The rise in Guaranteed Investment Certificate (GIC) requirements in Canada may have an impact on Indian students.

“Starting on January 1, 2024, candidates seeking study permits in Canada will need to demonstrate financial need of CA$ 20,635, in addition to their first year’s tuition and travel expenses.’

Canada has recently upped the Guaranteed Investment Certificate (GIC) limit from 10,000 to 20,635 Canadian dollars, affecting Indian students intending to pursue overseas education. This alteration, combined with rumours of a prospective limit on international students by 2024, introduces financial stress. The escalation in the cost-of-living mandate implies that Indian students are now obliged to deposit approximately Rs 13 lakh, a significant surge from the previous Rs 6 lakh.

Commencing on January 1, 2024, fresh applicants for study permits in Canada must exhibit financial capabilities amounting to CA$ 20,635, in addition to covering their first-year tuition and travel expenses. As per the Canadian government, this latest living cost mandate constitutes 75% of the low-income cut-off (LICO), denoting the poverty line in urban areas of Canada, with LICO being subject to annual adjustments based on inflation.

Prospective international students seeking Canadian study visas are required to manifest financial readiness by showcasing a minimum funding amount to meet their living expenses alongside tuition and travel costs. This demonstration can be accomplished through various documentation methods, such as presenting bank statements, securing a Guaranteed Investment Certificate (GIC), providing a financial support letter from a sponsor, or presenting a scholarship or award letter.

The acquisition of a GIC from an approved bank for CA$ 10,000 (approximately Rs 6 lakh) emerges as the most prevalent method, with the Canadian government maintaining a list of authorized Indian and Canadian banks for GIC issuance. This sum is distributed quarterly into the student’s account upon their arrival in Canada, as explained by Maria Mathai, Founder and Director of MMA Services, a Delhi-based firm specialising in overseas studies.

Mathai further elucidated that applicants can alternatively exhibit compliance with the cost-of-living prerequisite by procuring an educational loan from the approved roster of Indian banks or by showcasing substantial financial net worth, encompassing their own and their family’s financial assets.

Marc Miller, Minister of Immigration, Refugees, and Citizenship, emphasised the ongoing revision of the cost-of-living threshold as a means to illuminate international students about the authentic living expenses in Canada. These overdue modifications aim to shield international students from precarious financial situations and potential exploitation, ensuring their well-being.