In a significant foreign student policy that impacts international students, the government of Canada has increased the bar for proof of funds. Students have to pay an extra amount of over CAD 2000 in addition to the previous funds.

This move highly impacts international students across the world. The Immigration, Refugees, and Citizenship Canada(IRCC) updates the financial requirement annually following Canada's cost of living. In the recent announcement on June 2, 2025, IRCC increased the requirement for proof of funds from CAD 20,635 to CAD 22,895.

In this blog, we will explore what proof of funds is and why it is important for international students. We will also cover how this move impacts Indian students.

Canada Hikes the Required Proof of Funds for Students

  1. Canada has substantially increased the proof of funds requirement for foreign students. This recent hike in fund requirements makes students search for additional finances to meet their eligibility. The recent hike applies from 1st September 2025.
  2. Immigration, Refugees, and Citizenship Canada(IRCC) has revised its proof of funds criteria, requiring students to provide over CAD 2000 in additional funds. With this, the minimum required proof of funds for one person will jump from CAD 20,635 to CAD 22,895.
  3. This announcement came on June 2, 2025, and will apply to international students seeking a study permit on or after 1st September 2025. This change applies to students studying in territories and provinces outside Quebec.
  4. The required GIC funds amount to CAD 22,895 (14 lakhs INR), including the first-year tuition fee and travel.

Read: What GIC is for Canada- A complete guide for students

Why has Canada increased the Student Visa Fund?

  1. Every year, immigration, Refugees, and Citizenship Canada(IRCC) updates the financial requirements for international students who are applying for a Canadian student permit.
  2. The main aim is to ensure that international students have enough finances to lead a comfortable student life and avoid financial struggles during their studies in Canada.
  3. The cost of living in Canada has gone up drastically- essentials like groceries, transportation, rent, etc, have become more expensive because of inflation*.
  4. So the cost of living in Canada has become more expensive than before. Hence, the government wants to make sure that students meet the financial requirements, increasing the living expenses funds for students.

*Read: How to Choose the Right Education Loan During High Inflation?

What's the Impact on Indian Students?

This increase in student visa requirements will significantly affect Indian students who are planning to pursue higher studies in Canada.

The new change requires students to show CAD22895 from the previous CAD20,635, a significant increase of over CAD 2000. This makes it more challenging for Indian students to afford higher education in Canada.

  1. Potential impact on applications: With the increased financial requirement, Indian students might find it more difficult to qualify for a study permit. This increases the scrutiny, and there are higher chances of rejection.
  2. Impact on study permit numbers: Some reports indicate that, along with the tightening of visa rules, this increase in proof of funds may further impact the number of study permits.
  3. Alternative funding options: To meet the new financial requirements, students may have to search for alternative funding options.

What accounts are acceptable as Proof of Funds for Canada?

Students applying for a Canadian Study Permit are required to submit valid financial documents as proof of funds. Below is the list of documents accepted.

  1. A Canadian bank account with the student's name as the account holder, with transferred funds.
  2. A Guaranteed investment certificate(GIC)from a participating Canadian financial institution
  3. Documents of the bank statements for a minimum of 6 months
  4. Education loan approval documents from a recognized financial institution.
  5. A sponsorship letter from an individual stating that the concerned person is responsible for the financial support of the student.
  6. Proof of scholarships or a Canadian-funded educational program
  7. A convertible bank draft in Canadian currency.

The documentation required may differ from case to case. If you would like a personalized checklist, feel free to request a callback from us.

Pro Tips for Students

For students planning for higher Education in Canada, here are some pro tips to help you prepare.

  1. Revise Your Budget: Students are required to ensure that they meet the updated financial requirements for themselves and any accompanying daily members. 
  2. Prepare yourself with the Necessary Documents: Collect all the necessary documents, such as a bank statement, GIC, Education Loan, sponsorship proof, etc. This evades last-minute hassles and helps smooth the application process.
  3. Seek Immigration Experts: Seek expert guidance to avoid mistakes and make sure all the documents meet IRCC guidelines.
  4. Connect with WeMakeScholars: Now, when you go via WeMakeScholars, an organization partnered with over 15 public and private lenders, we have a dedicated team to resolve any Disbursement issues you may face in your Education Loan at any point in time. Get in touch with us today to get a stress-free student loan journey.

How can WeMakeScholars help?

Applying for Education loans through WeMakeScholars can ensure that you students fast loan approvals. We have a dedicated financial officer who lends support throughout the loan process. Our financial officers will provide end-to-end support and make your education loan process free.

Transparent Process: WeMakeScholars believes in building trust with the students, thus lending support throughout the loan application process without any charges applicable.

Tax benefits: Students are generally not aware of the tax benefits under some sections, such as 80E. We have a dedicated team that can guide you and help students save on tax exemptions.

Fast Loan Process: Going through WeMakescholars can help students process the Education loan in 50% less time than the banks themselves.

Interest rates: As previously discussed, we have partnered with 15-plus private and public banks and NBFCs. Over the years, we have helped thousands of students get Education Loans. Applying through WeMakeScholars can help students get the best deal with the lowest possible interest rates.

End-to-end Process: We have a dedicated team of financial officers who assist students throughout the loan process. Our team ensures a hassle-free loan process from the beginning of the application to loan disbursement, making it stress-free.

Conclusion

Canada's decision to raise the student visa requirement significantly impacts Indian students. In this blog, we have explored the revised required proof of funds for Canadian student visas, including the reasons for the same. Additionally, we have also uncovered its impact on Indian students.

An education loan sanction is crucial for funding the education of many students. However, students often struggle to get their loans sanctioned without the right guidance. WeMakeScholars can help you in such situations. Our team is dedicated to assisting students in receiving education loan approvals on time. We provide complete education loan assistance to students applying through us. Request a callback today, and one of our experienced financial officers will contact you as soon as possible.