Student GIC for Canada: Benefits and Process to Obtain It
- A Guaranteed Investment Certificate (GIC) is a must for international students applying for a Canadian study visa, ensuring financial stability.
- The process involves depositing CAD 20,635 or INR 12.73 Lakh in a participating bank, which is refunded if the visa is denied.
- GIC provides monthly payouts for living expenses and strengthens visa applications.
- What is GIC for Canada?
- What are the Benefits of GIC for Canada?
- How to Apply for a GIC in Canada?
- List of Required Documents for Opening a GIC Account in Canada
- How to Withdraw Funds from Your GIC Account in Canada?
- Common Issues and Challenges with GIC for Canada
- Can AdmitX Help Me Get a GIC?
- Key Takeaways by AdmitX
- FAQs
A Guaranteed Investment Certificate (GIC) is a crucial financial requirement for international students applying for a Canadian study permit. This investment ensures that students have sufficient funds to support themselves during their first year in Canada. In this blog, you will learn everything about the Guaranteed Investment Certificate (GIC) for Canada, an optional but essential financial requirement for international students.
What is GIC for Canada?
The Guaranteed Investment Certificate (GIC) is a financial document that is issued when a prospective Indian student opens a GIC account, before applying for the Canadian study permit. It serves as proof that the student has sufficient funds to cover their living expenses for the first year of study in Canada.
A GIC is a secure investment offered by Canadian banks and financial institutions. To meet the study visa requirements, students must deposit a specific amount of CAD 20,635 or INR 12.73 Lakh into a GIC account before applying for their visa. Once in Canada, the amount is disbursed back to the student in monthly installments to help with daily expenses, while a small portion may be provided upfront.
The GIC ensures that students are financially capable of supporting themselves. By securing a GIC, students not only strengthen their study visa application, but also ensure smoother financial planning upon arrival in Canada.
What are the Benefits of GIC for Canada?
Strengthens Study Permit Applications: A GIC acts as proof of financial sufficiency, showing the Canadian government that you can support yourself during your studies. It is an optional requirement for study permit applications.
Financial Security: GICs are low-risk, government-backed investments. Your principal amount is protected, offering a safe and reliable way to hold your funds while planning your studies.
Monthly Payouts for Living Expenses: Upon arrival in Canada, you receive an initial amount (CAD 2,000 or INR 1.23 Lakh), followed by monthly payments to help cover your everyday expenses like food, transport, and rent.
Builds Trust with Visa Officers: Having a GIC reflects financial preparedness and strengthens your visa application by reassuring immigration officers of your stability.
Refundable in Case of Visa Refusal: If your visa is denied or you withdraw your application, most banks offer a full refund of the GIC amount upon submission of valid proof.
How to Apply for a GIC in Canada?
The application process for a Guaranteed Investment Certificate (GIC) for Canada is simple. Below, we have discussed the step-by-step instructions to open a GIC account in Canada before applying for the study visa.
Choose a Participating Canadian Bank
Select a bank approved by the IRCC (Immigration, Refugees and Citizenship Canada) that offers GICs to international students. Some of the popular options include Scotiabank, Royal Bank of Scotland, ICICI Bank, and SBI Canada.
Create an Online GIC Account
Visit the official website of your chosen bank and create an international student GIC account. You’ll need to fill out personal details, upload a copy of your passport, and your letter of Acceptance from a Canadian institution.
Transfer the Required Funds
Send CAD 20,635 or INR 12.73 Lakh (as of 2025, subject to change) from your home country to the Canadian bank account. This amount covers:
- CAD 20,000 for living expenses
- CAD 635 (approx.) for processing or admin fees
Make sure the money is sent from your personal bank account to ensure faster verification.
Get the GIC Certificate
After successful verification of your documents and payment, the bank will issue a GIC Investment Confirmation Certificate. This is an essential part of your student visa application.
Apply for Your Canadian Student Visa
Include the GIC certificate in your visa file as proof of financial support. Although the Student Direct Stream (SDS) is no longer active, GIC remains a critical document for visa processing.
Travel to Canada and Activate Your GIC
Once you arrive in Canada, visit your bank in person to complete the in-branch verification (usually involves showing your passport and study permit). After this, your GIC account is activated.
Receive Funds in Installments
You’ll get an initial deposit (e.g., CAD 2,000 or 1.23 Lakh) soon after activation, and the remaining amount will be disbursed monthly (approx. CAD 1,500–1,800 or INR 92,000-1.11 Lakh per month) to cover your living expenses for the year.
List of Required Documents for Opening a GIC Account in Canada
Here’s a list of required documents for opening a GIC (Guaranteed Investment Certificate) account in Canada
- Completed GIC application form
- Passport
- College/University offer letter
- Proof of Financial Support (6 months bank statement of self or parent’s Indian bank account)
How to Withdraw Funds from Your GIC Account in Canada?
Once your GIC (Guaranteed Investment Certificate) is activated, the next step is understanding how to withdraw funds. Here’s how you can withdraw the funds:
Initial Hold Period
- Typically, the GIC amount is held in your account for a few months, during which time you will not be able to withdraw the entire sum at once.
