International students applying for a student visa need to provide proof of funds. It proves that students have enough money to top up their tuition and living expenses while at school overseas. It is so that they cannot solely depend on part-time work and can focus on their studies. Proof of funds is important, as it shows immigration authorities that students won’t be financially strained, and so avoid things such as homelessness or illegal employment. It also shows that the host country’s resources will be spared from being a burden for the students.

In this blog, we’ll discuss how much proof of funds you need for studies at the USA, UK, Canada, Australia, and other popular study destinations. It will provide you with comprehensive details on the different acceptable modes to fund your study abroad and specific pre-visa disbursements for each country so that you know clearly what you need to study abroad successfully.

Why do we need to have proof of funds to obtain a VISA?

  • Financial Security: This makes sure that students do not have to run into financial problems when staying in. It would reduce the risk of the students needing to be busy with their studies and having to give up as a result of financial issues.
  • Assurance to Universities: Universities want to make sure that students don’t fail in their courses due to financial problems. Proof of funds shows they can pay for the cost of their education and living while they’re in the program.
  • Immigration Compliance: Proof of funds from students keeps them from relying too much on part-time jobs that would otherwise take jobs away from local citizens. It also prevents illegal immigration and prevents students from living longer than their visa allows because they can't afford it.

An Overview of top countries and their Pre-VISA funds disbursement:

Country Tuition fee to be disbursed before Visa Living expenses to be disbursed before the Visa
Germany None
  • 1-year expenses into a Blocked account.
  • 11,208 Euros= 10 lakhs INR
Canada 1-year tuition fee
  • 1-year expenses into GIC account.
  • 20,635 CAD=13 lakhs INR
New Zealand None
  • 1-year expenses into FTS account.
  • 15,000 NZD=7 lakhs INR
Australia 1-year tuition fee
  • 1-year expenses disbursement.
  • ~10 lakhs INR 
Ireland 1-year tuition fee
  • 1-year expenses proof.
  • 7,000 Euros = 9 lakhs INR

Proof of Funds for the USA Student VISA

Students who are willing to pursue their higher education in the USA are required to show proof of funds to be eligible for one. Students who are self-funding their higher education have to display the presence of sufficient funds that can cater to their living expenses, tuition fees, book expenses, food expenses, and other miscellaneous expenses, in their bank accounts. Students who are availing of an education loan to finance their education have to display proof of funds in the form of a sanction letter provided by their respective banks. 

The funds to be displayed are mentioned in the I-20 form which is provided to the students along with their admission letter from their respective universities only after they show proof of their funding source to the university. 

To know more, listen directly from Ms Damini Mahajan in the 17th Episode of the Loanflix web series. This is a must-watch for students who have decided to study in the USA.  

Also, to know the complete process read this article: US Education Loan Process - Everything you need to know.

Proof of Funds for the UK Student VISA

For study in the UK, students are not required to deposit/disburse any money as the UK government does not ask aspirants to submit proof of funds in any account as such but they may need to display the presence of funds(sanction letter) covering expenses for the duration of their studies to be granted a student Visa by the government. 

Students are mandated to submit a CAS/ATAS for a UK student visa. CAS means Certificate of Acceptance for studies. The funds to be displayed depend on your course fees which are provided on your Certificate of Acceptance for Studies (CAS), the duration of your course, your study program, etc. 

As students should have enough money to pay for their courses and support their living in the UK, it is estimated that for living in London, it will be around £1250 per year, and for courses outside London, it will be around £1015 per year. 

As soon as students receive their university admits, they should immediately request a CAS certificate from their respective universities. To obtain this certificate, students are supposed to deposit a certain amount as token money which is usually between 1 to 3 lakhs INR. This token money amount varies from one university to the other. If you feel that the token money quoted by your university is too high and that you may need to include this as an expense in your education loan application, then you need to be aware of the time (1 month before your visa process) required to obtain the CAS certificate from your respective university and then apply for a UK education loan accordingly.

Proof of Funds For Canadian Student VISA

Every year, a large number of students from India enroll for higher education in Canada as they offer high-quality education and due to the myriad work opportunities provided by the country.

To be eligible for study in Canada, students must meet the requirements laid down by Canadian legislation. The Canada student visa requirements state that higher education aspirants from India need to deposit their one year’s living expenses into a GIC account and submit documents as proof of funds to the embassy while applying for a Canada student visa. GIC accounts can be opened with Nova Scotia Bank, CIBC, SBI Canada, and ICICI Bank Canada.

These expenses include approximately CAD20,635 per year for living expenses which include food, housing, clothing, and medical insurance, and from CAD 6,000 to CAD75,000 per year for tuition. Therefore, a student must have at least CAD 22,000 available for their first year of study at the university. One should also be able to show that they will have an equivalent amount for the subsequent years. 

