Can International Students Get Student Loans Without Credit History in Canada?

Can International Students Get Student Loans Without Credit History in Canada?

Yes, international students may qualify for certain student loans in Canada without an established Canadian credit history. However, having no credit history is different from receiving a loan without a cosigner.

Most Canadian banks will consider an international student with limited or no Canadian credit history only when the application includes a financially qualified Canadian cosigner or co-borrower. A smaller number of specialised international lenders assess students using their university, programme and expected earning potential instead of relying primarily on Canadian credit records.

This guide explains how to obtain an international student loan without credit history in Canada, which lenders may consider your application and when a Canadian cosigner is required.

Why international students often have no Canadian credit history

A Canadian credit report is created when you begin using financial products that report activity to Canadian credit bureaus, such as:

• Credit cards.
• Personal loans.
• Student lines of credit.
• Mobile contracts that report payment activity.
• Certain other credit accounts.

Your credit history from another country will not necessarily transfer into the Canadian credit system. Therefore, a responsible student with strong finances at home may still appear as a new borrower after arriving in Canada.

Having no Canadian credit history does not automatically mean you have bad credit. It simply means that a Canadian lender has less information with which to assess your repayment behaviour.

Can you get a Canadian student loan with no credit history?

There are three main possibilities:

1. Apply for a Canadian bank student line of credit with a cosigner.
2. Use a specialised international lender that does not require Canadian credit history.
3. Apply for an education loan in your home country.

For most newly arrived students, the first option is more widely available. Major banks frequently require a cosigner when the applicant has limited credit history, temporary immigration status or insufficient income.

Government student loans are generally unavailable to study-permit holders

Canada Student Grants and Loans normally require the applicant to be:

• A Canadian citizen.
• A permanent resident of Canada.
• A designated protected person.
• A resident of a participating province or territory.
• Able to demonstrate financial need.

An international student holding only a Canadian study permit will therefore generally not qualify for federal student loans. Eligible students apply through their province or territory. Quebec, Nunavut and the Northwest Territories administer separate student-aid programmes.

International students should not confuse a valid study permit with eligibility for government student aid.

Best loan options without Canadian credit history

1. TD Student Line of Credit

TD indicates that international students may be considered for a Student Line of Credit even when they have no Canadian credit history, provided they apply with an eligible Canadian cosigner.

For international applicants, TD generally requires a co-borrower who:

• Is a Canadian resident.
• Is an existing TD customer in good standing.
• Meets the bank’s income and credit requirements.
• Accepts legal responsibility for the debt.

TD also states that students with limited credit histories will commonly need a cosigner.

Best for: Students with a Canadian relative, spouse or trusted person who qualifies as a co-borrower.

2. Scotiabank ScotiaLine for graduate students

Scotiabank allows an international student enrolled in a Canadian graduate programme to apply for a student line of credit with a co-borrower who is a Canadian citizen or permanent resident.

This option is primarily relevant to students pursuing:

• Master’s degrees.
• Doctoral degrees.
• Other eligible Canadian graduate programmes.

The co-borrower must pass the bank’s financial assessment and becomes responsible for repayment if the student fails to pay.

Best for: International master’s and PhD students with an eligible Canadian co-borrower.

3. RBC Royal Credit Line for Students

RBC states that a co-applicant may be needed when a student has limited or no credit history. For an international student studying in Canada, the co-applicant must be a Canadian citizen or permanent resident.

RBC’s student credit lines begin at CAD 5,000, although the actual approved amount depends on:

• Programme of study.
• Estimated education costs.
• Available scholarships and savings.
• Credit assessment.
• The co-applicant’s financial profile.

Interest is charged only on the amount borrowed, and rates are generally linked to RBC Prime.

Best for: Students who want flexible access to funds and have a qualified Canadian co-applicant.

4. CIBC Education Line of Credit

CIBC offers education lines of credit starting from CAD 5,000. The lender states that applicants must satisfy its lending requirements and that a qualified guarantor may be required.

Having no Canadian credit history may make a guarantor more important. CIBC will also consider factors such as:

• Your programme and institution.
• Tuition and living expenses.
• Existing financial resources.
• Income and debt obligations.
• The guarantor’s creditworthiness.

