Beginning this month the Canadian High Commission has introduced a “Guaranteed Investment Certificate (GIC)” concept towards proof of funds towards accommodation in case of students applying for student visa for the Community Colleges under SPP and the Universities.
According to the new changes, the student can now show the funds in two ways:
- Guaranteed Investment Certificate (GIC) – Student will have to show evidence of purchase of a special Guaranteed Investment Certificate (GIC) from a participating Canadian financial institution, in the amount of $ 10000 CAD to cover the living expenses for student’s first year in Canada and evidence of payment for first year’s tuition fee.
2- The alternate Option for proof of funds – A copy of an Education loan sanction letter from Indian Chartered Bank for the amount equal to $ 10000 CAD and a copy of the payment receipt of the first year’s tuition fee.
What this means?
- The living cost has been increased to $ 10000 CAD.
- The students will now have to make payment of complete first year Tuition Fee.
- Option of showing education loan sanction letter is also available.
Is this something new?
This is new to Canada but a similar process is prevalent for New Zealand which is known as Fund Transfer Scheme (FTS). Under this scheme the student deposits his accommodation and living related expenses with the bank and once applicant obtains the Visa and reaches the country the money gets paid monthly. This is beneficial for those applicants who have genuine funds available to cover their expenses. Applicants who make this deposit will improve their chances of receiving a Study Visa.
How it will work in Canada?
Applicants are now able to deposit $10,000 into a GIC at Scotia Bank for living expenses. The amount will be disbursed as follows:
a.$2,000 upon arrival
b.$2,000 every two months afterwards
The Canadian High Commission will be getting back to all SPP colleges about the mechanisms applicants can use to make a GIC deposit in the coming weeks. This deposit MUST be made in India and not by a relative outside of India including Canada.
At present, Scotiabank is the only participating Canadian financial institution for GIC. In India, they have affiliation with Kotak Mahindra Bank.
I hope that this post will help you in planning your finances better. For more information please feel free to ask me.
To your success,
If you are planning for your studies in Canada and need any guidance, please contact our consultants for further advice. At eduken, we always try to keep you updated on education & career related information in simplest terms.
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