Studying in Canada to Get Costlier: Indians Must Show ₹14 Lakh for Living Expenses
Indian students aspiring to study in Canada will now need to demonstrate proof of funds exceeding ₹14 lakh (approximately CAD 22,895) to cover living expenses, apart from tuition fees, following a new mandate from Immigration, Refugees and Citizenship Canada (IRCC).
The updated proof-of-funds requirement, set to take effect from September 1, 2025, aims to ensure that international students can financially support themselves without relying on part-time work once in Canada. The policy change is part of Canada’s effort to reduce the financial vulnerability of international students, especially in light of rising living costs across the country.
New Fund Thresholds Explained
Currently, international students are required to show proof of funds of CAD 20,635 for living expenses (excluding tuition and travel). Under the new rules, this amount rises to CAD 22,895 — an 11% increase for single applicants.
This figure translates to over ₹14 lakh, significantly raising the financial barrier for Indian families planning for international education.
The new rule applies to all provinces and territories except Quebec, which maintains separate guidelines for student immigration. Applicants who submit their study permit applications before September 1, 2025, will still be assessed under the previous thresholds.
Updated Living Expense Table by Family Size (Excl. Quebec)
- 1 person: CAD 22,895
- 2 people: CAD 28,502
- 3 people: CAD 35,040
- 4 people: CAD 42,543
- 5 people: CAD 48,252
- 6 people: CAD 54,420
- 7 people: CAD 60,589
- Each additional family member: +CAD 6,170
This calculation is based on Canada’s Low Income Cut-Off (LICO) threshold and is adjusted annually to reflect inflation and the rising cost of living.
Acceptable Proof of Funds
To meet the requirements, applicants must provide one or more of the following documents:
- Receipt of paid tuition and housing
- Bank statements from the last four months
- A Guaranteed Investment Certificate (GIC) from a Canadian financial institution
- Proof of a student or education loan
- Statements from a Canadian bank account showing transferred funds
- Bank draft in a convertible currency
- Letter of financial support or official scholarship documentation
Applicants from countries with foreign exchange controls, like India, may also be required to show legal approval for transferring funds abroad.
Why the Change?
The IRCC stated that these updates are meant to safeguard students from financial stress and potential exploitation due to over-reliance on part-time jobs. It also aligns with Canada’s broader strategy to screen applicants more rigorously, following a surge in international student numbers and increased scrutiny over their financial preparedness.
Many students in recent years have struggled to meet basic living expenses in cities like Toronto and Vancouver, where housing costs are soaring. The new rules intend to mitigate such hardships.
Separate Rules for Quebec
Students applying to institutions in Quebec must meet additional criteria:
- Show proof of funds for tuition, travel, settlement, and health insurance.
- Health insurance must cover the entire duration of stay, unless the student qualifies for an exemption due to a social security agreement with Quebec or is already insured.
What Prospective Students Should Do
With the deadline less than a year away, students and families are advised to:
- Calculate total expenses: Include tuition, living costs, travel, and dependents if any.
- Gather documentation early: Especially for bank statements, GICs, or educational loans.
- Apply before Sept 1, 2025, if the earlier fund threshold is more achievable.
- Bookmark IRCC and Quebec official websites for updates on policy changes.
Final Word
The revised policy marks a significant shift in Canada’s international education framework. While it raises the bar financially, it also reflects a commitment to ensure students are genuinely prepared — both financially and legally — for life in Canada.
For Indian students, this could mean more meticulous planning, higher upfront financial commitments, or reassessing timelines for applying. Nonetheless, those who qualify will likely benefit from a more stable and secure academic experience abroad.
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