A bank line of credit is a loan obtained through a banking institution. Each bank or lending institution will have different loans, interest rates and requirements. Students are encouraged to apply for a government student loan (if a Permanent Resident or Citizen of Canada) before applying for a line of credit to save you interest and by also being able to offer repayment assistance after you are done school.
For most students, bank line of credits will:
- Require you to have a co-signer (with a good credit rating);
- Make you pay interest on the amount of money borrowed monthly; and,
- Not have repayment assistance available should you encounter any financial difficulties when paying the loan back.
Major Canadian Banks
Below are websites for the major banks linking you to their student financing (in alphabetical order). MSVU is in no way endorsing/promoting one lending institution from another. Ensure to “shop around” and negotiate interest rates. Always know what you’re signing so read all (yes, all) of the fine print.
- Bank of Montreal (BMO)
- Canadian Imperial Bank of Commerce (CIBC)
- Credit Union Atlantic
- Heritage Credit Union
- Royal Bank of Canada (RBC)
- TD Canada Trust
If you are only eligible for a small government student loan, it is better to use the government loan (which is interest free to you) complemented by a bank student line of credit rather than just the line of credit.