Best Education Loan for PG Diploma in Canada

In 2022, over 226,000 Indian students chose Canada as their destination for their abroad education. Canada is highly sought after by international students worldwide, offering excellent universities that provide a wide range of PG Diploma courses in various fields. These programs are accessible to all through education loans. By pursuing a PG Diploma, students gain specialized skills and knowledge like food safety, management, accounting, and more, which significantly enhance their job prospects. This qualification holds value below a Master's degree, making it a valuable asset for career advancement.

Higher education in Canada can be costly, with tuition fees varying across programs and courses. On average, international students can expect to pay around CAD 21,000 per year for their PG Diploma course. Additionally, it's crucial to budget for living expenses. In such cases, obtaining an education loan for PG Diploma in Canada becomes crucial. Abroad education loans not only help cover the expenses but also serve as a reliable means to demonstrate proof of funds for Canadian student visas.

Financial Requirements For PG Diploma In Canada

PG Diploma programs in Canada are known for their affordability, making Canada a preferred choice for pursuing such programs. On average, fees for a PGDM program range from CAD 15,000 to CAD 40,000 per year. However, it is important to note that these figures are approximate and can vary depending on the university or college. Additionally, the cost of living in Canada typically ranges between CAD 18,000 and CAD 20,000 per year. Here is the breakdown of the costs:
 

Types of Education Loans for PG Diploma in Canada

Broadly there are 2 types of education loans for PG Diploma in Canada. They are - 

• A secured education loan, also known as an education loan with collateral, necessitates the applicant to provide security or collateral alongside their loan application. The collateral can be a residential property or more. Read more about: Types of collateral security accepted for student loan
• An unsecured education loan is a type of loan that does not require the borrower to provide collateral as security. The interest rates charged on these types of loan is usually high as the risk involved is also high. Additionally, these loans typically require a co-applicant or co-signer, and the loan amount is determined based on the co-applicants income and CIBIL score.

Secured Education Loan for PG Diploma in Canada

A secured education loan requires borrowers to provide collateral as security during the application process. Collateral can include assets like property, fixed deposits (FDs), or insurance policies. This type of loan usually offers lower interest rates, longer repayment periods, and the potential for higher loan amounts. These loans are more accessible as lenders consider the collateral as a safeguard in case of default. Now, let's explore some financial institutions that provide secured education loans and their key features.
 

Unsecured education loan for PG Diploma in Canada

An unsecured education loan for PG Diploma in Canada does not require collateral during the application process. Compared to secured loans, unsecured loans have shorter repayment tenures and higher interest rates due to increased lender risk. There are three main types of lenders offering substantial unsecured education loans for PG Diploma courses. Private banks offer longer repayment periods, slightly higher interest rates, and limited loan options for selected universities and colleges. Non-banking financial companies (NBFCs) provide unsecured loans with the shortest repayment tenure of 10 years, higher interest rates, and restricted loan options. International lenders offer unsecured loans with the highest interest rates but no co-applicant requirement, unlike the previous two options.

How to Choose the Best Educational Loan Option for PG Diploma in Canada?

Having explored various lending options for your education loan for PG Diploma in Canada, you are now equipped to make an informed decision. However, the abundance of choices can be overwhelming. To determine the best lender for your needs, it is essential to consider the following factors for comparison:

• Interest Rate
• Processing fee and time
• Margin Money
• Moratorium Period
• Tax Benefit
• Loan Duration
• Covered Expenses
• Prepayment terms and conditions

By carefully evaluating these factors, you can select the best educational loan option that aligns with your needs and offers favorable terms and conditions.

Eligibility for Education Loan for PG Diploma in Canada

Once you have selected the preferred lender based on the information as mentioned above, it is crucial to review and fulfill the eligibility criteria before initiating the loan application process. This ensures a smooth and hassle-free experience. The general eligibility criteria include:

• Confirmation of admission to a reputed Canadian institute. 
• The applicant should be a minimum of 18 years. 
• The past academic records must be good. 
• English proficiency test with some other standardized test score (if necessary) will be required.

