loan letter instead of bank statement?

[sandrakhan]

Hello,

I have done MBA finance. i am getting admission in LSBF toronto campus. can i use loan letter ALONE instead of bank statement? i am obtaining loan frombank alfalah of about PKR 22 lacs by depositing 25 lakhs (cash on cash loan). some people said that using loan letter for study visa can weaken the case. is that so? i need an urgent help please.

 

[Junaid.Bjorn]

Hello,

I have done MBA finance. i am getting admission in LSBF toronto campus. can i use loan letter ALONE instead of bank statement? i am obtaining loan frombank alfalah of about PKR 22 lacs by depositing 25 lakhs (cash on cash loan). some people said that using loan letter for study visa can weaken the case. is that so? i need an urgent help please.

Loan is good. But from what i've heard, bank statements strengthen the case more. The more money you show the better.
1 year fee + $10,000 CAD.
Make sure the loan covers all of it. But, like always, if you want to strengthen the case, show a bank statement no matter how much. It's always good for the VO to know that we have money apart from the loan. The loan could show ties to your nation, in a sense of obligation which must be fulfilled. So yes. Loan, but whatever money in the bank, show it.

 

[sandrakhan]

thanks for a quick response. well the fees for one year is about 6000 CAD + 10000 CAD but i am showing a bit more thats about 22 lacs PKR. can i show, in addition, the property papers plus investments of my parents... or the value of my current home?

 

[Junaid.Bjorn]

thanks for a quick response. well the fees for one year is about 6000 CAD + 10000 CAD but i am showing a bit more thats about 22 lacs PKR. can i show, in addition, the property papers plus investments of my parents... or the value of my current home?

Sure, you can do that. But you must understand the purpose of showing money in the bank. The Canadian High Commission asks for a bank statement because they want to see our liquid assets.
Your an MBA holder, and you know nothing is more liquid than money in the bank, just ready to be spent should an emergency arise. That's the assurance they need.


Showing property is tied up. It's an asset being invested. And not necessarily immediately disposable for a sum. However, it serves its purpose as showing home ties to your country. THAT is a plus for you. Many failed applicants are rejected under S179 because they failed to show enough home ties. Whereas showing property and your parents investment will clear it, InshaAllah.

However, showing property does not substitute a bank statement. It is important that you show all and any cash earnings. Anything at all. Including the loan. Like i said, the more the better.

 

[sandrakhan]

but u seee i dont have lacs and lacs in my bank for last four months... that would be hardly 10 lacs in my account for last month and sometimes 3 or 4 lacs.... means cash goes and comes.... so would that be gud showing this much statement in addition to loan letter?

do we have to show the origin of money?i mean i was not earning so owdid i have this much amount in my bank, do i have to show that as well?

 

[rhasan]

but u seee i dont have lacs and lacs in my bank for last four months... that would be hardly 10 lacs in my account for last month and sometimes 3 or 4 lacs.... means cash goes and comes.... so would that be gud showing this much statement in addition to loan letter?

do we have to show the origin of money?i mean i was not earning so owdid i have this much amount in my bank, do i have to show that as well?

I am not sure about your country's rules but when a person shows his/her bank statement (aka self-financing), it means he/she earns through some sources (business/job) and should also be a tax payee. If not a tax payee, proper documents such as salary statement should be presented showing your income is not entitled for paying tax. In case of inheritance, proper documents of such should be shown.

And it is always wise to show bank statement of more than 4 months. It is not good if the starting balance in the statement is very high. I have seen cases where VO rejected application and asked for bank statement for 1 year because probably they were not sure about the origin of some transactions. For example, if you have deposited 3lacs PKR in your account on March and shows the bank statement from April, they will see that you account suddenly got 3Lacs in it (assuming you did not have any large amount of money before depositing that amount) and will have doubts of the origin. But if you include the month of march in your bank statement, your case will be clear since the origin (deposited the money) is shown.

 

[Junaid.Bjorn]

but u seee i dont have lacs and lacs in my bank for last four months... that would be hardly 10 lacs in my account for last month and sometimes 3 or 4 lacs.... means cash goes and comes.... so would that be gud showing this much statement in addition to loan letter?

do we have to show the origin of money?i mean i was not earning so owdid i have this much amount in my bank, do i have to show that as well?

Who's sponsoring you?
If it's your parents, then show the bank statement. Rhasan is right, large amounts in a short span create questions. Show as many months as you can. 6 months is good.

My December '10 bank statement started with 4,000,000 PKR (40 laks) and by July 2nd (the date i applied) it had come to 10,000,000 PKR (1 crore) ($110,000 CAD approx.)
Its a normal account showin transcations in and out but the money was built over the months like Rhasan said. No sudden transfer.s

 

[sandrakhan]

as i mentioned i am going to obtain student loan that would be sufficient to finance my studies. bt as u said its also better to show bank statement, so i will show my bank statements having normal amount of upto 10 lacs in past 4-5 months.
the problem is that i made my ming in june to apply for study visa for jan intake. so i dint put money in the account previosuly for this purpose. and if i now start the process of transferring money to my account then i won be able to get enrolled for jan intake thats y im obtaining loan. plus i can show my routine bank statements (but do i have to show that the money in my account was beng given by my parents to me orthing like that).. plus i can show property papers of my parents as well.

what do u say now?
or just a LOAN LETTER alone would be enough?

 

[rhasan]

as i mentioned i am going to obtain student loan that would be sufficient to finance my studies. bt as u said its also better to show bank statement, so i will show my bank statements having normal amount of upto 10 lacs in past 4-5 months.
the problem is that i made my ming in june to apply for study visa for jan intake. so i dint put money in the account previosuly for this purpose. and if i now start the process of transferring money to my account then i won be able to get enrolled for jan intake thats y im obtaining loan. plus i can show my routine bank statements (but do i have to show that the money in my account was beng given by my parents to me orthing like that).. plus i can show property papers of my parents as well.

what do u say now?
or just a LOAN LETTER alone would be enough?

Since your parents will be giving you the money, keep those money in your parent's account and ask for their sponsorship. Showing large amount of money in your account without having any sort or income/business and not being a tax payer is not acceptable. And if you show that your parents transferred the money to your account, VO will simply raise the question "WHY?".

It is much simpler to ask your parents to show their account along with a affidavit. It is not necessary to show money in applicant's own account unless he/she has income/business/tax payer.

 

[Junaid.Bjorn]

Since your parents will be giving you the money, keep those money in your parent's account and ask for their sponsorship. Showing large amount of money in your account without having any sort or income/business and not being a tax payer is not acceptable. And if you show that your parents transferred the money to your account, VO will simply raise the question "WHY?".

It is much simpler to ask your parents to show their account along with a affidavit. It is not necessary to show money in applicant's own account unless he/she has income/business/tax payer.

Yes, frankly thats normal procedure. Its nothing different. over 90% of students are funded by parents. All you need to do is write a letter stating that your parents will fund your studies and pay for any unexpected event during your proposed stay in Canada. And just get it signed by your parents and attach whatever financial documents along with it in the application package

 

[sandrakhan]

the thing is my parents dont have lacs and lacs which are required to be shown in their bank accounts for last four months...they just have the normal bank amounts...which are not sufficient... they have invested their money,,,they have properties...etc. so can i show those in addition to the student loan that i ll obtain personally...

 

[rhasan]

the thing is my parents dont have lacs and lacs which are required to be shown in their bank accounts for last four months...they just have the normal bank amounts...which are not sufficient... they have invested their money,,,they have properties...etc. so can i show those in addition to the student loan that i ll obtain personally...

yes you can