Pursuing higher education in Canada is a significant investment, and securing adequate funding is crucial for international students.
Navigating the landscape of education loans can be challenging due to varying eligibility criteria, interest rates, and repayment terms.
Fortunately, several financial institutions and lenders offer tailored education loans specifically for international students in Canada.
This comprehensive guide highlights the 9 best education loan for international students in Canada, providing you with the necessary information to make an informed financial decision.
Best Education Loan for International Students in Canada
| Loan Provider | Loan Amount | Co-signer Requirement | Interest Rates | Loan Terms | Eligibility Requirements |
|---|---|---|---|---|---|
| Prodigy Finance | Up to $50,000 | No | 9.5% – 12% | Up to 20 years | Enrolled in a partnered university |
| MPOWER Financing | $2,001 – $50,000 | No | 11.99% – 13.99% | 10 years | Studying in eligible programs |
| RBC Royal Bank Student Line | Up to $100,000 | Yes | Prime + 1% | Flexible | Full-time students in Canada |
| CIBC Education Line of Credit | Varies | Yes | Prime + 1% | Flexible | Enrolled at Canadian institutions |
| Scotiabank Education Loans | Up to $75,000 | Yes | 5.99% – 8.99% | 36 – 120 months | Valid study permit and co-signer |
| College Ave Student Loans | Up to $80,000 | No | 5.99% – 12.99% | 5 – 15 years | Enrolled in eligible programs |
| BMO Student Line of Credit | Up to $45,000 | Yes | Prime + 1% | Flexible | Enrolled in Canadian universities |
| Desjardins Education Loans | Up to $60,000 | No | 6.99% – 10.99% | 12 – 84 months | Valid driver’s license in Canada |
| HSBC Student Line of Credit | Up to $20,000 | Yes | Prime Rate | Varies | International students with visa |
1. Prodigy Finance
- Loan Amount: Up to $50,000
- Interest Rates: 9.5% – 12%
- Loan Terms: Up to 20 years
Prodigy Finance specializes in providing loans to international students without requiring a co-signer.
Eligibility is based on the student’s future earning potential and the reputation of their chosen institution.
Repayment begins six months after graduation, offering flexibility to manage finances post-study.
2. MPOWER Financing
- Loan Amount: $2,001 – $50,000
- Interest Rates: 11.99% – 13.99%
- Loan Terms: 10 years
MPOWER Financing is a popular choice among international students, offering loans without the need for a co-signer or collateral.
They also provide career support services and scholarships to help students succeed academically and professionally.
3. RBC Royal Bank Student Line
- Loan Amount: Up to $100,000
- Interest Rates: Prime + 1%
- Loan Terms: Flexible
RBC offers a substantial line of credit tailored for international students, requiring a co-signer with a strong Canadian credit history.
The flexible repayment options allow students to manage their finances effectively during and after their studies.
4. CIBC Education Line of Credit
- Loan Amount: Varies
- Interest Rates: Prime + 1%
- Loan Terms: Flexible
CIBC provides an education line of credit designed for international students enrolled in Canadian institutions.
A co-signer with a good credit score is mandatory.
The interest-only payments during the study period make it easier for students to handle their finances without immediate repayment pressure.
5. Scotiabank Education Loans
- Loan Amount: Up to $75,000
- Interest Rates: 5.99% – 8.99%
- Loan Terms: 36 – 120 months
Scotiabank offers competitive education loans for international students with a Canadian co-signer.
The loans can be used for tuition, living expenses, and other educational costs, with flexible repayment terms to accommodate various financial situations.
6. College Ave Student Loans
- Loan Amount: Up to $80,000
- Interest Rates: 5.99% – 12.99%
- Loan Terms: 5 – 15 years
College Ave Student Loans is a U.S.-based lender that extends its services to international students in Canada.
They offer flexible personal loans without the need for a co-signer, making it an ideal option for students without Canadian ties.
The range of interest rates and terms allows for tailored repayment plans.
7. BMO Student Line of Credit
- Loan Amount: Up to $45,000
- Interest Rates: Prime + 1%
- Loan Terms: Flexible
BMO provides a student line of credit for international students enrolled in Canadian universities, requiring a co-signer with a solid credit history.
Interest-only payments during the study period help manage cash flow, and flexible repayment options are available post-graduation.
8. Desjardins Education Loans
- Loan Amount: Up to $60,000
- Interest Rates: 6.99% – 10.99%
- Loan Terms: 12 – 84 months
Desjardins offers education loans without the need for a co-signer, making it accessible for international students.
Applicants must possess a valid driver’s license in Canada and provide proof of enrollment.
Competitive interest rates and varied loan terms cater to different financial needs.
9. HSBC Student Line of Credit
- Loan Amount: Up to $20,000
- Interest Rates: Prime Rate
- Loan Terms: Varies
HSBC provides a student line of credit for international students holding a valid Canadian study permit.
A co-signer with a strong credit history in Canada is required.
The prime rate interest ensures competitive borrowing costs, and the flexible terms allow students to manage their repayment schedules effectively.
Quick One: We have other useful loan articles here.
Frequently Asked Questions
Can international students obtain an education loan in Canada without a co-signer?
Yes, lenders like Prodigy Finance, MPOWER Financing, College Ave Student Loans, and Desjardins Education Loans offer education loans without requiring a co-signer. These options are ideal for students who do not have a Canadian guarantor or wish to avoid involving a co-signer.
What interest rates are available for education loans for international students in Canada?
Interest rates for education loans for international students in Canada typically range from 5.99% to 13.99%, depending on the lender, loan amount, and repayment terms. It’s essential to compare rates to find the most affordable option for your financial situation.
What documents are required to apply for an education loan as an international student in Canada?
Most lenders require the following documents:
Proof of enrollment in a recognized Canadian institution
A valid study permit
Identification documents (passport, driver’s license)
Financial information (proof of income, bank statements)
Co-signer’s financial details (if applicable)
Additional documents as specified by the lender
Conclusion
Securing an education loan as an international student in Canada is a feasible and practical way to finance your academic journey.
With a variety of options ranging from co-signer-free loans like Prodigy Finance and College Ave Student Loans to traditional banking solutions like RBC and BMO that require a co-signer, there’s a suitable loan available for every student’s unique financial situation.
Carefully assess the interest rates, loan terms, and eligibility requirements to choose the best education loan that aligns with your educational and financial goals.
By making an informed decision, you can focus on your studies and make the most of your international education experience in Canada.
