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Finding the right student loan for your Canadian education: A guide for Indian students

Breaking down costs and loan options for Indian students pursuing education in Canada

For Indian students planning to study in Canada, securing the right education loan can be a key step in making your academic goals a reality. With the cost of education abroad rising, understanding your loan options and the application process can make all the difference in funding your studies. 

To help you navigate this process, here are some of the essential details for securing a suitable student loan for your Canadian education.

What are the costs of studying in Canada?

The primary expenses Indian students must consider include tuition fees, living costs and additional academic expenses like books and supplies. For a typical program, the total cost (tuition + living expenses) may range from CA$25,000 (~ INR 16 lakh) to CA$60,000 (~INR 36 lakh) per year, depending on your program, university and location. Here’s a detailed annual breakdown:

  • Tuition fees:
    • Undergraduate programs: CA$20,000 to CA$50,000
    • Graduate programs: CA$15,000 to CA$35,000
      Note: Specialized programs such as engineering, business or medicine are often on the higher end.
  • Living expenses:
    • Accommodations: CA$6,000 to CA$12,000, depending on location and housing type
    • Daily costs (food, transportation, utilities): CA$10,000 to CA$15,000
  • Additional costs:
    • Books and supplies: CA$1,000 to CA$2,000
    • Health insurance: CA$600 to CA$1,000 (varies by province)

Accurately estimating these expenses will help you determine how much you need to borrow or save for your education in Canada.

How can you fund your Canadian education?

Following are several options available to help Indian students manage their expenses effectively:

    • Personal savings: Many students use savings to cover a portion of their costs.
    • Scholarships: Merit-based scholarships from Canadian universities or organizations can reduce tuition expenses.
    • Part-time work: Canadian study permits allow students to work up to 20 hours per week during the academic term and full time during scheduled breaks.
    • Student loans: For those needing additional support, student loans offer a practical way to fund tuition and living expenses.

Why consider student loans?

Loans not only provide the financial support you need but also empower you to manage your education without relying entirely on personal savings or external funding sources. Here’s why loans can be a beneficial choice:

    • Cover large expenses: Unlike scholarships or part-time work, student loans can cover substantial costs, including tuition, living expenses and other academic fees.
    • Accessible without a cosigner: Options like MPOWER Financing provide no-cosigner loans, making it easier for students who may not have someone to guarantee their loans.

Considerations for international students in Canada

    • Eligibility for loans:
      • Federal loans: International students are generally ineligible for Canadian federal student loans, which are primarily reserved for citizens and permanent residents.
      • Private loans: Your primary option is through private lenders, such as banks or financial institutions. Some of these lenders may require a cosigner who’s a Canadian citizen or permanent resident, while others like MPOWER Financing don’t.
    • Loan amounts: The amount you can borrow varies by lender. Generally, you should aim to cover the total cost of your education plus living expenses. MPOWER offers loans ranging from US$2,000 to US$100,000.
    • Repayment terms: Understand the repayment options available. Many lenders offer a grace period after graduation, allowing you to start repayments later. Check if the lender offers flexible repayment plans based on your income after graduation.

How to choose the right student loan?

Finding the right student loan goes beyond numbers; it’s about selecting a lender that supports your educational journey. Here’s a simplified approach:

  1. Determine your loan amount: Calculate the total cost of your education (tuition, living expenses, insurance, etc.) and subtract any savings or scholarships to figure out how much to borrow.
  2. Explore loan types:
    • Collateral-based loans: Require assets as security, usually offering lower interest rates but higher risks if repayment fails.
    • No-collateral loans: Accessible for students without significant property. Options like MPOWER Financing provide loans without cosigners or collateral.
  3. Evaluate interest rates and terms:
    • Fixed vs. variable rates impact repayment predictability.
    • Understand repayment options like grace periods and in-school payments to better manage costs.
  4. Look for added benefits: Lenders offering visa support and career resources add long-term value beyond financial assistance.