To know more, you can check out the 18th Episode of the Loanflix web series. This is a must-watch for students who have decided to study in Canada and learn about Canada GIC, payment of tuition fees, how to decide on the disbursement amount while applying for an education loan for Canada, etc. 

Proof of Funds for German Student VISA

Students willing to study in Germany must deposit their one year’s living expenses into an account before applying for a  German student visa. For this purpose, students are liable to open a Sperrkonto or blocked account with Kotak-Mahindra Bank as it is tied up with Deutsche Bank in Germany to deposit their living expenses for a year. Other banks to choose from are- Expatrio, Fintiba, and Coracle.

According to the estimations made by the official education loans and scholarships regulator in Germany, students will need €11,208 per year which equals 10 lakhs INR minimum to be able to live in a country like Germany.

Even though the students do not have to pay over the odds to live in Germany, authorities still want to ensure that a student has sufficient financial resources to live and study in Germany. Because of this, students have to submit proof of funds to avail of a student visa at the embassy. 

The documents indicating the opening of this blocked account have to be submitted as proof of funds for a German student visa. To know how you can fulfill this German student visa requirement when you are funding your studies with the help of an education loan, do get in touch with the financial team of WeMakeScholars.

Also, read this article: Study in Germany: How to Open a Blocked Account & Other Details 

Proof of Funds for Australian Student VISA

Students who are willing to study in Australia have to first submit proof of funds to their respective institutions before getting a confirmation letter. Students need to arrange funds once they receive their admission letter from their respective universities before they apply for a student visa to study in Australia. Students have to show the presence of funds to the Immigration Department. 

On receiving the admission letter from their respective university, students need to deposit at least one semester’s tuition fees to the university account along with the health insurance charges. They are also responsible for depositing their one year’s living expenses into a savings account. 

Once the university receives the confirmation of payment of the above funds, they issue COE (Confirmation of Enrollment). The Australian embassy requires students to deposit their funds in a certain way. Students need to provide the university account details to which the tuition fees and health insurance funds are transferred by their respective banks.

On the successful transfer of funds by the bank to the university, students are required to send the payment receipt to their university. The receipt of this payment is the accepted proof of funds according to the Australian student visa requirements, on receiving these documents, the university issues the COE, which is required for a student visa to study in Australia.

Proof of Funds New Zealand Student VISA

The New Zealand student visa requirements state that applicants are required to deposit their one year’s living expenses into a savings account. This process is called an FTS (Funds Transfer Scheme). This FTS can be done with Australia-New Zealand Bank(ANZ Bank). In the New Zealand student visa process, candidates need to fulfill certain financial pre-conditions before they can qualify for one.

Deposit their living expenses for at least a year of their course duration with a bank based in New Zealand.
Pay their annual tuition fees before their visa process.
The New Zealand embassy has estimated NZ $15,000 as the cost of living in New Zealand for Indian students. These living expenses do not include their tuition/course fees. All international students studying in New Zealand are eligible to withdraw the following amounts from their FTS accounts every month.

On depositing NZ $15,000 which is the minimum estimated cost of study for Indian students in New Zealand, a monthly sum of NZ $1,250 can be withdrawn by students every month for 12 months of their stay in New Zealand.

Once students have opened their FTS account, they are required to submit the documents indicating the purchase of the same as proof of funds for New Zealand, thus fulfilling the New Zealand student visa requirements.

Note: 

If you apply for a student visa to Australia or New Zealand, you need to show that your funds are from a legitimate source. Students at both embassies need to prove that they can afford their tuition fees, their living expenses, and all other costs while studying in the UK. Talking about having secured education loans from reputed Indian government banks like SBI or other well-known banks can take a huge boost in their visa interview process if they are Indian students.

The students receive the approval of an education loan which helps the immigration authorities know that the student has a stable financial plan and doesn’t worry about financial instability. This also helps add credibility to a student’s application since the student must demonstrate the ability to repay the loan to a recognized financial institution. It helps to remove some of the hurdles for visa approval and makes it more likely to work.

Different sources to fund Higher Education Abroad

Before elaborating on the student visa requirements regarding the proof of funds, let's first acknowledge the most prominent sources of higher education funding which are commonly shown as proof of funds by the students to study abroad. 

Students aiming to study abroad can look for multiple options to fund their education but generally, students aspiring to pursue higher education go through any of the three sources mentioned below:

  • Fully funded or partially funded scholarships
  • Self-funding
  • Education loans

Out of these three options, students opt for education loans as this is one of the most practical options to fund their higher education. The main benefit of availing of an education loan is that it ensures a timely and continuous supply of funds. 

