What is GIC for Canada Study Visa?

Surya Rathee
[Published 07 May, 2022 | 04:40 PM]
About Author - 16 min read
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Demonstrating “Proof of Funds” to cover your total cost of living is one of the most important prerequisites for studying in Canada.

International students must purchase a Guaranteed Investment Certificate or GIC for Canada Study Visa to do so. All overseas students applying under the Student Direct Stream (SDS) category must meet this mandated requirement.

This write-up explains what GIC Canada is, the three major banks that provide this service, and how to open a GIC account to complete your Study Visa application.

What is GIC Canada?

The Guaranteed Investment Scheme, or GIC, is a 1-year investment scheme available to international students. It is recommended for students who wish to study in Canada under the SDS program. All international students must showcase proof of 1 year's living expenses into a Canadian bank account to be eligible for a Study Visa in Canada.

Is GIC mandatory for Canada?

GIC for Canada Study Visa is required for the following reasons:

• It acts as an assurance to the Government of Canada that you have sufficient funds to meet your living expenses for 1 year in Canada.
• It ensures quicker processing of a Canadian visa or a study permit. Candidates are required to submit relevant proof of the bank statements.

What is the GIC amount for Canada Study Visa?

The GIC process requires students to deposit a certain minimum amount with one of the Canadian embassy’s registered and recognized lenders. International students applying for a GIC can deposit anywhere between $10,000 CAD to $50,000 (≈ 6 Lac – 30 Lac). The remaining account is used to open a non-redeemable account from which students will be able to receive the nominal amount plus the interest within a set period of time.

What is a Non-Redeemable GIC account?

A non-redeemable GIC account is one in which international students can deposit a specific amount of money for a specific period of time and receive a fixed rate of interest. Students can take the remaining amount of GIC along with the relevant interest for the same term after the validity period has expired.

Banks offering GIC for Canada Study Visa

How to open a GIC account?

Students must apply for a GIC account at least a month before applying for a visa. Candidates can open a GIC Canada account through one of three major Canadian lenders:

• Scotia Bank, Canada
• SBI, Canada
• ICICI Bank, Canada

How to open a GIC account through Scotia Bank?

Scotiabank is one of Canada's greatest banks and is considered the best option for international students looking to open a Canadian GIC account. For international students seeking to purchase a GIC for Canada Study Visa, the Scotiabank Student GIC program involves the following steps:

STEP 1: Register yourself with Scotia Bank through an online medium.

STEP 2: Deposit a GIC of $10,000 CAD (≈ 6 Lac) and a processing fee of $200 CAD (≈ 12,000) for Scotia Bank’s services.

STEP 3: Once you have successfully registered, you will receive your login credentials such as account number and wire transfer details.

STEP 4: Scotia Bank will now send you a confirmation letter titled, “Investment Directions Confirmation”.

STEP 5: You will need to send the confirmation letter to the embassy at the time of visa application.

STEP 6: Scotia Bank will deposit $8000 CAD (≈ 4.75 Lac) out of the $10,000 (≈ 6 Lac) into a non-redeemable account, from which you can further withdraw a fixed amount on a monthly basis to support your daily expenses.

Here are the documents you are required to submit during your registration process:

• Investment Directions Confirmation” letter.
• Valid Passport.
• Letter of Enrolment from the previous university.
• Study permit and offer letter.

How to open a GIC account through SBI/ICICI Bank?

The basic process remains the same as that of Scotia Bank, however, the process to open a GIC account through SBI/ICICI is relatively new. International students seeking to purchase a GIC for Canada Study Visa under SBI/ICICI bank involve the following steps:

STEP 1: Create an SBI/ICICI GIC account.

STEP 2: You will need to upload a copy of your Passport ID page alongside a copy of your academic transcripts to complete the registration process. Make sure you sign each and every document before scanning and uploading them.

Here are the documents you are required to submit during your registration process:

• Valid Passport.
• A copy of the “Investment Declaration Certificate”.
• Letter of Enrolment
• Study permit.

Also, Read Relevant Quora:-What is GIC for international students in Canada? Are all the students required to have a GIC account?