interest paid on the total loan amount. Furthermore, once the payback begins, the tax benefits can be claimed for up to seven years in a row.

Loans are a blessing for bright students who have the potential to make it big in life but can't afford a good education due to rising costs. However, it is advisable to read the loan agreement's terms and conditions attentively.

After the candidate completes the course and secures employment, repayment begins after one year or six months, whichever comes first. The loan must be repaid in 5 to 10 years once the payback term begins.

Payback terms vary depending on the bank's policies or the terms of the loan plan.

There are mainly 4 types of lenders that provide education loans to study in Canada for Indian students:

• Public-sector banks

• Private-sector banks

• Non-banking financial companies (NBFCs)

• International Lenders

Several financial institutions provide Overseas Education loans for Canada. Some of them provide unsecured and non Cosigner loans. 

SBI (State Bank of India) offers abroad education loans to practically all institutions in Canada, except recently privatized institutes. They do not provide loans for diploma programs but offer secured overseas education loans for Canadian students with a 90% margin.

BOB (Bank of Baroda) offers Canada secured international education loans. Universities in Canada, such as the University of Toronto and the University of British Columbia, are on the recommended list of universities that offer the most affordable abroad education loans for Canadian students. They examine the co-profile signers and may be able to offer a 100 percent loan on the entire tuition bill.

Private Banks - Private banks such as ICICI and Axis Bank offer unsecured abroad education loans up to 40 lakhs for good quality universities in Canada. If you are seeking unsecured loans in Canada, we strongly advise you to look into private banks. With appropriate processing expenses, the interest rate ranges from 10% to 12%.

Non-banking financial companies (NBFCs) offer unsecured and secured loans. 

International education loans to Canadians. The amount of the loan varies between INR 15,00,000 and INR 30,00,000. They hunt for a reliable co-signer and offer low-interest rates. Non-cosigner and non-collateral loans are available from international funds like Mpower and Prodigy in Canada. They support about 20 of Canada's finest universities. If you have been accepted to one of these universities, you should look into it.