Student Visa Requirements: Proof of Funds
Thousands of students across India apply for various postgraduate as well as undergraduate courses in universities across the world. USA, Germany, UK, Canada, Australia and New Zealand are some of the top countries chosen by these students for higher education. A majority of these students are unaware of the student visa requirements of these countries, especially when it comes to the proof of funds. The topic of discussion of today’s article aims to clarify these requirements in detail.
The student visa requirements of all the countries mentioned above have one thing in common. Students who wish to pursue their higher education in these countries are required to submit a proof of funds in order to qualify for a student visa. Although all of the other important factors of the student visa process are clearly communicated to most students, more often than not, higher education aspirants tend to miss out on this one important aspect of the abroad education process.
Different Sources of Funding Higher Education
Before elaborating on the student visa requirements surrounding the proof of funds, here is an overview of some of the most prominent sources of higher education funding which are commonly shown as proof of funds by students. Generally, higher education aspirants have three different options for funding their higher studies abroad. The prominent options include fully-funded scholarships, education loans or self-funding.
Out of these three options, an education loan is one of the most practical options to fund your higher education as it ensures timely and continuous supply of funds. In India, education loans are divided into secured loans and unsecured loans, based on the requirement of collateral security. Secured education loans are granted on the basis of collateral security by government banks whereas unsecured education loans do not include collateral security and are mainly granted by private lenders.
Secured education loans are offered at lower interest rates as they are granted only when the borrowers pledge some form of collateral with the lenders. The overall processing fees and other expenses of secured education loans are lesser as compared to unsecured loans. This is why government bank education loans are a more popular choice of higher education funding in India. There are two sides to every coin, likewise, the secured education loan process has its own share of cons which every higher education aspirant should be aware of.
Difficulties in the Secured Education Loan Process
One of the biggest flaws of choosing to fund your higher education with the help of secured education loans is the painstakingly longer processing time taken by these banks. One of the factors that contribute to this delay is the legal and financial verification process of the assets which have been pledged as collateral security by the borrowers. Another factor which contributes to the delay in the processing time is the fact that many authorities who are responsible for speeding up the process of education loan sanction are themselves unaware of the importance of a pre visa disbursement of the loan amount.
In the education loan process, a pre-visa disbursement refers to the disbursement of the loan amount before students can apply for their visa. Students who wish to pursue their higher studies in countries like Canada, Germany, Australia and New Zealand are required to submit a proof of funds in order to prove their financial stability to study in their respective universities. Now the student visa requirements of each of these countries require students to submit different forms of proof of funds. Let us take a look at the Canada student visa requirements first, as it is a very popular destination for higher education for most Indian students.
Proof of Funds For Canada Student Visa
Every year a huge amount of Indian students enrol for higher education in Canadian universities due to the myriad work opportunities provided by the country. The Canada visa requirements state that higher education aspirants from India need to deposit their one year’s living expenses into a GIC account and submit documents which indicate the purchase of the same as proof of funds to the embassy while applying for a Canada student visa. Students are required to arrange at least CAD 10,000 to deposit into the GIC account. The 20th episode of the Loanflix web-series explains the entire concept of the GIC account and how students who have availed education loans can successfully fulfil this Canada visa requirement.
Proof of Funds USA
Students who have applied for an MS in US are required to show proof of funds in the form of a sanction letter provided by their respective banks if they are funding their studies with the help of an education loan. Those who are self-funding their higher education are required to show the presence of sufficient funds which can cater to their living expenses, tuition fees and other miscellaneous expenses, in their bank accounts. This is specifically mentioned in the I-20 form which is provided to students along with their admission letter from their respective universities.
In order to know the complete list of documents which students need to submit if they are funding their higher education in US with the help of education loans, do get in touch with the financial team of WeMakeScholars.
Proof of Funds Germany
Similar to Canada, the Germany student visa requirements state that students have to deposit their one year’s living expenses before applying for a German student visa. For this purpose, they are to open a Sperrkonto or blocked account with a Germany-based bank in order to deposit their living expenses for a year. These living expenses are estimated to be 10,236 Euros or roughly INR 8 Lakhs for a year. Out of this amount, students will be able to withdraw monthly sums of 853 Euros to meet their expenses.
