Canada remains one of the most popular destinations for international students, but affordability is a big concern. Tuition fees typically range from CAD 20,000 – 45,000 per year, while living expenses can add another CAD 15,000 – 20,000 annually. That’s why in 2025, students are looking for affordable loan options that make higher education accessible without creating long-term financial stress.
This guide explores low-cost student loan providers in Canada (2025) and tips for securing the best deal.
Why Affordable Student Loans Are Important
- Visa requirement – Proof of funds is mandatory.
- GIC deposits – SDS students must deposit CAD 20,000.
- High upfront costs – Universities often require tuition before arrival.
- Debt management – Lower interest rates help reduce post-graduation stress.
Affordable Student Loan Providers in Canada (2025)
1. Canada Student Loans Program (CSLP)
- Why it’s affordable: Government-backed with lower rates.
- Highlights:
- Need-based federal loans.
- Income-driven repayment available.
- Grace period after graduation.
- Best for: Canadian citizens and permanent residents.
2. RBC Royal Bank (Student Line of Credit)
- Why students choose it: Competitive interest rates.
- Highlights:
- Loan up to CAD 80,000+.
- Interest-only payments during study.
- Early repayment without penalty.
- Best for: Students with Canadian co-signers.
3. Scotiabank (Student Line of Credit + GIC)
- Why it’s budget-friendly: Tied to visa requirements.
- Highlights:
- Flexible repayment schedules.
- Multi-year approvals reduce paperwork.
- Direct support for international students through GIC program.
- Best for: Students applying under the SDS pathway.
4. CIBC Student Loans
- Why it’s affordable: Tailored for international students.
- Highlights:
- Bundled loan + GIC services.
- Flexible repayment terms.
- Grace periods post-graduation.
- Best for: International students needing simple, all-in-one banking.
5. SBI Global Ed-Vantage Loan (India)
- Why it’s low-cost: Public sector bank rates are competitive.
- Highlights:
- Up to INR 1.5 crore loan.
- Covers tuition, travel, and housing.
- Repayment starts after course completion + 6 months.
- Best for: Indian students in Canada.
6. HDFC Credila (India)
- Why it’s affordable: Designed for overseas education.
- Highlights:
- Long repayment (up to 15 years).
- Covers 100% of costs.
- Custom EMIs.
- Best for: Students needing extended repayment flexibility.
7. Prodigy Finance (Global Lender)
- Why it’s unique: No collateral required.
- Highlights:
- Based on future earning potential.
- Covers tuition and partial living expenses.
- For graduate-level programs.
- Best for: Students without guarantors.
Average Costs of Student Loans in Canada (2025)
- Canadian banks: 6% – 9% interest.
- Indian lenders (SBI, HDFC): 9% – 13%.
- International lenders (Prodigy, MPOWER): 8% – 15%.
- Repayment terms: 7 – 15 years.
💡 Example: CAD 40,000 loan at 8% over 10 years = ~CAD 485/month.
Tips for Securing Affordable Student Loans
- Apply early – Start 3–6 months before departure.
- Use co-signers – Canadian guarantors reduce interest rates.
- Check university tie-ups – Some institutions have preferred banks.
- Borrow only what you need – Keep long-term debt low.
- Compare global vs local options – Sometimes home-country banks are cheaper.
Final Thoughts
Affordable student loans in Canada make higher education possible for thousands of international students each year.
- CSLP helps Canadian citizens and PRs.
- RBC, Scotiabank, and CIBC provide strong local support.
- SBI and HDFC Credila are top picks for Indian students.
- Prodigy Finance helps students without guarantors.
By comparing carefully and borrowing smart, students in 2025 can finance their Canadian education without overwhelming debt.