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GIC Program to Study in Canada

GIC programs to Study in Canada

Guaranteed Investment Certificate, is a savings plan specifically designed for international students who are planning to study in Canada. The GIC was introduced to ensure that international students have sufficient financial support during their stay in Canada. By requiring students to have a GIC, the Canadian government can be confident that the students have the necessary funds to cover their living expenses for at least the first year of their stay.

The Canadian government has made GIC compulsory for these major reasons:

  • To ensure that students coming to study in Canada can afford basic expenses for at least a year.
  • It serves as proof of funds which is compulsory for getting a Canadian visa/permit, this further expedites the process.

The GIC program has been a part of the Canadian study permit process for several years.

Eligibility Criteria for the GIC Program

The GIC eligibility criteria to study in Canada are crucial to understand for prospective applicants. These guidelines ensure that only qualified individuals can participate. Let's delve into the specifics of these requirements.Academic Requirements

Students must have a minimum of 50% marks in their 12th grade, degree or diploma. This ensures that the student has a basic level of academic proficiency.

Language Proficiency

Students must achieve a minimum band score of 6.0 in IELTS. This is to ensure that the student has a sufficient understanding of English to study in Canada.

Financial Requirements

Students must open a Guaranteed Investment Certificate (GIC) with a Canadian bank. The typical amount required is CAD 10,000 + CAD 200 = CAD 10,200. This amount is treated as proof of funds and would be released to the student every month for 12 months for their study abroad and maintenance expenses along with interest.

Health and Character Requirements

  • Students must undergo a Medical Examination. This is to ensure that the student is in good health and will not pose a risk to public health in Canada.
  • Students must provide a Police Certificate. This is to ensure that the student does not have a serious criminal record.

The Process of Obtaining a GIC for the Canadian Study Visa

Navigating the GIC process of the Canadian Study Visa can seem daunting, but it's a critical step for international students. This procedure ensures financial stability during your studies. Let's break down this process.

Here is a step-by-step guide on how Indian students can obtain a GIC for the Canadian Study Visa:

Step 1: Register for Bank-Secured Email Service

To apply for a GIC, you need to register with an authorised Canadian bank to get secured email services.

Step 2: Submit the Student GIC Program Application

You will need to upload a copy of your Passport ID page alongside a copy of your academic transcripts to complete the registration process.

Step 3: Fund Your Account

For a single application, you will need to wire the equivalent of $10,000 CAD to the Canadian account in a single transaction or as necessary for you However, keep an eye out for transfer fees and exchange currency rate charges that might drive up the cost of your sizable transaction.

Step 4: Apply for the Canadian Study Permit/Visa

Once you have funded your account, you can then apply for your study Canada Student Visa

Step 5: Complete the Documentation FormalitiesAfter applying for the Canadian study permit or visa, you need to complete the documentation formalities.

Benefits of the GIC Program for Indian Students

The GIC Program offers numerous benefits for Indian students aspiring to study in Canada. These advantages range from financial security to smoother Canadian visa processes. Let's explore how these benefits can enhance your educational journey.

Some of the several benefits for Indian students planning to study in Canada:

  • Proof of Funds: A GIC serves as a guarantee to the Canadian government that Indian students have enough money to cover their living expenses for a year in Canada. This is crucial under the Direct Student Stream and expedites the application and its processing.
  • Guaranteed Returns: GICs are a common investment among international students since they offer guaranteed returns. Even while those returns are normally insufficient they appear more alluring to compensate for the interest rates and economic uncertainty, both, are rising.
  • Financial Planning: The GIC program helps students plan their finances for their first year in Canada. The money is released to the students every month or every two months for the first 12 months after the confirmation of their identity.
  • Safety and Security: GIC is one of the safest investments with little or no risk. Money back is guaranteed.
  • Simplifies Visa Process: Having a GIC simplifies the Canadian visa process as it serves as proof of funds. Students do not require any extra financial documentation to demonstrate to the Immigration, Refugees and Citizenship Canada (IRCC).

Understanding GIC Terms and Investment Security

Understanding GIC terms and investment security is key to making the most of the GIC Program. These terms govern your investment and ensure its safety. Let's demystify these terms and understand how they secure your investment.

Sure, here are some important GIC terms and their definitions:

  • GIC (Guaranteed Investment Certificate): A reliable investment that protects the money you deposit. When the term is over, you get your deposit back, plus the interest you earned.
  • Cashable (also called redeemable): A GIC that lets you withdraw your money early but there may be a penalty.
  • Compound Interest: A way of growing your money where the interest you earn is added to the original amount you invested.
  • Equities (also called stocks): Shares of a company that investors can buy on the stock market.
  • Fixed Rate:  An interest rate that doesn't change during your GIC term.
  • Laddering: A strategy that splits your investment into different GICs to maximise your returns.
  • Market Linked GIC: A GIC that's tied to the market. Your return from a Market-Linked GIC is based on the performance of underlying assets.
  • Maturity: The end of your GIC term.

Understanding Investment Security through GIC

Investment security through a Guaranteed Investment Certificate (GIC) works by locking your money into an account for a pre-determined amount of time, ranging from 30 days to 10 years. The longer the GIC's term, the higher the interest you'll receive. Interest can be paid out either monthly, quarterly, annually or at maturity. At the end of the term, you are paid back your full principal, plus any interest still owing. This makes GICs a safe and secure investment option.

Navigating Financial Planning with GIC in Canada

Financial planning with GIC in Canada is an essential aspect of your study journey. It helps manage your finances effectively during your stay. Let's navigate through this process to ensure a smooth financial experience.

  • Deposit Funds: Deposit a sum of money into the GIC account, which will be used to cover living expenses.
  • Monthly Release: Each month, a portion of the funds is released from the GIC account to meet daily expenses.
  • Budgeting: Plan your monthly budget based on the amount released from the GIC account.
  • Emergency Savings: Keep a portion of the monthly release for unexpected expenses.
  • Monitor Expenses: Regularly monitor your expenses to ensure you are staying within your budget.

The GIC Program is a valuable resource for Indian students planning to study in Canada, offering financial stability and aiding in the Canadian Visa process. Understanding its terms and navigating financial planning with GIC can enhance your Canadian study experience. Embrace this opportunity to make your educational journey in Canada smoother and more secure.

Ready to embark on your educational journey in Canada with the GIC Program? Connect with AECC today and let us guide you every step of the way.

FAQs

How to open a GIC account?

Opening a GIC account involves visiting the bank's website, filling out the application form, and depositing the required amount.

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