Studying in Canada offers international students a unique opportunity to gain a world-class education while experiencing a vibrant multicultural environment.
However, financing this education can often be a challenge, especially for those who may not have access to traditional funding sources.
Thankfully, various lenders provide loans tailored specifically for international students.
In this article, we will explore the 9 best loans for international students in Canada, highlighting their key features to help you make an informed decision.
Best Loans for International Students in Canada
| Loan Provider | Loan Amount | Co-signer Requirement | Interest Rates | Loan Terms | Eligibility Requirements |
|---|---|---|---|---|---|
| Prodigy Finance | Up to $35,000 | No | 7.00% – 12.99% | 10 – 20 years | Graduate students at selected universities |
| MPOWER Financing | Up to $50,000 | No | 10.49% – 12.99% | 10 years | Students attending eligible universities in Canada |
| Sallie Mae | Up to $50,000 | Yes | 1.00% – 12.60% | 5 – 15 years | Requires U.S. co-signer |
| Discover Student Loans | Up to $40,000 | Yes | 4.99% – 12.99% | 15 years | Requires U.S. co-signer |
| Citizens Bank | Up to $50,000 | Yes | 5.99% – 11.99% | 5 – 15 years | Requires U.S. co-signer |
| College Ave Student Loans | Up to $50,000 | Yes | 3.34% – 12.99% | 5 – 15 years | Requires U.S. co-signer |
| Future Finance | Up to $35,000 | No | 9.00% – 12.00% | 5 – 10 years | Students enrolled in UK institutions |
| LendKey | Varies | Yes | 3.00% – 12.00% | 5 – 15 years | Requires U.S. co-signer |
| Ascent Funding | Up to $20,000 | No | 8.00% – 12.00% | 5 – 10 years | Students at eligible institutions |
1. Prodigy Finance
Prodigy Finance specializes in providing loans for international students pursuing graduate studies without needing a co-signer.
They offer loans of up to $35,000, with interest rates ranging from 7.00% to 12.99%. The repayment terms are flexible, allowing borrowers to repay the loan over a period of 10 to 20 years.
Eligibility is typically focused on graduate students enrolled at select universities, so it’s crucial to check if your institution is on their list.
2. MPOWER Financing
MPOWER Financing offers loans specifically for international students without requiring a co-signer or collateral.
They provide loans up to $50,000, with interest rates ranging from 10.49% to 12.99%.
The loan term is fixed at 10 years, and MPOWER assesses applicants based on future earning potential and academic performance, making it a great option for students in various fields.
3. Sallie Mae
Sallie Mae is a well-known provider of student loans and offers loans to international students with a U.S. co-signer.
The maximum loan amount can go up to $50,000, with interest rates ranging from 1.00% to 12.60%. Loan terms are flexible, ranging from 5 to 15 years.
While Sallie Mae offers a broad range of loan options, the requirement for a co-signer may limit access for some international students.
4. Discover Student Loans
Discover provides private student loans for international students, but applicants need a U.S. co-signer to qualify.
The maximum loan amount available is $40,000, with interest rates between 4.99% and 12.99%.
Discover’s loan terms can extend up to 15 years, and they offer flexible repayment options, including deferment while students are in school.
5. Citizens Bank
Citizens Bank offers loans for international students with the requirement of a U.S. co-signer.
Students can borrow up to $50,000, with competitive interest rates ranging from 5.99% to 11.99%. Loan terms are flexible, lasting from 5 to 15 years.
Citizens Bank also provides multi-year approval options, which can simplify the funding process for students pursuing extended degrees.
6. College Ave Student Loans
College Ave provides loans tailored for international students, but a U.S. co-signer is necessary.
They offer loans up to $50,000, with interest rates ranging from 3.34% to 12.99%.
The loan terms can be customized from 5 to 15 years, and College Ave provides flexible repayment options, including interest-only payments while in school.
7. Future Finance
Future Finance is specifically designed for international students enrolled in UK institutions, offering loans without a co-signer.
The maximum loan amount is $35,000, with interest rates ranging from 9.00% to 12.00%.
Loan terms typically range from 5 to 10 years, making it an appealing option for students needing straightforward financing without traditional barriers.
8. LendKey
LendKey connects borrowers with local and national credit unions and banks, offering loans to international students with a U.S. co-signer.
Loan amounts vary, but they generally provide loans up to $50,000. Interest rates range from 3.00% to 12.00%, and loan terms can be set from 5 to 15 years.
The advantage of LendKey is its focus on community lending, which often results in competitive rates.
9. Ascent Funding
Ascent Funding offers loans for international students and does not require a co-signer for eligible applicants.
They provide loans up to $20,000, with interest rates ranging from 8.00% to 12.00%.
Loan terms can be set between 5 to 10 years, making it a viable option for students needing smaller amounts of funding.
Quick One: We have other useful loan articles here.
Frequently Asked Questions
What is the maximum loan amount that international students can borrow in Canada?
The maximum loan amount varies by lender. For instance, MPOWER Financing and Citizens Bank offer loans up to $50,000, while Prodigy Finance and Future Finance typically provide loans up to $35,000. It’s essential to check each lender’s specific terms to determine your borrowing capacity.
Do international students need a co-signer to qualify for loans in Canada?
It depends on the loan provider. Some lenders, like Prodigy Finance and MPOWER Financing, do not require a co-signer, making it easier for international students to secure funding. However, other lenders, such as Sallie Mae and Discover Student Loans, do require a U.S. co-signer. Always check the specific requirements of each lender before applying.
What are the interest rates typically offered to international students in Canada?
Interest rates for student loans can vary significantly based on the lender and the borrower’s profile. Generally, rates range from approximately 1.00% to 12.99%, depending on factors such as creditworthiness and whether a co-signer is involved. It’s crucial to compare rates from multiple lenders to find the most favorable terms for your financial situation.
Conclusion
Navigating the landscape of loans for international students in Canada can be challenging, but options like Prodigy Finance, MPOWER Financing, and others provide essential support.
Each lender has different eligibility requirements, loan amounts, and interest rates, so it’s vital to conduct thorough research to find the best fit for your needs.
By understanding these options, international students can find the necessary financial support to pursue their education in Canada, making their academic dreams a reality.
