Securing an education loan generally requires proof of admission to a recognized Canadian institution, such as a university, college, or vocational school. Most lenders also assess the academic history of the applicant, the selected course's credibility, and the employability potential after course completion. Some institutions may require a co-applicant, such as a parent or guardian, especially if the applicant does not have a regular income or sufficient collateral to offer. The role of a co-applicant is crucial in assuring the lender of repayment capabilities.
Collateral-based loans are common when large sums are required. These loans are secured by assets such as property, fixed deposits, or other valuable resources. In contrast, unsecured loans don’t require collateral but usually come with higher interest rates. The loan approval and disbursal processes are typically quicker for unsecured loans, but the eligibility criteria are stricter. International lenders, including fintech startups, sometimes offer more flexible terms to students who show strong academic or professional potential.