Studying in Canada has become more expensive for Indian students. From September 1, 2025, students must show a minimum of Rs 14 lakh as proof of living expenses. This change comes from Immigration, Refugees and Citizenship Canada (IRCC). Students can no longer rely on jobs in Canada to manage basic costs. You must prove your financial readiness before arrival.
Let’s break it down step by step so every student planning to study in Canada clearly understands what has changed and what to do next.
Why Has Canada Raised the Living Cost Requirement?
The Canadian government wants international students to stay financially safe. Many students used to arrive with limited funds and hoped to earn while studying. But part-time jobs don’t always cover all costs. Some students faced financial stress or even exploitation. To protect students and make sure they can live safely, Canada updated its proof-of-funds rule.
What's the New Requirement?
From September 1, 2025, Indian students must show Rs 14 lakh or more as living expense proof (not including tuition fees). This amount comes from the updated CAD 22,895 living cost for single students. The cost is based on the Low-Income Cut-Off (LICO) used by the Canadian government to calculate basic needs.
Previous vs. New Requirement
Period Required Living Funds Before Sept 1, 2025 CAD 20,635 (~Rs 12.6 lakh) After Sept 1, 2025 CAD 22,895 (~Rs 14 lakh)
If you apply before September 1, 2025, the older lower amount still applies.
Family Members? Here's What You Must Show
If you plan to take family along, the required amount increases. Below is the IRCC’s updated support chart:
Living Expense Thresholds for 2025
- 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 amount does not include tuition fees or travel costs.
What Documents Count as Proof of Funds?
Students must submit one or more of the following:
Bank statements (last 4 months)
Paid receipt for tuition or housing
Guaranteed Investment Certificate (GIC) from a Canadian bank
Proof of education/student loan
Canadian bank account statement showing transferred funds
Letter of financial support or scholarship
Bank draft in convertible currency
💡 Important: If your country has currency exchange controls, also show documents proving you can legally transfer funds to Canada.
What About Students Going to Quebec?
Quebec has separate guidelines for study permits. Students applying there must also show:
Proof of tuition payment
Proof of settlement and travel funds
Health insurance proof for the full study period
📌 If your country has a social security agreement with Quebec, some health coverage may be waived.
Key Reasons Behind the Update
The IRCC says this step is important for several reasons:
Reduces student financial stress
Avoids over-reliance on Canadian part-time jobs
Protects students from fraud or workplace abuse
Reflects real living costs (adjusted for inflation)
This new rule aims to create a more stable and safe environment for international students.
What Should Indian Students Do Now?
To stay on track, follow these simple steps:
✅ 1. Calculate Your Total Expenses
Add up all expected costs:
Tuition fees
Living expenses (Rs 14 lakh)
Travel costs
Family expenses (if any)
✅ 2. Gather Acceptable Financial Documents
Start collecting valid proof early. Ensure documents are official and recent. Your bank statements must show funds in your name (or your sponsor’s name) and match the required amount.
✅ 3. Plan to Apply Before Sept 1, 2025 (if possible)
If your finances only meet the older amount, try to apply before the new rules kick in. This can save around Rs 1.4 lakh or more in living cost proof.
✅ 4. Prepare for Currency Exchange Regulations
If India’s currency laws apply to you, get clearance or proper documents to prove legal transfer of funds to Canada.
✅ 5. Bookmark Official Pages for Updates
Rules change every year. Visit:
IRCC Page
Québec Page
What Happens if You Don’t Meet the Fund Requirement?
If you can’t prove enough funds, your study permit will be rejected. You must also show that your source of funds is legal and can cover living + tuition + travel.
Is Studying in Canada Still Worth It?
Yes, it is. Canada is one of the top choices for quality education, especially in STEM, healthcare, business, and research. With proper financial planning, students can still manage the cost and gain from high-quality education, multicultural experience, and post-study work options.
Conclusion: Start Preparing Now
Canada’s new fund rule is about student safety and preparation. Indian students must now prove they can support themselves during their education journey. So start early, arrange valid documents, and apply before September 2025 if possible.
Quick Summary
Rs 14 lakh now needed to prove living funds (as of Sept 1, 2025)
Proof must be valid and verifiable
Separate rules for Quebec students
Plan ahead to meet the new requirements