Loans for International Students in Canada: Requirements & rankings

Canada remains one of the top destinations for international students, but it’s not cheap. International tuition can range from CAD $20,000 to 60,000 per year depending on the program, and that doesn’t include housing, insurance, food, or transportation.

Unlike Canadian citizens and permanent residents, international students do not qualify for federal or provincial student loans (such as OSAP or Canada Student Loans). This means financing options are more limited and complex.

This guide focuses exclusively on student loans available to international students in Canada. We selected  these lenders based on:

• Confirmed availability to international students.
• Transparent eligibility requirements.
• Clear payment structures.
• Realistic loan limits.
• Recognition by Canadian universities.

You’ll notice a pattern as we go through them. Most international student loans in Canada fall into two categories:

1. Private global lenders that don’t require a co-signer.
2. Custodial banks that require creditworthy Canadian co-signer.

Having an understanding of this distinction is critical, because it affects your approval odds, interest rate, and long-term repayment cost.

Let’s break down each in detail.

MPOWER Financing

MPOWER Financing is one of the most accessible student loan providers for international students studying in Canada. It’s a U.S.-based fintech lender, and it operates in partnership with select Canadian universities.

Unlike traditional banks, MPOWER does not require a co-signer or collateral, which is a major advantage for students who don’t have family in Canada or in the U.S. You can get the loan by applying online.

Who is eligible?

Eligibility requirements typically include:

• Admission to an eligible Canadian university (MPOWER works with a specific list schools)
• Enrollment in a full time program.
• Most commonly supports graduate students in MBA, STEM, business, medicine, and public health.
• Proof of academic progress.
• Citizenship from a supported country.

There are nationality restrictions, so applicants must verify that their home country is eligible.

How much can you borrow?

• Up to $100,000 over the course of study.
• Loan amounts vary by program and academic level.
• May include tuition and limited living expenses.

MPOWER evaluates applications based on future earning potential, not just credit history.

Interest rates and repayment

• Fixed interest rates (often higher than bank loans).
• Rates typically range from approximately 7% to 14% depending on risk profile and market conditions.
• Interest begins accruing immediately.

During your studies:

• Interest-only payments are required.

After graduation:

• 6-month grace period.
• Full principal + interest repayment begins.
• Repayment term: typically 10 years.

Because fixed rates are fixed, payments remain predictable, but total borrowing costs can be significant compared to Canadian bank loans.

Insurance requirements

No separate insurance is required. However, international students must still carry mandatory provincial health insurance for studies in Canada.

Prodigy Finance

Prodigy Finance is another global private lender focused on international postgraduate students. It operates differently from banks by assessing your future earning potential rather than requiring a guarantor.

Prodigy primarily funds students enrolled in specific graduate programs, especially MBAs, engineering, public policy, and business-related master’s degrees. You can get the loan by applying online.

Who is eligible?

• Must be admitted to a supported Canadian university.
• Must be enrolled in an eligible postgraduate program.
• No co-signer required.
• Available to students from over 150 countries.

Prodigy has apre-approved list of institutions and programs. Not all universities qualify.

How much can you borrow?

• Typically covers up to 100% of tuition.
• Living expenses are sometimes partially covered.
• There’s no universal maximum, the amount depends on school and program.

Because Prodigy pools loans and funds them through global investors, amounts and availability depend on funding cycles.

Interest rates and repayment

• Variable interest rates.
• Rates fluctuate with market conditions.
• Interest accrues during study.

Repayment structure

• No payments required while studying.
• 6-month grace period after graduation.
• Repayment terms range from 7 – 20 years.

Variable rates mean payments may increase over time if benchmark rates rise.

Insurance requirements

No additional insurance is required through prodigy.

RBC

Royal Bank of Canada (RBC) is one of Canada’s largest and most established banks. It offers student lines of credit to international students, but only if they have a Canadian co-signer with strong credit.

Unlike MPOWER or Prodigy, RBC is a traditional bank with physical branches throughout Canada.

Application process

• In-person appointment is usually required.
• Credit assessment of co-signer.
• Proof of enrollment and study permit required.

