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Discussion in 'International Students' started by Meera, Apr 30, 2013.

  1. Dear All,

    I want to know regarding this new rule called GIC.

    Can I get a loan from Indian Nationalized bank for GIC amount as i got an answer from almost all the banks that there is no provision as such and GIC doesn't fall into educational loan bracket also it is not mentioned on the offer letter as well.

    Has anybody got the loan for GIC? if yes, then which bank and what are the documents required?

    This is really urgent as I am stuck with my loan processing

    Thanks a lot in advance!

  2. Hi,

    As a citizen of India, you have 3 options to apply for a Canadian study permit (visa) - SPP (only once you can apply, when you have a offer letter from any of the educational institute participating under SPP), University (if you are applying for a course in University) or Generic (general category, repeat applicants who earlier applied under SPP or general category).

    Here's the official list of Canadian educational institutes, participating under SPP program (India):

    GIC is Guaranteed Investment Scheme, a certificate, you have to purchase from a Canadian financial institution participating in this program in India, for amount of 10,000$ as a proof of living expenses for 1 year, as directed by the CHC. At present, Scotiabank is the only participating Canadian financial institution.

    However, GIC is ONLY compulsory for those first time applying for Canadian visa, under SPP. Rest both categories, can show a bank loan for amount equivalent to 10,000$ instead of a GIC.

    To know more, see the offical checklists of things required to apply under specific categories:

    SPP: http://www.vfs-canada.co.in/pdf/Student_Partners_Program_09022013.pdf
    University: http://www.vfs-canada.co.in/pdf/Delhi_study_permit_eng.pdf
    Generic: http://www.vfs-canada.co.in/pdf/study_permit_20-09-2012.pdf

    If you are applying under SPP, then GIC is compulsory and so, you may either pay for the living expenses i.e GIC (10,000$) directly from your own pocket (and may choose to take loan ONLY for tuition fees), or take an overall bank loan for tuition fees+ living expenses, and then ask the bank to wire transfer a part of that loan amount i.e $10,000 CAD (plus $100 CAD to cover administration fees etc.) to open a GIC in Scotia bank.

    To know more about GIC, visit the official site: http://www.scotiabank.com/ca/en/0,,5698,00.html

    Hope it helps.

    ***All opinions expressed are purely personal, and pieces of information mentioned are to the best of my knowledge... You should consult other sources too.
  3. Thanks a lot for the information!

    Do you know any nationalized bank who can help me to get this loan and wire transfer it.

    As nationalized banks are saying they cannot wire transfer it!

  4. Hi,

    They don't NEED to wire transfer it. It's not their job really. Usually, bank transfers the living expenses money into your personal savings/current/loan account here in India... and you can then transfer it to the GIC account with Scotia bank.
    Moreover, if the bank still refuses you to transfer the living expense funds allocated to you to a GIC account... then talk to the bank manager, explain the situation, show the SPP checklist, GIC website and figure out a way to be able to transfer the money... or else you won't be able to apply under SPP. Tell them it's the LAW. I'm sure, the bank will understand.

    ***All opinions expressed are purely personal, and pieces of information mentioned are to the best of my knowledge... You should consult other sources too.
  5. first of all...I doubt that Bank will transfer money to our own personal acount. I had a word with SBI loan officer and they would xfer it ot the university account only in case we opt for In campus residency.

    GIC would not accept 10k $ from account other than your personal account.

    considering all these, Being a University applicant, Its better to keep things simple and not purchase GIC.
  6. @Meera, I understand your dilemma as I faced the same issue. However, if you wish to get education loan and then get it processed. Of course they won't mind paying your tuition fee directly to college. But for GIC, yes you will face issue because in GIC (guaranteed investment certificate) you are the beneficiary. and banks, private or public will always raise a concern due to money laundering issues. What I did when I faced this issue was, I carried print outs of CHC (Canadian High Commission ) guidelines stating the process of GIC and the print outs from Scotia bank website mentioning the procedure of GIC. Then they agreed and transferred the funds (although I didn't take any loan, it was my own funds from my very own account to GIC, yet faced this issue). There were many participants who faced similar problem and above mentioned trick worked for them as well.

    @Mayank, you are right about the fact funds should originate from student's own account. However, as this is a new procedure and we all are just getting a hang of it. There were a few participants in this forum only who told me that they transferred funds from their father's account and they didn't face any issue and received GIC. Even if you take an education loan, the loan amount first gets credited to a loan account which is jointly operated by student and student's legal guardian (which in most cases is the father). So the question arose if this will create an issue or not, but students transferred funds from the loan account (which is in the name of student and father) and faced no issues at all in obtaining GIC.

    Hope it helps.

  7. Hi,

    Yeah.. may be. I once spoke with 3-4 Bank managers (all nationalized banks including SBI) and all of them said, that once the educational loan is approved... the tuition fees will be transferred directly to the college/university (every semester)... and the living expenses will either be transferred to the student's personal bank account/ loan account in India OR directly to the student's bank account in Canada. Most of the bank managers, I spoke to... completely refused to let the student change course/educational institute, as loan sanctioned is applicable ONLY for that original course/educational institute, while 1 bank manager agreed to let student change only the course, provided it is within the same educational institute. And yet, there are forum members, whose bank managers easily agreed to let them change course/ educational institute, by simply producing a new offer letter. So, it varies... and is entirely at the discretion of a particular bank manager/ bank branch on how much freedom and flexibility they give students, to utilize the educational loan.

    ***All opinions expressed are purely personal, and pieces of information mentioned are to the best of my knowledge... You should consult other sources too.
  8. Thanks a lot friends!

    You guys actually gave really good suggestions and understood my problem! I will try these tricks mentioned by sabby2612.
    But it seems to be really difficult to get the loan sanction from any of the nationalized bank for GIC, where I visited.

    I was wondering if anyone out in this forum has actually got the loan from any bank for GIC especially in Lucknow or Mumbai (India) and what are the supporting documents used to get it?

    Visiting banks almost everyday but not getting any solution to this problem? seems like its really tough to fulfill this dream!

  9. check your inbox.
  10. @Sabby

    Inbox me as well :p

    @ Meera

    I am not sure why are you so concerned about taking GIC if u are an University applicant
  11. @ mayank i applied for community college which falls under SPP, so GIC is compulsory.

    And for that getting loan is must in my case
  12. Hi,

    My bank manager was the best. He said - "Apply for 1 life insurance policy through me and don't worry about loan"
    Punjab and Sind Bank.

    Good Luck.
    AKRAI997 likes this.
  13. @ Mayank, should there be a need, you will also get something in your inbox. ;)

    @Meera, I have given you a solution, you should check your inbox.

  14. lol..... which city?
  15. hi
    i intended to go seneca college which comes under spp

    soo coming to financial issue

    college fee per year is $12000 ( 12000 X 2 = 24000 )

    living expenses 10,000 $ per year = 20,000$

    tuition fee + living expenses = 44,000$ roughly around 24,00,000 INR , of which the bank will give 80% only so its 20 lakhs

    1) college fee for 1st sem = ill pay from my pocket ( $6000 )

    2) GIC = 10,000 $ ill pay gic from my pocket

    3) bank loan around 20 lakhs

    is this fine wid the financial proof ?
    or should i have to change any thing ?

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