Sep 24, 2020

How to get an Education Loan for Studying PG Diploma in Canada?

Imagine upgrading your career by acquiring a globally respected qualification in a safe, inclusive, and opportunity-rich nation like Canada without having to pause your financial stability at home. That’s exactly why a PG Diploma in Canada appeals to countless international students every year. 

A PG Diploma offers a powerful combination of the prestige of international education, plus a shorter, more focused, and job-oriented program compared to a conventional Master’s degree. The best part is that these courses in Canada span just 1 to 2 years, making them more time-efficient and cost-effective than a Master’s program. However, this dream comes with a cost. International tuition fees, accommodation, living expenses, health insurance and visa fees, and, when all are added, the financial requirements can quickly mount. 

That’s why for many aspirants, availing an education loan becomes not just an option, but a necessity. In this evolving economic scenario, a carefully chosen and well-structured education loan can be the bridge between ambition and achievement. This article has everything you need to know about getting an education loan for a PG Diploma in Canada.

Table of Content

Cost of Pursuing a PG Diploma in Canada

Before you even begin comparing lenders or loan types, it’s essential to understand what you’re actually budgeting for. After all, a well-planned study abroad journey always starts with a clear picture of the finances. A PG Diploma in Canada offers excellent value, but the cost varies widely depending on the institution and the specialisation.

• Tuition Fees for International Students: CAD 10,000 to CAD 18,000 per year for most diplomas.

• Living Expenses: CAD 12,000 to CAD 18,000 per year in many Canadian cities, depending on lifestyle and location.

Other necessary expenses include health insurance, student activity fees, books and supplies, visa charges, biometric fees, and airfare. When the full picture is considered, international students usually need to budget a minimum GIC amount of CAD 22,895 to apply for a Canadian study permit.

Now that you know roughly what you need to budget for, let’s explore what types of loans are available to help you finance it.

Types of Education Loans for PG Diploma in Canada

Education loans for international studies come in different formats designed to support different financial backgrounds. Knowing these types early helps you choose a loan that not only covers your expenses but also aligns with your repayment preferences and long-term financial planning.

Broadly, lenders in India offer two major categories of education loans for studying abroad.

1. Secured Education Loans (Collateral-Based)

Secured loans are the go-to choice for students whose families can pledge an asset such as residential property, fixed deposits, non-agricultural land, or other acceptable securities.

Lenders view collateral as a safety net, which often turns into lower interest rates, higher loan amounts, and longer repayment tenures. Approval is comparatively smoother if the collateral value is strong and the documentation is clear.

2. Unsecured Education Loans (Without Collateral)

For students who don’t have collateral or prefer not to pledge assets, unsecured loans act as a convenient and faster alternative. Instead of property or deposits, the lender evaluates your academic background, admission offer, course prospects, and most importantly, the co-applicant’s income and credit score.

However, because the lender is taking on higher risk, unsecured loans come with slightly higher interest rates and restricted loan amounts, depending on the co-applicant’s financial strength.

Both secured and unsecured loans serve different purposes, and the right choice depends entirely on your family’s financial profile and post-study repayment plans.

Now that you are familiar with the types of loans available, let’s move one step ahead and explore the top banks and financial institutions offering education loans for your PG Diploma in Canada.

Top Banks & Financial Lenders Offering Education Loans for PG Diploma in Canada

With so many Public Banks, Private Banks, NBFCs and International Lenders in the market, choosing the right lender can feel confusing for students and parents alike. Each institution has its own loan limits, processing timelines, margin money requirements, and interest rates, which makes comparison essential before finalising your loan.

To simplify your decision-making, here are some of the most reliable and student-friendly lenders in India offering education loans for international programs, including PG Diplomas in Canada.

With a sense of who lends, the next step is to understand whether you meet their eligibility criteria. Let’s walk through that in the next section so you can confidently assess your readiness before applying for a study loan for Canada.

Eligibility Criteria for Education Loan for PG Diploma in Canada

After knowing the top lenders available, the next logical step is to evaluate whether you meet the basic eligibility requirements set by these banks and financial institutions. After all, even the best loan options can only work in your favour if you fulfil the criteria for academic performance, financial stability, and admission status. Knowing these requirements in advance not only saves time but also helps you prepare your documents and application more confidently.

Below is a consolidated table highlighting the common eligibility requirements followed by major lenders:

Now that you know the qualification benchmarks, the next essential step is to gather the documents lenders require for loan processing. Let’s look at that in the following section to ensure your loan journey moves forward smoothly and without delays.

Document Checklist for Education Loan for PG Diploma in Canada

The next important step is assembling the documents required for your study abroad loan application. This stage may feel confusing at first, but having a clear checklist simplifies everything. 

