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GIC + Education Loan

Discussion in 'International Students' started by raoulshrma, Oct 24, 2013.

  1. Dear All,

    I've applied for an educational loan which basically would cover my first sem tution fees and the GIC amount.

    GIC guidelines clearly dictate that"Funds must originate from a bank account under the name of the student/applicant in India (only funds with a matching sender and beneficiary name will be accepted), otherwise the money will be returned to the bank in India from where the original remittance was made and the GIC will not be processed".

    Problem is because this is an educational loan, funds won't be transferred to my account, they will directly be transferred to the concerned college/Scotia bank but GIC guidelines dictate otherwise.

    Anyone suggestions on how to go about this ? Any students who have taken a loan for GIC - Can you please share as to how did you manage this.

    I've written to Scotia bank as well, will revert if I hear on this from them.

    Best Regards.
  2. I believe when you take a loan you have to open up two accounts one will be the loan account (in applicant's name) an other is savings bank joint account (in the name of applicant, Co-applicant & Guarantor). Once you decide upon your disbursement ratio (ie, bank's participation & yours), then while remitting money to GIC bank send's money from your loan account directly to Nova Scotia Bank (and in the process takes in your participation in the ratio, from your savings bank account).

    So, in the end GIC receives the money on your (ie, student's) behalf only.

  3. if u have taken education loan which covers living expenses (10000 cad) also, then gic is not required..as per cic rules, u can choose either education loan or gic (for spp), and for university category applicants, if they show the amount in their account (without education loan and gic), it will be fine.
  4. It is not required to open two SB Account.. From the loan account the bank will transfer to Scotia Bank for GIC You can inform the same to the banker.. contact the bank
  5. Upon approval of your education loan bank will open a loan account on the name of applicants(you and your co-borrowers). Any amount paid to GIC or college would be transferred from this account which is of course on your name.

    As "helix" mentioned, bank would transfer the amount after deducting margin money, so the rest would have to be paid by you.

    Its not important to have a SB account in the bank where you are applying for loan, though some banks insist upon this stupid practice as no money from your loan account is disbursed directly into this account.
  6. Hi all

    My bank (CBI) is not allowing me to fund GIC from my education loan. They are saying , it is not included in Education loan (tuition fees,flight tickets,study material,laptop etc .are covered only)Can anyone please tell which bank branch granted tutition fees along with GIC ? Really urgent. :(

    Thanks in advance! :)
  7. Is GIC is included in education loan or not ?

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