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Education loan charges for a Canadian student visa: processing fees, cancellation, and what to get in writing

Canada • Study Permit • study 0 views
By VisaBuddies Communityvia community — compiled from public visa forums

Documents Needed

  • Loan charge schedule / brochure

    Insist on the written fee schedule before signing — verbal-only quotes were the red flag in this thread.

Step-by-Step

An applicant taking an education loan from a major Indian private bank (based on 3 years' work experience) couldn't get the bank to share its charges brochure and asked what fees to expect. Members who had been through it laid it out:

  1. Processing fee: roughly 1–2% of the sanctioned amount. Depending on the bank and case, you either pay it upfront before sanction or have it deducted from the disbursed amount. Expect minor additional expenses of around ₹2,000.

  2. Cancellation between sanction and disbursement: typically no charge. A member recalled no fees for cancelling after sanction but before any disbursement.

  3. Visa refusal: the poster was told there'd be no cancellation charge. The bank confirmed verbally that if the visa is rejected, cancelling the sanctioned loan costs nothing.

  4. Get it in writing. Members found the bank's refusal to share the brochure odd — a lender should be willing to put its charges on paper. Push for the written schedule (or email confirmation) of processing, cancellation, and prepayment charges before committing, rather than relying on a phone call.

Dos, Don'ts & Tips

  • Do: Get the bank's full charge schedule in writing (processing, cancellation, prepayment) before signing — don't rely on verbal assurances from a call.
  • Tip: Budget ~1–2% of the sanctioned amount for processing fees, and confirm whether it's payable upfront or deducted from disbursement.

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