In an important update for aspiring Indian students, Immigration, Refugees and Citizenship Canada (IRCC) has announced a new minimum proof of funds requirement that will apply to all new study permit applications submitted on or after September 1, 2025.
This update is aimed at ensuring students can realistically support themselves during their stay in Canada and avoid financial distress. In this article, we break down everything you need to know about the change — what it means, who it affects, how to prepare, and expert tips to get your visa approved.
What Has Changed?
Old Rule (until Aug 31, 2025):
- Single applicant had to show CAD 20,635 as annual living expense (outside Quebec).
New Rule (effective Sept 1, 2025):
- The required amount is now CAD 22,895 for a single applicant.
- This amount is calculated based on Statistics Canada’s Low Income Cut-Off (LICO) — the minimum amount a person needs to meet basic living standards in Canada.
Tuition fee is separate — this is only for living expenses. You must show:
- 1st year tuition fee
- CAD 22,895 for living
- Travel or return ticket (sometimes included)
How Does This Impact Indian Students?
Indian students form the largest group of international students in Canada. Many students already face delays, high tuition fees, and confusion around visa requirements. This update makes it more important than ever to:
- Plan finances early
- Maintain a clean financial trail
- Prepare strong documentation to prove funds
If your study permit application is submitted on or after Sept 1, 2025, this new rule will apply, regardless of your school intake or offer letter date.
Who Needs to Show Proof of Funds?
You need to show proof of funds if you are applying for:
- A Study Permit (new applicants)
- A spouse or dependent joining you in Canada
- Reapplying after a visa refusal
- Changing programs or extending your stay
How Much Do You Need to Show?
Here’s a breakdown for different family sizes (excluding tuition):
| Applicant Category | Funds Needed (Starting Sept 1, 2025) |
|---|---|
| Single student | CAD 22,895 |
| + One family member | CAD 28,773 |
| + Two family members | CAD 35,690 |
| + Three family members | CAD 43,388 |
Source: IRCC Official News
What Documents Are Accepted as Proof?
To convince the visa officer that you can afford your education and stay in Canada, submit clear, valid, and verifiable documents. These include:
✅ Commonly Accepted Proofs:
- GIC (Guaranteed Investment Certificate) – mandatory under SDS category.
- Education Loan Letter from an Indian bank (must show sanctioned amount).
- Bank Statements (your own or sponsor’s) — showing balance & transactions over last 4–6 months.
- Fixed Deposits in your or parent’s name (with maturity value).
- Sponsor’s Affidavit of Support (if your parents/guardians are supporting you).
- Scholarship Letters – if you have a grant from a government, university, or NGO.
❌ Avoid:
- Sudden large deposits
- Unverifiable third-party support
- Old or expired documents
- Screenshot statements without stamp/signature
Example Scenario
If your tuition fee is CAD 16,000, and you are applying after Sept 1:
- Tuition: CAD 16,000
- Living: CAD 22,895
- Total: CAD 38,895
If you already have:
You must show documents supporting this amount in bank balance, GIC, loan sanction, or valid support.
When Should You Apply?
- An admission letter
- Required documents
- Sufficient funds (~CAD 20,635 living + tuition)
Try submitting your visa before August 31, 2025 to qualify under old rule.
If you can’t apply early, then start preparing for the new funds requirement.
Why Did IRCC Make This Change?
IRCC said many students arrive in Canada unprepared financially and end up:
- Working illegally
- Facing housing issues
- Falling into mental health struggles
By linking living expenses to LICO, the Canadian government ensures students have realistic financial backing.
Expert Tips to Strengthen Your Application
- Show layered evidence
GIC + bank statements + loan letter = strong case - Avoid sudden fund transfers
Large deposits just before applying raise red flags. Spread it across months. - Use SDS stream if possible
SDS = faster visa approval. It requires GIC + IELTS + upfront tuition fee. - Explain sponsor’s profile well
If parents are funding, include their income proof, ITR, and relationship affidavit. - Add a strong SOP
Mention why you chose Canada, your program, and how your finances are managed.
Does this apply to students already in Canada?
No. The new rule only applies to new study permit applications made on or after Sept 1, 2025.
Can I show mutual funds or shares?
Unstable or fluctuating assets are discouraged. Only show liquid, easily accessible funds.
Can my uncle or cousin sponsor me?
Yes, but it may be questioned. Close blood relatives (parents, siblings) are preferred.
What if I show lesser funds?
Your application can be refused for not meeting financial requirements.