The documents indicating the opening of this blocked account have to be submitted as proof of funds for a Germany student visa. In order to know how you can fulfil this Germany student visa requirement when you are funding your studies with the help of an education loan, do get in touch with the financial team of WeMakeScholars.
Proof of Funds UK
Although the UK government does not ask higher education aspirants to submit a proof of funds, a CAS/ATAS certificate is mandatory for a UK student visa.
One of the very first actions that students need to take, as soon as they receive their university admits, is to request for a CAS certificate from their respective university. In order to obtain this certificate, students are supposed to deposit a certain amount as token money.
This token money amount varies from one university to the other. If you feel that the token money quoted by your university is too high and that you may need to include this as an expense in your education loan application, then you need to cater to the time (1 month prior to your visa process) required to obtain the CAS certificate from your respective university and then apply for a UK education loan.
Here’s a little information on the side for you. The UK government had made a list of 23 universities which do not need students to provide proof of funds. Before applying for a UK education loan, it is recommended that you check this list.
Proof of Funds Australia
Students who wish to study in Australian universities are required to first submit proof of funds to their respective institutions before getting a confirmation letter.
Students need to arrange for the following funds once they receive their admission letter from the particular university and before they apply for a student visa to study in Australia, i.e, in phase 2 of the Australia education loan process:
- On receiving the admission letter from their respective university, students need to deposit at least one semester’s tuition fees to the university account along with the health insurance charges.
- Students are also to deposit their one year’s living expenses into a savings account.
It is only after the university receives confirmation of payment of the above funds that they issue the CoE. Now students are required to produce this CoE at the time of their visa process.
The Australian embassy requires students to deposit their funds in a certain way. Students need to provide the university account details to which the tuition fees and health insurance funds have to be transferred before the loan amount is disbursed by their respective banks.
On the successful transfer of funds by the bank to the university, students are required to send the payment receipt to their university. The receipt of this payment is the accepted proof of funds according to the Australia student visa requirements, on receiving these documents, the university issues the CoE, which is required for a student visa to study in Australia.
In order to understand how you can fulfil this Australia student visa requirement while funding your higher education with the help of student loans, do get in touch with the financial team of WeMakeScholars.
Also Read About Australia Education Loan: Full Process Guide
Proof of Funds New Zealand
The New Zealand student visa requirements state that applicants are required to deposit their one year’s living expenses into a savings account. This process is called an FTS (Funds Transfer Scheme).
In the New Zealand student visa process, candidates need to fulfil certain financial pre-conditions before they can qualify for one.
- Deposit their living expenses for at least a year of their course duration with a bank based in New Zealand.
- Pay their annual tuition fees before their visa process.
The New Zealand embassy has estimated NZ $15,000 as the cost of study in New Zealand for Indian students. These living expenses os do not include their tuition/course fees.
All international students studying in New Zealand are eligible to withdraw the following amounts from their FTS accounts every month.
- On depositing NZ $15,000 which is the minimum estimated cost of study for Indian students in New Zealand, a monthly sum of NZ $1,250 can be withdrawn by students every month for 12 months of their stay in New Zealand.
- On depositing NZ $18,000 into their FTS accounts, students get to withdraw NZ $1,500 every month to support their monthly expenses.
Once students have opened their FTS account, they are required to submit the documents indicating the purchase of the same as proof of funds for New Zealand, thus fulfilling the New Zealand student visa requirements.
Common problems encountered by students while applying for a pre-visa disbursement
- Banks ask you for a solid proof before approving a pre-visa disbursement.
- Candidates have a tough time retrieving this disbursement from government banks.
- Students have to depend on the goodwill of their presiding bank officer to get their loan sanction letter and pre-visa disbursements.
How do you counter these problems?
Our team at WeMakeScholars works very closely with notable public banks like the State Bank of India and the Bank of Baroda and ensures that candidates who have applied for abroad education loans through us do not face the problem of getting their pre-visa disbursements. WeMakeScholars is a government-funded organization that helps candidates with their abroad education loan process. Our team provides the necessary assistance at every stage of the abroad education loan process for all of the countries mentioned above. When you apply for an education loan abroad through our team, about 80% of the process is cut short. Our team has been at the core of a lot of education loan policy decisions taken by major public banks in India.
So what are you waiting for? Request a callback from our team today and avail our team’s assistance for an uninterrupted education loan process.
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 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