As per the Immigration, Refugees and Citizenship Canada (IRCC), Canada set an immigration record by welcoming 5,51,405 international students from 184 countries in 2022. This statistic clearly shows that Canada remains a popular study abroad destination for international students, and it is due to the high standard of education and promising job opportunities.
As an Indian student, you can apply for a study permit to Canada via Student Direct Stream (SDS) program and pursue higher education if you have an acceptance letter from Designated Learning Institution (DLI), your chosen university. The SDS program is meant to expedite the study permit process. To study in Canada through SDS, you need to meet several requirements. One such requirement is Guaranteed Investment Certificate (GIC). So, let’s understand the GIC in detail.

Key Highlights

• What is GIC for Canada?
• Is GIC mandatory to study in Canada and why?
• GIC Canada fees for international students
• What is a non-redeemable GIC account?
• Things to remember about the GIC certificate in Canada
• How to open a GIC account?

What is GIC for Canada?
A Guaranteed Investment Certificate or GIC is a Canadian investment for a fixed period with a guaranteed rate of return. It is for international students who wish to study in Canada under the SDS program. To qualify for a Canadian study permit, international students must provide proof of one year’s living expenses in the form of GIC. You can get a GIC from a Canadian financial institution.

Is GIC mandatory to study in Canada, and why?
When you are planning to study in Canada under the SDS scheme, GIC is a mandatory requirement because of the following reasons:

• It acts as an assurance to the Canadian government that you have sufficient funds to meet your living expenses for one year in Canada.
• It ensures faster processing of the study permit to Canada through the Student Direct Stream (SDS).

GIC Canada fees for international students

As per the Canadian embassy, the recommended amount of a Guaranteed Investment Certificate is CAN $10,000. For Indian students, the amount of GIC is ∼INR 6,01,500.

What is a non-redeemable GIC account?

In a non-redeemable GIC account, international students can deposit a certain amount of money for a specific period and get a fixed rate of interest. After the expiry of the validity period, they will get the deposit back along with interest earned.

Things to remember about the GIC certificate in Canada

• Ensure to choose a Canadian financial institution that offers a GIC and meets the SDS criteria.
• You cannot access the GIC account until you arrive in Canada.
• The financial institutions will release the funds only after confirming your identity.
• The Canadian financial institutions will release the fund in the following manner:
  • An initial lump sum after confirming your identity upon arrival in Canada
  • The remaining funds will be in monthly or bi-monthly instalments over 10-12 months.

How to open a GIC account?
Apply for a GIC account at least one month before applying for the Canadian study permit. You can easily open the GIC account online by following simple steps:

• Register with your chosen financial institution by opening your account online.
• Fill up and submit the application for your GIC account online and upload the necessary documents as mentioned by the chosen financial institution.
• Transfer CAN $ 10000, i.e. ∼INR 6,01,500 and the service fee of CAN $ 200 (approximately INR 12,000) from your home country to your GIC account in Canada.
• You will get a GIC certificate from the Canadian financial institution after opening the account successfully. Besides the GIC certificate, financial institutions may give documents like a letter of attestation, an investment balance confirmation, or an investment directions confirmation as valid proof that you bought a GIC.
• Once you are in Canada, visit the branch where you have a GIC account and get your identity verified in person. After the verification procedure gets completed, you can access your GIC account.

Pro-Tip: The GIC account opening process may vary between financial institutions. Therefore, understand the process of different lenders and choose a lender for the student GIC in Canada that meets your requirements in the best manner.

Hopefully, the information mentioned above about GIC will help you plan your academic journey to study in Canada. If you are facing any financial challenges in pursuing higher studies in Canada, Avanse Financial Services will help you. We offer an education loan for Canada and other international destinations. Our customised student loan covers the holistic cost of education, including tuition fees, living expenses, accommodation costs and other education-related expenses. So, connect with us today to know more!