The Canadian government needs an assurance that once you land in Canada, you have sufficient funds (at least C$10,000) to cover your living expenses in Canada for one year. So for this purpose, students need to open a GIC (Guaranteed Investment Certificate). GIC is a short-term liquid investment for a period of one year offered by Canadian banks with a guaranteed rate of return. It is for International students who want to study in the SPP (Student Partners Program) colleges in Canada. Following are the answers of frequently asked questions regarding GIC account.
Why is GIC needed?
GIC is needed for the following purposes-
- It is a surety/guarantee to the Canadian government that you have sufficient funds to take care of your living expenses for a period of one year in Canada.
- It is needed for easy and quick Canadian visa/study permit application and processing. To gain Canadian study permit/visa, students need to submit a proof of sufficient funds. A GIC of C$10,000 from an approved Canadian bank acts an evidence of funds for your Canadian study permit/visa.
From where can you buy GIC?
GIC (Guaranteed Investment Certificate) can be purchased from ICICI Bank Canada and Scotiabank.
GIC Application Process
The GIC application process is very simple.
Step 1: Register for bank secured email service
Students must register online with an authorized Canadian bank, i.e. ICICI bank Canada https://secureemail.icicibank.ca/SGP_Secure_Email/ or Scotia Bank Canada http://www.scotiabank.com/ca/en/0,,2,00.html by filling up the personal details. Register for the secure emails service of the Canadian bank. Once registered, you’ll get a password, using which you can log into your secured email account. The GIC Application Form will be sent to your secured email account.
Step 2: Submit the Student GIC Program Application
After registering for a secure email account, you’ll get an email with a link to the Student GIC Program application form.
Students can submit the Student GIC Program application form online or offline.
For online mode, you must fill the form completely and submit it along with the scanned copy of your admission letter and passport online via their secure email account.
For offline mode, you can download the form from the secure email account, take a print and fill it out completely along with your signature and submit it in-person to the designated ICIC bank limited branch in India http://www.icicibank.ca/managed-assets/docs/spp-designated-branch.pdf , along with your admission letter from Canada university/SPP College and your passport;
** The processing time of application is 5 business days.
Step 3: Fund your account
Upon submission of the Student GIC Program Application, you’ll receive an ‘Investment Account Number’ along with funding details on your secure email. Fund the ‘Canada Student GIC Program’ account with C$10,000, plus C$150 as processing fee using any bank account in India.
** The money sent to fund your GIC account with ICICI Bank or Scotia Bank in Canada must come from the student’s account or joint account held by the student in India.
After remitting the C$10,000 into your GIC account with the bank in Canada, you’ll receive an ‘Investment Balance Confirmation’ in your Investment account.
Step 4: Apply for Study Permit/Visa
Apply for the Canadian study permit/visa to the Canadian visa office in India. Submit a copy of your ‘Investment Balance Confirmation’ along with your Study Permit/Visa application. The visa processing will be quick and convenient.
Step 5: Complete the documentation formalities in Canada
Upon arrival in Canada, you must visit any of the bank branches to complete the documentation formalities, i.e. to open a personal bank account with an ICIC Bank Canada or Scotia Bank branch and issuance of the GIC. C$2,000 will be deposited in your personal account and C$8,000 will be deposited in your GIC account for a 1-year term, which will be paid to you monthly in equal installments.
** Bring with you the following documents to the Bank- Investment Balance Confirmation, Study Permit, a valid Passport, a letter of admission from the Canadian university or SPP College.
Note: If your study permit/visa is cancelled/declined, in that case, your C$10,000 investment balance will be returned to the bank account from which the amount was remitted. For a refund, you need to furnish the proof of the cancellation of the study permit, withdrawal of the enrollment from the Canadian education institution or declined admission application from the Canadian educational institution.
How can Bank can help?
As per the CIC (Citizenship and Immigration Canada) guidelines, students who want to study in Canada under the SPP (Student Partners Program) require C$10,000 per year to cover their living expenses for 1 year in Canada. The way to fulfill this requirement is through the purchase of Guaranteed Investment Certificate (GIC) for an amount of C$10,000 from an authorized Canadian bank. To fund this amount (C$10,000) that is to be shown in the GIC account, many banks offers education loan at reasonable interest rates.
Also at the time of Visa application, you’ll need to show proof of payment of fees for one year of your study program/one semester of the study program plus proof of enough funds to cover the next semester.
Indian students can avail tax benefit in the form of a deduction under Section 80 E of the Income Tax Act.