Best for: Students who can provide a financially strong guarantor and want a reusable credit line.

5. Prodigy Finance for eligible master’s students

Prodigy Finance offers international student loans for selected master’s programmes at supported Canadian institutions. It does not normally require a Canadian cosigner, collateral or established Canadian credit history.

Instead, eligibility is assessed using factors such as:

• University and programme.
• Country of residence.
• Expected graduation date.
• Future earning potential.
• The lender’s current country and school coverage.

Only listed postgraduate programmes qualify, so this is not a general loan for every university or undergraduate student.

Best for: Eligible international master’s students who do not have a Canadian cosigner.

6. MPOWER Financing

MPOWER has traditionally offered fixed-rate loans for eligible international students in Canada without requiring a cosigner, collateral or established Canadian credit history.

However, MPOWER’s official website currently states that it has reached its funding capacity and is temporarily unable to offer new loans for 2026. Students may join its waitlist, but should not use a possible MPOWER loan as confirmed proof of funding until applications resume.

No credit history vs no cosigner

These terms are not interchangeable:

• No credit history: You have not yet established a borrowing and repayment record in Canada.
• No cosigner: No second person guarantees repayment of the debt.
• No collateral: You do not pledge property, deposits or another asset as security.

A lender may accept an applicant with no credit history but still require a cosigner. By contrast, a specialised lender may offer a no-cosigner loan but restrict eligibility to certain nationalities, universities and postgraduate programmes.

Documents you may need

Prepare the following before applying:

• Passport.
• Valid Canadian study permit.
• University admission or enrolment letter.
• Tuition-fee statement.
• Estimated living expenses.
• Proof of scholarships or assistantships.
• Canadian address and bank details.
• Academic records and CV.
• Cosigner’s identification and proof of status.
• Cosigner’s income, employment and credit documents.

Canada also requires study-permit applicants to demonstrate sufficient funds for tuition, living costs and transportation without relying on employment in Canada. A loan approval letter may support an application, but it does not remove the other financial-evidence requirements.

How to improve your chances of approval

International students can strengthen an application by:

1. Applying after receiving an admission offer.
2. Selecting a lender that supports the exact programme and university.
3. Providing a Canadian cosigner with stable income and good credit.
4. Reducing the requested amount through scholarships and savings.
5. Preparing a realistic tuition and living-cost budget.
6. Providing evidence of assistantship or employment income.
7. Avoiding multiple unnecessary credit applications.
8. Comparing the total cost rather than only the monthly payment.

Building Canadian credit with a secured or newcomer credit card may help with future borrowing, but it will not usually create a strong credit profile immediately.

Risks to consider before borrowing

Private student loans and credit lines can create significant financial pressure. Check:

• Whether the interest rate is fixed or variable.
• When interest begins accumulating.
• Whether interest payments are required during study.
• When principal repayment begins.
• Total fees and amount repayable.
• Cosigner liability.
• Currency-conversion risk.
• Consequences of missed payments.
• Whether the loan remains affordable if post-graduation employment is delayed.

A cosigner is not simply a reference. They are legally responsible for the debt when the borrower does not make the required payments.

Final answer

International students can get student loans without Canadian credit history, but the most common route is a Canadian bank credit line supported by a qualified cosigner.

The strongest options are:

• TD, RBC or CIBC for students with an eligible Canadian cosigner or guarantor.
• Scotiabank for international graduate students with a Canadian citizen or permanent-resident co-borrower.
• Prodigy Finance for eligible master’s students seeking a loan without Canadian credit history or a local cosigner.
• MPOWER Financing only if its new-loan programme reopens.

Compare scholarships, assistantships and university funding before taking a high-interest private loan.

Official Sources

• National Student Loans Service Centre – Student-loan eligibility
• Government of Canada – Proof of financial support for a study permit
• TD – International student banking and credit options
• Scotiabank – Student line of credit
• RBC – Student lines of credit
• CIBC – Education Line of Credit
• Prodigy Finance – International student loans for Canada