Studying in Canada: Are Indian students relying more on education loans?

Canada has increasingly become a favoured destination for Indian students seeking higher education abroad. With a population of over 3 million, Canada actively supports migration needs, making it an attractive option for students. This article explores the growing trend of Indian students studying in Canada and the role of education loans in facilitating this journey.

The Canadian dream

Canada’s popularity as a top choice for students can be attributed to its world-class education, multicultural environment, and promising post-graduation job opportunities. These factors make it an idealsuing

 destination for Indian students who aspire to pursue higher education overseas.

Rising Demand for Canadian Education

According to a report from Care Edge Ratings, there has been a substantial increase in the number of Indian students traveling to Canada for higher education in recent years. Between March 2021 and June 2023, the disbursement of education loan for Canada has surged nearly fivefold.

Challenges of Financing Education

The cost of education in Canada has been steadily increasing, posing a financial challenge for many Indian students. The rising expenses make it progressively difficult for students to finance their studies without the assistance of education loans.

Role of Non-Banking Financial Companies (NBFCs)

Specialized Non-Banking Financial Companies (NBFCs) have played a pivotal role in enhancing the accessibility of education loans for Indian students. These institutions offer competitive interest rates and flexible repayment terms, making education loans an appealing choice for students. This financial assistance is crucial for aspiring students, particularly those from moderate-income families.

Aspirations of Indian Students

Indian students are highly motivated and recognize that education is a fundamental aspect of achieving their aspirations. With access to entrepreneurial programs and esteemed universities, higher education not only imparts knowledge but also nurtures the skills needed to become future entrepreneurs.

World-Class Education

Canada’s world-class universities provide an excellent research environment guided by expert mentorship, preparing students for a bright future. The country’s focus on research and innovation is a significant draw for students seeking academic excellence.

Post-Study Employment Opportunities

Canada offers international students the opportunity to engage in post-study employment, enabling them to acquire valuable work experience and establish their careers in the country. This attractive prospect further adds to Canada’s appeal as a study destination.

Remarkable Growth in Education Loans

Care, a financial rating agency, reported that the education loan portfolio of Care-rated NBFCs for Canada’s education system produced students with an impressive compound annual growth rate  77.0% from March 31, 2021, to June 30, 2023. This statistic highlights the increasing reliance on education loans to finance education in Canada.

In The End

The trend of Indian students choosing Canada as their preferred destination for higher education is on the rise. Factors like quality education, a diverse cultural environment, and career prospects contribute to this trend. Abroad loan for students , offered by specialized NBFCs, have become a lifeline for students facing the financial challenges of studying in Canada. As Indian students continue to strive for academic excellence and a bright future, Canada’s educational institutions, along with accessible financing options, make the journey more achievable and promising.