- The first portion of the GIC is usually available after 30 days of arrival in Canada.
Monthly Installments
- After the initial waiting period, the bank will release the GIC amount in monthly installments.
- The monthly payments are generally set up to align with your living expenses.
- The amount released will be based on the terms of your GIC agreement (often CAD 800-1,000 per month).
Bank Account Setup
- To receive your monthly payments, you must have an active Canadian bank account.
- Most banks will require you to open an account in Canada upon your arrival.
- Once the account is set up, you can link it to your GIC account for smooth transactions.
How to Request Withdrawals
- In most cases, the bank will automatically transfer the installment directly to your Canadian bank account.
- However, you may need to confirm your bank details or contact the bank if automatic transfers aren’t set up right away.
Additional Withdrawal Information
- If there is any emergency or specific situation requiring an additional withdrawal, you may need to request a special release from the bank.
- This request will be evaluated based on your current living situation, and you may need to provide supporting documents.
End of the GIC Term
- The GIC contract is usually completed after one year, but this may vary by bank and program.
- After the term ends, the total GIC amount (minus the monthly installments) will be returned to you.
Common Issues and Challenges with GIC for Canada
Here are some common issues students may face with their GIC account in Canada.
Delays in GIC Processing
Problem: Sometimes, students experience delays in the processing of their GIC due to incomplete documentation, errors in the application form, or delays by the bank itself.
Solution: Ensure that you’ve submitted all the required documents correctly and double-check your application. If you don’t receive your GIC confirmation within the expected timeframe, contact the bank immediately for assistance.
Difficulty in Opening a Bank Account in Canada
Problem: Some students may find it difficult to open a Canadian bank account upon arrival, especially if they haven’t prepared all the required documents (like proof of address or student ID).
Solution: Make sure to have all necessary documents in hand before arriving in Canada. Many banks offer student-friendly accounts, so choose a bank that’s well-versed in handling international students’ needs.
Issues with Monthly Installments
Problem: Some students may encounter problems with receiving their monthly GIC installments on time. This could happen due to incorrect bank details or issues with the bank’s internal processing systems.
Solution: Ensure that your Canadian bank account is properly set up and linked to your GIC account. If you encounter any problems with your installments, reach out to your bank’s customer support to resolve the issue.
Understanding GIC Terms
Problem: The terms and conditions of the GIC, such as the duration, interest rate, or monthly withdrawal amounts, may be unclear to some students, leading to confusion.
Solution: Carefully read all the documents provided by the bank regarding your GIC account. If any details are unclear, don’t hesitate to ask the bank for clarification. Understanding the monthly installments and withdrawal limits will help you manage your funds better.
Withdrawal Limitations
Problem: Students may face issues with withdrawing more money than the monthly installment limit, especially in case of emergencies or unexpected expenses.
Solution: While GIC is designed to be a controlled way of managing living expenses, you can inquire with your bank for special withdrawals if you are facing urgent financial issues. However, such requests may be subject to additional verification.
Can AdmitX Help Me Get a GIC?
Yes, AdmitX can help you secure a Guaranteed Investment Certificate (GIC) for your study permit to Canada. They provide guidance on the process, help you choose the right bank, and assist with the required documentation.
AdmitX ensures that your GIC meets all necessary visa requirements, offering step-by-step support to make the process smooth and efficient. They also coordinate with educational institutions to ensure everything is in place for your visa application.
Key Takeaways by AdmitX
A Guaranteed Investment Certificate (GIC) is a crucial requirement for international students applying for a Canadian study visa.. It serves as proof of financial stability, assuring the Canadian government that you can support yourself while studying.
Additionally, the GIC offers interest earnings, providing students with some extra financial support. The funds are refundable after completing the first year of studies, helping cover living expenses. GICs are issued by Canadian banks, and it’s essential to follow the specific terms and processes to ensure smooth visa processing.
FAQs
What is GIC for Canada and why is it important for international students?
A Guaranteed Investment Certificate (GIC) for Canada is a financial investment required by the Canadian government for international students applying for a study permit. It ensures that students have sufficient funds to support themselves during their studies in Canada.
What is the GIC full form in Canada?
The full form of GIC in Canada is Guaranteed Investment Certificate. It is a secure investment option where the funds are locked in for a set period and provide guaranteed returns, typically used for student visa applications.
How much GIC amount is required for Canada?
The GIC amount for Canada typically required for international students is CAD 20,635 or INR 12.73 Lakh. This amount is meant to cover living expenses for the first year of study. The exact amount can vary based on the student’s specific situation.
What is a GIC certificate for Canada?
A GIC certificate for Canada is a document issued by a Canadian bank after the student invests in a GIC. This certificate is an essential part of the student visa application process and serves as proof of the student’s financial readiness.
How do I open a GIC account in Canada for my student visa?
To open a GIC account in Canada, students need to choose a participating Canadian bank, complete the application process, and deposit the required amount (usually CAD 20,635 or INR 12.73 Lakh). Upon approval, the bank will issue a GIC certificate, which is crucial for the visa application.
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