Proof of Funds for Canada Student Visa
PR & Visa

Proof of Funds for Canada Student Visa

Proof of Funds for Canada Student Visa

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GyanDhan throws light on proof of funds for Canada student visa. Know what is minimum bank balance for Canada student visa requirement in 2024?

GyanDhan

Rohit Gidwani

Updated on: 29 Jan 2024

"What should I show as proof of funds for Canada?" is a common question that arises in the minds of students planning to study in Canada. Continuous changes in Immigration, Refugees, and Citizenship Canada (IRCC) policies necessitate staying updated to enhance your chances of studying in Canada. Recently, the required amount for studying in Canada doubled from 10,000 CAD to 20,635 CAD, and it's crucial not to miss this update. Failing to provide valid proof of funds Canada student visa can result in visa rejection, ultimately hindering your study abroad journey. In this blog, we will cover everything you need to know about proof of funds Canada student visa to turn your study abroad dream into reality in 2024.

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What is Proof of Funds?

If you intend to study in Canada, you must present evidence of financial support i.e. proof of funds. This is essential for the IRCC to verify your capacity to support yourself throughout your study period. Various circumstances may necessitate demonstrating proof of funds, such as during your visa interview or upon request from your university. Proof of funds is also useful to ensure that you will be able to study and live in Canada not acting as a reagent to problems like housing problems and more currently persisting in Canada. Irrespective of the entity requesting the proof of funds, it should be presented in a way that assures them of their ability to meet the expenses of studying abroad.

 

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Why Proof of Funds is Required for Canada?

The IRCC necessitates proof of funding to assess the financial capability of international students to cover their educational and living expenses in Canada. This standard is designed to differentiate between students with adequate financial means to complete their education in Canada and those lacking the resources who might misuse their student visas for other purposes.

 

Recent announcement by Canada's immigration minister emphasized that many students arrive in the country only to realize later that they lack sufficient funds to sustain themselves. Additionally, addressing housing issues in Canada becomes feasible if incoming students possess ample funds, making proof of funds Canada student visa a crucial requirement. It's important to note that proof of funds is a mandatory requirement for Canadian student visas.

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What is the minimum bank balance for Canada student visa requirement?

In 2023, the minimum funds required, aside from the GIC, were CAD 10,000 per year. However, effective January 1, 2024, this amount has increased to CAD 20,635 per year, excluding the first year's tuition fee. In the uncommon scenario where you opt to bring an additional family member, such as a spouse, an extra CAD 4,000 per year is necessary. This additional amount can also be covered through the GIC, which is a mandatory requirement for Canada.

 

Another crucial consideration is maintaining an average balance of the specified amount for the last 6-9 months. This practice helps ensure that during the visa interview, it doesn't appear as if the funds magically appeared in your account overnight.

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List of Documents Accepted as Proof of Funds for Canada Student Visa

The IRCC acknowledges specific documents as evidence of financial support for a Canadian Student Visa. Each of these proof of funds Canada student visa documents has distinct requirements, and students must thoroughly comprehend each criterion before submitting them as evidence of funding or support.

  1. list items Bank statement - A bank account statement is a document issued by your bank that displays the details of your account transactions within a specified timeframe. You can present this document as evidence of funds for the required period by the Department of State. The stability of the amount throughout that period will demonstrate your ability to support yourself in Canada.
  2. list items Loan approval letter - A loan sanction letter, alternatively referred to as a loan approval letter, is an official document issued by a lender to confirm the approval of a loan. This document outlines the terms and conditions of the approval, including the sanctioned amount, interest rate, and repayment schedule. Its purpose is to provide an official confirmation of the loan's approval.
  3. list items Sponsor letter - A sponsor letter, given by a bank based on your financial history and assets offered as collateral for a loan, is similar to a capacity certificate and does not represent actual money in your account.
  4. list items GIC certificate - This is one of the mandatory requirements to get a student direct stream (SDS) visa for Canada. It involves a deposit in a Canadian bank, providing international students with a guaranteed sum of money for living expenses during their studies.

Did you know? If you have made any payments, such as paying the tuition fee for the first year or covering accommodation costs in Canada, you can showcase the receipts for these transactions to strengthen your proof of funds for Canada.

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List of Documents Unacceptable as Proof of Funds for Canada Student Visa

Certain documents are not considered valid proof of funds Canada student visa, and this list may vary depending on the entity requesting the proof. The following are commonly rejected documents in the majority of cases:

  1. list items Fixed assets - Assets such as machinery, equipment, or vehicles are not recognized as proof of funds due to difficulties in converting them into readily available cash.
  2. list items Income/Salary slips - Despite reflecting earnings, income or salary slips are not acknowledged as proof of funds because they do not demonstrate the actual availability of liquid assets for immediate use.
  3. list items Stocks & bonds - The fluctuating values of stocks and bonds make them unreliable proof of funds, as their market-driven nature allows for rapid changes in worth.
  4. list items Real estate - Property deeds and real estate holdings are generally not accepted due to the illiquid nature of these assets, making it challenging to access immediate funds.

 

Now that you have information about proof of funds for Canada, we are confident that you can demonstrate your financial capability to study in Canada. This is a crucial step for visa processing and can be quite costly. If you are still facing challenges in arranging proper financial backing, let GyanDhan assist you. We can help you secure a loan approval letter within 7-10 days after document submission, which you can use as proof of funds for your study abroad journey. Additionally, we support students throughout their education loan journey, from evaluating profiles to selecting the best lender and assisting with constant follow-ups and interventions if any hurdles arise. Don't miss this opportunity – check your loan eligibility now with GyanDhan.

 

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Frequently Asked Questions

How much bank balance is required for Canada student visa?

The minimum amount that you would require to study in Canada as of 1st January 2024 is CAD 20,635 per year, excluding the first year's tuition fee. 

Can GIC work as proof of funds?

The GIC is the most effective way to demonstrate proof of funds, especially since it is a mandatory requirement for the SDS visa. Supporting it with additional documents such as bank statements will enhance the strength of your proof.

What is proof of financial support for Canada visa?

To prove that you are able to sustain yourself in Canada when you are studying there you can showcase the following documents as proof of funds - 

  • list items GIC Certificate
  • list items Bank Statement
  • list items Loan Approval Letter
  • list items Sponsor Letter

Can I borrow money for proof of funds?

Yes, an abroad education loan is a wise way to ensure that you have enough funds that not only help you sustain and complete your studies in Canada but will also help you to fulfill the need for proof of funds.