In India, there are two types of education loans:

The money from education loans becomes extremely important to students because it will be useful in obtaining an unconditional admission letter, a Visa, and buying plane tickets before even paying the tuition fees. It is a well-known fact that a Visa is the deciding factor for flying abroad for your education and the Visa process only begins after you have obtained proof of funds. But, why would you need proof of funds after securing admission into the university and getting an approved education loan? Let us know why.

Here we have come to the end of the article. 

Our team at WeMakeScholars works very closely with notable banks and NBFCs and ensures that candidates who have applied for abroad education loans through us do not face the problem of getting their pre-visa disbursements. When you apply for an education loan abroad through our team, about 80% of the process is cut short. Our team has been at the core of a lot of education loan policy decisions taken by major public banks in India. So what are you waiting for? Request a callback from our team today and avail of our team’s assistance for an uninterrupted education loan process and pre-visa processes too.

FAQ

  1. Why is proof of funds important for obtaining a student visa?
    Having proof of funds is essential to securing a student visa because it shows immigration officers that you can afford to live while you study and can't have to rely on illegal work or highly public funds. This is important so that students are able to pay tuition, living expenses, and the sorts of costs associated with university without falling into financial difficulties. It also helps the host country know you won’t stay beyond your visa and be a financial drain on the state. If an international student does not provide proof of funds, a visa application may be denied because countries want to make sure that the students do not displace their educational or immigration systems.
  2. What are the common sources of funding for studying abroad?
    International student education is self-funded by the student or by contributions from family members who are financially stable and can sponsor a student’s education. Students often borrow from government banks, private financial institutions, and international lenders for specialized education loans. Indian government banks in particular offer student loans and showing loan approval is usually a good way to provide proof of funds. Government, universities, or private scholarships can bring down financial wraps. Tuition and sometimes living expenses are covered, at least in part, by full or partial scholarships. International students are allowed to work part-time in some countries but this is not normally acceptable as evidence of funds for a visa application.
  3. What do I need to show as proof of funds for a US student visa?
    To prove you can pay for your education and living expenses for the first year, along with how you plan to pay for the rest of your years, is required for a US student visa (F1). Financial requirements for applying include Bank statements from the past 3 to 6 months that indicate having sufficient savings, a Sanctioned loan letter from a bank or financial institution mentioning an approved education loan, a Scholarship letter if you’re awarded any scholarships or financial aid by the institution or third party, Affidavit of support from sponsors if available along with their financial documents. This information has to match the estimates provided on your I-20 form, which should indicate the cost of attendance at your particular university.
  4. What is the required proof of funds for a German student visa?
    You have to open a blocked account (Sperrkonto) before your visa interview to get a German student visa. You are asked to deposit €11,208 (approximately 10 lakhs INR) which would be enough to take care of your living expenses for one year. When you are in Germany you will not be able to withdraw more than €934 a month, to make sure you have enough money during your stay. A formal scholarship or grant, or formal declaration by a third party sponsor with adequate financial resources is also an acceptable source.
  5. How much should I deposit for an Australian student visa?
    If you’re on an Australian student visa, then to meet the proof of funds requirement you have to present evidence of sufficient funds to cover one year’s tuition fees, living costs, travel expenses, and health insurance. Generally speaking, living costs are about AUS $21,041 per year, combined with tuition, the required funds come to AUS $65,000 to AUS $75,000, depending on the university and course. Bank statements or education loan sanction letters, evidence of sponsorship or proof of income from a family member or guardian, and bank statements and tax returns are examples of how the funds can be demonstrated. However, students will also need to have valid Overseas Student Health Cover (OSHC) for the period of their stay, as well as a visa, as the Australian embassy is also in need of all of these
  6. What are the proof of funds requirements for a Canadian student visa?
    To apply for a Canadian student visa, you have to prove that you can pay both your tuition fees and living expenses. For living expenses, you usually need at least CAD $10,000 (around 6 lakhs INR) for the first year and tuition. A Guaranteed Investment Certificate (GIC) with a Canadian bank will be the easiest to meet the requirement, requiring you to deposit at least CAD $10,000. The GIC guarantees that you can withdraw a part of this amount monthly for your living expenses. Some other documents that can act as proof of funds are Sanctioned education loan letters, Scholarship letters or financial aid grants received by Canadian universities / other institutions, Bank statements, etc.
  7. How do I meet the proof of funds requirement for a New Zealand student visa?
    Proof of funds requirement for a New Zealand student visa is a must which means that you have to show that you have at least NZ $20,000 (roughly around 9.8 lakhs INR) per year for your living expenses, or NZ $1,667 per month if your course is less than a year. You should also display the way you will fulfill your tuition fees, most usually by including Bank statements confirming savings amount, Loan sanction letter, and Scholarship documentation. You can also join the Funds Transfer Scheme (FTS) where you deposit your living expenses into a New Zealand bank account and withdraw a set amount a month to cover your stay.