Canada Student Visa & Education Loan Guide: GIC, Tuition Fees and Living Expenses

Studying in Canada is a dream for many Indian students. However, this dream often takes a backseat for some after knowing the rising tuition fees of leading Canadian universities, the mandatory GIC, and the increased living expenses in Canada. When combined, it quickly adds up to a significant amount.

The good news is that a reliable Education Loan can help such students to easily finance their overseas education expenses and manage these expenses without any hassle. This guide will help you understand everything about the GIC requirements, tuition fees breakdown, and the living expenses for Indian students in Canada.

What is Required to Get a Canada Student Visa?

If you are planning to study in Canada, student visa approval depends on how well you meet the three core requirements: admission, proof of funds, and language proficiency. Below are the important things that you need to arrange before applying for Canada student visa:

• Documentation: LOA (Letter of Admission), PAL (Provincial Attestation Letter), SOP, and Medical Examination Reports
• Financial Proof: GIC (Guaranteed Investment Certificate)
• Language Proficiency: IELTS, TOEFL, and PTE

What is the Cost of Studying/Living in Canada?

The total cost of living and studying in Canada typically ranges between ₹15 Lakh and ₹45 Lakh per year. Let’s understand the breakdown by category:

The living expenses can be combined into a GIC, which serves as proof that you can cover your first-year living costs in Canada as per visa requirements.

What is the Canadian Study Permit and GIC for a Student Visa in Canada?

The Canadian study permit is the official visa document that students need to undertake full-time studies. It is officially published by IRCC after an applicant receives the Letter of Acceptance and meets all the financial requirements to study in Canada.

On the other hand, GIC stands for Guaranteed Investment Certificate, which refers to a deposit account that a student has to open with a Canadian bank like Scotiabank, ICICI Bank Canada, CIBC, or RBC. The GIC acts as evidence of your proof of funds to strengthen your visa application.

As per Immigration, Refugees, and Citizenship Canada, international students must show at least CAD 22,895  per year as GIC. This is approximately ₹20 Lakh and excludes tuition or travel costs.

Most students rely on an Education Loan to arrange this amount. Once the required amount is deposited from the lender to the Canadian Bank via wire transfer, the bank issues the GIC certificate, which you can submit as proof of funds for your visa under IRCC.

How Much Education Loan is Required for Canada?

The Education Loan amount you’ll typically need in Canada depends on your course, university, and your personal expenses. Most Indian students typically need between ₹25 Lakh and ₹45 Lakh in total.

As soon as you can get your conditional offer letter, you can start applying for a loan. Your Canadian study permit application will require proof of funds, which might require a complete process flow of document verification, collateral verification, loan approval and fund utilisation certificate. So, apply for the loan on such dates that it gets approved at least 8 to 10 weeks prior to the start of your course.

Read More: Understanding How Education Loan Works: Types, Benefits, and Process

Factors to Consider When Applying for an Education Loan

Before you finalise a lender, here are some important things to consider to get the best Education Loan offers to study in Canada:

• Loan Amount and Coverage: Ensure that the loan amount covers all the expenses related to studying and living in Canada.
• Interest Rates: Compare the interest rate across lenders and loan types. Secured loans (with collateral) offer a lower interest rate as compared to unsecured loans.
• Loan Processing Time: With some lenders, the processing time for Education Loans can extend up to 2 months. It is important to get clarity on timelines with the lender so that your loan approval aligns with your visa application and admission deadlines.
• Pre-Disbursement Requirements: You will need funds for the GIC to get visa approval, and this is where lenders provide pre-visa support, allowing you to fund the GIC and meet financial proof requirements before the final loan disbursement.
• Moratorium and Repayment Terms: Check the moratorium period (course duration + grace period) and EMI structure. This is important to ensure stress-free repayment after you have completed your studies.

Read More: Top 5 Mistakes to Avoid While Picking an Education Loan Provider

Your Next Steps After the Education Loan is Approved

Now that your loan is approved, here’s an action plan that you can follow for your university admission and visa process:

• Pay the initial deposit: Your sanction letter reserves a seat for you. The majority of lenders provide pre-visa disbursement to the institution.
• Open the GIC account: Use the amount of the loan to deposit in the GIC with your preferred bank in Canada.
• Apply for your study permit: The loan sanction letter, GIC certificate, and Letter of Acceptance should be submitted to the IRCC portal to obtain your study permit.
• Complete biometrics: Visit the nearest VFS Global Centre in India for biometric verification.
• Track your application: The majority of standard study permit applications are completed in eight to twelve weeks in the case of Indian applicants.

To Conclude

Getting an Education Loan for your study permit in Canada might seem like a daunting task. But a well-planned financial strategy that creates a transparent cost breakdown in terms of GIC, tuition fees, living expenses, and other one-time investments can simplify this journey for you. All you have to do is find the right and trustworthy Education Loan partner who can make your dream achievable without any complications or financial burden. 

A pre-approved loan letter also gives your study permit application an added boost and ensures that the funds are disbursed in time throughout your course. Take the next step towards your Canadian dream today and apply for a hassle-free Education Loan with Poonawalla Fincorp for fast approval, flexible repayment, and complete coverage.

FAQs

Is the GIC refundable if my Canada study permit is rejected?

Yes, the amount of the GIC is refunded in the event that the issuing bank rejects your study permit, but only after paying a small administrative fee to the issuing bank.

Does an Education Loan for Canada studies cover health insurance and books?

Yes, under one sanction, an Education Loan to study in Canada covers tuition, GIC, health insurance, books, a laptop, and travel expenses.

Is a co-applicant mandatory for a Canada Education Loan?

Yes, a co-applicant with stable income is a condition, and their financial status determines the approved loan amount and approval speed to a large extent.

Can I use the same Education Loan for studying in Canada for both undergraduate and master's programmes?

No, you have to take a new Education Loan to study in Canada separately for every new course or programme.

Can I extend the moratorium on my Education Loan for Canada studies if unemployed?

Yes, there are many lenders who will give an extension of the moratorium on an Education Loan for Canada studies, provided you provide evidence of active employment-seeking.