Canada continues to be one of the top destinations for international students, especially from India, China, and other parts of Asia. With world-class universities, multicultural cities, and post-study work opportunities, it’s a dream destination. But studying in Canada is expensive — tuition fees and living costs can easily add up to CAD 35,000 – 55,000 per year. That’s why education loans are a lifeline.
In this guide, we’ll explore the best study loan providers in Canada (2025), highlight options for Indian and international students, and share practical tips for securing the right loan.
Why International Students Need Study Loans in Canada
On average:
- Undergraduate programs cost CAD 15,000 – 30,000 per year.
- Postgraduate programs cost CAD 20,000 – 45,000 per year.
- Living expenses add another CAD 15,000 – 20,000 annually.
Not every student’s family can cover these costs upfront, which is why loans are critical to cover tuition, housing, travel, and daily needs.
Types of Education Loans for Canada
- Canadian Bank Loans – Available to permanent residents or with a Canadian co-signer.
- Indian Banks and NBFCs – Provide loans to Indian students before they fly to Canada.
- Private/Online Lenders – Fast processing, flexible repayment, higher interest rates.
- Government Schemes – Options like Canadian federal/provincial aid (for PR holders).
Top Study Loan Providers in Canada (2025)
1. RBC Royal Bank (Canada)
- Why it’s popular: RBC offers student lines of credit, ideal for international students with a Canadian guarantor.
- Highlights:
- Loan up to CAD 80,000+.
- Flexible repayment terms.
- Covers tuition and living costs.
- Best for: Students with family in Canada who can co-sign.
2. Scotiabank Student Line of Credit
- Why it’s strong: Known for the Scotiabank Student GIC Program, which also helps with visa approval.
- Highlights:
- Competitive interest rates.
- Covers a wide range of expenses.
- Excellent support for international students.
- Best for: Students entering Canada via the Student Direct Stream (SDS) program.
3. CIBC Student Loans
- Why people choose it: Canada’s major bank with international student-friendly offerings.
- Highlights:
- Student GIC options + education loans.
- Multi-year repayment flexibility.
- Quick approval with proper documents.
- Best for: Students needing both banking and loan solutions in Canada.
4. State Bank of India (SBI) – Global Ed-Vantage Loan
- Why Indian students trust it: SBI offers one of the largest study loan programs for overseas education.
- Highlights:
- Loan up to INR 1.5 Crore.
- Covers tuition, living, and travel.
- Moratorium period until after graduation.
- Best for: Indian students pursuing higher studies in Canada.
5. HDFC Credila (India)
- Why it’s flexible: A leading NBFC specializing in education loans.
- Highlights:
- Customized repayment plans up to 15 years.
- Covers 100% of study-related expenses.
- Quick processing compared to banks.
- Best for: Students who want long repayment flexibility.
6. ICICI Bank Education Loans (India)
- Why students like it: ICICI provides quick loan approvals with fewer formalities.
- Highlights:
- Loan up to INR 1 Crore.
- Pre-visa disbursement available.
- EMI options tailored for students’ financial growth.
- Best for: Students needing faster approvals.
7. Prodigy Finance (International Lender)
- Why it’s unique: Focuses on students without collateral or guarantors.
- Highlights:
- Loans for students from 150+ countries.
- Covers tuition and part of living costs.
- Approval based on future earning potential.
- Best for: Students without collateral or co-signer support.
Average Education Loan Costs in Canada (2025)
- Canadian Banks: 6% – 9% annual interest.
- Indian Banks/NBFCs: 9% – 13% interest.
- International Lenders: 8% – 15% depending on profile.
- Repayment terms: 7 – 15 years.
💡 Example: A loan of CAD 40,000 at 8% interest over 10 years would mean monthly repayments of about CAD 485.
Tips for Securing a Study Loan for Canada
- Start Early – Apply 3–6 months before your intake.
- Check GIC Programs – Many banks tie loans with GIC for visa success.
- Compare Home vs Canadian Lenders – Sometimes it’s cheaper to borrow in India than in Canada.
- Use Collateral if Possible – Helps reduce interest rates.
- Look for Moratorium Options – Some banks allow repayment after graduation.
Final Thoughts
Canada is an incredible destination for international students, but costs can be overwhelming. Thankfully, providers like RBC, Scotiabank, and CIBC support students locally, while SBI, HDFC Credila, and ICICI help Indian students before departure. For those without guarantors, global lenders like Prodigy Finance are a strong alternative.
The best choice depends on your background, loan size, and repayment ability. With the right loan, you can focus on your Canadian education journey without worrying about financial stress.