Education Loan For Canada: Does it Cover GIC Expenses?
A lot of higher education aspirants who wish to study in Canada opt to fund their studies with the help of an education loan for Canada. However, many of them are unaware of the expenses covered by a typical scheme of education loan for Canada. Most of the students who are planning to fund their studies with an education loan for Canada are often have one persisting concern, ‘How will a Canada education loan fulfill their total expenses for MS in Canada?’
The latest episode of Loanflix Inshorts addresses this very same concern. Do make it a point to watch the eighth episode of Loanflix Inshorts, which is embedded below.
What is GIC?
If you are someone looking for opportunities to study and live in Canada, you may have come across the term, ‘GIC’. A Guaranteed Investment Certificate basically refers to proof of living expenses of students who have moved to Canada for purposes of attending their undergraduate/postgraduate studies.. To put it simply, candidates may consider the GIC account as an investment which offers fixed returns every month.
All students who have been accepted into Canadian universities which come under the Student Partnership Program (SPP) are required to purchase a GIC account from certain banks located in Canada. A GIC account offers fixed returns to students during the course of their stay in Canada.
In order to purchase a GIC account, applicants are required to deposit an initial amount of CAD 10,000. It is the estimated cost of living expenses of students for a year in Canada. On their arrival, students will be granted an initial funding of CAD 2000 as set-up cost. Post this, students will be allowed to withdraw CAD 667 every month, to cater for their total expenses for MS in Canada.
It is compulsory for students to purchase a GIC account in order to get their Canadian student visa without hassles. A GIC account borrowed from any of the following banks are accepted as funding proof at the embassy of Canada.
- Scotia bank, Canada
- The State Bank of India, Canada
- The ICICI Bank, Canada
Read about SBI abroad education loan- An introduction
What is the significance of a GIC account in the Canada education loan process?
A lot of students who opt for an education loan for Canada are often confused between the terms, ‘GIC amount’ and ‘living expenses’. One basic concept which has to be cleared here is the fact that living expenses are an important part of any education loan for Canada. A typical education loan for MS in Canada covers the total living expenses, as well as tuition fees. When translated into the Canada education loan terms, these living expenses refer to the GIC amount. You need to keep in mind that the money deposited into the GIC account is to be used to fund the total expenses for MS in Canada.
Any study loan for Canada in India has provisions to contribute to the GIC account, as it is a compulsory requirement which all students who wish to study in Canada must fulfill in order to get their student visa approved.
The financial team of WeMakeScholars has been helping students with their canada education loan process for quite some time. They will be happy to address any concerns regarding the process of borrowing an education loan for Canada. All you have to do is register for a callback, and a member of their team will get in touch with you at the earliest opportunity.
Will the banks providing a Study loan for Canada in India Cover The GIC Amount?
All banks and NBFCs which provide an education loan for Canada in India cater for the expenses related to the purchase of a GIC account. However, a lot of students who had borrowed an education loan for Canada are still facing certain difficulties in fulfilling this financial requirement of the Canada higher education process. Let us take a look at one of the persistent problems in the process of getting an education loan for Canada.
What are some of the major problems faced by students while applying for an education loan for Canada?
If you are in the middle of the process of getting an education loan for Canada, you must have come across the term ‘disbursement’. In banking terms, a ‘disbursement’ basically refers to a release of the loan amount by lending banks. Before beginning their student visa process, all applicants are required to submit proof of funds at the embassy. In order to fulfill this requirement, they are to avail a pre visa disbursement from the lending institution which is providing them with an education loan for Canada. Most students who have applied for a Canada education loan in India find it difficult to get their pre visa disbursements approved by their lenders.
This was a common issue previously faced by students who used to opt for an education loan for Canada to fund their higher education. So how was this issue resolved?
Solution to the hurdles faced by students while applying for a Canada Education Loan
The financial team of WeMakeScholars handles the education loan applications of hundreds of students on a daily basis. When a major percentage of these students who had applied to prominent government banks for an education loan for Canada through us, began to register their grievances regarding the pre visa disbursement issue with our team, they decided to bring this up with their associate banks and put in a request to the regulating authorities to put an end to these woes. After taking a consensus of the participating authorities, many banks decided to make it mandatory for officials to approve the pre visa disbursement of students who were in need of the same.
Despite this revision in their policies, there have been cases in which officials have outright refused to approve of pre visa disbursement of a Canada education loan in India to students in need. If you are facing a similar problem, do get in touch with the WeMakeScholars team for further support.
Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it’s at free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, China, France among others