Know the type of lender you need

The type of lender you choose will determine your loan’s terms, eligibility and repayment process. Use this comparison to decide:

Lender type Key features Best for Limitations
Public banks Government-backed, offering lower interest rates Students with collateral or cosigners Often unavailable to international students
Longer repayment terms Citizens or permanent residents needing low-cost loans Slower application and disbursal process
Private banks Commercial banks or financial institutions Students needing quick loan disbursal Stricter eligibility criteria, such as income or a strong credit history
Offers both collateral-based and no-collateral options Those who can meet cosigner or collateral requirements Higher interest rates compared to public banks
International  Specialized for international students Students without collateral or cosigners Higher interest rates than public banks, though competitive in the international market
Options for no-cosigner and no-collateral loans (e.g. MPOWER Financing) Students who want  higher loan amounts and free study abroad support with visa or career services


A lender like MPOWER Financing focuses exclusively on empowering international students, which can make the borrowing process smoother. You may start by checking MPOWER’s eligibility criteria for student loans.

Need help covering the full cost of your education?

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How to apply for a student loan?

Once you’ve chosen your lender, follow these steps:

  1. Gather your documents – Most lenders require:
    • Identification: Passport or government-issued ID
    • Proof of admission: University acceptance letter or enrollment confirmation
    • Financial details: Bank statements, salary slips or tax returns (for collateral-based loans)
    • Expense estimates: Tuition fees, living expenses and any additional costs
    • Academic records: Transcripts, certificates or standardized test scores
  2. Check your eligibility – Ensure you meet the lender’s criteria, which may include:
    • Enrollment at an approved university
    • Sufficient academic qualifications (e.g., grades or test scores)
  3. Submit your application: Apply online for faster processing. Double-check all details to avoid delays
  4. Follow up: Respond promptly to any additional requests from your lender
  5. Finalize disbursal: Confirm how and when the loan will be disbursed
    (Funds may go directly to your university or into your account, depending on the lender’s policy)

Summing up: Funding your education in Canada

Studying in Canada requires financial planning, as costs vary based on your program and lifestyle. While scholarships and part-time work can help, student loans often provide the additional support Indian students need. Choosing the right loan early can simplify the process and make your education journey stress-free.

MPOWER Financing offers no-collateral, no-cosigner loans tailored for international students. Explore how MPOWER can support your Canadian education dreams.

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FAQs

1. Can students get residency for tuition benefits?

No. Also, most provinces in Canada require permanent residency (PR) status to qualify for domestic tuition rates. International students generally pay higher tuition fees.

2. What steps should Indian students follow to apply for student loans for studying in Canada?

    • Research public, private and international lenders.
    • Gather documents such as your passport, admission letter, financial statements and expense estimates.
    • Check eligibility requirements and apply online for faster processing.

3. What are the estimated living costs for students in Canada?

Living expenses typically range from CA$15,000 (~ INR 9 lakh)  to CA$25,000 (~ INR 15 lakh) per year, including housing, food, transportation and utilities. Costs may vary based on location, lifestyle and housing type.

4. How do scholarships and grants differ from loans?

Scholarships and grants are forms of financial aid that don’t require repayment, often based on merit or need. Loans, however, must be repaid with interest over time.

5. How do currency exchange rates affect the cost of studying in Canada for Indian students?

Fluctuations in exchange rates can impact the overall cost, especially for tuition and loan repayments in foreign currency. Monitoring rates and locking in favorable exchanges can help manage costs.

6. Do Indian students need a cosigner to get a student loan for studying in Canada?

Not necessarily. While many traditional lenders require a cosigner, international lenders like MPOWER Financing offer no-cosigner loans tailored for international students, making the process easier for those without access to a guarantor.

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*Rates as low as 9.99% (11.16% APR). This interest rate and APR includes a 0.25% discount for automatic recurring payments.

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