Financing Your Education
At RBC Royal Bank, we think getting an education is a smart move...and we're committed to helping you do it.
We have supported government financial assistance programs for a long time, and we know most people who enter university or college are not eligible for these student loans for one reason or another.
We understand that students are facing real financial needs, and we're ready to help you handle them on your own terms with a Royal Credit Line for Students.
How it works
Royal Credit Line for Students is not just a loan—it's a line of credit personally designed to fit your needs.
There's a big difference. With an ordinary loan, you take all the money up front and start owing interest on the whole amount right away.
With your credit line, you arrange the amount of money you need before the school year begins. This becomes your credit limit...the maximum amount you can borrow for that year.
How much it costs
There's no cost to set up your credit line, and no cost until you use it. You can take out money up to your limit in whatever amounts you choose, whenever you want to, without having to visit the bank—or your parents—to ask for it.
You only have to pay interest on the amount of money you take out, for the amount of time it takes you to pay it back.
Low interest rates
The prime interest rate is the baseline rate a financial institution uses to calculate loan interest rates. While you're in school, Royal Credit Line for Students charges you RBC Royal Bank's prime interest rate plus 1%—one of the best interest rates available at RBC Royal Bank.
How you repay it
Another important difference between an ordinary loan and your credit line is that you can borrow on your own terms. This means you can set up a repayment plan and pick the terms that suit you best.
While you are a full or part-time student, you pay interest only each month on the amount of the credit line you've used, for the number of days you've used it.
You can also choose to pay back part or all of your credit line at any time. If you had a great summer job or a part-time job, for example, you might decide to do this in order to lower your monthly interest costs.
And if you're enrolled in Online Banking, you can make payments on your Royal Credit Line through the Internet whenever and wherever you choose.
Applying is easy
A personal banker will help you establish your credit line. You will work together to decide on your credit limit, based on your needs, your ability to repay and whether or not you want to use personal assets to secure some or all of your credit line.
Keep in mind that if your credit history is limited, or your income is not enough for you to make regular payments, a cosignor will be required.
(Applications are subject to credit approval and periodic review.)
Here's what you need:
- Confirmation that you are enrolled at a Canadian post-secondary education institution
- An estimate of your education costs (including tuition, supplies, fees, accommodations, food, travel, etc.)
- A list of your financial resources (including savings, bursaries, summer employment, etc.)
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