Documents for Education Loan for PG Diploma in Canada

When the eligibility is finalized then you can move forward to the documentation process. The documents requirements for getting an education loan to study PG Diploma in Canada are shown below:

From Applicant:

• Identity Proof: PAN/ Passport/ Driver’s License/ Voter ID card.
• Address: Recent copy of Telephone Bill/ Electricity Bill /Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhaar Card.
• Passport 
• Past Academic Record- Undergraduate, 12th, and 10th results
• Entrance Exam Result (e.g. GMAT, GRE, TOEFL, etc.)
• Proof of Admission: Admission Letter. Conditional admission letter is also applicable.
• Statement of cost/expenses.
• 2 passport-size photographs.
• Loan A/C statement of one year, if there is any previous loan from other Banks/ Lenders.
• 3 months salary slip if the student has work experience.
• Property papers (for secured education loan)

From Co-Applicant:

• ID and Address Proof ( PAN and Aadhar/Any)
• 3 months salary slip (if salaried) or Business address proof
• Latest 6 months bank statements
• ITR 2 years / Form 16 for 2 years
• Own residence proof (E-Bill)
• Passport Size Photograph

Read Also

• SOP for Canada Student Visa
• Why study in Canada?
• Best Universities in Canada
• Guide to Public Universities in Canada
• Canada Student Visa

How to Apply Education Loan for PG Diploma in Canada?

Applying for an education loan to pursue a PG Diploma course in Canada is a straightforward process. However, managing multiple lenders individually can be overwhelming. To simplify this, GyanDhan provides streamlined assistance in obtaining an education loan for a PG Diploma in Canada through the following steps:

• Check eligibility to determine the education loan amount for studying abroad and kickstart the application.
• Education loan counselor will get in touch and suggest the best lender options as per the requirements.
• Submit documents as per the lender's preference (online/offline). The verification process begins after submission. 
• Upon completion, you will receive a loan approval letter. Signing the agreement based on the letter will finalize the process and enable the disbursement of funds.

Prior to initiating your education loan application for studying PGDM in Canada, it is crucial to thoroughly explore and compare the options offered by various lenders. GyanDhan simplifies this process by providing comprehensive assistance. Through our partnerships with multiple lenders, including government banks, private banks, and NBFCs, we offer a wide range of choices. Check your eligibility for an education loan to study abroad with GyanDhan and alleviate any concerns regarding your loan process.

 

Frequently Asked Questions

What is PG Diploma course in Canada?

 

A PG Diploma is a specialized postgraduate qualification obtained after completing a Bachelor's degree, providing focused knowledge and practical training in a specific field. It enhances job prospects by equipping students with specialized skills.

Is doing PG Diploma from Canada valuable?

 

Yes, a PG Diploma from Canada is highly valuable. With excellent educational institutions, practical training, and international recognition, it enhances job prospects and opens doors to global career opportunities.

What is the maximum amount that I can get to study PG Diploma in Canada?

 

The maximum amount that you can get in case of a secured and unsecured education loan is 1.5 Cr and 50 Lakhs respectively. 

Which bank is best to take an education loan for PG Diploma in Canada?

 

There is no particular answer for this question, any bank can be best for you depending on the circumstances. It would be easier if you are able to compare multiple banks and then come up with the best on your own. You can compare them based on the interest rate, processing fee and time, margin money, moratorium period, tax benefit, loan duration, covered expenses, and prepayment terms and conditions.

What is the repayment process for education loans for PG Diploma programs in Canada?

 

Education loan repayment typically begins 6-12 months after course completion or upon employment, depending on the lender. Some banks provide a partial repayment option during the study period to help reduce interest. Repayment terms vary, but they typically range from 5 to 15 years.

Do I need a co-signer or collateral to secure an education loan for PG Diploma in Canada?

 

A co-signer or collateral may be required, depending on the loan amount and lender. Public banks typically require collateral for loans exceeding INR 7.5 lakh, whereas non-banking financial companies (NBFCs) and private banks may provide non-collateral loans based on course and institution ranking.

Can international students apply for education loans for PG Diploma programs in Canada?

 

Yes, international students may apply for educational loans. Many banks and NBFCs in Canada provide loans specifically for PG Diploma programs, provided the student meets eligibility criteria, which include admission to an approved institution as well as financial and co-applicant requirements.