Most Banks and Financial Institutions have similar documentation needs, though a few may request additional papers based on loan type or co-applicant profile. To keep things simple, here’s a comprehensive checklist widely accepted by leading lenders in India:

Applicant’s Documents

• Valid passport and Aadhaar card

• Recent passport-sized photographs

• Academic records: 10th, 12th, and graduation mark sheets

• Degree or provisional certificate (if applicable)

• Offer Letter / Letter of Acceptance (LOA) from the Canadian institution

Co-Applicant’s Documents (Parent/Guardian/Sponsor)

• KYC documents like PAN, Aadhaar, and address proof

• Recent passport-sized photographs

• Last 6 months’ bank statements

• Last 2–3 years’ Income Tax Returns (ITR)

• Salary slips for salaried individuals

• Business proof for self-employed applicants

Financial & Collateral Documents (If Applying for a Secured Loan)

• Property documents like title deeds, registration papers, tax receipts

• Fixed deposit receipts (if pledging an FD)

Additional Supporting Documents

• Completed loan application form

• Statement of expenses or cost estimate from the institution

With your documents organized and ready, you are already one step closer to securing your education loan without unnecessary delays or back-and-forth communication.

With everything in place, let’s explore the step-by-step application process so you can understand exactly how to move from documentation to loan approval with ease.

Application Process for Education Loan for PG Diploma in Canada

The loan application process may seem lengthy from the outside, but when fragmented into clear, manageable stages, it becomes far more approachable. Knowing what to expect at each step helps you prepare proactively, avoid common delays, and stay aligned with important timelines such as your GIC payment and visa filing.

Most banks and financial institutions follow a standard workflow for loan approvals, whether you choose a secured or unsecured loan. It involves the following:

• Initial Inquiry & Loan Counselling: Begin by connecting with Élan’s Loan Expert or lender to understand your eligibility, loan options, and documentation requirements.

• Checking Eligibility & Loan Options: Lender evaluates your academic background, admission status, co-applicant financials, and credit score to suggest the most suitable loan type.

• Submission of Application & Documents: Submit the completed loan application form along with all required academic, financial, and KYC documents for verification.

• Verification & Evaluation: The Bank, International Lender, or NBFC reviews your documents, assesses the co-applicant's repayment ability, and conducts property evaluation if you are opting for a secured loan.

• Loan Approval & Sanction Letter Issuance: Once approved, the lender issues a loan sanction letter specifying the total loan amount, tenure, interest rate, and all applicable terms.

• Completion of Legal & Technical Formalities (For Secured Loans): Legal verification of collateral documents and technical assessment of the pledged property are carried out.

• Loan Disbursement: Upon completion of all formalities, the lender disburses the loan amount directly to the University or into your designated account as per the tuition fees, GIC payment, and living expense requirements.

By following these steps carefully, you can ensure your loan is processed smoothly and well within the timelines needed for Canadian University deadlines and visa filing.

As you are aware of the entire process from start to finish, let’s wrap up with how Team Élan can support you and simplify your education loan journey for studying a PG Diploma in Canada.

With expert guidance, end-to-end support, and personalised loan assistance, Élan ensures your financing process is smooth, transparent, and perfectly aligned with your timelines. Whether you need help comparing lenders, education loan interest rates, preparing documents, or securing faster approvals, team Élan stands by you at every step.

Here’s to turning your dreams into degrees and building a future that’s worth the investment. Connect with our Experts today!

Education Loan for PG Diploma in Canada FAQs

1. Can I take an education loan before receiving my Letter of Acceptance (LOA)?

Some lenders may do a preliminary evaluation based on your academic profile, but the final loan sanction can only be issued after you submit a valid LOA from a Canadian institution.

2. Do lenders fund the Guaranteed Investment Certificate (GIC) amount?

Yes, all major Banks and financial lenders fund the CAD 22,895 GIC required for Canada’s Student visa. This amount can be included within your total sanctioned loan.

3. What if my co-applicant has a low credit score?

A low CIBIL score can affect unsecured loan approval. In such cases, lenders may ask for a financially stronger co-applicant.

4. How long does it typically take to get an education loan approved?

Approval for Unsecured loans takes 3 to 7 working days. On the other hand, for secured loans, it can go up to 10 to 20 working days (depending on property evaluation). Timelines may vary based on documentation and lender workload.

5. Will changing my course or university affect my loan?

Yes, any major change in program, institution, or location must be reported to the lender. If the new program is less popular or less employable, the lender may reassess the loan terms.

6. Is it possible to prepay the loan early? Are there penalties?

Most Public-Sector Banks do not charge prepayment penalties on education loans. Some NBFCs may have minimal charges, especially for fixed-rate loans. Always confirm prepayment terms before signing the agreement.