Canada remains a dream destination for higher education, but tuition fees and living costs can be overwhelming. With tuition averaging CAD 20,000 – 45,000 per year and living expenses reaching CAD 15,000 – 20,000 annually, many students rely on loans. In 2025, the focus is on finding low-cost student loan providers that make education more affordable.
This guide explores the most affordable study loan providers in Canada (2025) and tips for borrowing smart.
Why Low-Cost Loans Matter for Students
- Visa requirement – Proof of funds is needed for a study permit.
- GIC deposits – Students under SDS must deposit CAD 20,000.
- Upfront payments – Universities often require advance tuition.
- Debt management – Lower interest = easier repayment after graduation.
Affordable Student Loan Providers in Canada (2025)
1. Canada Student Loans Program (CSLP)
- Why it’s affordable: Federal support with low, fixed rates.
- Highlights:
- Need-based loans.
- Grace period after studies.
- Income-driven repayment options.
- Best for: Canadian citizens and PRs.
2. RBC Royal Bank (Student Line of Credit)
- Why it’s low-cost: Competitive rates linked to prime.
- Highlights:
- Up to CAD 80,000+.
- Interest-only payments while studying.
- Early repayment flexibility.
- Best for: Students with Canadian co-signers.
3. Scotiabank (Student Line of Credit + GIC)
- Why people choose it: Combines financing with visa support.
- Highlights:
- Multi-year approvals.
- Covers tuition + living.
- Linked to Student Direct Stream (SDS).
- Best for: International students needing visa support.
4. CIBC Student Loans
- Why it’s affordable: Designed for international students.
- Highlights:
- Bundled with GIC services.
- Grace period after graduation.
- Competitive repayment terms.
- Best for: International students needing one-stop banking.
5. State Bank of India (SBI) – Global Ed-Vantage Loan
- Why it’s affordable: Public bank with low interest.
- Highlights:
- Up to INR 1.5 crore for overseas study.
- Covers tuition, housing, and travel.
- Moratorium during study + 6 months.
- Best for: Indian students in Canada.
6. HDFC Credila (India)
- Why it’s strong: Long repayment flexibility.
- Highlights:
- EMIs up to 15 years.
- Covers full education costs.
- Custom repayment schedules.
- Best for: Students needing extended repayment.
7. Prodigy Finance (Global Lender)
- Why it’s unique: No guarantor or collateral needed.
- Highlights:
- Approval based on earning potential.
- Tuition + partial living covered.
- Graduate program focus.
- Best for: International students without co-signers.
Average Loan Costs in Canada (2025)
- Canadian bank loans: 6% – 9%.
- Indian lenders: 9% – 13%.
- International lenders: 8% – 15%.
- Repayment terms: 7 – 15 years.
💡 Example: A CAD 40,000 loan at 8% over 10 years = CAD ~485/month.
Tips for Securing Low-Cost Loans
- Apply early – 3–6 months before departure.
- Use co-signers – Canadian guarantors lower rates.
- Check university tie-ups – Some schools partner with banks.
- Borrow smart – Only take what you need.
- Compare globally – Home-country banks may be cheaper.
Final Thoughts
In 2025, students in Canada can find affordable loans by choosing wisely:
- CSLP for citizens/PRs.
- RBC, Scotiabank, and CIBC for local banking support.
- SBI and HDFC Credila for Indian students.
- Prodigy Finance for those without guarantors.
Affordable study loans keep Canadian education dreams alive without creating unmanageable debt.