Eligibility requirements

• Valid Canadian study permit.
• Full-time enrollment at recognized institutions.
• Canadian citizen or permanent resident co-signer.
• Co-signer must demonstrate strong credit and stable income.

Without a credible co-signer, approval is unlikely to be granted.

How much can you borrow?

• Generally ranges from $50,000 to 100,000+.
• Professional programs may qualify for higher limits.
• Structured as a revolving line of credit.

Interest rates and repayment

• Variable interest rates (prime + margin).
• Typically lower than fintech lenders.
• Principal repayment after graduation.

Because the rate is tied to prime, it can rise or fall with economic conditions.

Insurance requirements

Optional creditor insurance may be offered for additional protection.

CIBC

CIBC is another major Canadian bank offering student lines of credit to international students with co-signers. It is particularly granted to students enrolled in professional programs like medicine, law, and dentistry.

Who is eligible?

• The student must have a study permit.
• Must be enrolled full-time.
• Canadian co-signer. 
• Have a good credit profile.

How much can you borrow?

• Generally ranges from $50,000 to 150,000+.
• Professional programs may access even higher credit limits.

Interest rates and repayment

• Variable rate (prime + margin).
• Interest-only during studies.
• Principal repayment after graduation..

Because it’s structured as a line of credit, you borrow as needed rather than recieving a lump sum.

Insurance requirements

Optional loan protection insurance may be offered.

Scotiabank

Scotiabank offers similar products to RBC and CIBC for international students with Canadian co-signers. It has a large physical branch network across Canada.

Who is eligible?

Eligibility requirements typically include:

• The student must have a study permit.
• Enrollment in a recognized institution.
• Canadian co-signer with strong credit.
• Age of majority.

How much can you borrow?

• Up to $75,000+.
• Loan amounts vary by program and academic level.

Interest rates and repayment

• Variable prime-based rate.
• Interest-only during school.
• Principal repayment post-graduation.

Insurance requirements

No insurance needed.

Comparing student loans for international students in Canada

The reality behind student loans for international students in Canada

Imagine two students.

They both borrow $60,000 to study in Canada. Same tuition, degree length, and graduation date, but their loans are structured differently.

The first student chooses a private lender with a fixed 10% rate and no-cosigner. During school, they pay interest. After graduation, their monthly payment is close to $800 for ten years. By the time it’s all done, they’ve repaid over $100,000.

The second student manages to secure a Canadian bank line of credit with a co-signer at a lower rate. Their monthly payment after graduation is closer to $700. Over time, they repay significantly less in total interest.

That’s what most people misunderstand about student loans for international students in Canada. It’s not just about getting approved. It’s about the structure behind the approval – fixed or variable rates, interest during study, repayment terms, and whether a co-signer is involved.

And then there’s a real-life question no one talks about enough: What happens after graduation?

If your first job pays $55,000 a year, your monthly take-home income might be $3,500. Now subtract rent, food, transport, insurance, and then a $750 – $1,000 loan payment. Suddenly, the loan feels very real.

This doesn’t mean loans are a bad decision. For many international students, they’re the path forward. But they are long term commitments tied directly to your earning potential.

That’s why comparing interest rates isn’t enough. You have to picture your life after graduation. Your salary, visa plans, and industry. Because two students can borrow the same amount, and live completely different financial realities afterward.

That’s the part that matters.

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Choosing the right loan as an international student in Canada

Student loans for international students in Canada exist, but they come with trade-offs. If you don’t have a Canadian co-signer, private lenders like MPOWER and Prodigy offer access, but usually at higher interest rates and have easier eligibility requirements.

If you do have a strong co-signer, Canadian banks often lower borrowing costs which can save tens of thousands of dollars over the life of the loan. Loans can open the door to studying in Canada, but understanding the structure protects your financial future.

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Queendaline Akaemeuwa

English Copywriter

English Copywriter at Holafly, I'm committed to sharing tips that will make your travel experiences memorable.  Over the years as a writer and strategist, I've managed teams across multiple industries - SaaS, tech, real estate, and personal brands. I wrote my first book as a child and have been writing ever since, cooking and reading are a few ways I explore my world.

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